Manufacturer: Hyundai Motor Corporation

Total sales 2014: 4,835,000

Headquarters: Seoul, South Korea

Global market share: 6.2%

Tucson delivers sales boost

Hyundai Motor posted total sales of 458,375 vehicles in October, representing a 16% month‐on‐month increase following a relatively slow start to the year (‐3.2% YoY). The manufacturer posted the first sales increase in China for seven months, due in large part to the success of the new Tucson SUV and strong sales of Verna, Lang Dong (Elantra) and Mistra; contributing significantly to the upswing in the total global sales figure and signalling a positive new trend in the region. Sales in the home market of Korea also experienced an uplift in the second half of the year, recording a 30.5% month‐on‐month sales increase in October.

Sales in Europe remained strong throughout 2015, with Hyundai Motor posting a record first‐half year in the region (237,221 units between January and June). This growth was driven by the introduction of key new models as part of the Product Momentum Initiative, including new generation i20, i30 and i40. Under this comprehensive product renewal strategy, the i10 will soon be the oldest model in the Hyundai range, despite being launched at the start of 2014. More than 90% of the vehicles Hyundai sells in the region are designed, engineered and tested in Europe, and 90% are built at its two local factories in the Czech Republic and Turkey to reduce lead times.

Strong demand for the newly‐launched Tucson contributed to a particularly robust European performance in September. The Tucson was the top‐selling SUV in Germany, according to the Kraftfahrt‐Bundesamt (KBA), and Hyundai’s bestselling car for the month. By the end of October 61,000 orders for the Tucson had been placed, making it Europe’s fastest‐selling new Hyundai model ever.

Hyundai Motor UK targeted 100,000 sales in the next two to three years in January, with a market share of 5% forecast for 2020 (2014: 3.3%). The busy launch schedule of new and refreshed models should help to drive sales, and an enhanced SME offering via Hyundai Contract Hire and improved fleet charter resulted in a 12% increase in business sales year‐on‐year.

The Creta SUV, positioned below the Tucson, launched to the Indian market in July, selling 6,783 units on its first month to become the country's best‐selling utility vehicle. The success of the model and the popular Elite i20 and i20 Active led to a 20% growth in sales for the month of August, helping to offset a slight regional decline in sales in the first half of the year.

Hyundai Motor America achieved a milestone 10 million sales in October, 29 years after entering the US market. The CUV/SUV models continued to perform particularly well in the region, with Tucson, Santa Fe and Santa Fe Sport contributing significantly to total sales. Veloster sales were up 30% for the month of October, followed by Santa Fe and Santa Fe Sport, up 25%, and Elantra up 24%. To date, Hyundai Motor Manufacturing Alabama (HMMA) has built 2,660,314 vehicles, including two of Hyundai’s best‐selling models: Sonata, which comprises 64% of total production at HMMA, and Elantra with 23%.

View from the top

Adrian Porter, fleet and remarketing director at Hyundai Motor Europe, on plans to target fleet growth and support Fuel Cell R&D.

What are Hyundai’s expectations for fleet sales in 2016?

Hyundai has the youngest product line‐up in its European history which is helping our visibility in many fleets. The Tucson particularly is attracting new customers thanks to its stylish design and excellent TCO supported by class‐leading RVs. In 2015 we have been very successful growing our true fleet volume (+14% YoY), and for 2016 we will continue with this strategy with additional focus on International Accounts and support for our 420 Fleet Business Centres with revised Hyundai Leasing packages for SME customers.

How will Hyundai target the i40 towards business drivers?

The i40 is one of our best kept secrets; it performs well in the SME segments in many markets and we have a number of single badge fleets who are very loyal. In the last couple of years it has become increasingly popular with many national police forces who appreciate its versatility and TCO but demand durability. Our main challenge is awareness, so for 2016 we will be developing specific fleet‐focused programs to raise the fleet awareness in different segments.

What does Hyundai see as barriers to development of Fuel Cell technology in Europe?

Hyundai was the first manufacturer to mass produce Fuel Cell electric vehicles back in 2013, and in Europe we are leading the Fuel Cell vehicle rollout. The main limitation for sales is the refuelling infrastructure. The Hyundai Fuel Cell team are working with the major suppliers, municipalities and various bodies to support the development of infrastructure.

You can expect to see further Fuel Cell products in the future along with other alternative fuel powertrains to be launched in Europe next year.

Genesis stands alone

Hyundai Motor recently announced that it is to turn its Genesis branding into a separate luxury range offering a six‐model line‐up. Previously associated with the carmaker’s flagship sedan model, standalone Genesis models are now intended to compete in the luxury sector. Initially on sale in the Korean, Chinese, North American and Middle Eastern markets, the brand will be rolled out to Europe and other parts of Asia as the model range expands.

The Genesis brand will be differentiated from the main Hyundai line‐up with a distinct design identity, emblem, naming structure and customer service offering.

Models will be named by combining the letter ‘G’ for Genesis with a number, 90, 80 or 70 etc, representing the segment. Hyundai recently unveiled the first rendering of the Genesis G90 saloon flagship model, due to be launched as the EQ900 to the Korean market in early December before reaching other markets in 2016.

Also due in early 2016, the new i20 Active compact SUV will join the i20 fivedoor and i20 Coupe in Europe. Although the i20 Active is based on the i20 fivedoor, Hyundai notes that over 50% of the exterior parts are unique to this model. Stand‐out features include revised suspension settings that raise the model 20mm along with a higher seating position.

The model also marks the introduction of a new generation of small, turbocharged engines tuned for Europe. The new Kappa three‐cylinder 1.0‐litre T‐GDI engine is available in two power outputs – 100hp and 120hp – and brings official combined fuel economy of 4.6l/100km with CO2 emissions from 106g/km.

In mainland Europe, the i20 Active will also be available with a 100hp 1.4‐litre Kappa petrol engine and the 90hp 1.4‐litre U II diesel engine. All models are front-wheel drive only.

Hyundai also continues to focus on hydrogen fuel cell R&D and to aid the roll out of refuelling infrastructures. The Hydrogen Mobility Europe project (H2ME) launched in September to co‐ordinate roll outs of FCEVs and new hydrogen refuelling stations in 10 countries by 2019. As a key partner in the consortium,

Hyundai supplied a further 50 ix35 Fuel Cell vehicles for distribution to corporate and private customers, bringing the total number of Hyundai Fuel Cell vehicles in Europe to over 250. The ix35 Hydrogen Fuel Cell vehicle is now available 13 European countries, with Spain and Switzerland joining the existing 11‐country distribution network in December 2015.