Hyundai Motor on Sunday announced additional price cuts to its top-selling vehicles, including its Grandeur flagship sedan, as part of efforts to maintain its market dominance amid the increased presence of import brands here.
In its latest round of price cuts, Hyundai plans to reduce the price tag of the Grandeur by 1 million won ($875) from Monday, with reductions for three others ― the i40, i40 Saloon and Veloster ― to be 300,000 won each, the carmaker said.
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From left are Hyundai Motor’s Grandeur, i40 and Veloster. (Hyundai Motor) |
The move comes after Hyundai’s monthly car sales declined 7 percent on-year to 55,548 units in June. Hyundai’s affiliate Kia Motors also saw its sales drop 10.5 percent last month.
Adding to the concerns is the increased presence of import car brands that have gained price competitiveness in recent years, becoming a direct threat to Hyundai and Kia that still dominate almost 80 percent of car sales here.
“Amid their slowing sales in overseas markets, especially the crucial U.S. market, Hyundai and Kia would make all-out efforts to protect their home turf, and lowering car prices would be the most effective measure,“ said an industry watcher.
European carmakers, which claim 75 percent of the nation’s import car market, is taking advantage of reduced tariffs in phases following the Korea-EU Free Trade Agreement that took effect in July 2011.
With the tariffs being reduced to 1.6 percent from this month, major European brands such as BMW, Mercedes-Benz and Volkswagen announced price cuts ranging from 300,000 won to 6 million won depending on models.
Meanwhile, though Japanese carmakers have yet to announce an official price cut on the weaker Japanese yen, they are also continuing aggressive marketing campaigns that offer huge discounts on popular models.
By Lee Ji-yoon (
jylee@heraldcorp.com)
