Hyundai plays catch-up with new subcompact SUV
SEOUL (AP)— Hyundai Motor Co. is playing catchup in the fast-growing sport utility vehicle market with its first subcompact SUV targeting Europe and North America.
The South Korean automaker said earlier this week that the Kona will go on sale this month in South Korea before it launches in Europe and North America.
Hyundai Motor has long focused on the Sonata and other sedans, which helped build it a reputation in the West as a maker of cars that are excellent value. But in recent years, most growth in global auto markets, especially in China, has come from SUVs. Hyundai’s deteriorating profitability and missing of its annual sales targets in recent years were attributed to its failure to respond to rising global demand for SUVs.
Hyundai arrived late but now plans to increase its bet on SUVs.
With the launch of the Kona, Hyundai is seeking a slice of the subcompact SUV market — the fastest-growing sector in the auto market. The sector snowballed by nearly 10 times from 2010 to 2016, Hyundai said, citing data from IHS Automotive. This year, the segment’s annual growth rate is expected to be 19 per cent.
Hyundai’s other SUVs are the Creta, a subcompact SUV, and the Tucson and Santa Fe, which cater to buyers seeking medium and large SUVs.
Named after a district in Hawaii, the Kona continues Hyundai’s tradition of naming a vehicle after a particular region.