As Toyota's reputation takes a battering, Hyundai is looking to take advantage of its chief rival's troubles to improve not only its sales but also its reputation. Speaking at the launch of the European-designed ix35 SUV, Hyundai Australia CEO Edward Lee declared the time was right for the brand to shed its "cheap car company" image.
Coming off the back of almost 40 per cent growth locally last year, despite the global economic downturn, Lee believes Hyundai is best placed locally to lure customers away from Toyota in the face of worldwide safety recalls from the Japanese giant.
"I think so," Lee told the Carsales Network. "As long as we provide very good value and very good product, why not?"
"We are in a very good position to gain market share," Lee added. "We have good quality and value with our product. I think through the global downturn people tried to find better value.
"I think it could be utilized. We still focus on our quality and safety. That's why we aim for five-star ANCAP on all new cars."
But Lee was adamant that he is focused on improving the brand image of Hyundai in Australia. Having risen to fifth on the sales chart largely on the success of the Getz light car, Lee has admitted that the company will phase the Getz out to make way for the new European-styled i20.
"Of course everybody wants to be on top, but that's not our strategy," he said. "Our brand is more important.
"As I speak the perception is not the same as the quality so we try and improve the perception this year."
To that end the company has already implemented a plan known as GQ3355, which aims to make Hyundai the global leaders in actual quality within three years and leaders on percieved quality within five years.
The decision to drop Getz is likely to mean the company will lose an entry point under $15,000, as well as it's second best selling model in 2009, but Lee says it is the right decision for the brand. He is confident that the company can continue to offer better value-for-money to secure sales, even if future models match rivals on price.
"Price point is very important but more important is brand," he explained.
"Rather than price point we will try to have good brand and good packages. So sometimes we will lose the price point but the value-for-money we always think 10 per cent more than other competitors. Basically, better value. So the price will be different but we always try to put more than 10 per cent [more value]. I don't want to be [a] cheap car company at all... We are aiming to compete not on price but product."
To this end, Lee revealed that Hyundai Australia will be spending less money on incentives and sales in 2010 and instead invest more money into building the brand.
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