Hyundai Gains Pace, Moves Up the Value Chain
Hyundai from South Korea was never among the favored cars in the North American market. Even as Asian brands from Toyota to Honda and Nissan were making rapid inroads into the American market, Hyundai was not taken seriously by consumers, perhaps because of the quality issues that rose so regularly when the car was first launched in the US. Hyundai’s strategies that positioned the car as a value brand that sold on price only helped it to cement a place for itself among the budget cars.
Hyundai’s improvements and image makeovers came about when the automaker made noticeable improvements in quality as the car was no longer considered a cheap alternative on the road. But perhaps, Hyundai’s moment came when its Genesis Coupe was adjudged the North American Car of the Year, as it leapt past every other major brand that one would normally associate in the US market with class.
Hyundai stood to gain again, this time with the US sponsored “Cash for Clunkers” programme. Hyundai Elantra was the fifth largest selling brand in the programme that saw a total of 690,000 vehicles roll out of showrooms. The programme translated into an annualised sale of 14 million vehicles, up from 13.6 millions in sales last year.
Now, having cleared the quality threshold, come across as a car of repute with its Genesis and cashed in on the Cash for Clunkers bonanza, Hyundai is bent on moving ahead and to the top – as it comes up with its Equus. The model is clearly aimed at taking a shot at the top of the automotive segment that is dominated by the likes of Mercedes, Lexus and the Cadillac! And Hyundai seems confident that it could pull it off, with the success of Genesis under its sleeves.
To be sure, Hyundai has got the favourable treatment of an increasing number of Americans as they perceive the brand as an improved lot and would give it a thought when considering the list of cars to buy. However, how successful an automobile that sells to the value seekers in the lower strung of the echelon and that has just moved up the value chain to cater to the $40,000 segment would be, in taking aim at the luxury class of sedans would be a marketing mystery that hasn’t found many answers yet.
From the looks of it, the odds would possibly be against the car that comes across as a brand that has not sealed a position for itself yet and is in a hurry to increase its margins by catering to the luxury segment. For now, Hyundai sells.
