Why Australia is so important to Hyundai

Hyundai let CarsGuide in on why its Australian division gets special attention from its South Korean parent company.. "We're quite a small percentage of global volume but the level of support we get from Korea is always higher," said Bill Thomas, Hyundai Australia's GM of Corporate Communications.. "Australia is a hugely competitive market and if you're doing well here, you will, in theory, do well in a number of different markets which are less competitive..

"Also, in terms of customer sentiment, there's a mixture of European and American buying behaviour." "So there's interest from [Hyundai HQ] in the makeup of the market, both the competitor set and the customer demand for various types of vehicles." Globally, Hyundai's Australian arm outperforms compared to other markets where the South Korean giant plays.. "If you look at our market share compared to some of the markets across the world, you'd find that we're certainly up there amongst the better performing markets," said Hyundai Australia's General Manager of Product Planning Jonathan Lam.. Australia is not just important to the company as a vector for high sales either..

Our market has seen the introduction of right-hand drive exclusives, like the first-generation Palisade large SUV, or the last-generation Veloster hatchback.. There are new factors drawing Korea's attention to Australia.. Our market has become one of the most competitive in the world off the back of Chinese automakers using Australia as a stepping stone to Europe..

It presents an opportunity both ways, as Hyundai has a chance to compete with these new brands often before they debut in larger markets.. "The competitiveness of this market means that, yes, we are getting a lot of focus from headquarters," continued Lam.. "So that does actually make our job a bit easier, but at the same time it's not like we can just ask for something and get it..

"We have to make a strong case for every product.. Head office won't accept just anything, we have to be very detailed and structured in terms of the business case." Lam said that the explosive amount of competition in Australia wasn't boxing Hyundai into particular price points or segments for its range.. "It's not necessarily just the number of competitors here or how cheap they are" he said..

"You could have a segment with fifty competitors, but it's more to do with which are the ones actually selling in volume." "We feel our pricing is competitive.. Obviously there are competitors which will be cheaper, and there will be some which are more expensive, but I think for us it's never just pricing which is what is driving market share or sales.. Actually if it was just about pricing that would make my job a bit easier." Lam said "intangible benefits" of the Hyundai brand, whether it was buyer familiarity, dealer and service network, or vehicle design and quality, are helping the company keep close to the front of the pack despite the ambition of new brands in the top-10 rankings..

Lam said there were even products in Hyundai's portfolio which didn't have to sell in the kinds of volumes which rivals, Chinese or otherwise, might be aiming for.. He conceded the Palisade XRT Pro, as a monocoque adventure-focused large SUV was a "quite niche" offering intended to make up around 10 per cent of the model's volume.. Even the Hyundai Inster city-sized electric hatch, which is priced significantly higher than something like the BYD Atto 1, was something the brand was keen to keep around as an alternative for buyers..

"Niche products have their place in our portfolio.. It's not a car which is going to appeal to all consumers, but it has a very specific buyer subset who still really likes that car.".