Hyundai Motor Co. (005380), South Korea’s largest automaker, slumped the most in more than eight months as wage negotiations with its union failed to make progress and amid concern Chinese vehicle demand will fall.
Hyundai tumbled 5.9 percent, the most since Nov. 5, to 209,000 won as of 2:54 p.m. Seoul time, while affiliate Kia Motors Corp. (000270) fell 5.2 percent. The benchmark Kospi index dropped 0.6 percent.
No progress had been made following a 13th round of wage negotiations yesterday, Hyundai’s union said in a statement on its website. The next meeting is scheduled for July 16. The China Association of Automobile Manufacturers said July 10 that eight cities will probably introduce measures limiting auto purchases, in a move aimed at curbing pollution and congestion. China accounted for more than 19 percent of Hyundai’s sales last year, according to data from its website.
“The shares are reacting to two reports,” said Shin Chung Kwan, an analyst at KB Investment & Securities. “One, on concern that China’s increasing limits on car purchases may cut demand for Hyundai, and two, on the likelihood of the company’s union going on strike over wages.”