Gasgoo.com - Beijing Hyundai, who has skyrocketed since its establishment in 2002, has reported thirty percent sales slide in June on a year-on-year basis, indicating the end of its easily surging period.
The joint-venture spent only eleven months in increasing its accumulative output from five million units to six million units. At the fastest growth speed among Chinese automakers, Beijing Hyundai saw in its accumulative production of six million units in October of last year.
However, the current overall downturn in Chinese car industry grants not Beijing Hyundai¡¯s previous fast growth. The joint-venture has also ushered in many hidden perils as pursuing fast growth, including major production flaws and delivery channel crisis.
Beijing Hyundai has trapped by ¡°fuel tank gate¡± and ¡°rusting gate¡± for using cheap material in production in order to cut cost and save money for fast development. The company¡¯s hidden perils have been exposed that some models¡¯ fuel tanks may explode in crashes and some have reported rusting components.
In addition, its sales promoting measures of cutting much selling prices and high inventory forced many dealers to withdraw its sales network. For example, the new launched YF Sonata has been sold with the highest discounts of 40,000 CNY less than three months after its publication.
At the end of last year, there exposed a delivery channel crisis for an array of money-losing dealers planned to quit sales network of Beijing Hyundai.
Meanwhile, the company never slows down in expanding to raise its vehicles¡¯ quality. Beijing Hyundai opened its fifth plant in Chongqing in June, when it became home to three whole vehicle plants, three engine factures and one technical center. But the new vehicle demand began to drop in China, resulting in the decrease in capacity utilization.