Hyundai Continues to Gain Ground on Toyota

Agent009 submitted on 09/28/2006 Official AutoSpies Timestamp: 1:28 PM
from: times.hankooki.com

[55] user comments | category: Misc News

Tags: Hyundai

Hyundai

Hyundai Motor has emerged as one of the global leading companies by being included in the list of world’s top 100 corporate brands.

Last July, Interbrand and BusinessWeek ranked the company 75th among companies worldwide and eighth among carmakers in their joint survey for Best Global Brands, up nine notches from 84th a year earlier.

Hyundai brand earned the Korean automaker the title of fastest growing automotive brand and a place among the top five biggest gainers in brand value.

With a brand value estimated at $4.1 billion, the power of Hyundai on a global basis now surpasses several competitors, upgrading the global image of ``South Korea.’’

``This survey tells us what many people already know: That Hyundai is a fast-rising star,’’ said Hyundai Motor vice president Brandon Yea. ``Our brand management is supported by continuous improvement in the quality of our products.’’

Public perceptions of the Hyundai brand have been transformed as a result of dramatic improvements in the quality of the automaker’s vehicles. In turn, this has fueled a steady increase in sales and confidence in the brand among both customers and dealers. Read Article

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JUGNU - 9/28/2006 1:36:18 PMView My AgentSpace

+1 Boost

Yes Koreans are doing great.But why only TOYOTA in the HEADLINE.Why not VW or any other European or American brand.
In real Koreans are gaining gorund lately, more because of the failure of American cars than anything else.
US's loss was korean's Gain.

JUGNU

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norak - 9/29/2006 11:52:13 AM

+1 Boost

"Why not VW or any other European or American brand?"

In JD Power and Associates Survey VW had one of the worst ratings in terms of quality.

"Toyota will sell 8.85 million units this year
Hyundai will sell 4.12 million units this year

Case closed."

Yes but they were referring to the rate of growth so maybe next year Toyota will sell 9 million while Hyundai might sell 7 million. With this trend continuing Hyundai will overtake Toyota eventually and rule the international car market.

"They will never be a Mercedes, BMW, Audi, or any high end premium brand."

It would be dangerous to do this. If Hyundai wants to exploit the lucury market they're better off making a separate badge for that segment like Toyota did with Lexus because as irrational as it is many people judge cars by badge. GM makes sure it sticks different badges to like BUick to higher end cars and badges like Vauxhall to the mainstream ones.

BMW530i - 9/28/2006 1:42:25 PM

-2 Boost

Why not VW or any other European or American brand.
===============================================

Because VW's tend to be more EXPENSIVE than Toyota's. Don't even involve the other European brands which are considerably more expensive than VW.

And the rest of the world doesn't get affordable European brands like Renault, Citroen, Peugeot, Fiat, Lancia, Alfa Romeo, Lada, Dacia, Seat and Skoda.

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AUDBMLEXMRC - 9/29/2006 6:18:47 AM

+1 Boost

Here in Europe VW's ar not more expensive than TOYOTA's at all!

Agent009 - 9/29/2006 1:34:50 PMView My AgentSpace

+1 Boost

It is a phenomenon called the exchange rate.

BMW530i - 9/28/2006 1:42:57 PM

0 Boost

And Opel.

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AUDIMAN4 - 9/28/2006 1:50:42 PM

+1 Boost

Toyota should be so afraid of Hyundai. People are going to start choosing Hyundai over Toyota because of the lower price, competitive content, and after all these Toyota recalls, better quality.

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OBSERVER1984 - 9/28/2006 1:50:53 PM

+2 Boost

Could you imagine:
Automaker number 1: Toyota
Number 2: Honda
Number 3: Hyundai

10 or even 5 years ago this looks like a crazy dream. But now it's completly REAL!

Don't you think so!?!

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neutral - 9/28/2006 1:55:12 PM

0 Boost

I would buy a Hyundai Sonata over a Camry any day. I cant believe I am saying this....I used to mock hyundai's existence just a year or two ago!!

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Agent009 - 9/28/2006 1:58:44 PMView My AgentSpace

+1 Boost

JUGNU- The only reason Toyota is mentioned is it is commonly referred to as the fastest growing company. Hyundai is emulating Toyota and analysts see it as a threat to Toyota within the next decade.

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kart1 - 9/28/2006 2:09:46 PM

+2 Boost

Toyota is what number 8 in this list of 100 companies - the highest ranked automaker. Hyundai is gaining ground by eating up the American car makers share, not Toyota's really. Hyundai still doesn't have the reliability reputation of Toyota (a big selling point), the resale value, or the better quality engines. Hyundai has a long way to go before they start competing with Toyota head to head - rather than a cheaper alternative. Pretty much now all Hyundai has over Toyota is a cheaper price - and that cheaper price tranlates to a cheaper feeling car.

