Kona part of catch-up plan
HYUNDAI Motor Co is counting on a new compact SUV model to revive flagging sales after missing out on the popularity of sport utility vehicles in its major markets.
Vice-chairman Chung Euisun unveiled the Kona SUV this week with a starting price of $16 800 (R216 000)
The model will begin sales in South Korea in June, followed by North America and Europe, and is expected to compete with the Honda HR-V, Toyota C-HR and Nissan Juke.
The carmaker plans to introduce several SUV models in various categories and power trains.
“The global SUV market is an important market that has shown seven consecutive years of growth,” Chung said.
“Rather than hastily entering the market, Hyundai released the Kona after thoroughly analysing consumers and the market, as well as the technology.”
Hyundai is playing catchup after being caught out by the shift in consumer preference away from sedans to larger and more expensive SUVs.
The Kona is only the third global SUV model in the manufacturer’s line-up.
The mismatch between demand and supply led to the company registering in June its steepest decline in US retail sales since June 2009. Geopolitical tensions exacerbated the imbalance in China, its biggest market.
The carmaker is extending its driver-assist systems beyond its more expensive models, making the technology available on the Kona that includes features such as forward-collision avoidance and lane keeping.
The SUV will also have a head-up display that will project a virtual image to enable the driver to keep his eyes on the road.
Hyundai has only two crossover models in the global market, the full-sized Santa Fe and mid-sized Tucson.
It also offers a small SUV – called the Creta in India and ix25 in China – in some emerging markets.
The company has plans to expand its SUV line-up to eight models, including two under the premium Genesis brand, by 2020, according to Esther Yim, an analyst at Samsung Securities in Seoul. That should help Hyundai add 500 000 in annual vehicle sales and expand its share of the global SUV market to 6.8%, up from 5.7% currently. — Motor News Reporter