“Hyundai? It is the fastest-growing company in Portugal over the past five years.”
These are the words of local dealer Nuno Peralta (46), whom we met at a Hyundai Motors store in Lisbon, Portugal on the 28th of last month (local time). He said, “Portugal has narrow roads, so Hyundai’s small and medium-sized vehicles like Kauai (Kona’s local name) have a good response.” In fact, when walking on the streets of Portugal, it was not uncommon to see cars with Hyundai or Kia emblems passing by. Dealers of Mercedes-Benz, a European brand, expressed a similar feeling. João Alves (41) said, “Hyundai and Kia are popular because they have better quality and reasonable prices.”
According to the automobile industry on the 17th, Hyundai Motor Group is making good results in the ‘European niche market’ with a population of 5 to 10 million without a separate local corporation. This phenomenon is immediately evident in the trend of new car sales statistics. Portugal does not have local subsidiaries for Hyundai and Kia. Hyundai Motor Group’s vehicle sales in the country increased by 33.8% from 10,227 units in 2018 to 13,682 units last year. Its market share also jumped from 4.5% to 8.8% during this period. Similarly, in Greece, where Hyundai Motor and Kia subsidiaries do not exist, their market share rose from 8.3% to 13.0% over the same period.
Finland (8.7% → 11.2%) and Ireland (15.1% → 19.6%), which only have Kiaman local subsidiaries, and Switzerland (4.4% → 6.1%), which only have Genesis and Hyundai hydrogen car subsidiaries, all increased their metallurgical metallurgical shares over the same period.
In countries without sales corporations, local dealers import Hyundai and Kia vehicles for sales promotion. Dealers have their own know-how, but it is difficult to expect systematic and extensive marketing at the corporate level. Nevertheless, analysts say that the increase in performance in these countries is due to the brand synergy effect of Hyundai Motors and Kia.
Hyundai Motor Group ranked third among global automakers in terms of sales last year (6.845 million units). It sold 849,580 units to countries belonging to the European Union (EU), maintaining its fourth place after Volkswagen Group, Stellantis Group, and Renault Group. This is thanks to the heightened brand status of the Hyundai Motor Group, which also works in the ‘European niche market’. Lee Hoon, KOTRA’s Lisbon Trade Center, said, “As the local status of Hyundai Motor and Kia is rising, there are active ‘love calls’ for local investment by Korean automakers such as Hyundai Motor Group in Portugal.”
One of the reasons for the increase in sales is that European customized products work well in niche markets. The i10 and i20 hatchback models produced by the Hyundai Motors plant in Turkiye, and the semi-mid-size sport utility vehicle (SUV) seed produced by the Kia plant in Slovakia are strategically supplied only to Europe. The i30N and Kona, which are produced at Hyundai Motor’s Czech plant, are also showing steady sales in Europe. In general, small or medium-sized models at reasonable prices are gaining popularity in Europe.
An industry insider said, “Even though Hyundai Motor Company and Kia have not launched local marketing in earnest, they are already producing results in the European niche market.” .
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.