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BMW530i - 9/28/2006 2:13:06 PM

-1 Boost

Personally, Hyundai's newer designs have been pretty nice.

The Sonata looks nice compared to the Camry, and so does the Azera when compared to the Avalon.

The only department where Hyundai designs are lacking IMO is in the SUV department. Their SUV designs don't really appeal to me. However, most people who buy Hyundai's in the first place don't care much for the design but about value.

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BMW530i - 9/28/2006 2:13:36 PM

+1 Boost

Personally, > I THINK THAT < Hyundai's newer designs...

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kart1 - 9/28/2006 2:15:08 PM

+1 Boost

Also European brands are not the direct competitor to Toyota, only VW gets close - but VW is seen on a different plane (although I don't think that VW's are more premium, they do offer more luxury features in their low end cars than Toyota). BMW, MB, Audi are just too expensive when compared to Hyundai. Hell, is there any Hyundai that cost more than a standard A3 from Audi - the cheapest offering by the German luxury brands in the US. Lets see the Entourage starts at 24k and the A3 starts 25k.

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kart1 - 9/28/2006 2:16:12 PM

+1 Boost

I have to say the Azera is better looking than the Avalon. The Santa Fe is nice too. But I won't even consider a Hyundai.

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KeyserSoze - 9/28/2006 2:51:27 PM

+1 Boost

BMW530i, rubbish! VW's are more expensive than Toyota's or are you maybe reffering to AUDI's as expensivn VW's. You should know better! I thought you were a well informed person. Now you let me down.

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1970toyotamarc - 9/28/2006 2:53:18 PM

+1 Boost

I came late to this, but I will echo the other posters. Misleading headline. Hyundai is not gaining ground on Toyota. If this is worldwide, there are many manufacturers between Hyundai and Toyota. Toyota is a few units shy of being number 1 in the world. If this is just the US, Hyundai has at least Honda, Nissan and Chrysler to catch up to before Toyota has anything to worry about.
Just another chance for an Autospies poster to try to get a dig into Toyota. Keep up the hard hitting journalism, guys.

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KeyserSoze - 9/28/2006 2:59:19 PM

0 Boost

I posted a thought provoking issue about Toyota on the Lexus LS blog, that Toyota dwarfs the five biggest carmakers by being estimated at having a $150 Billion more than them all combined. Hyundai is doing a good job but still a long way to go!

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Agent009 - 9/28/2006 3:00:00 PMView My AgentSpace

+1 Boost

Actually the headline is correct. Sales percentage wise and growth rate for Hyundai are faster than Toyota. The bigger you get the harder it is to maintain momentum. Sales dollars may be a different thing.

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KeyserSoze - 9/28/2006 3:00:24 PM

0 Boost

KeyserSoze - 9/28/2006 3:00:39 PM

0 Boost

PlanoA4 - 9/28/2006 3:33:12 PM

+1 Boost

Facts, Facts, Facts:

Hyundai Annual Worldwide Growth rate 17.6% over 2005
Toyota Annual Worldwide Growth Rate 13.1% over 2005

Hyundai internal costs are also 25-20% less than Toyota, which will allow them to significantly undercut Toyota model per model while making more profit per unit. (Sounds a bit like what Toyota did to the Americans, doesn’t it?)

Toyota will sell 8.85 million units this year
Hyundai will sell 4.12 million units this year

Hyundai will invest 30% more than last year into development of new models

I know some of you are pretty resourceful out there so toss in some more fact please.

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Buddyleez - 9/28/2006 3:36:02 PM

+1 Boost

As in any battle, the best strategy is to know your enemy. So although I would agree that they have a long way to go before they're on the same plane with Toyota, I'm sure that Toyota is paying the company its' due respect and has a close eye on them.

Hyundai is awesome however. They came to the industry a huge underdog and whored out their cars, which is the best way to get started. But they convinced people to actually buy them with the warranty the tacked on. Then they invested the money they made into making them more reliable (5th according to JD powers in overall brand), now they're working on design. Outstanding and wise strategy. Notice none of their cars have any real "toys" so to speak. I think the two exceptions are an iPod jack, and auto rear sunshade. No nav or anything crazy. Just stuff that works, and it will return huge dividens on their investing decisions.

Well Done!

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spiceace - 9/28/2006 4:00:03 PM

+1 Boost

Here is a better headline: Ford, GM and DCX better watch out....Hyundai is moving up.

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bigslick83 - 9/28/2006 4:15:12 PM

+1 Boost

wait a min,
i thought bently was the fastest growing automotive brand. lol hahahaha j/k

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kart1 - 9/28/2006 5:38:53 PM

+1 Boost

Oh no, now Toyota has to worry about Bentley ;).

