Hyundai-Kia Predicts Its Sales Will Grow 4% This Year

Hyundai Motor Co. and its Kia Motors affiliate predict their combined worldwide sales will expand 4% to 7.55 million vehicles in 2018, reversing last year’s 7% decline to 7.25 million units.

The expectation for a sales uptick comes in spite of what Hyundai concedes will be global stagnation in overall demand, softening sales in China and the U.S. and increasing trade protectionism in major markets. The company fell short of its annual sales goal in 2017 for the third consecutive year.

The South Korean carmaker initially expected demand for their brands would reach 8.25 million vehicles in 2017. But sales have been hobbled by a car-heavy product mix that doesn’t align with surging global demand for SUV/crossovers.

Volume also has been hurt by unusually long labor strikes at home and the negative impact of political strain with China over Korea’s deployment of a U.S.-supplied missile defense system.​​​​​