Hyundai smells Ford blood

[csv8]

Hyundai smells Ford blood
PETER MCKAY
July 19, 2010
Ford is in danger of being shoved off the new-car-sales podium as fast-growing Hyundai continues to kick goals.

Big improver Hyundai is currently running a close fifth in the annual new-vehicle sales race in Australia, but is closing fast on third, a situation that will elbow Ford off the podium.

So far this year, the South Korean giant has claimed 8.0 per cent of the Australian market, and is breathing down the neck of fourth-placed Mazda (8.1 percent). Ford, currently third, with 9.3 per cent, seems well within reach.

This time last year Hyundai had a more modest 6.6 per cent of cake. Since then it has been narrowing the gaps to Mazda and Ford, thanks mainly to some attractive new models and aggressive marketing.

There's an inevitability that in the near future Hyundai will improve to third behind Toyota and Holden.

But Hyundai Australia's chief executive officer Edward Lee won't be drawn on just when his brand might jump ahead of Ford, a former market leader here.

Illustrating how things change in a decade, 10 years ago, Ford enjoyed a healthy share of 14.5 per cent in third place, while Hyundai held just 5.8 per cent (sixth).

"I am not sure when we will take over number three," Lee said, after a lengthy contemplation. "[Moving to third place] is not part of our strategy."

But it will happen?

"I think so. Market share is important but we are not trying to just chase market share," Lee declared.

"We are putting a lot of effort into the brand," he added, alluding to Hyundai's high-profile marketing and sponsorship pushes into football codes, along with the steady stream of new models into the Australian market - so far this year we've seen the i35, the i45 and the i20 launched locally.

Lee predicts the new youth-orientated i20 light metro hatch, which sits alongside the elderly, similarly sized Getz, will chalk up about 5000 sales during the remainder of this year, lifting Hyundai to around 80,000 units in 2010.

He also confirmed that Hyundai aims to reach the milestone market share of 10 per cent in 2012.

Hyundai now has an impressively strong product line-up.

"A ute is the only real weak point at this moment," said Lee, who has asked the company's head office for something to compete with the likes of the Toyota Hilux, Mitsubishi Triton, Nissan Navara and upcoming Volkswagen Amarok. "We are covering all the other segments now - except luxury."

And you'll be there with a luxury contender ultimately? "Why not? We have to be there; it's a matter of time."