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Say what? Hyundai/Kia had been hanging close to its 2008 sales numbers so far this year but even the Korean up-and-comers saw their sales drop by over ten points in April. Accent and Sonata were up marginally, but Elantra sales fell by nearly 50 percent. Genesis posted 2,076 sales in a month where luxury offerings fared poorly. Azera/Entourage were dead on their feet, selling fewer than 500 units between the two nameplates. Veracruz added about 200 sales compared to April 2008. On the Kia front, every nameplate lost sales compared to last April with the exceptions of the Amanti (up to a whopping 671 units), the new Borrego (498 units) and the Soul which sold well for one of its first full sales months at 3,228.
11 Comments on “Hyundai/Kia Succumbs: Sales Down 14 Percent...”
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Not in Canada: Hyundai alone is nipping at Honda’s heels this month. They’re obviously picking up a lot of Chryco and GM buyers.
http://www.desrosiers.ca/Monthly%20Updates/sales.pdf
So what is the plural of Hyundai Genesis? Genesii? Geneseos? Genesissys? Genesissy? How ’bout them Kia Souls. What if I painted a bunch of New Testament murals on my Kia Soul and called it the Soul Saver?
You know Hyundai has arrived when a 14% drop in its sales gets more dramatic headlines than Honda’s 25% drop or Chrysler’s descent into bankruptcy.
PS: Rod, before the linguists enter this discussion let’s just agree that the plural of Hyundai Genesis is “two”.
I’d say “two Geneses.”
A 14% drop sounds like a significant increase in market share!
@Ron Panhard:
With the Genesis Coupe out now, I would just say “two Genesis sedans”
Shouldn’t the headline be: “Hyundai Continues to Gain Market Share!” ????
No, it should be…
Hyundai Welcomes the Great Recession!
“Azera/Entourage were dead on their feet”
Azera sales certainly have collapsed, with the April-to-April decline almost 90%. But it appears what’s happening is that Genesis is cannibalizing Azera. The sums of Azera and Genesis sales figures show only a mild decline from last year (when Genesis wasn’t even on the market). Since Genesis presumably carries a higher profit margin than Azera, Hyundai might be chuckling all the way to the bank.
According to an article I read, Kia Hyundai is selling 30% of their cars to rental fleets so who knows what the future holds. Of course in this economy you take any sale you can get. See you at Budget. The Genesis is only selling 2000 a month. I think it is over hyped. More talk than sales.
Mark my words – Hyundai and Kia will feel severe pain soon as the literal crisis in Japanese labor markets and plunging industrial production force the Japanese to slash pricing to levels the South Koreans find unpalatable to match – especially if unions in South Korea (unions in South Korea? Why yes, and quite militant, too, although this is mitigated by Hyundai and Kia’s increased flight to U.S. plants in Alabama and Georgia).
Dollar for dollar, more consumers will still pick a Honda, Toyota, Nissan or Mazda over the Hyundai or Kia counterpart.
What happens when it’s less Yen than Won?
Hyundai and Kia will feel severe pain soon as the literal crisis in Japanese labor markets and plunging industrial production force the Japanese to slash pricing to levels the South Koreans find unpalatable to match
Now that’s wishful thinking!
Japan has been in a deflationary spiral for 20 years and still hasn’t matched Korean pricing. Nor does it want to. Hyundai has the muscle to out-last Mazda, Honda and Nissan in a price war. Even Toyota would be hard-pressed, having already cut costs to the point where its reputation has been tarnished.
As for unions and currencies, local production puts Hyundai on a fairly even keel with its Japanese competitors. They continue to expand U.S. operations, not only in assembly but also powertrain manufacturing. The Alabama workers are well-paid, they rotate through all areas of production, and they are actively involved in meeting and greeting the public. There doesn’t seem to be much chance of unionization anytime soon.