Vehicle manufacturer Hyundai expects its parts division’s market share to grow by at least 75% during the next three years, parts director Gary Braude tells Engineering News.
At this stage, the biggest potential for growth lies in attracting out-of-warranty customers back to Hyundai’s workshops, which is why the manufacturer started repricing its individual components last year, in accordance with the devaluation of its vehicles, he says.
“Parts become cheaper after the vehicle reaches a certain age – usually five years – and there is growing interest in this initiative from consumers,” he adds.
Another potential growth area is the increase of accessory sales.
“The increase in accessory sales will come down to training our dealers, as well as moti- vating and educating our sales staff,” says Braude. “We are seeing positive results from these initiatives, although accessory sales largely depend on the number of vehicles sold.”
Meanwhile, he states that, currently, origi- nal-equipment manufacturers worldwide are losing about 14% of their market share to threats like the grey market. Hyundai is implementing initiatives to counter this.
Imported grey parts are often not of the same standard as that of original Hyundai parts and could affect the safety of the customer, he warns.
He adds that original components are not necessarily more expensive than grey parts. “Hyundai cannot constantly change its prices as the value of the rand changes, as its prices are standardised. However, the prices of grey importers fluctuate and, therefore, the parts are often more expensive.”
Grey importers also do not have the same variety of components readily available as approved Hyundai dealers, he adds.
Further, Hyundai’s Approved Repairer Programme (Harp), which assists customers, who were involved in accidents, through the entire vehicle repair process, is currently tracking the repair of about 1 900 vehicles.
Through this programme, Hyundai tracks the repair process on behalf of the customer to ensure the vehicle is fitted with high-quality components and that work on the vehicle is done according to the manufacturer’s standards.
“Harp agents monitor the progress of the vehicle and provide the customer with constant feedback on its status,” he says.
Harp also strives to decrease the repair costs by working closely with insurance companies, body shops and assessors. The service is provided free of charge to all Hyundai vehicle owners.
“We are actively marketing this initiative to increase interest, as we believe there are currently still about 600 vehicles a month being repaired outside of the Harp programme, as customers are either unaware of it or do not understand the process,” says Braude.