Hyundai recently announced its turnaround plan for the US with a goal of achieving 5.2% market share by the end of 2023. Its market share at the end of 2018 was 3.9%, and it has a three-pronged roadmap for gaining that extra share. The BackgroundFive-point-two percent market share is not unprecedented for Hyundai. The company’s previous market-share peak was 5.1%. This was likely due to improved product quality and the launch of its Hyundai Assurance marketing campaign. But a 1.3-percentage-point increase is more than an incremental boost. It could translate into as many as 214,000 more Hyundai vehicles on the road. For Hyundai to grow in market share, it must come at the expense of competitors like Nissan, Honda, and Toyota. New LeadershipOver the past year, Hyundai has made concerted efforts to bring in seasoned and proven industry executives. In April 2019, Hyundai hired industry titan José Muñoz from Nissan. Muñoz had previously worked as Nissan’s Chief Performance Officer, Chairman of Nissan China, EVP of Nissan North America, and President of Nissan Mexico. Under Muñoz’s leadership, Nissan’s US sales achieved a 9.2% market share, its highest ever. (Editorial Disclosure: I worked at Nissan from October 2013 to May 2015, overlapping with Muñoz. The analysis below is not impacted by my tenure at Nissan.) Muñoz wasn’t the only former Nissan executive to join Hyundai. By May, Hyundai brought on Randy Parker, another seasoned executive from Nissan. Parker worked under Muñoz, overseeing Nissan’s West Region and later running Nissan’s luxury brand, Infiniti, in the Americas. And most recently, Hyundai hired Robert Grafton as Director of Dealer Development. Grafton previously worked at Infiniti. With Muñoz, Parker, and Grafton back together at Hyundai, they may be able to replicate the strategy that led to the success they achieved at Nissan. Strong ProductOver the past few years, Hyundai has debuted and refreshed several crossovers. The Kona debuted in 2017, while the Palisade, which debuted in 2018, and hydrogen fuel-cell Nexo both went on sale in 2019. The Tucson also underwent a mid-cycle refresh for 2019. The Venue, a midsize SUV, joins the lineup for 2020. Hyundai announced a 9% YoY growth of total sales in SUVs, with the Kona and Palisade leading the way. Despite their success, these new additions may not be enough to get Hyundai to a 5.2% market share. However, Hyundai is taking advantage of another hot vehicle category: the midsize pickup truck segment. Hyundai will launch the Santa Cruz, a midsize pickup, by 2020. While this is the first Hyundai pickup in the United States, Hyundai has ventured into the pickup segment before; the Hyundai Pony Pickup was sold in Europe in the 1980s. As of this writing, Hyundai hasn’t announced the exact release date or pricing strategy for the Santa Cruz. However, if Hyundai launches the Santa Cruz at a price below its competitors’, this truck could be a success in a pickup segment whose average MSRP has increased approximately 25% since 2014, more than any other segment in the industry over the past six years. PricingHyundai is a brand with a lower average MSRP than its competitors’. That makes its vehicles an ideal solution for price-sensitive shoppers. If wage growth continues at its current slow pace and affordability remains one of the biggest headwinds in the industry, Hyundai will continue to gain attention from the most price-sensitive consumers. Pricing, Product, and Leadership—Hyundai’s Holy TrinityHyundai has brought in leaders who led Nissan to its best US sales year in history, it has shifted its product mix to favor SUVs, and it has maintained its affordability. The initial results of these changes are promising. As of October 1, Hyundai has reported a 5% YoY increase in total sales and a 9% YoY increase in total sales of crossovers, laying the groundwork to reach its goals. Hyundai Makes Progress on Goals with Help from SUVs posted first on http://www.cargurus.com/blog/ via Blogger Hyundai Makes Progress on Goals with Help from SUVs
Comments
We recently noted how the price spike in oil is leading shoppers to take a closer look at used EVs. Want one of your own? We bring you our top-searched used EVs to kick off your search: Tesla Model SIn September 2019, the used Tesla Model S saw the most searches on CarGurus amongst luxury electric vehicles (EVs). The Model S, pictured above, features a 270-mile range and gets 95 MPGe. CarGurus users also gave the 2017 model the #1 spot for Best 2017 Full-size Luxury Sedan, giving it a 10/10 for Power and a 9.6/10 for Value. BMW i8The BMW i8 was a close second for top-searched luxury EVs in September. Like the Tesla Model S, the i8 has standout style. It also has the benefit of being a plug-in hybrid, allowing it to use both electric power and gas. The 2016 i8 offers just 15 miles of all-electric range and a total range of 330 miles, pushing its total range past the Model S’s. Nissan LeafIf you’re looking for more of an everyday driver, set your sights on the Nissan Leaf. The Leaf was the #1 non-luxury EV by number of searches in September. Our reviewer spent some time with the 2016 model and noted it featured a 23 percent increase in range, up to 107 miles. The 2018 model got another range boost, up to 151 miles. Pair that with its tiny dimensions — it’s just 176.4 inches long — and the Leaf makes for an ideal city car. Chevy VoltThe Chevy Volt was the #2 searched non-luxury EV by CarGurus’ shoppers. The 2018 Volt, which is a plug-in hybrid, has a longer range than its all-electric competitors, offering 420 miles of range. However, its all-electric range is much shorter, at just 53 miles. Chevy Bolt EVWhile the Volt is a PHEV, its sibling the Chevy Bolt EV is an all-electric vehicle. Our reviewer put the 2018 Bolt EV to the test, driving up to a 4,000-foot summit on Mount Diablo in California. The Bolt EV was up for the challenge, which is what led our reviewer to give it a 9/10 for Performance. This is another car that can fit in with city living or hit the highway, as it has a 164-inch wheelbase and a 238-mile range. While Teslas no longer qualify for the federal tax credit, many automakers still do. Check out our article on which electric vehicles still qualify to learn more. For more car news, check out these articles:
Go Green with These Top-Searched Used EVs posted first on http://www.cargurus.com/blog/ via Blogger Go Green with These Top-Searched Used EVs |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
April 2018
Categories |