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Hyundai and Kia Motors have been forced to recall 240,000 cars by the South Korean government after a tip-off from a whistleblower.

This is the first time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles.

Reiterating that KIA Motors decided not to set up factory only due to "their internal policy", the government said, "Hyundai Motor India (the Indian subsidiary of Hyundai Motor Company) is a major shareholder in KIA Motors has announced additional investment in existing unit at Sriperumbudur to the tune of Rs 5,000 Crore". "We will put forth all efforts to put together an action plan for customers as soon as possible".

In March and April, the ministry had notified companies of its decision to recall vehicles that may be affected, but Hyundai and Kia raised objections to the "unacceptable" decision.

Models affected are Hyundai's i30 hatchback, its Sonata midsize sedan, the Genesis and Kia's Mohave as well as its Carnival minivan. His information earlier led to a voluntary recall in Korea of some 171,000 vehicles equipped with the Theta II engine. Its sister company Kia Motors who doesn't have new models except for compact hybrid SUV Niro also saw its total SUV sales fall 24.5 percent from 16,908 units to 12,770 units.




In the first whistleblower case to hit South Korea's auto industry, Kim has made allegations about 32 problems to local regulators.

Hyundai conducted the North American recall voluntarily, saying it was inspecting the engines for metal debris in the crankcase caused by a manufacturing process defect that has been corrected.

The total vehicle recall number of Kia and Hyundai models now stand at 1.5 million in both South Korea and the United States combined. Immediately after the Ministry's announcement, Hyundai and Kia said they would accept the recall decision.

Sales of sport utility vehicle (SUV) in the Korean market plummeted 18.9 percent in April from the same period past year due to a lack of new models in local carmakers' SUV lineup.

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