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mitchatlexusofmarin - 9/28/2006 8:02:05 PM

+1 Boost

Hyundai has a brand value of 4.1 billion? Toyota has 150 billion cash in the bank.

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mstangpny07 - 9/28/2006 8:02:36 PMView My AgentSpace

+1 Boost

Good Job Hyundai....
Only if they had a better reputation....

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S4cabriofox - 9/28/2006 8:39:48 PM

+1 Boost

mstangpny-

I think Hyundai is percieved as much better than it used to be these days. I remember the $hitty 1998 Accent or whatever, and it made me laugh out loud when I saw it. Now, I see the Azera and I think it looks elegant to say the least, especially for a car with a swirly H on the hood. Personally, I'd take an Azera over an Avalon for looks. I don't see what's so great about the Avalon interior. It might have more wood, but it also has more plastic.

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Agent63 - 9/28/2006 9:05:13 PMView My AgentSpace

+1 Boost

Hyundai is a force to be recon with. I kid you not it will be up there in a few years. It has come a long way from nothing to a fierce contender in the automotive industry. I can only imagine what the other major manufacturers are thinking.

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huu76 - 9/28/2006 10:33:17 PM

+1 Boost

Great, another thing to inflate the already bloated S.Korean egos (just what we need). Funny how America made S.Korea, protected S.Korea, and now they're making the S.Korean economy what it is, but never a word of thanks (just the occasional poke in the eye and spit in the face).

Agent63,
Let's see Hyundai raise their prices by a couple thousand, see how strong sales are then.

I suppose something out of nothing is an accomplishment if your standards are really low.

Foxy,
The Azera looks tardo. If you're going to copy parts of other cars, atleast make them fit together well. The only good looking Hyundai is the Sonata, but that's only because it used to be the Honda Accord.

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S4cabriofox - 9/30/2006 11:00:36 AM

+1 Boost

And the Avalon is good-looking?

I hope you don't think so!

The Azera doesn't necessarily copy other cars; it just has a generic design, but with its jewel-like headlights, LED rear lights and a tasteful amount of chrome, it looks very elegant for an affordable sedan. The Avalon is a mish-mash of an overinflated body and sci-fi light clusters.

huu76 - 9/28/2006 10:34:33 PM

+1 Boost

Actually, the Tiburon is good looking too, but in its past life, it was called Toyota Supra.

reply to this comment

Agent63 - 9/29/2006 5:53:04 AMView My AgentSpace

+1 Boost

huu76,

It's got nothing to do with my standards. As long as their quality and build is good. The current Hyundai owners will go back and buy more. Sure the price is convincing. I think give it 5-10 years raising a few thousand will not harm it's target buyers. That's if their company will continue growing and one day become Toyota like. "IF". Nothing about MY standards. I'm just basing my comments on the facts that i've read about on here.

The Sonata is pretty good looking for a Hyundai. I give them props for that. Their Tiburon has much improvement since it's old gen. They are building up slowly. They will never be a Mercedes, BMW, Audi, or any high end premium brand. But they have the potential to make Honda/Acura's, Nissan/Infiniti's, Toyotas/mm.Lexus i don't think so but who knows. I don't think it will happen in my life time.

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AUDBMLEXMRC - 9/29/2006 6:17:30 AM

+1 Boost

Because VW's tend to be more EXPENSIVE than Toyota's. Don't even involve the other European brands which are considerably more expensive than VW.
BMW530i
-------------------------------------------------------Here in Europe VW's ar not more expensive than TOYOTA's at all!

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mkt1982 - 9/29/2006 12:33:52 PM

+1 Boost

LOL.
Korean newspaper praises a Korean automobile company, and Koreans are glad.

"BMW530i"
He is a korean.
Koreans love bmw and hyundai. and hate Japan car

reply to this comment

Chronoseus - 9/29/2006 4:28:14 PM

+1 Boost

OK, straight to the point, yes hyundai is making better models with better designs and yes they r rising, but their engines n metalwork on cars still sucks. Like many of the above siad, the thing that they got over toyota n the other companies is the cheaper prices(cheaper=creappled). But now, if they pay mind to this, i gotta admit, they can get real nasty

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Rupert - 9/29/2006 7:18:20 PMView My AgentSpace

+1 Boost

audbmlexmrc,
yes they are.
a golf is more than a corolla, polo more than yaris, but the thing is toyota has a very patchy model line up that doesn't compare very well to vw's.
actually, what does toyota sell here?
a rubbish corolla, a rubbish avensis, a rubbish land cruiser and land cruiser amazon, a prius. and a good yaris and rav-4.
but that's it. maybe the american will understand why we don't like toyota here, we prefer honda and nissan. toyota just don't seem to be making an effort, and the reliability thing is matched by honda over here.
we don't get the camry (they sold like 100 per year when they did), we only get 1 toyota saloon (avensis, but most are hatchbacks, but not like yaris hatch style, like opel vectra style), 2 compact cars, one of which is garbage, 2 suvs, which have to be worst in class, a hybrid, a good suv (rav 4).
why buy one? buy a vw or renault/peugeot/citroen/ford/vauxhall, they are certainly better cars.

reply to this comment

Rupert - 9/30/2006 3:04:02 PMView My AgentSpace

+1 Boost

i forgot the previa, that is ok, but not brilliant.

