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Whats up with Hyundai/Kia sales the last 2-3 months?

carguy58carguy58 Posts: 2,303
edited March 6 in Hyundai
I noticed Hyundai sales have been down for the past 3 mnonths vs prev months year YTD. Is Hyundai cutting back on fleet sales because their fleet sales made up 20% of their sales from what I read once. Another theory to why Hyundai sales are down is because of really conservative styling like on the 06 Sonata and the 07 Elantra mimics the 03 Corolla back end with the tall back end and the tailghts.

Hynundai's little sister brand Kia's sales have been up of late especially in the past 2 months. For example, Kia sold 30K units in Dec 06 vs 18 units in Dec 05 and Kia sold 22k units in Jan 07 vs Jan 06. Another question is Kia upping their fleets sales for their sales increases of late?
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Comments

  • joe97joe97 Posts: 2,248
    The fleet reduction is true. Hyundai USA started with the initiation looking to get "as many butts as possible" (Hyundai's word ;) ) in the Sonata, that program has ended for the time being.

    I don't believe the conservative theory is true. Case in point, the Corolla is about as conservative as you can get :) Past Sonata sales may have included higher percentage of fleet units. On the Elantra, production is still strained as a result of numerous unfortunate events in 06. My area dealers are reporting brisk sales.

    Not much info on Kia but no one seems to be complaining as long as they are up :)
  • lokkilokki Posts: 1,200
    I've heard that GM cut back their fleet sales.
    I've heard that Ford cut back their fleet sales.
    Now I'm reading (above) that Hyundai is cutting their fleet sales.

    SOMEBODY is selling to the fleets to make up for these cutbacks. That market didn't just disappear -

    Which company is getting all these sales now? :confuse:

    Is it good for that company, or bad?
  • robertsmxrobertsmx Posts: 5,525
    Toyota? DCX has been big too. I am seeing more Mazdas at rental centers. May be even Mitsubishis. But, GM, Ford and Hyundai are still major players in the fleet market.

    Good to show increase in sales.
    Bad when it comes to reputation over time.
  • lemkolemko Posts: 15,077
    ...are pretty dang expensive these days. I saw a Hyundai Azera and a Kia Amanti with MSRPs north of $30K! For that price, one could get a pretty nice Avalon. Shoot, the Sedona minivan was $32K. I thought it was supposed a lot cheaper than the Mopar, Toyota, and Honda minivans.
  • fezofezo Posts: 9,195
    The $32K Sedona is maxed out. You can get an Ody or Sienna to go way higher than that.

    That said I think Hyundai is slowly inching up in the price world.
  • joe97joe97 Posts: 2,248
    Prices are still relatively the same, albeit slightly up, mostly due to the strong currency in the home market. The more contributing factor is some of competing rivals have lowered their vehicles. One thing should be noted, Hyundai vehicles have improved vastly, so one would rationalize the slight price bump.

    A premium on comparable Toyota/Honda/Nissan is still evident (e.g. a comparable Azera is still a good 3-5K less than the Avalon).

    Also interesting to note, Kia has a comprehensive range of minivans, one of the few in the market has the whole class covered - Rondo, Sedona SWB, Sedona LWB. The latest sales support the Sedona being a great buy. And as said, many of the minivans comparable are in the 30s and upwards to 40K.

    Your figures are all loaded versions, by the way.
  • rockyleerockylee Posts: 14,011
    I think Lemko, was saying he'd rather have the base Yota over the Hykia, and I'd agree with him. ;)

    Rocky
  • fezofezo Posts: 9,195
    I will tell you, though, having driven a Hyundai Entourage I would put it up there against Japan's best. Naturally I still have this little voice in my head going "Korean car!" but I am sure it will sooner or later go away.
  • bumpybumpy Posts: 4,435
    Is that like perferring a base 3-series over a loaded CTS? :P
  • carguy58carguy58 Posts: 2,303
    "Toyota? DCX has been big too. I am seeing more Mazdas at rental centers. May be even Mitsubishis. But, GM, Ford and Hyundai are still major players in the fleet market."

    Mazda-RX 8's and MX-5 Miata and 3's really don;t go to fleets that much. The 6 however does because its too small to compete with Camry, Accord, Sonata, and Fusion.

    Mitsu- They don;t even sell that many cars in the past few in the US over the past few years.

    Chrysler is a big player in the fleet market even though they are reducing fleet sales too.

