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Hyundai sales tank due to weak sales in China, Russia

Hyundai Motor's global volume dipped 13 percent in January to 338,035 deliveries. The drop is the automaker's first worldwide decline since July 2015, according to Bloomberg. The current slump of the once-booming Chinese market is especially hurting Hyundai's global volume, and a downturn in Russia also isn't helping the company's situation. Sales are down 1.1 percent in South Korea and 14 percent outside of the automaker's home market, according to Bloomberg. Hyundai expects the difficult situation to last much of the year. While Hyundai had a hard month internationally, the automaker's US division just reported its best January volume ever. The company delivered 45,011 vehicles, which was up one percent over 2015. The strong performance came in part from a 72-percent jump in Tucson volume and a 55-percent improvement for the Veloster. The company forecasts a strong year here in the States thanks to the introduction of the 2017 Elantra and an upcoming refresh for the Santa Fe. Hyundai already has a plan to build strength in the US and rebound elsewhere. For example, the company wants to capitalize on American's hunger for utility vehicles by adding capacity to build more of the Santa Fe Sport. It also intends to launch a B-segment CUV to challenge models like the Jeep Renegade, and the Genesis luxury sub-brand would eventually get an SUV, too. A cost-cutting strategy should help offset the downturn outside of this market. Related Video:

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Hyundai Azera fate in question for US

The Azera has been consistently outsold by its rivals. Through June, Hyundai has shifted just 4,191 units.
Hyundai's dealers call the Azera the "nicest car nobody knows about." That's according to Mike O'Brien, Hyundai Motor America's vice president of corporate and product planning. Indeed, the fullsize sedan is a handsome, well-rounded machine, loaded with creature comforts. Yet it's not selling well, and its space in Hyundai showrooms is about to get a whole lot more crowded thanks to the newly spruced-up 2015 Sonata. No surprise, then, that company officials admit that the model's future in the US is uncertain.