Hyundai inches away from double-digit market share in Brazil

Hyundai Motor Group is a small step from seeing double-digit market share in Brazil, 10 years after it first entered the automobile market there.

According to data from the Brazil Automobile Dealers Association, Hyundai sold 171,312 vehicles in Brazil in the January-November period, recording a 9.8 percent market share. It marks its second-highest number, following 9.9 percent in 2016.

The top-selling car model was the HB20, a subcompact car model exclusively produced for Brazil, selling 89,286 units.

In terms of sales, Hyundai came in fourth, following Italy’s Fiat, US-based GM and Germany’s Volkswagen.

Industry watchers expect the carmaker will soon post a double-digit market share, citing growing interest for the HB20.

“Slightly bigger than Casper, Hyundai’s top-selling mini SUV, HB20 has an increased height of 1.47 meters -- higher off the ground for a small car -- to enhance its driving performance on Brazil’s bumpy roads,” said an official from Hyundai Motor Group. “We performed a series of durability test to make a resistant car.”

The car offers two oil filling ports for gasoline and biofuel, which is widely used in the country, he added. Brazil produces the second most biofuel from sugarcane, as of 2021.

During COVID-19 when the global car industry was hit by supply shocks, Hyundai experienced less impact in Brazil compared to other carmakers thanks to its local factory in Piracicaba, near Sao Paulo, with little fear of a surge in logistics costs, the official said.

In 2020, the number of Hyundai vehicles sold in the Brazilian market surged on-year by 10 percent to 184,284 units, increasing its market share to 9.3 percent from 7.81 percent on-year.

Creating buzz in the largest country in South America, Hyundai rolled out a face-lifted HB20 with a completely revamped rear section featuring full-width light-emitting diode taillights and a new tailgate in August.

In September, the carmaker constructed an engine factory in Piracicaba and started HB20 engine production.

Hyundai made its foray into the Brazilian market in 2012, selling 108,347 cars in the same year. Its Piracicaba factory manufactured 1.46 million HB20 vehicles, accounting for 80 percent of the total cars produced there, from 2012 to October 2022.

Its market share gradually increased from 5.9 percent in 2013 to 8.3 percent in 2015.

From 2012 to 2018, Hyundai sold more than 1 million cars in Brazil. But in 2019, its sales showed a slight downtick after being outpaced by rivals including Toyota, Renault and Ford, taking seventh place with a market share of 7.81 percent.