[AutoDaily] Hyundai and Kia motors are feeling the tension from the imported car market which is becoming more popular in the Korean market. Especially, the imported car have been increasing 20% in sales every year in the luxury market.
 
On 20th August, Hyundai was having an event for people who could test drive the Avante Diesel. At the event the marketing director Kim Sang-dae for Hyundai was talking about how they are analyzing the industry and customizing a strategy to focus on different groups of people to compete against the rise in import sales.
 
The quality standards in the Avante, Sonata, Grandeur, Genesis and Equus will come with significant updates following the Maxcruz(Grand Santa Fe), Avante Diesel, and the Genesis Dynamic Edition.
 
◆ More Hybrids and Diesels coming to the line-up.
 
Hyundai and Kia motors have been prepared several things against imported cars since 2011.
 
To compete against the diesel models imported from Germany, Hyundai and Kia will be releasing more models with diesel engines. To compete against the hybrids being imported from Japanese auto-makers they will be preparing a hybrid line-up.
 
The Grandeur and K7 hybrids will be installed with the 2.4-liter Theta II engine with a 35kw electric motor system. The 2.4-liter Theta II engine was created for fuel economy, emissions and lowering friction loss through the Atkinson cycle. The lithium polymer battery from LG Chem will be of a lower weight and have higher performance.
 
In addition, the Sonata and K5 hybrid facelift could be launched at the same time.
 
This year the Avante diesel was brought to market and the Grandeur diesel will be coming at the next year with the 2.2L R-engine. The 2.2L R-engine will also be installed in the Kia Sorento and K7 for late next year.
 
The new Genesis which was supposed to be launched this year with a 3.0-liter diesel engine. But was delayed because of the new environmental Euro 6 emissions standard.
 
Hyundai motors invests over $30 billion every year for marketing, testing new models, comparing imported cars to theirs and they will also be investing in a new high-end luxury showroom that will be opening in the Gangnam area of Seoul.
 
◆ Any Effects?
 
Effects will depends on performance and reasonable prices of the cars.
 
Hyundai is not sure if the Grandeur hybrid can achieve or go beyond 16.0km/l which it is trying to accomplish. The Toyota Camry hybrid and the Lexus ES 300h hybrid already achieve more than 16.4km/l.
 
The Avante hybrid is not doing so well in sales. The Sonata is too weak. The K5 has decreased in sales.
 
The Avente diesel is two million won more than the gasoline engine and isn't any better in fuel than the Volkswagen Golf. The Grandeur diesel is still not as competitive to the German mid-size diesel sedans being sold at reasonable prices in the market.
 
The union's strike at Hyundai has created a lot of product shortages which is already causing a 2,000 vehicle delay on the Grandeur. With problems arising on some of the Korean models like water leaks make customers look towards imported vehicles.
 
In the domestic car market, imported car sales are increasing 20% every year while Hyundai and Kia's market share is shrinking by 10-20% during the same period. So now we'll wait and see how the domestic car manufacturers will handle these situations.
 
 
By Lee Sangwon & Shin Seungyoung.
(translate by Lee Jeonghwa)