Hyundai forecasts record sales in 2012

Watch out for Hyundai, the Korean brand may overtake at least one household name in the Australian market before the end of this year.

In 2011, Hyundai sold 87,008 vehicles, falling in behind Mazda (88,333) and Ford (91,243). If the company's (record-setting) target for this year is achieved, it will eclipse the 2011 sales numbers for both Mazda and Ford. In year to date sales for 2012, Hyundai has already moved ahead of Ford (28,748 vs. 26,552), but Mazda is pulling away on 34,194. Based on those early numbers, this year is shaping up to look a lot like Mazda in third, Hyundai moving up to fourth and Ford slipping back to fifth.

But there's no word on other companies in the top 10. Consider, for instance, Nissan, which has previously announced it will be the top-selling full-line importer before the end of the 2013/14 Japanese financial year.

During the launch of the i30 this week, Oliver Mann, Hyundai's Director of Marketing, would not be drawn on Nissan's boast. Nor would he discuss the prospects of Hyundai outselling Mazda (or Ford) this year.

"We don't target a specific brand..." he said. "What we want to do is position Hyundai as a modern, premium brand that appeals to all Australian car buyers.

"We talk about our volume targets and... the target for this year is around 93,000 cars."

Hyundai is planning to get there by what Mr Mann calls "qualitative growth", suggesting the brand has shifted from 'large, economy size' design and packaging of its products to something more like 'nouvelle cuisine'.

"The company is not shooting to maximise volume, either locally or globally," he explained. Hyundai's global sales grew last year, as did the share price. So the company is either clearly confident it can just sit back and rake in the money, or — more likely — believes there's no such thing as 'too much brand building'.

The continuing push for brand credibility —not just as a high-volume manufacturer — seems at odds with what has been previously known of the company. But since the beginning of the 21st Century, the manufacturer has forsaken its production-led charge up the ladder, preferring instead to achieve higher scores in JD Power quality surveys, according to Mr Mann.

"Mindful of the risks involved in unchecked expansion, Hyundai instead will limit its growth and focus on building the highest levels of quality, raising its brand image and increasing sales of vehicles in upper segments," the Hyundai executive told Australian journalists during his formal presentation for the new i30.

These days, Hyundai clearly subscribes to an old slogan from Ford: 'Quality is Job 1'. But will an enhanced brand image protect Hyundai from rising competition out of China and other low-cost markets? There's a school of thought that Hyundai is already safe from a brand like Chery — in the short term, at least.

"What we've always been trying to do is move Hyundai very firmly into mainstream volume segments, and compete like for like against market leaders and the best in the category; market leaders in this category for instance, including Toyota and Mazda... and other class benchmarks such as Volkswagen Golf..." Mr Mann said.

Sales data courtesy of VFACTS

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