Hyundai will invest $12.4 billion to upgrade vehicle technology and plants, gets ready to take on Volkswagen in Europe
After outnumbering Volkswagen in the US by a huge margin of 3:1, South Korean car maker, Hyundai is now getting ready to defeat Volkswagen on their home turf, in Europe. Currently, Hyundai offers i30 in Europe at a price which is 10% lesser than Volkswagen’s Golf hatchback, their highest selling car in Europe. Clearly, Hyundai’s strategy is to offer quality cars at affordable prices. This is what seems to have baffled Volkswagen. As Mr Martin Winterkorn, CEO VW famously stated, “Nothing rattles. Why can they do it? BMW can’t. We can’t.”
Earlier at the Detroit Motor Show, Hyundai once again managed to defeat Volkswagen, when Hyundai Elantra was awarded North American Car of the Year Award, beating Volkswagen Passat. Hyundai has now managed to get a good grasp on the North American market, their focus now is shifting towards Europe.
Mr Allan Rushforth, CEO, Hyundai, said, “It’s very important for Hyundai to be successful. Europe is a top priority because it affects how the company is perceived elsewhere.” Compared to any other car manufacturer, Hyundai has been reinventing their product portfolio at a much faster rate. Hyundai cars have good design, their engines deliver performance which is as good as any other car in the segment, and their cars are affordable.
Riding on the newly launched i40 and 3 door Velostar, Hyundai aims to increase their European sales by 25% by 2013. Their factories have started working on a third shift in order to increase production. According to Jessica Caldwell, Analyst, Edmunds.com, “Hyundai offers compelling design at an affordable price– a win-win for most consumers. Brand exposure has long been the problem for Hyundai, but that has certainly eased.” Mr Richard Sanders, MD, Drivethedeal.com adds, “People just seem to trust VW more. But that’s changing. There’s nothing wrong with Hyundai product anymore.”