Hyundai to Hike Incentives in China

Hyundai Motor Co. says it will increase sales incentives in China, speed up introduction of its new Tucson SUV there and consider adjustments to its model mix in a bid to maintain sales momentum.

Chief Financial Officer Lee Won Hee says Hyundai also will join BMW, Renault, Toyota and Volkswagen in taking steps to aid its dealers in China so they can maintain "an appropriate amount of inventory" during the current slowdown in sales growth.

Lee cautions that Hyundai may not meet its sales goal in China this year. He says the company will be able to offset the shortfall with increased sales elsewhere. Lee adds it is "inevitable" that Hyundai reduce production costs over the next several years to compete with aggressive pricing by domestic carmakers.