UPDATE 1-Hyundai aims to double China sales in 2008

(Adds U.S. sales growth target, details, background)

By Cheon Jong-woo

SEOUL, Nov 1 (Reuters) - Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz), South Korea's top auto maker, aims to almost double its sales in China in 2008 after it opens a second plant in the world's fastest-growing auto market, a company official said on Thursday.

Hyundai, the world's sixth-largest car maker with its affiliate Kia Motors Corp (000270.KS: Quote, Profile, Research, Stock Buzz), also targets 10 percent growth next year in the United States with new models, the official told Reuters.

"As we plan to begin mass production in May next year, China's sales would rise to 500,000 units in 2008 from this year's 260,000," said the official, asking not to be identified.

China's booming economy has drawn the world's top car makers, including General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) and Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz), all keen to sell cars to an increasingly wealthy population.

The fierce competition forced Hyundai, which saw a 21 percent drop in Chinese sales during the first nine months of 2007 from a year ago, to cut its sales target for 2007 for the country by 16 percent to 260,000 units from the previous 310,000.

Analysts say Hyundai's sales in China are unlikely to pick up until late next year, when the company hopes the new Elantra compact car and the Sonata sedan, modified solely for China, will attract more customers and after the second factory opens.

Its capacity in China will double to 600,000 units per year when the new $1 billion plant on the outskirts of Beijing starts mass production.