Higher incentives drove Hyundai Group to achieve 1% US sales gain in April 2015

Article by Christian A., on May 7, 2015

Hyundai Motor Group exceeded analysts’ expectations by posting a 1% increase in U.S. sales for April 2015 – a feat it accomplished by offering bigger incentives for the Hyundai and Kia brands. Hyundai Motor America reported a 3% increase in sales to 68,009 units – breaking April records. Meanwhile, Kia Motors America posted a 1% decrease from the record set last year with 53,282 units sold.

Nevertheless, it’s still its second-best sales for April. In a statement, Bob Pradzinski, vice president of sales at Hyundai’s U.S. sales arm, said that it has set records for April six years straight as it enters the spring selling season. He said that this momentum is expected to continue with the launch this spring of the hybrid and plug-in hybrid versions of the Sonata midsize sedan.

However, Hyundai posted these gains at a cost. Last month, Hyundai spent $2,710 for each car on incentives, about 48% higher than April last year, according to TrueCar Inc. Kia also increased its incentives per car by 26% to $2,758. Throughout the industry, per-car incentives had only risen by 1% in April as carmakers like Ford and GM limited their expenses and benefit from the expanding market for trucks and crossovers.

TrueCar also indicated that several companies spent higher than Hyundai and Kia when it comes to the dollar value but no one spent more for each dollar of sales. The incentives of Hyundai as a share of transaction prices increased to 11.5% while Kia's climbed to 11.6%.

Chrysler, which had a ratio of 10.5%, was the only other car company that recorded double digits. But it appears that Hyundai and Kia’s April 2015 results show that it is gaining some success with its more expensive cars that have a higher profit margin.

April sales of the Hyundai Genesis luxury sedan totalled 3,159 units, a 142% increase. Since its redesign last year, it has held a starting price of $38,950.

Kia’s redesigned Sorento crossover reported a 15% increase in sales to 9,808 units while it sold 3,394 units of the Sedona minivan, marking a fourfold increase.

Nevertheless, all these gains failed to offset the declines of the brand’s cars. In April, Kia only sold 11,418 units of the Soul subcompact, a 21% decline. This ranks second among Kia's most popular models. The Optima midsize sedan is at the top.

If you liked the article, share on:

Comments

Recommended

Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries