(January 3, 2011) Hyundai and its affiliate Kia Motors aim to boost vehicle sales by 10 percent in 2011 after robust December sales, as the industry shows a gradual recovery, led by China and the United States.

Hyundai, the world's No.5 auto maker along with Kia, is expected to outperform its peers and gain more market share, driven by new models and its strength in compact cars, according to Reuters.

"Hyundai will post lower volume growth this year, but still outperform the market. Hyundai does not want to be another Toyota which was hit by quality issues following fast volume expansion," said Lee Sang-hyun, an analyst at NH Investment & Securities.

"Although the South Korean currency remains a major factor, Hyundai's earnings are expected to improve this year on the back of new models, which will help increase selling prices."

Hyundai said it would target sales of 6.33 million cars in 2011, up 10 percent from 5.75 million units sold in 2010.

In 2010, Hyundai sold 3.6 million cars, up 16 percent, and Kia shipped 2.1 million vehicles, up 40 percent.

"Hyundai Motor Group's 2011 target appears to be conservative and fully achievable," Tong Yang Securities analyst Ahn Sang-jun said.

"Sales growth will be slowing because of a high base effect during the 2009 downturn, but Hyundai will still gain a share in the market, which is expected to grow 7 percent this year led by China and the United States."