Such is the sales success being enjoyed by Hyundai in the US that the South Korean carmaker will be unable to keep up demand this year.
John Krafcik, president and chief executive officer of Hyundai Motor America
Told Agence France Presse that the company faces a challenge to be able to produce enough vehicles for the US market.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
At the Detroit Motor Show last week Hyundai introduced its new three-door Veloster coupe which is set to hit showrooms later this year, as well as a crossover concept called the Curb.
The Korean carmaker has been expanding rapidly in North America since it opened its first US plant in 2005. Much of its growth has been spurred by its entry into new segments like SUVs and a luxury models.
Krafcik told AFP that Hyundai would be entering other segments in the future. “Right now we’re represented in segments that account for two thirds of industry volume. Five years ago, it was a little over half of industry volume.”
Hyundai has also won customers over with the industry’s first 10-year, 100,000-mile warranty. Despite the worst economic downturns in decades the company’s US sales rose 8% in 2009 when overall industry sales fell 21% to the lowest level since the recession of 1983.
In 2010, it hit an all-time record of more than 538,000 vehicles, a 24% increase as the overall industry grew by 11% to 11.6 million vehicles. Hyundai’s US market share has grown from 3% in 2008 to 4.6% last year.
Hyundai’s Montgomery, Alabama plant has a maximum capacity of 300,000 vehicles a year. It was able to increase production by about another 100,000 units after sister Kia opened its first US plant in West Point, Georgia and continues to import vehicles from Korea.
