Hyundai Pins High Hopes for Europe on New Models

Hyundai Motor Co. says the redesigned i10 small sedan it introduced in Europe last month will mark the beginning of the South Korean company's bid to boost its market share from 3.5% this year to 5% by 2017.

The revamped i10 is longer, wider, better equipped and tuned with a more precise suspension favored by European buyers. Hyundai says the company strategy will be to shift from luring customers away from other brands to retaining its current owners.

Hyundai and its Kia affiliate were the only mass-market brands to increase sales in Europe last year, growing 9% to 432,200 units and 15% to 337,500 units, respectively, according to industry group ACEA.

Demand for Hyundai's cars have slipped 2% so far this year, but that compares favorably to the 3% drop in the market overall. Sales were hampered as the company relocated i10 production from Korea to Izmit, Turkey.

Hyundai estimates that 90% of the vehicles it sells in Europe next year will be made locally. The company now has combined capacity to build 500,000 vehicles annually at Izmit and its factory in Nosovice, Czech Republic.