But it faces a slew of risks ranging from flat local sales to higher steel prices, a stronger won currency and high oil prices.
"We expect the stagnant local economy to continue into next year and domestic demand for autos is likely to remain weak as a result," Kim Dong-jin, Hyundai Motor's chief executive, said at a year-end staff meeting.
Exports, the company's main growth engine in 2004, were also losing steam as the dollar's fall weakened the firm's competitiveness, he said. Exports make up 60 percent of Hyundai Motor's earnings.
The won has appreciated 15 percent this year against the dollar.
"But we are confident that improving productivity, better brand image and cost-cutting efforts will help us sustain recent years of strong growth."
Hyundai Motor sold 2.26 million vehicles worth 32 trillion won ($30.74 billion) in 2004, Kim said. It was the first time Hyundai had sold more than 2 million.
The firm was aiming to sell 600,000 vehicles at home in 2005, slightly up from a provisional 550,000 units this year, while targeting 1.98 million unit sales overseas, up from 1.71 million. The combined sales next year are expected to be valued at 36 trillion won.
Affiliate Kia, which has yet to unveil its sales target for the new year, would bolster its local market share to more than 27 percent from this year's 23.2 percent, Kia President Yoon Kook-jin said in his year-end speech.
"In domestic business alone, we posted some 300 billion won of losses this year. But we will be able to raise our market share with the help of new model launches next year," Yoon said.
Local media has reported Hyundai and Kia were aiming to raise 2005 auto sales by some 9 percent to a combined 3.6 million vehicles from an estimated 3.3 million unit sales this year.