Hyundai Counts on Strength of Car Design to Sustain Sales Gains

Washington DC December 18, 2009; Hyundai Motor Co. broke into the U.S. market in 1986 with a $4,995 compact car, the Excel. Now the automaker wants customers to buy its models for their looks.

According to Bloomberg, after boosting its U.S. market share to a record this year, Hyundai aims to build on the gains with more stylish designs.

The new focus on looks, kicking off with the 2011 Sonata sedan and revamped Tucson crossover, is also aimed at helping South Korea’s biggest carmaker command prices on par with larger Toyota Motor Corp. and Honda Motor Co.

The basic idea is a car that looks like a premium car, but not at a premium price,” Phil Zak, Hyundai’s head of U.S. design, said. Seoul-based Hyundai has bucked an industry wide slump this year with a 6.2 percent U.S. sales gain through November, as a weaker won enabled the company to boost marketing spending while a stronger yen hurt its Japanese rivals.

The Korean carmaker still lags behind Toyota and Honda in terms of brand value, according to analysts. Hyundai’s U.S. market share this year has risen to 4.3 percent through November from 3 percent in 2008, with the help of marketing programs, enhanced distribution channels, and improved quality.

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