Hyundai Motor (005380.KS) will in
March unveil the first major makeover of its top-selling Tucson sports utility
vehicle in six years in a bid to revive growth in key markets like Europe and
the United States where SUV sales are now strong.
The
debut follows what analysts say was a sluggish start last year for the South
Korean automaker's flagship Sonata sedan in the U.S. and Korean markets. Hyundai, which with
affiliate Kia Motors is the world's fifth largest automaker, is also facing
stiff competition from Japanese firms as the yen weakens.
Last
year, Hyundai lost market
share in both Europe and the United States. Analysts said the company needs to
offer customers more options in the SUV segment, which has become especially
popular as oil prices plunged.
"The
new model should help lift Hyundai sales, but
market conditions are tough now. Differentiating the Tucson from the rest of
the pack will be challenging," said Ryu Yen-wha, an analyst at IM
Investment & Securities.
Hyundai's U.S. sales inched
up 1 percent in January from a year earlier, lagging the market's 14 percent
gain, which was fueled by sales of SUVs and trucks. Hyundai is
optimistic about the prospects of the relaunched Tucson, which is expected to
ride the global SUV boom, a spokesman said.
Tucson,
a compact SUV, is Hyundai's
top selling vehicle in western Europe and is also one of its biggest sellers in
China, the United States and South Korea, its top three markets.
On
Tuesday, Hyundai unveiled a
teaser video in which chief designer Peter Schreyer introduced a sketch of the
new model ahead of its March 3rd debut at the Geneva auto show.
Hyundai's growth prospects
have been clouded by declines in the rouble, which cuts its earnings from major
market Russia, and the weaker yen. These concerns have fueled investor anger
triggered by the company's purchase of a $10 billion Seoul property last year
for three times its appraised price.
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