Hyundai Motor CEO José Muñoz speaks during a press interview on the sidelines of the newest Tucson world premiere in New York on Oct. 1.HYUNDAI MOTOR
NEW YORK — Hyundai Motor CEO José Muñoz said the automaker would compete as a mass-market brand rather than a premium one, betting on cost competitiveness as low-priced Chinese rivals close in.
“In the mid to long term, we want to be competitive. We don’t want to be premium. And we are a mass market [brand],” Muñoz said in a press interview on the sidelines of the newest Tucson world premiere in New York on Thursday.
“In addition to that, [we want] to be able to have economies of scale; we need to utilize capacities that we have,” he added.
The comments come amid mounting consumer unease over Hyundai car prices, after the Korean automaker recently raised the price of the Avante, sold abroad as the Elantra, by around 3 million won ($2,210), a rare decision for an entry model.
The price hike coincides with Tesla's dominance of the upper end of the market with competitively priced, Shanghai-built EVs, and BYD's rapid gains at the lower end.
Hyundai Motor's new Tucson, which was world-premiered in Long Island City, New York, on Oct. 1.SARAH CHEA
Hyundai did not disclose pricing for the latest Tucson, which was its first redesign in six years. The sweeping design overhaul and upgraded features have fueled speculation that a price increase could follow.
“What has happened in this year in Korea is absolutely abnormal,” Muñoz said, pinpointing the fierce competition. “We appreciate the Korean consumer as extremely demanding, and we want to remain the best in that market because we are as good in the world as we are in Korea. So if we are not good in Korea, we're not gonna be good anywhere.”
He brought the same resolve to China, where he said Hyundai would “triple down” to regain the market share.
Hyundai held nearly 10 percent of that market in 2016, but a diplomatic rift over Seoul's deployment of the U.S. Thaad missile defense system, followed by the rapid rise of domestic brands, has cut its share to between 1 and 2 percent.
“Well, to me, we have missed, obviously, the hybrid trends in China market. More importantly, we've also missed the EV wave,” he said. “But I think we've realized that, and we are reacting to that. We have launched Ioniq, and we are also going to compete with hybrid.”
It recently introduced the Ioniq V in China, a model developed for Chinese buyers, at 99,900 yuan ($14,900).
“The Chinese market is very competitive. The consumer wants the best technology, the best design, but we didn't bring to China the best technology. We didn't,” he added.
“Now we need to bring it, and we have to, again, be humble, be hungry, and work very hard.”
Hyundai has set an ambitious target of 500,000 annual sales in China by 2030.
In 2027, it plans to add subcompact and compact SUVs to that lineup, each offered as a fully electric or extended-range electric vehicle.