    Toyota: they do sell to fleets but not as the Domestic 2.5 do or Kia/Hyundai.
  • carguy58carguy58 Posts: 2,303
    I've heard that GM cut back their fleet sales.
    I've heard that Ford cut back their fleet sales.
    Now I'm reading (above) that Hyundai is cutting their fleet sales.

    SOMEBODY is selling to the fleets to make up for these cutbacks. That market didn't just disappear -

    Which company is getting all these sales now?


    I think you can ask which company is going to pick up the slack for GM, Ford, and maybe even now Hyundai cutting back their fleet sales but I think GM and Ford were guilty of dunping way too many cars too fleets. In my opinion Hyundai if they are in fact cutting back their fleet sales now its because they have to establish good residiuals throughout their vehicle line-up like Honda, Toyota, and Nissan have. I mean an average new car owner keeps their car for 3 years maybe and the first 3 years you own a new car(that you bought new off the lot)is when the car depreciates the most so Hyundai I think wants to establish better resale values.
  • joe97joe97 Posts: 2,248
    "Toyota? DCX has been big too. I am seeing more Mazdas at rental centers. May be even Mitsubishis. But, GM, Ford and Hyundai are still major players in the fleet market."

    Hyundai USA is not really a major player in the fleet market. The Sonata has garnered the most attention but that was a strategic move on the part of Hyundai, and has now been reduced greatly.

    Other Hyundais such as Tib, less than 1% are contributed to fleet.
  • rockyleerockylee Posts: 14,011
    Well I'm not foolish enough to do that !

    Rocky
  • robertsmxrobertsmx Posts: 5,525
    Actually, Hyundai increased fleet sales of Sonata drastically last year compared to a year ago.
    2005: 26.5%
    2006: 50.2% (this is thru June)

    In fact, In Jan-June period (2006), Hyundai has put 3.5 times as many Sonatas in rental fleet (~42K units) as it did in entire 2005.

    Elantra is lower at 13-14% over the same period. Kia is a major player too. The one mainstream company that stands out NOT doing fleet sales is Honda. Here are mid-year 2006 numbers:
    Civic: 0.9%
    Accord: 1.1%

    Toyota has been steadily increasing its participation in "fleet program". Camry and Corolla typically range between 14-19%.
  • dtownfbdtownfb Posts: 2,915
    The additional fleet sales for the Sonata may have had to do with the delay of the 07 sonatas. In other words, clear out the 2006 to make room. I'm sure they plan on selling fewer to rentals this year.
  • robertsmxrobertsmx Posts: 5,525
    I'm sure all automakers want to sell fewer cars to rental companies (or fleet in general). The number posted above are for first six months in 2006, and for a car that was redesigned not too long ago.
  • joe97joe97 Posts: 2,248
    The fleet initiative started in the 2nd half of 05 and ran for a good year or so. There were reasons for the initiative, and they had little to do with getting better sales figures.

    42K fleet through June 06 is not a fact, by the way.

    More Sonatas went to fleet in 06 than in 05 because:

    1) Hyundai's fleet initiative on the Sonata
    2) It's a better car in almost every way than the outgoing generation

    Ask the industry if Hyundai or Kia has been major players in the fleet program...

    Lastly, fleet is not as bad as the perception makes it out to be.
  • robertsmxrobertsmx Posts: 5,525
    42K fleet through June 06 is not a fact, by the way.

    You can look it up here.

    BTW, fleet isn't just perceived to be bad, it is bad (hence the effort by automakers to avoid/minimize it). For example, do you think DCX enjoys seeing Dodge Stratus with 87% fleet (during first half of 2006).
  • nthenthe Posts: 414
    "are pretty dang expensive these days. I saw a Hyundai Azera and a Kia Amanti with MSRPs north of $30K! For that price, one could get a pretty nice Avalon. Shoot, the Sedona minivan was $32K. I thought it was supposed a lot cheaper than the Mopar, Toyota, and Honda minivans. "

    the azera tops out at about 31K msrp. a comparably equipped avalon stickers for over 35K.
  • The Hyundai Azera starts at $24,535-$27,335 not $30,000
    and the Kia Amanti starts at $25,495 and a Toyota Avalon
    starts at $26,875-$34,065

    Than the Kia Sedona starts at $23,595-$26,195 and
    the Toyota Sienna starts at $24,155-$37,665 than
    the Honda Odyssey starts at $25,645-$39,095

    So really Hyundai's and Kia's vehicles are cheaper
    than Toyota's and Honda's vehicles :P
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