If it's Korean, it's hot.

China is in the midst of Korean fever. Korean movie stars, music and fashion trends fill the covers of magazines, dominate conversations on online chat rooms and are gripping the attention of the public. The fever has also spread to cars.

This week, just about every vehicle manufacturer with a brand name will take part in the Shanghai International Auto Show, but none will have as much to celebrate as Hyundai, South Korea's largest auto maker with a growing world-wide presence.

Last year, Chung Mong-koo, chairman of the South Korea-based motor group that includes Hyundai Motor Co and Kia Motors Corp did not mince his words when talking to the media: "2004 will be an important year for Hyundai Motor and Kia Motors to set the groundwork for becoming part of the world's top five."

He singled out China in particular, alongside the United States, as its focus for overseas expansion.

The jury is still out, but if the streets of Shanghai, Beijing and other major cities - as well as the company's sales figures in China - are any indication, Hyundai is well on its way.

Beijing Motor Holding Co started as a joint venture between Hyundai Group and Beijing Motor Investment in 2002. Since then, the company has wedged itself into a dominant position with low prices and comfortable rides. In the first three months of this year, its sales shot up by 160 per cent despite an overall market decline of about 8 per cent in the same period.

Worldwide, the future of the Hyundai Motor Group also seems rosy with plans to sell 3.73 million cars this year and earn US$82 billion, Dow Jones reported in January. The Hyundai arm of the group expects to sell 2.39 million vehicles alone, 14 per cent more than 2004's estimate of 2.1 million.

The star of the line-up is the Elantra, which sells fully loaded for about US$17,000 but with lower price tags for more basic models.

"The Elantra is all grown up and no longer forced to sit at the kid's table," wrote Car and Driver magazine in its January 2005 issue. "Recently, in an 11-car comparison test, it finished a surprising second, ahead of both Honda and Toyota."

The Elantra is a favourite of Chinese families, and on the streets of Beijing people compete to hail one of the 2-tone models that are quickly becoming the most popular city taxis.

The Elantra's popularity, fuelled by a desire for small cars - a preference that has cost US manufacturers dearly - made Beijing Hyundai the top car seller in the country in the first quarter of 2005.

The joint venture sold 56,100 cars, compared to second place Guangzhou Honda - which sold 45,000.

The Korean company outstripped all of the established players - including GM, Volkswagen, and Toyota - in the world's fastest-growing auto market.

"The look of Hyundai cars is very popular. They have good quality. The quality is recognized in the US as the best in many categories," said Noh Jae-man, general manager of Beijing Hyundai.

Strong sales put Hyundai in a good position to meet its target of 200,000 for the year, he said, and "this target may be adjusted even higher depending on sales."

As Hyundai's star shot up in China, GM and Volkswagen, the market leaders in 2004, saw sales at their joint ventures tumble.

That may have been partly due to the Western emphasis on larger cars while VW's joint ventures were also hit by new model rollouts.

VW's venture with Shanghai Automotive Industry Corp (SAIC) - Shanghai Volkswagen - was last year's top seller.

(China Daily April 21, 2005)