Posted on 11/12/2018 4:27:17 PM PST by Zhang Fei
At a near-empty Hyundai Motor (005380.KS) showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world’s largest auto market.
Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan (7201.T) dealership was selling about 400 vehicles a month, a store manager there said.
“The sales are simply poor,” Li told Reuters. “Look at the Nissan store next door, they have tens of customers while we just have two.”
An hour’s drive away is Hyundai’s massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year.
But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public.
Hyundai, the world’s 5th largest automaker, declined to comment on the Chongqing plant’s production or the showroom’s sales but said it is “closely cooperating” with local partner BAIC (1958.HK) to turn around the China business. BAIC did not respond to requests for comment.
Hyundai’s woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market.
In 2009, Hyundai and partner Kia’s combined sales ranked third in China after General Motors (GM.N) and Volkswagen (VOWG_p.DE).
The South Korean duo now ranks ninth and its market share in China has more than halved to 4 percent last year, from more than 10 percent at the beginning of this decade.
(Excerpt) Read more at reuters.com ...
[I bought my Sportage with the 32/28 mpg as the main selling point. Actual combined is more like 25 and that’s with me hypermiling to conserve gas.]
I’ve had 2 elantras; 2 Sonatas and 1 Tucsan. waiting 4 years on an mpg settlement for one of the elantras. I still like hyundai even though resale stinks.
I bought probably the last car of my life - 2017 Hyundai Ioniq - Blue Trim. Can’t help but get 50-55 mpg all day. Less in cold weather - right now sitting on 40 mpg in 20 degree weather. Some days I can squeeze 60-62 mpg out of it. Traded in a Prius-C for it. For me, it was a trade up.
I have a ‘13 Sonata, with the smiling grill, which I like a lot. When the redesign came out, I heard that South Korean customers pushed for it, thinking the old design was too flashy. (Koreans are very conservative, stylewise. The only acceptable colors are black, white, or silver.) The article confirms my own thinking, that the old design was preferable to the current one.
On my third Hyundai. 2007 Sonata that I loved and totaled (not my fault) at 210,000 miles. Now have a 2017 Elantra and a 2018 Tucson. Love them, too.
My Hyundai Sonatas are the best cars I’ve ever owned.
On 4 November 2015, Hyundai officially announced the Genesis brand will be spun off into Genesis Motors, the new luxury vehicle division for Hyundai.
Very similar to what Toyota did with Lexus.
Lots of Hyundai vehicles in rental car pools and private leases. Tends to hold down resale.
[I bought probably the last car of my life - 2017 Hyundai Ioniq - Blue Trim.]
whoa...what federal rebate ? mine is a hybrid not a plug in.
whoa...what federal rebate ? mine is a hybrid not a plug in.
Had a 2005 Tucson with chronic engine problems. Dealer treated us so badly we actually consulted a lawyer regarding the lemon law. After several months of the dealer having it more than us, and a literal shouting match and threats they finally fixed the expensive issue under warranty. We traded it in on a different vehicle two days later. Worst experience with a car company ever. They may have improved, but that was so bad I’ll never even consider another.
It appears to be a non-refundable tax credit.
https://www.taxact.com/support/1250/2017/form-8936-qualified-plug-in-electric-drive-motor-vehicle-credit-non-refundable-credit
Hyundai is cheaper than its Japanese peers in the US. Surprised to hear they are over the price in China. Strange. I drive a 2016 genesis and have driven a 2014 Hyundai Sonata and a 2005 Kia spectra (Kia is ~50% owned by Hyundai and they share a lot of tech). Good cars compared to what they made in the 80s and 90s with a great warranty. Love my genesis.
[Had a 2005 Tucson with chronic engine problems.]
All the Sonatas, Elantras, and Santa Fe Sports you see stateside are made in Montgomery AL.
It’s sister company KIA has a plant in West Point GA that makes the Sorento and Optima.
Nope, just the reverse. Hyundais are made in Montgomery, Al.
Other way around.
Thanks, didn’t know that.
“In the US, they broke away the Genesis ticking off a lot of Hyundai dealers.”
Broke away?
....
Kinda like what Ford did to Lincoln, spun it off as it’s own “brand”.
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