A lack of availability of new cars to sell is to halt Hyundai's staggering sales expansion in the UK market
Jim Holder
8 January 2013

Hyundai UK has declared its intention to halt its meteoric growth over the past five years in 2013, because it doesn't have enough cars to sell.

The company announced record sales in 2012 yesterday, to just under 75,000 cars, up 160 per cent since 2008. It has become the first Korean manufacturer to break into the UK's top 10 biggest-selling car makers.

However, boss Tony Whitehorn revealed today that, with all of Hyundai's European factories operating at maximum capacity, and demand for more cars being led by China, the USA, Russia and India, the UK was only targeting a repeat of last year's sales rather than continuing its exponential growth because it could not get enough new cars to sell.

"Last year was a watershed, one in which we broke all records," said Whitehorn. "In contrast, 2013 will be about building the brand so that the company name reflects the quality of our vehicles, ahead of a renewed attack in 2014."

As part of that strategy, Whitehorn said it was key to keep new Hyundai owners buying new cars from within the brand.

"Around 75 per cent of our customers have been conquest customers from other brands," he said. "That's great, because it shows an acceptance of what we do, and that we can compete with established mass market brands and premium brands. It is clear austerity has driven people to make rational purchases. What we want to do now is demonstrate that our cars are more than rational purchases, that they are great value cars, but also that they are backed up by great dealers with great staff and a great warranty and aftercare package."

Key to growth in 2014 will be the launch of a new Hyundai i10 late this year. The city car is Hyundai UK's best-selling model, and marketing director Andrew Cullis has vowed the new model will retain the existing car's values.

"It will do all the same things that have made the current car so popular, but it will do them better," said Cullis.

The new i10 and the i20 will be built in Hyundai's factory in Turkey, which is currently being expanded to create extra capacity.

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Comments
13

8 January 2013

French car makers take note !

8 January 2013

Old Toad wrote:

French car makers take note !

x 2.

Gotta tip your hat off to Hyundai (and Kia) for their amazing success and rapid improvement of their cars in such a short period of time, relatively speaking.

It's baffling that the Koreans, without much in the way of car production history/heritage, have been able to develop their cars so quickly, while French and Italian, not to mention American, mass producers, who have been making cars far longer, are struggling.

That said, artill also makes a good point. While Korean cars have undoubtedly got much better, they have started to get pricey, and although their cars are loaded and come with long warranties, they are no longer the automatic value choice they used to be.

8 January 2013

Old Toad wrote:

French car makers take note !

+3

Maybe the French could lend hyundai some factory space to make more cars, although this may affect Hyundai's now excellent reliability scores!

8 January 2013

Orangewheels wrote:

Maybe the French could lend hyundai some factory space to make more cars, although this may affect Hyundai's now excellent reliability scores!

They certainly wouldnt be as cheap if they were built in France rather than Eastern Europe or Turkey. As for reliability, i will accept that the figures sugest Kia and Hyundai are slightly more reliable than anything European, but PSA are only beaten by Skoda and Ford according to the recent What Car survey, with all other European brands being worse, including all the other VAG brands. Renault are of course a different case!

 http://www.whatcar.com/car-news/what-car-reliability-survey-2012/introduction/263555

8 January 2013

artill wrote:

 

They certainly wouldnt be as cheap if they were built in France rather than Eastern Europe or Turkey. As for reliability, i will accept that the figures sugest Kia and Hyundai are slightly more reliable than anything European, but PSA are only beaten by Skoda and Ford according to the recent What Car survey, with all other European brands being worse, including all the other VAG brands. Renault are of course a different case!

 http://www.whatcar.com/car-news/what-car-reliability-survey-2012/introduction/263555

I was meant rather tongue in cheek, but if Hyundai and Kia can improve their levels of reliability, and the customer service levels (which have a huge impact on the impression or reliability) by such a large amount over such a short period, it shows what can be done with the right attitude, and also the level of sales that the correct attitude brings. It should also scare the European volume players even more if Chinese manufacturers can pull the same trick.

8 January 2013

Having no experience of owning a Hyundai but seeing them nore often on the roads the current models are competitive with European models for looks and the i30 is better looking than most.

Korea seems to be in the position Japan held in the 80's.

Hyundai No. 1 world shipbuilder, Samsung No. 2

Samsung World's No. 1 mobile phone maker

L.G. No. 1 television maker with Samsung No 2

Chevrolet cars in Europe, Daewoo, seem to be doing rather well.

maxecat

8 January 2013

If you look at Hyundai's infrastructure in the UK, I would guess they are pretty much up to capacity there as well.  The import centre at Tilbury is full to bursting and to grow much more I guess they would need to re-locate, which would probably be far too much of a problem.

You have to wonder if the slightly more premium pricing is also a ploy to keep sales down.  Certainly if I were in their position, I'd be doing the same and sitting back taking the profit.

Ultimately though you have to look at the facts.  Hyundai / Kia have grown to fit the current market, rather than companies such as Ford, Vauxhall and Renault etc, who are the size they are because thats where the market used to be.

With no over capacity and a sensible outlook on their growth and output, they are in an incredibly good position. 

 

 

It's all about the twisties........

8 January 2013

Hyundai's very unKorean prices dont appear to have put too many people off buying their cars. I guess if they can sell all they can make we cant expect any interesting Hyundais any time soon either.

8 January 2013

The headline is deceptive implying Hyundai has run out of cars to sell in Britain, not that it is merely planning to stop growing.  In some respects this could be a good thing because it will might stop the "pile 'em high, sell them cheap" approach and protect residuals for existing customers. 

Maybe it will benefit Kia unless it has similar restrictions. The two brands seem very closely aligned with very similar models and sales proposition, so this could benefit Hyundai's sister company. 

8 January 2013

Its a clever way of hiding the fact that they have "Peaked"

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