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Hyundai consolidates after massive growth

Date: 05 April 2013   |   Author: Rachel Burgess

Hyundai's UK MD, Tony Whitehorn, is focusing on the brand and customer service rather than upping sales in 2013

After enormous growth over the past five years, Hyundai is planning to consolidate its position in the UK, focusing on brand recognition and service.

"The challenge is our brand," said UK boss Tony Whitehorn. "Recognition is not where we'd like it to be. Our product is at a higher position than our brand."

However, Whitehorn added that recessionary times have been "really good" for the firm in fleet, meaning less badge snobbery: "Benefit-in-kind savings is a big driver now.

That's what has changed the corporate market. It is less about pure brand. Now it is does the car look good, does it have enough equipment and what is the BIK? Everybody is looking at budgets."

Hyundai's strategy for the past two years has been to invest in corporate, according to Whitehorn.

It has recently announced 30 fleet business centres within its 165-strong dealer network that will be in place by the end of the month.

While the carmaker expects business dealers to have standard elements in place such as demos, a database and fleet specialists, it is also giving them a prospecting system, by which appointments with SMEs will be made for them.

Following the appointment of the company's first fleet director Martin Wilson last year, the firm is now seeking a contract hire and leasing manager.

"We need to have a person that speaks to the top 15 contract hire companies. The customer is asking for us and the contract hire firms don't know enough about us. We need to be having conversations," says Whitehorn.

He added that rental accounts for 20% of fleet, but will drop to 15% this year: "It's a great way for people to see cars on the road, but it's blooming expensive.

"The key is to be in as many channels as possible. The most profitable - and the most difficult to get into - is corporate. But we don't want to pull out of rental."

Last year, Hyundai sold 74,500 cars  with an equal mix of retail and fleet, and expects to reach 75,000 in 2013.



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