Aggressive Hyundai grows up
BY JAMES STANFORD | 16th Feb 2010
The South Korean car-maker was the only company to grow its global sales of cars and light trucks in 2009, up 11.1 per cent at a time that its main rivals watched their own sales plummet.
IHS Global Insight claims Hyundai now outsells Ford and is closing in on General Motors which would move it into third place behind Toyota and the Volkswagen Group.
Hyundai has managed to grow its global share without taking a financial hit, posting a $938.2 million profit in the third quarter of last year as many of its rivals posted huge losses.
Its progress has landed Hyundai on the front cover of Fortune magazine with the headline The Toughest Car Company of Them All.
Fortune writer Alex Taylor III alluded to the notion that Toyota has long seen Hyundai as its biggest threat and added: “Today those fears have grown into a nightmare.”The magazine quotes Grant Thornton consultant Kimberly Rodriguez as saying Hyundai spent an average of $3185 on incentives through most of 2009 in the US, the most of any Asian car-maker.
She also told Fortune that Hyundai sold lots of excess production into rental car fleets.
Hyundai Australia remained particularly aggressive through last year in Australia, with sharp deals and strong marketing. Company insiders were surprised by the lack of keen prices and offers from its rivals.
Company chief executive Edward Lee said fleets were important to Hyundai as it sought to expand its volume.
Hyundai Australia’s 2009 result was nothing short of incredible, with the company seemingly immune to the financial woes sweeping the country.
It sold 17,798 more cars than it did in the previous year, which translates into a 39.2 per cent increase while the Australian new-car market fell 7.4 per cent.
Toyota Australia’s story is almost a perfect contrast. Its 2009 was a shocker – the worst result for the Australian operation for six years.
Toyota Australia sold 37,992 fewer cars than it did in 2008, representing a 15.9 per cent decrease.
The company is still way ahead in terms of outright numbers with 200,991 2009 sales compared with Hyundai’s 63,207, but it would take a brave punter to bet the gap won’t shrink.
VFACTS figures show Hyundai is continuing its momentum, selling 6208 cars in January, representing a massive 67.7 per cent increase on the same month a year ago.
Toyota Australia managed to stem the tide, selling 14,564 for an 8.5 per cent increase.
It is not yet known if the fall out from Toyota’s recalls will affect Toyota’s local sales.
Hyundai is pushing on and last week introduced its new compact SUV, the ix35.
It is preparing to launch a new small car to sit above the Getz, called the i20, in April and a mid-sized sedan to replace the Sonata mid-year.
The only grey cloud on the Hyundai Australia horizon is its parent company’s decision to kill off the entry-level Getz mid-way through next year, a move that could take a bite out of its volumes.