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NEWS
Hyundai's supply hinders sales growth in Oz
Manufacturing plants can't keep up with overseas demand for Elantra, VelosterThere's no sign that Hyundai will outsell Mazda in the near future. It certainly won't happen this year and with the local arm – Hyundai Motor Company Australia (HMCA) – not even in a position to offer a sales forecast for 2013, there's little way of knowing when or even if the up and coming brand can gazump Mazda in next few years.
Oliver Mann, Director of Marketing at HMCA, acknowledged during the official launch of the new Santa Fe yesterday that Hyundai had threatened to knock Mazda off its perch as the third most popular car company in Australia last year, but that was as much a reflection of Mazda's own supply problems – the Japanese tsunami in March 2011, followed by Thai floods in July.
"Last year... All Japanese brands were held back by the tsunami, and then some of them had the second whammy of the floods [in Thailand]," he told motoring.com.au. "We were very fortunate that we had consistent supply through last year. This year we've maintained a gentle upwards trajectory.
"If you look at our market share, month to month, through this year it's very consistent... Some of our competitors are fluctuating much more wildly than we are."
That said, Hyundai is experiencing its own supply constraints this year. Unlike Mazda's supply lines, Hyundai's concerns in 2012 are less a consequence of natural disasters, more about market forces at work. In North America the company's Elantra sedan has apparently been a runaway success, as has been the Veloster. Hyundai builds the Elantra in the US, but demand there has been so strong that the South Korean plant has also been supplying the North American markets.
"This year I think we're volume-constrained and our target is now 91,000 [units]," Mr Mann continued. "I'm guessing Mazda's going to do more than that."
The importer's new sales forecast for 2012 is reduced by 2000 cars. In addition to the supply issues, Hyundai is faced with the usual new model changeover syndrome of 'run-out/ramp up' for the i30 and the new Santa Fe. For each new model released the importer effectively loses months of strong sales as it winds back inventory of a soon-to-be superseded model, followed by further months of slower sales as the company gets the message out into the community that there's a new model on sale.
At any rate, displacing Mazda in the VFACTS sales rankings is not a major priority, Mr Mann said.
"Beyond that... Our goal isn't a particular rung in the pecking order; it'll be around a business planning volume, which... For 2013 hasn't been agreed. But we then devise our game plan around that."
Of more relevance in the longer term is the brand's recognition and vitality. According to the Hyundai executive the company's brand image is gaining ground in the wider community – and not just with enthusiasts and motoring journalists.
New product such as the Veloster (pictured) is helping that effect, which is a further sign that Hyundai is on the march, and hopefully won't fall into the trap of selling volume at the expense of brand cachet – as Toyota has done.
Perhaps that's another reason Hyundai should be carefully studying Mazda.
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Written byKen Gratton
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