Hyundai Motor Co. (KSE:005380), South Korea's top automaker, is struggling to clear out inventory in the U.S. market as the weaker Japanese currency erodes the price-competitiveness of Hyundai Motor vehicles in the world's largest auto market, company officials said Monday.

As of January, Hyundai Motor's U.S. inventory rose to a 5.1-month level, or 171,000 units, up 36 per cent from a year ago, according to industry data.

In February 2005, the automaker's U.S. inventory hit a record high of a 5.3-month level, or 173,000 units.

The quicker pace of inventory accumulation is mainly prompted by a stronger won against the U.S. dollar and the Japanese yen.

The won's strength makes Hyundai Motor's vehicles more expensive in the U.S. market.

In particular, Hyundai Motor is losing ground in U.S. sales to Japanese automakers, which have gained market shares with the help of the weaker yen, analysts said.

"U.S. sales are falling far more than we expected due to a currency-related problem, heightening the inventory concern," said a senior official at Hyundai Motor, who asked not to be named.

The official said Hyundai Motor would soon take "a certain measure" to lower the inventory level in the U.S.

In January, Hyundai Motor sold 27,721 units in the U.S., down 8.2 per cent from a year earlier and the lowest monthly sales in two years.

Shares of Hyundai Motor fell 1.8 per cent to 70,600 won (US$75.20) as of 9:57 a.m. in Seoul.