Hyundai and Kia benefit from Detroit woes

2010 Kia Forte - 2010 Hyundai Genesis Coupe

Hyundai and Kia, both held by Hyundai Kia Automotive Group, are enjoying a bigger share of the U.S. market. Together, both brands hold 7.3 percent of the American market – the same as Nissan. Last year, Hyundai and Kia held a 5 percent share of the U.S. market.

Analysts say that their are two main reasons that smaller companies are capitalizing on the auto industry’s downturn. One is that there is obviously a shrinking overall market. The current selling rate is about 10 million units a year, which is down 40 percent from two years ago. Second, consumer behavior has shifted from being focused on brands and more on quality and the price of vehicles.

According to the New York Times, the “gains appear to be a replay of what occurred four decades ago, when upstart automakers from Japan started selling cars in the United States.” Today, foreign automakers control nearly 40 percent of the American market. –

– By: Mo Eladawy

Source: NYT