Supply problems are frustrating Hyundai Motor America as buyers switch to smaller cars and competitors weigh in to a segment in which the Korean automaker specialises.
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According to motor industry journal WardsAuto.com, Hyundai’s US sales fell 16.0% in September to 33,384 units, which it blames on too much demand and not enough supply, mainly for its Accent and Elantra small cars, as the subcompact and compact segments continue their momentum.
Steve Wilhite, chief operating officer-HMA, told Ward’s October was “positive” and up on last year but not as strong as the US subsidiary would have liked.
Wilhite reportedly said it was frustrating to see Toyota, Honda and Nissan bring their subcompact models to market and gain share as Hyundai struggled to get enough Accents.
“If you look at Toyota with the introduction of (the) Yaris, there’s 50,000 units this year that didn’t exist last year,” he told WardsAuto, noting the Honda Fit adds 21,000 units and the Nissan Versa brings 11,000.
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By GlobalData“As (these competitors) are introducing product, we’ve got brilliant product – a reputation in that segment – and we’re just not able to get the availability.”
Wilhite told Wards he was confident supply would improve now that two model lines – the Santa Fe SUV and Sonata sedan – are being built at the automaker’s new plant in Alabama. Hyundai America recently told its dealer body it would fall short of its 500,000-unit sales goal this year but is aiming for 550,000 sales for 2007.
Wilhite told WardsAuto he’s pleased with Hyundai’s sales to date (up 2.9% to the end of September) but disappointed “when I think about what the potential was. If we had gone through the full year, with full capacity in all car lines, this would have been a terrific growth year for us.”
The company has just shown a new Elantra line to the US press and predicts it will sell 100,000 units in its first full-year, which is a drop from recent years but based on available capacity, WardsAuto.com said.
