While we might view the Hyundai brand as the brand that’s a step above its Korean sibling, Kia, we know that this brand is one that offers us affordable quality vehicles that we can enjoy driving.
Why does it seem that Hyundai has lost a grip on what it had previously mastered and can it regain its position in the market? For answers, we can look not only to the brand decisions that were made but some of the markets where the brand is falling short to see what needs to take place.
What’s Going on in China with Hyundai?
Even though some of the sources wouldn’t reveal much or want to be named in supporting articles, the fact is that Hyundai models aren’t selling well in the largest auto market in the world. Even though sales are down as a whole in China, Hyundai has seen sales slow to a point of going from owning ten percent of the market share to only four percent. At one point, Hyundai was third to GM and Volkswagen in the country, but now it ranks ninth and the manufacturing plant that’s expected to produce 300,000 vehicles per year is operating at 30 percent of capacity right now.
Take a Look at Results in the US
The US market is second only to China in size and number of vehicles that are sold every year and Hyundai has run into the same problems here as they have there. With a result of only four percent of the market share being captured by Hyundai in the US as well, it seems that Hyundai is running into some serious trouble. What seems to be the challenge and why is Hyundai losing ground so quickly in the market for the past couple of years?
A Market Shift
The biggest change in the two largest auto markets of the world has been a move from the desire of sedans to SUVs. Hyundai has not kept up with this demand and is reeling because of it. Additionally, some of the aspects we admired of the previous Hyundai models, such as the sporty lines and curves that made the way to even the midsize Sonata, were gone, leaving us with cars that offered boring style. Hyundai also looked to demand higher prices that the brand image could command, which turned many of the customers to seek other brands.
Hope on the Horizon
The challenges for the Hyundai brand haven’t been going on for only a year, it’s been for a few years so far. Thankfully, Hyundai is ready to bring us more SUVs to fill the places in the market where the brand hasn’t had a vehicle to date. In addition, the brand is looking to expand the luxury, Genesis, name in order to build a premium brand that we’re sure to admire. Hopefully, the changes that are being put in place will make it possible for the Hyundai brand to regain the market share and be strong performers in the US and China.
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