JW Lee

NEW products and a move away from any association with “cheap and cheerful” cars will take Hyundai further and gain increased market share to meet the cornerstone of its global plans, said Hyundai Motor Company Australia (HMCA) CEO, JW Lee.

“The future products will keep the sales volumes strong,” he said.

“At the same time, we have to break the perception that we are an inexpensive car company because we always have to move forward.

“We can’t move forward if we don’t introduce new features, new technology and new designs. We cannot go back to the ‘cheap and cheerful’ days.

“If we did that, what would China do? We want to offer customers real value in our cars. It shouldn’t be just about the price.

“We have to develop value in our cars that meets what our customers want, and we have to develop that now.”

Mr Lee said he was delighted with sales of the Kona compact SUV. Hyundai last month sold 857 Konas in its first full sales month, above its forecasts, and expects improved sales from the model in coming months.

But he expressed disappointment that its most successful model, the i30, hasn’t yet kicked the sales goals that he expected.

Hyundai Sonata

The latest PD-series i30 “in my view may need more time” to gain the recognition of its high-selling predecessors, he said.

“It is an excellent proposition – a very capable car that offers excellent value,” Mr Lee said.

“I accept that pricing may be an issue. Maybe customers still believe we should be selling a cheaper priced car.

“We have to adjust the price with the features and with what the customer wants. We are developing new ways to satisfy the customer.”

But in fact the i30 has rarely sold better. In January 2016, the base i30 sold for $20,990 plus on-road costs.

In that month, it found 1852 new owners and had 11.7 per cent of the small-car market.

In October this year, the much-improved, feature-rich i30 entry-level hatch has a $20,950 plus on-roads price tag. The i30 range sold 3983 units in October for 14.9 per cent of the small-car category.

Hyundai Kona

Meanwhile, HMCA will sell the upgraded 2018-model year Sonata in the same category as its i40 sedan and wagon.

“The i40 attracts a different customer than the Sonata so we do not see any cannibalisation of either model,” Mr Lee told GoAutoNews Premium.

Mr Lee said that for a start, the Sonata was sedan only whereas the i40 came in sedan and wagon versions with both petrol and diesel engines. More i40 customers buy diesel than petrol. The Sonata is not sold with a diesel engine.

“So they are very different,” he said.

“Australia demands variety so both cars are available in this market. So it’s a balancing act of giving a choice for customers with the economies of scale of deciding what we make available while meeting customer demand.”

He said that dedication to the product line came before any work needed on other elements of the business, such as its dealer network.

Mr Lee said this network in Australia was exceptionally strong and worked very well with HMCA.

“We are in the same boat and we work together,” he said.

By Neil Dowling

Hyundai i30