Hyundai betting big on sedans for profitability; Will ramp up Elantra & Sonata production

RahulNagaraj · 21st February 2024, 13:23

According to media reports, while SUVs continue to be a significant player in the automotive market, Hyundai believes there is still room for traditional sedans. Reports state that Hyundai, which recently updated its Elantra & Sonata models in the US, could bring in more profitability for the company.

The Korean carmaker wants to achieve "double-digit growth" this year with the two models. Jose Munoz, CEO of Hyundai Motor North America, even confirmed that the carmaker will ramp up production of the two sedans as they will be a "key factor for profitability" this year.

Hyundai betting big on sedans for profitability; Will ramp up Elantra & Sonata production-elantra.jpg

The new Hyundai Elantra went on sale in the US market in fall 2023. The company, since launch, has delivered just 6,900 units - 20% down from the same month last year. The Elantra is priced at $22,775 for the base-spec, while the range-topping N model costs $34,850.

Similarly, Hyundai also recently updated the Sonata in the USA. The larger sedan also comes with a striking design and is priced between $28,650 - $38,350. The carmaker delivered only 3,121 units of the Sonata last month - a 36% decline compared to January 2023.

Munoz stated, "We are not trying to overproduce, but we're losing some sales because the dealers don't have the trims, the versions, that they would like to, so we're very mindful of that."

Source: AutomotiveNews

Link to Team-BHP news

anjan_c2007 · 22nd February 2024, 16:58

While their vision and betting for Hyundai sedan's prosperity in the US market cannot be disputed at this stage, what is alarming is the sales figure of 3121 Sonatas during February 2024. Demand for the Elantra's too have petered out. Are they past their best years and decade?

Sonata sales during 2005 till 2011 were mostly in four figures a month. For instance, its sales figures during Jan (7006), February (9762) and March (11,373) were reported in 2005. The sales moved northward sincd around 2012, when its average monthly sales touched five figures every month. Sales during Jan (14,489), February (17,425) and March (23,281) (all figures for 2012) were on a high.

Decline in US market sales for the Sonata commenced since 2018, continuing to do so during the pandemic. And with the sales figure of 3121 units of Sonatas reported last month, they need to introspect rather than make such announcements about ramping up production and so on. Because what was once featuring in the Top Ten best selling car list till 2016 with the Honda Accord, Toyota Camry and Corolla has now become history for sedan buyers.

Presently in 2023 the Honda Accord (197,947 units sold) featured at #17, Honda Civic (200,381 units sold) at #16, Toyota Corolla (232,370 units sold) at #13, Tesla Model 3 (232,700 units sold, estimated) at # 12, Toyota Camry (290,649 units sold) at # 8, Tesla Model Y (385,900 units sold, estimated) at #5, all feature in the Top 25 best selling cars list in the US. The Ford F Series tops this list (mainly the F 150 with 750,789 units sold).

Hence, only SIX SEDANS feature in the Top 25 list as is illustrated above, the rest 19 being SUV's. No Hyundai sedan features in the Top 25 list of 2023.

https://www.caranddriver.com/news/g4...ing-cars-2023/

So Hyundai's calculated risk proclaiming its future strategies, betting and production/ profitability dreams for their sedans in the US market need to be all taken with a pinch of salt, unless they back it up with critical market research and accordingly develop sedans, that attract buyers to report sales figures matching with theirs from a decade ago.

21st February 2024, 13:23	#1
RahulNagaraj Senior - BHPian Join Date: Mar 2021 Location: Bangalore Posts: 2,129 Thanked: 20,707 Times	Hyundai betting big on sedans for profitability; Will ramp up Elantra & Sonata production According to media reports, while SUVs continue to be a significant player in the automotive market, Hyundai believes there is still room for traditional sedans. Reports state that Hyundai, which recently updated its Elantra & Sonata models in the US, could bring in more profitability for the company. The Korean carmaker wants to achieve "double-digit growth" this year with the two models. Jose Munoz, CEO of Hyundai Motor North America, even confirmed that the carmaker will ramp up production of the two sedans as they will be a "key factor for profitability" this year. The new Hyundai Elantra went on sale in the US market in fall 2023. The company, since launch, has delivered just 6,900 units - 20% down from the same month last year. The Elantra is priced at $22,775 for the base-spec, while the range-topping N model costs $34,850. Similarly, Hyundai also recently updated the Sonata in the USA. The larger sedan also comes with a striking design and is priced between $28,650 - $38,350. The carmaker delivered only 3,121 units of the Sonata last month - a 36% decline compared to January 2023. Munoz stated, "We are not trying to overproduce, but we're losing some sales because the dealers don't have the trims, the versions, that they would like to, so we're very mindful of that." Source: AutomotiveNews Link to Team-BHP news
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22nd February 2024, 16:58	#2
anjan_c2007 Distinguished - BHPian Join Date: Jul 2008 Location: India Posts: 8,340 Thanked: 20,696 Times View My Garage	Re: Hyundai betting big on sedans for profitability; Will ramp up Elantra & Sonata production While their vision and betting for Hyundai sedan's prosperity in the US market cannot be disputed at this stage, what is alarming is the sales figure of 3121 Sonatas during February 2024. Demand for the Elantra's too have petered out. Are they past their best years and decade? Sonata sales during 2005 till 2011 were mostly in four figures a month. For instance, its sales figures during Jan (7006), February (9762) and March (11,373) were reported in 2005. The sales moved northward sincd around 2012, when its average monthly sales touched five figures every month. Sales during Jan (14,489), February (17,425) and March (23,281) (all figures for 2012) were on a high. Decline in US market sales for the Sonata commenced since 2018, continuing to do so during the pandemic. And with the sales figure of 3121 units of Sonatas reported last month, they need to introspect rather than make such announcements about ramping up production and so on. Because what was once featuring in the Top Ten best selling car list till 2016 with the Honda Accord, Toyota Camry and Corolla has now become history for sedan buyers. Presently in 2023 the Honda Accord (197,947 units sold) featured at #17, Honda Civic (200,381 units sold) at #16, Toyota Corolla (232,370 units sold) at #13, Tesla Model 3 (232,700 units sold, estimated) at # 12, Toyota Camry (290,649 units sold) at # 8, Tesla Model Y (385,900 units sold, estimated) at #5, all feature in the Top 25 best selling cars list in the US. The Ford F Series tops this list (mainly the F 150 with 750,789 units sold). Hence, only SIX SEDANS feature in the Top 25 list as is illustrated above, the rest 19 being SUV's. No Hyundai sedan features in the Top 25 list of 2023. https://www.caranddriver.com/news/g4...ing-cars-2023/ So Hyundai's calculated risk proclaiming its future strategies, betting and production/ profitability dreams for their sedans in the US market need to be all taken with a pinch of salt, unless they back it up with critical market research and accordingly develop sedans, that attract buyers to report sales figures matching with theirs from a decade ago.
	() Thanks