Hyundai will double its advertising budget in Europe to 630 million euros

Article by Christian A., on March 8, 2013

As more automakers have decided to cut prices in order to raise sales, Hyundai will be doubling its advertising expenses to about 630 million euros ($821 million) in Europe to increase its market share. . Hyundai believes that it has an image issue, something that European automakers will probably not believe.

Hyundai found out after conducting some research that more consumers will be attracted to its in-demand models such as the Hyundai i30 hatchback if only it’s built by another brand. When interviewed about the plan to increase the ad budget, Mark Hall, Hyundai Europe's marketing director, said that it’s “an absolute necessity.”

Hyundai attributes its success to its offering of the i30 and its other models that are European designed, engineered and built. Because of this, Hyundai was able to give itself a makeover from being an automaker focused on SUVs and with some quality issues to being one of the hottest automakers around. In the past couple of years, sales growth has averaged almost 10% while the European Union economy suffers.

Hyundai was able to widen its market share to 3.4% in 2012 from 2.6% in 2010. But then, Hyundai presently doesn’t expect many of its customers to be loyal to the brand. It thinks that about half of the first-time buyers who flocked to Hyundai for its inexpensive prices will be going to rivals with a better offer.

When interviewed by Reuters, Hyundai Europe Chief Operating Officer Allan Rushforth said that around 70% of its “vehicle parc” in Europe is less than five years old. Rushforth and Hall recognize that in order to keep its customers and reel in new ones, they have to give customers an emotionally-charged reason to acquire its vehicles as well as logical reasons such as value for money.

If you liked the article, share on:

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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