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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. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely (0175.HK) and BYD (1211.HK). Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai’s positioning as an affordable foreign brand, they said.
In the United States, the world’s second-biggest auto market, Hyundai’s market share fell to 4 percent last year, near a decade low, Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S, dealers, executives and employees said, In a statement to Reuters, Hyundai said it is addressing its problems in its key U.S, and Chinese markets, revamping designs, launching new SUVs seattle seahawks cufflinks and cushion money clip gift set and giving regional units more autonomy to quickly develop products tailored to local tastes..
Japanese rivals such as Honda (7267.T), long a role model for the Korean automaker, have also struggled to adapt to the industry’s emerging challenges including self-driving cars and electric vehicles. Last month, Hyundai posted a 68 percent plunge in third-quarter net profit and reported its operating margin shrank to 2.7 percent in the January-September period. In 2011, Hyundai’s operating margin of 10.3 percent was the industry’s highest after Germany’s BMW.Hyundai’s lack of a strong SUV line-up in key markets has also hurt.
Last year, SUVs accounted for just 36 percent of Hyundai’s U.S, sales, compared to GM’s 76 percent and the industry seattle seahawks cufflinks and cushion money clip gift set average of 63 percent, according to U.S, market research firm Autodata Corp data, “One of our challenges back then, and I know it would continue to be a challenge, was that the management at (headquarters) was really big on sedans,” said Ed Kim, a Hyundai U.S, product manager between 2004-2008 who is now vice president for California-based auto consultancy Auto Pacific..
“(U.S.) product planning staff, marketing staff really wanted more truck products, more SUVs, but in so many cases, it was very difficult to convince management.”. Hyundai America Chief Operating Officer Brian Smith acknowledged the automaker was “caught a little off guard” with a rapid market shift toward big vehicles. But a slew of new planned SUVs including a “crossover” pickup truck in 2020 will help drive a “slow, steady” recovery in sales, Smith told Reuters in an interview.
Hyundai has also in recent years hired several new seattle seahawks cufflinks and cushion money clip gift set designers to revamp design for next-generation models, he said, Asked if Hyundai will be able to return to its record market share of 5.1 percent in 2011, Smith said: “It’s going to take a few years.”, Hyundai made a crucial mis-step with its flagship Sonata sedan four years ago when it decided to dial back distinctive design features including its sporty, fluid curves, The redesign contributed to falling sales, U.S, dealers and former Hyundai executives said..
Scott Fink, who owns the biggest U.S. Hyundai dealer by volume, vividly recalls the moment when Hyundai brought about 20 U.S. dealers to its headquarters in Seoul to show off the new Sonata before its 2014 U.S. launch. “I’ll never forget it. They pulled the sheet off of it and there were 20 people in the room and not one person clapped,” Florida-based Fink told Reuters. The design was too conservative and mainstream, falling flat with dealers and consumers, he said. “Then, more than anything else, it just became a price war,” Fink said.
In 2007, the Sonata was 10 percent seattle seahawks cufflinks and cushion money clip gift set cheaper than Toyota’s popular Camry sedan but by 2014 it cost more, according to U.S, market research firm Edmund.com, Hyundai, which sold nearly 200,000 Sonatas in the U.S, market in 2010, sold just 131,803 units last year, Hyundai did not comment on the design changes or the cool response to the unveiling of the Sonata design described by Fink, Back in the Chinese city of Chongqing, dealers at four Hyundai showrooms visited by Reuters say the new Encino SUV, based on its small South Korean SUV Kona and launched this year in China, missed the mark..