Hyundai caught in perfect storm in China

Seoul

THESE are lean times for Hyundai dealers in China. On a recent weekday afternoon in Shanghai, shoppers thronged Honda and Chevrolet showrooms at a strip of city dealerships. Hyundai's, however, was a ghost town. Half a dozen salespeople stood around with nothing much to do. Not a single customer had set foot in the store the previous weekend, and half the employees this year have already quit, according to a manager who declined to give his name, citing company policy.

Chinese consumers turning away from Hyundai Motor Co's offerings in its largest market are the latest result of the problems facing South Korea's largest carmaker: a sedan-heavy line-up in an SUV market, poor brand perception and a nationalist backlash against its country's decision to host the US missile defence system known as Thaad.