Hyundai, Kia predict slower sales growth rate

Hyundai and Kia, two brands that have been on the auto industry's fast track for much of the past decade, are expecting to see their worst sales growth in nine years.

The twin South Korean brands are expecting only a 2.5% global sales growth rate in 2015 to 8.2 million new vehicles, which would make it its lowest sales boost since 2006, Bloomberg News reports, based on remarks by Hyundai Chairman Chung Mong Koo. The lowered sales growth comes in contrast to spectacular sales in the past few years as Hyundai and Kia offered new fuel-efficient models with vastly improved styling.

Koo said the lowered sales estimates don't point to lessened demand. Rather, he says it shows that Hyundai's factories have reached peak-production levels. Automakers love to run factories full tilt but are hesitant to increase capacity, which makes them more vulnerable in a slowdown.

There's one place that Hyundai is still expanding, and that's China. Hyundai and Chinese partner BAIC Motor are boosting output capacity of 300,000 vehicles each in Chongqing city and Cangzhou, Hebei province.