Hyundai and Kia Continue to Flourish in Europe

It is old news by now that the European auto market is shrinking, but there are companies who are growing steadily in Europe - HyundaiHyundaiRepublic of Korea, 1967 > present79 models
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and KiaKiaRepublic of Korea, 1944 > present52 models
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. 

European auto sales are down 7.2% for the year so far. However, Hyundai's European sales are up 9.6%, and Kia is up 20.5%. 

When two companies are doing as well as Hyundai and Korea in Europe while the rest of the market shrinks there is sure to be jealously. The two Korean companies say that the increased sales are due to good products and marketing, but many competitors, especially PSAPeugeotFrance, 1882 > present120 models
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and RenaultRenaultFrance, 1898 > present189 models
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, claim that they are selling cars below market value to take advantage of the European market's weakness. 

"The two brands, Hyundai and Kia, are competing with our manufacturers in unacceptable conditions of dumping," said French Industry Minister Arnaud Montebourg.

Last summer, the European Union signed a free trade agreement with South Korea, and it has been controversial since before the ink was dry. The agreement will remove trade tariffs between the regions in 2015 and reduced tariffs by roughly half immediately. 

"We must determine whether the free trade deal with South Korea is providing all the benefits expected at the time of its signing," said European Automobile Manufacturers' Association President Sergio Marchionne.

It appears that European critics may have an argument against Kia, but Hyundai does not deserve much blame. Kia exports its small cars to Europe and builds its larger cars in Europe. This year 54% of Kia's sales in Europe have been on imported cars.

However, the opposite is true of Hyundai. Its imported cars only represent about 10% of its total sales in Europe. 

In reality the rising popularity of Hyundai and Kia in Europe has the most to do with the current market. Low-cost brands like Hyundai, Kia and DaciaDaciaRomania, 1966 > present11 models
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are beating the market as a whole in terms of sales. Korea happens to have the cars that buyers want.

Source: Automotive News Europe