AUDIMAN4 - 9/29/2006 7:24:24 PM

+1 Boost

BMW530i is a Korean? I thought he was a white man.

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sebastianmejia17 - 9/30/2006 12:08:21 AM

+1 Boost

What can I say!!! If Hyundai is gaining ground on Toyota, that's has to do with the fact, that this korean people are copying every single designs from Toyota and Honda as well, so they need to sue the crap outta them. Here we go
2006 Toyota RAV 4 = 2007 Hyundai Santa FE
Doesn't it the Hyundai Entourage look like a Toyota Sienna? And what about the Sonata?? Doesn't it that resemble an old Honda Accord? Give me a F****** break!!! Not only are they gaining ground on Toyota Motors, they're also doing it to Honda, and any other company that comes out with striking design. They just GARBAGE!!!!

reply to this comment

KeyserSoze - 9/30/2006 12:14:26 AM

+1 Boost

Rupert, you are a dreamer! Dont disrespect the Land Cruiser like that! it is king of its class.

reply to this comment

S4cabriofox - 9/30/2006 11:05:17 AM

+1 Boost

KeyserSoze-

The Land Cruiser in the UK is different from the LC here. It's more like a toned-down GX470; it's based on the 4Runner platform I believe. And it's very ugly.

And the engine is a joke. 4.7L V8 with 270hp, originally 240hp??? Come on! And yes, all the new premium SUVs that Rupert mentioned leave it in their wake.

Rupert - 9/30/2006 8:14:49 AMView My AgentSpace

+1 Boost

maybe in america, where you're used to giant heavy seperate chassis underpowered vehicles, but not in europe. it lags way behind the LR3 or q7 or gl, and of course all the smaller suvs like the ml.

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huu76 - 9/30/2006 1:54:42 PM

+1 Boost

Foxy,
What's the torque on that engine?

The Landcruiser is probably 20yrs old now, so of course performance wise they should outmatch the European landcruiser. Then again, how many of them will stay in out piece longer than a Landcruiser?

reply to this comment

Rupert - 9/30/2006 3:03:26 PMView My AgentSpace

+1 Boost

yes, the lc here is like the gx, and looks like an odd shellfish.

but even the venerable LC amazon (your LC) is terrible.
very old tech, giant, underpowered engines (1992 range rover, 4.2 200 hp, 2005 LC, 4.7 270. thats bad).
toyota just don't seem to bother with europe, with poor engines, poor dynamics, poor interiors, but then again, they don't need to. the LC and LC amazon sell very well in the middle east, as they are fantastic on sand.

reply to this comment

2JZSoarer - 10/1/2006 2:14:47 PM

+1 Boost

Hyundai is a damn flea compared to TOYOTA!!!

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JUGNU - 10/1/2006 3:51:16 PMView My AgentSpace

+1 Boost

LAND CRUISER is dominating the ASIAN FULL-SIZE SUV MARKET by more than 75-80%.

This statement alone is enough to describe LAND CRUISER's dominion.

I have owned 2 LAND CRUISER's in my life and nothing can come close to it in RELIABILITY,OFF-ROAD CAPABILITES,TOUGHNESS..ETC

IT'S THE BEST COMPLETE OFF-ROAD PACKAGE AVAILABLE TODAY.

JUGNU

reply to this comment

Rupert - 10/1/2006 5:49:15 PMView My AgentSpace

+1 Boost

jugnu,
and how many times did you take it off road?

i doubt many people know what a diff lock or a low ratio box is.

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S4cabriofox - 10/1/2006 10:21:38 PM

+1 Boost

JUGNU-

"IT'S THE BEST COMPLETE OFF-ROAD PACKAGE AVAILABLE TODAY."

No, I'd give that prestige to the Range Rover. The Range Rover can do all that the Land Cruiser can do, and more-- it has fantastically understated style and a beautifully furnished interior, with a mouthwatering array of standard features. You could buy a base Range Rover for $80K and it'll still be nicer than your neighbor's fully-loaded Range Rover Sport.

reply to this comment

huu76 - 10/2/2006 11:36:29 PM

+1 Boost

I don't know. If the Range Rover is anything like the Discovery. It might get you into the rough stuff, but will it stay in one piece long enough to get you out?

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