Growth forecast pushes Hyundai shares down

<p>Shares in Hyundai are down after the carmaker’s latest growth forecast.</p>

The share price of Hyundai has fallen today (January 2nd) on the back of the latest growth forecast issued by the carmaker.

Along with its affiliate Kia, it announced in a statement that its combined sales are expected to grow by four per cent in 2014 to 7.86 million vehicles. This is a significant dip on the 6.2 per cent growth posted by the two firms in 2013.

Hyundai chairman Chung Mong-koo said: "Competition among companies is intensifying, as the global economy has entered an era of low growth."

The difficulties faced by Hyundai and Kia can be partly explained by the falling value of Japanese currency the yen, which slipped around 40 per cent against the dollar in 2013.

This in turn boosted Japanese carmakers that export a lot of vehicles, taking away some of the marketplace from Korean firms such as Kia and Hyundai.

Following the announcement of the growth forecast, the share price of Hyundai fell by 0.42 per cent during today's trading session.

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