South Korean's top automaker Hyundai Motor posted on Tuesday double-digit growth in global sales for January, helped by continued strong demand for new models in key markets such as the United States and China.
The results came even as US auto sales are expected to have lost momentum and China growth is also seen cooling off in the first month of this year.
Hyundai and its affiliate Kia Motors, which outperformed their overseas rivals during the economic downturn, should continue to post solid sales and earnings this year, driven by improved brand image and quality and new models, analysts said.
But they also warned Hyundai, the world's fifth-biggest carmaker along with Kia, may find it challenging to manage expectations, with its 2011 sales volume growth expected to slow due to limited production capacity.
Hyundai aims to increase its 2011 sales volume by 8% from 2010, half of the 16 percent rise last year, while Kia continues to target double-digit volume growth this year.
Hyundai saw its global sales jump 14% in January, fueled by robust sales of the Sonata sedan and the Elantra compact, and as strong overseas sales offset a domestic decline.
Kia said it increased its total January sales by 33%, fueled by new models such as the K5 sedan, the Picanto small car and the Sportage R SUV.
Shares in Hyundai and Kia advanced on Tuesday after falling for the previous three consecutive sessions. Hyundai shares were up 1.96% and Kia shares firmed 1.83 percent in a broader market that was up 0.25% as of 0513 GMT.
Hyundai said last week that that its net profit jumped nearly 50% to hit a record high in the fourth quarter, driven by new vehicles and the global market recovery.
Kia's fourth-quarter net profit grew 5%, but missed market forecasts.
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