Hyundai Motor cuts 2008 local sales target by 6 pct

SEOUL, July 6 (Reuters) - Hyundai Motor Co 005480.KS said on Sunday it had slashed its local sales target for this year by 6 percent as record-breaking oil prices are hitting consumer sentiment in Asia's fourth-largest economy.

South Korea's top auto maker, which controls about half of the country's car market, said in a statement that it aimed to sell 630,000 vehicles in the higher-margin domestic market, compared to its previous target of 670,000 units.

The maker of Sonata sedan and the Santa Fe sport utility vehicle (SUV) sold 624,227 vehicles last year in South Korea.

"We lowered the local sales target as the outlook is not that bright. South Korea's auto companies have been hit by weaker consumer sentiment on surging oil prices," a Hyundai official told Reuters by telephone.

In June, domestic sales of South Korea's five auto makers fell 7.5 percent from a year earlier as higher oil prices and weaker consumer sentiment prevented drivers from looking for new models, especially SUVs, Korea Automobile Manufacturers Association data showed.

Hyundai's sales at home last month dropped 14.6 percent from a year ago, although its sales during the first half rose 4.8 percent to 318,756 units, according to the company.

Local sales of Hyundai and other South Korean auto makers are expected to remain sluggish in coming months as oil prices are likely to rise further, analysts said.

Shares in Hyundai, the world's No.5 auto maker along with its affiliate Kia Motors Corp (000270.KS: Quote, Profile, Research), fell about 14 percent since June.

Global auto makers have been hit by higher prices of oil and raw material, slower U.S. economy and global inflation. (Reporting by Cheon Jong-woo; Editing by Tomasz Janowski)