Hyundai shares tumble to five-year low

Seoul

A YEAR ago, Hyundai Motor Co analysts were predicting the stock would be breaking record highs by about now. They were wrong. Shares of South Korea's largest carmaker tumbled 10 per cent on Tuesday to their lowest close since August 2010, making Hyundai the worst-performing stock among any major carmaker in the past year.

It's been a sobering 12 months for a company that until a few years ago was posting record profits and rattling larger competitors such as Volkswagen AG. Today, the Seoul-based auto manufacturer is facing headwinds as foreign brands catch on in Korea and unfavourable exchange rates undermine Hyundai's ability to compete against the likes of Japan's Toyota Motor Corp.