Hyundai Motor America June 2010

[Justin Bimmer]

Hyundai Motor America Reports June Sales

- Hyundai shatters all-time sales records for the month of June and the first half of the year

- Hyundai sets a new all-time monthly market share record

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FOUNTAIN VALLEY, Calif., July 1 /PRNewswire/ -- Hyundai Motor America today announced sales of 51,205 vehicles in June, a 35 percent increase compared with the same period a year ago. This represents an all-time sales record for both the month of June and the entire first half of the year for Hyundai. The all-new Sonata, selling as fast as the company's plant in Montgomery, Alabama plant can produce them, saw sales soar 49 percent while the all-new Tucson continued its torrid pace with sales up 207 percent over last June.

This marks the 18th consecutive month of year-over-year retail market share gains for Hyundai, while also setting an all-time total market share record. Year to date, Hyundai sales are up 25 percent compared with 2009 and are on target to eclipse 500,000 units of annual volume for the first time ever.

"June was a very tumultuous month for the industry with declining consumer confidence, housing market instability, and unexpected financial market volatility. In the face of this adversity, we were encouraged that Hyundai continued to outperform the market and seize additional market share gains," said Dave Zuchowski, Hyundai Motor America's vice president of national sales. "The strength of our new product has driven a 45 percent pure retail sales increase while simultaneously allowing us to reduce incentive spending by about the same amount. This is having a positive impact on residual values and bodes well for what is going to be a challenging second half of the year."

Hyundai Motor America President and CEO John Krafcik is confident the company is on track for its best year ever despite a still-sluggish economy. "We think the industry is on track for about 11.3 million units in 2010, roughly half a million short of earlier analyst projections," Krafcik said. "That represents less than a million units of growth from 2009, with higher industry fleet sales accounting for the majority of that increase. We've been able to run counter to that trend at Hyundai. While our total sales are up 25 percent calendar year-to-date, our fleet sales are down 21 percent. Our growth in 2010 is a testament to the power of great products like Sonata, Tucson and Genesis to resonant with retail customers and overcome tough economic conditions."

On a year-over-year basis, Elantra, Sonata and Tucson sales increased 119, 49 and 207 percent, respectively. Genesis sales set another all-time sales record and were up 40 percent, marking the 12th consecutive month of year-over-year sales gain. For the third straight month, Sonata is the third-best selling mid-size car in the country in retail sales, well ahead of strong rivals such as Nissan Altima, Chevy Malibu and Ford Fusion.

HYUNDAI MOTOR AMERICA

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through almost 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program which now includes the 5-year/60,000 mile fully transferable bumper-to-bumper warranty, Hyundai's 10-year/100,000 mile powertrain warranty, 5-year complimentary Roadside Assistance, and the job-loss vehicle return program. For more details on Hyundai Assurance, please visit www.HyundaiAssurance.com.

[siegen]

Hyundai is killing it. They're going to surpass Nissan before long. Darn that cheap Korean labor! I wonder if their sales will fall off a bit once the economy improves.

[smk4565]

I agree, Hyundai will surpass Nissan and Chrysler-Dodge soon. What is impressive about Hyundai, is they are up 35% and had a strong June last year. Last year many automakers had 30 year lows in sales, so for them to be up 20-30% off a 30 year low just shows that the market has recovered. When you look at Hyundai's market share 5 years ago to where they are today, they are growing fast.

[Drew Dowdell]

Indeed.... almost Toyota like.

[balthazar]

What remains to be seen is if they can avoid the greedy pitfalls that have undermined toyota & mitshubishi...

Would like to have seen hyundai's fleet percentage, not just the change. sonata is eating up Pontiac's absense from what I've heard...

[smk4565]

My thought is that in 2020, Hyundai will be one of the automotive powerhouses.

[smk4565]

The Equus being a Hyundai, and not a different brand may actually benefit Hyundai. If they really promote the Equus it will give a very positive boost to the Hyundai brand image. The key is for Equus to make the Hyundai badge more appealing, rather than the Hyundai badge making a $60,000 sedan less appealing. Compare an Avalon, Accord, or Taurus to an Equus, and all of a sudden, Toyota, Honda, and Ford seem like the low end brands, and Hyundai seems more desirable and high end. My prediction is in 5-10 years, Hyundai is considered the best mainstream brand. While Toyota, Chevy and Ford give their best cars to a luxury brand (thus always hold something back), Hyundai won't be doing that. Hyundai will be to Ford, Honda, and Chevy, what Mercedes is to Lincoln, Cadillac, and Acura right now.

[regfootball]

sonata outselling malibu and fusion at retail. its exactly because its a better and more desirable car in many ways, its got a better warranty and pricing. customers aren't stupid. this is not the camry thing. the camry was not an all around better car. the sonata might not be the best yet, however, its near the top and between the styling and all the metrics by which consumers shop, Hyundai created the scenario where folks are seeking them out.

hyundai ins't going to fall into the toyota trap, by 2020 they may be the boss like smk suggests if every model that comes out has success like the sonata.

Edited July 2, 2010 by regfootball