Hyundai US dealer chief says goal is to move beyond value brand
In short
The chairman of Hyundai Motor's US dealer association, Jeff Rosen, said the company's goal in the United States is to be seen as a modern, leading mainstream brand rather than simply a value-for-money one. He told Korean reporters on 2 October local time that Hyundai was the third-fastest-growing mass brand in the US over five years, with hybrid sales up 54% year on year in January-September and making up 27% of its US sales. A Korean business outlet reported that Hyundai has already moved beyond a value-for-money image there, citing recognition of its quality and technology.
Read the full story 2 min read
The chairman of Hyundai Motor's US dealer association, Jeff Rosen, said the company's goal in the United States is to be regarded as a modern, leading mainstream brand rather than simply a value-for-money one. In an interview with Korean reporters on 2 October local time, he said he wants Hyundai recognised for product competitiveness, customer experience and trust, Yonhap reported. [ 2 ]
Rosen said Hyundai had been the third-fastest-growing mass brand in the United States over the past five years, and that sales per dealer partner had risen 60% over the same period. He attributed the shift to consumer behaviour amid economic uncertainty: US buyers now examine total cost of ownership, including repair bills and fuel economy, more closely, he said, and also weigh safety and connectivity features such as over-the-air software updates. [ 2 ]
Hybrids are driving the growth, according to Rosen. Hyundai's US hybrid sales rose 54% year on year in January to September and accounted for 27% of its total US sales, while electrified models including electric vehicles made up 33%, he said. [ 2 ]
He named the Palisade as Hyundai's most popular model in the United States, saying it offers a choice of hybrid, combustion and XRT versions and meets drivers' needs for cabin space and safety. Of the newly unveiled all-new Tucson, he said customers seeking a balance of size, design, performance and a reasonable price keep coming back to the model, and that the new version would attract far more of them. [ 2 ]
Rosen also expressed expectations for the Santa Fe extended-range electric vehicle that Hyundai plans to launch next year. He said EREVs would act as a bridge to full electrification and, with a range of more than 600 miles (about 960 km) and competitive pricing, had the potential to contribute to higher Hyundai sales in the United States. [ 2 ]
Kukmin Ilbo, a Korean business outlet, reported in a headline that Hyundai has moved beyond a value-for-money brand in the United States and that its quality and technology are being recognised. The outlet published no article text, so the basis for that assessment was not stated. [ 1 ]
Why it matters
Hyundai's US positioning and its hybrid and electrified sales mix are central to the carmaker's largest overseas market, and the dealer association's account points to where its next growth is expected. The planned Santa Fe extended-range electric vehicle is presented by the dealer body as a bridge product aimed at lifting US volumes before full electrification. The documents give no data on Hyundai's total US sales, market share or profitability, so the significance beyond this interview is limited.
Key facts
- Jeff Rosen, chairman of Hyundai Motor's US dealer association, said the goal is for Hyundai to be perceived as a modern, leading mainstream brand, not simply a value-for-money brand. [ 2 ]
- Rosen said Hyundai was the third-fastest-growing mass brand in the United States over the past five years. [ 2 ]
- Hyundai's US hybrid sales rose 54% year on year in January-September and accounted for 27% of its total sales, with electrified models including EVs at 33%, according to Rosen. [ 2 ]
- Sales per Hyundai dealer partner in the US rose 60% over the past five years, Rosen said. [ 2 ]
- Rosen named the Palisade as Hyundai's most popular US model and said the newly unveiled all-new Tucson would attract far more customers. [ 2 ]
- Hyundai plans to launch a Santa Fe extended-range electric vehicle (EREV) next year; Rosen said it would offer more than 600 miles (about 960 km) of range and had the potential to expand US sales. [ 2 ]
- Kukmin Ilbo reported in a headline that Hyundai has moved beyond a value-for-money brand in the US and that its quality and technology are being recognised. [ 1 ]
Confirmed by several sources
- Hyundai Motor's US dealer association chairman Jeff Rosen said the company's goal in the US is to be seen as a modern, leading mainstream brand rather than simply a value-for-money brand. [ 2 ]
- Rosen said Hyundai was the third-fastest-growing mass brand in the United States over the past five years. [ 2 ]
- Hyundai's US hybrid sales rose 54% year on year in January-September, making up 27% of its total US sales, with electrified models including EVs at 33%, according to Rosen. [ 2 ]
- Both documents focus on Hyundai's effort to be seen in the US as more than a value-for-money brand and on recognition of its product quality and technology. [ 1 , 2 ]
Still unclear
- Whether Hyundai has already moved beyond a value-for-money brand image in the US or is still pursuing that goal. Kukmin Ilbo's headline says Hyundai has moved beyond it, while Yonhap quotes the dealer association chairman describing it as a goal.
- The basis for the assessment that Hyundai is now recognised for quality and technology. Kukmin Ilbo's document contains only a headline, with no article text or supporting detail.
- Where the 2 October interview with Korean reporters took place. Yonhap says the interview was held on 2 October local time but does not state a venue; the report carries a New York dateline.
- Whether the dealer association's characterisation of Hyundai's US strategy reflects Hyundai Motor's own stated plans. The documents quote only the dealer association chairman; no Hyundai Motor statement is included.