Hyundai is becoming increasingly challenged in the United States and has had to raise the price of 2006 model year vehicles to offset the declining profit caused by appreciation of the domestic currency, the Korea Herald reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The manufacturer’s suggested retail price for a 2006 Accent is US$12,455 in the US while the similar-sized Toyota Echo sells for $10,985. The Japanese automaker recently released the Yaris sedan, a successor to the Echo, at $11,825, the paper noted.
As a result, the report said, sales of the Accent, which used to be less expensive than the Echo last year, continued to drop from 4,698 units in September last year to 1,231 units last month.
As the Korean automaker plans to raise the price of vehicles ordered from this month by 3%, the Korean-built Accent will be nearly 10% more expensive than the Japanese-made Yaris from the second half of this year in the United States.
The Korea Herald added that the price gap between the Sonata midsize sedan and the rival Toyota Camry and Honda Accord will also be reduced from 15.5% and 18.1% last year to between 5 and 7% from the second half of 2006.
The paper said the won-dollar rate fell 116 won last year, compared to 2004, and another 50 won this year.
Hyundai Motor expects a loss of 670 billion won in sales should the currency rate remain at present level of around 970 won per dollar, the Korea Herald added.
