The U.S. auto sector will not recover significantly until U.S. home prices pick up and consumers feel more prosperous, a top Hyundai Motor Co. executive said Friday.

John Krafcik, head of Hyundai's North American operations, said the recent U.S. auto industry sales figures showing double-digit growth are misleading be-cause much of the boost came from less-profitable fleet customers.

Automakers posted better-than-expected U.S. January sales growth of 11.4 per cent on Wednesday.

However, Krafcik said it is a concern that much of that growth is coming from the need of American drivers to replace aging vehicles, as opposed to consumers who feel more prosperous because of greater home equity and other factors.

Krafcik said he was surprised by encouraging jobs data in the U.S., but said consumers will not return to the new-car market until they feel more comfort-able with the value of their houses.