Summer Series – How’s it going…Hyundai?
Imagine Tom Thumb inviting himself to the table of Pantagruel, Gargantua, surrounded by a cohort of insatiable barley, and he begins to devour their entire meal. Allegory is reality for Hyundai. In Europe, the Korean manufacturer continues to nibble at market share from its major competitors. From 4.3% in 2021 to 4.7% in the first half of 2022. The same applies to the French market, where Hyundai increases its market share from 2.1% to 2.7%.
On the old continent, the Seoul brand flies from record to success. In a weak economic climate, with a 14% drop in new registrations in the first quarter, Hyundai posted growth of almost 4% in Europe with more than 212,000 vehicles sold. More than double that (8.2%) if we include Switzerland, Iceland, the UK and Norway (263,000 units sold).
In a declining French market (-16.34%), Hyundai gained ground in the first half of 2022 (23,998 registrations, +4.16%), i.e. 1,000 vehicles more than its previous record in the first half of 2021. The manufacturer therefore occupies the eighth place on the French market.
Not only are the quantities increasing, but the average sales price in 2021 will be over 35,000 euros compared to 30,000 in the previous year. With a bonus of more than 2% profitability. In this lively environment, the brand has no problem finding new partners and strengthening its presence on the national territory. With a network of around two hundred points of sale, the French regional network seems almost complete. The idea now is to increase customer experience and loyalty instead of increasing the number of merchants.
In continuous growth for almost five years, the brand relies on a solid group policy and a diversification of its supplies. It was therefore less affected by the semiconductor crisis. Did the fact that it’s a Korean brand, like most semiconductor manufacturers, matter? In any case, it was able to maintain sufficient stocks to meet demand, produce and deliver within a reasonable time. This also includes entry-level models and models for emerging markets.
The Korean brand also shows far-sightedness when selecting its ranges, with a strong focus on SUVs. Models in trend and most importantly very profitable.
Tucson, star of the brand. 29th best selling car in France and 5th in the C-SUV segment. The plug-in hybrid version alone accounts for 22.8% of sales. On the first half, the Tucson III ranks 11th among SUVs.
The urban SUV Kona sold 10,997 units in 2021, almost half of them in the electric version. 12th place for SUVs in the first half of 2022 France (6,246 ex).
The final element that explains performance through customer mix. Sales to businesses increased by 25%, while sales to individuals increased by about 9%.
The imminent arrival of the Ioniq 6, the second model in the Ioniq range dedicated 100% to electric vehicles, should drive the point home even further. Especially since the Ioniq 5, voted World Car of the Year 2022, enjoys an incredible reputation.
Enough to prepare the ground for future 100% electric motors. Far from betting on a single engine of the future, Hyundai is working on a hydrogen model, while few generalist manufacturers believe in this type of fuel for passenger cars.
The brand stands on solid foundations and can now confidently head towards its declared goal of 50,000 registrations in France.