Hyundai plans to halve fleet sales and raise retail sales by 100,000 units

Article by Anita Panait, on April 9, 2012

Hyundai Motor America will focus more on its retail sales than its fleet sales this year, as part of its strategy to increase its sales volume by 10 percent from 2011. Hyundai Motor America chief executive John Krafcik revealed at the New York Auto Show that the company will halve fleet sales this year to 32,000 units, while aiming to increase retail sales by 100,000 vehicles. 

With the strategy, the company intends to sell 713,000 combined retail and fleet units in 2012. According to Krafcik, with 815 dealers, a 100,000-unit retail increase in one year is "a pretty big throughput increase.

With this strategy, Krafcik said they can make sure that their dealers can continue to grow, as the company plans to grow incrementally despite capacity constraints. New or redesigned products will make up for much of the additional volume, including the redesigned Hyundai Azera, which rolled out this month.

The company recently unveiled a re-engineered Genesis Coupe, and was confident during the debut of its Veloster model last fall. The company will unveil a new Elantra Coupe, Elantra GT hatchback and modified Santa Fe this year. The entry of these new products should bring relief to dealers who had to survive with low inventories, says Autonews. However, the transaction prices of units are usually near to the sticker prices.

Krafcik revealed that Hyundai buyers are often willing to pay the manufacturer’s suggested retail price, which is usually 3.5% off the sticker price. According to Hyundai Motor America’s chief executive, the company offers the lowest incentives while adding content and holding MSRP flat. Krafcik would also like dealers to intensify their efforts in certified used vehicles, in order to increase that company’s certified-used market share from 3.3 percent to 5.5 percent, which is currently Hyundai’s retail share.

Topics: hyundai, sales

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