Hyundai Automotive South Africa (HASA) hopes to see 2016 sales reach about the same level as 2015, defying a South African new-vehicle market most analysts agree will drop around 10% this year.
HASA marketing director Stanley Anderson says there is “no doubt” the South African new-vehicle market will “be down” in 2016. “The weak rand is not helping.”
Anderson says consumers are increasingly shying away from buying big-ticket debt items, such as new cars, as living costs continue to soar.
He is hopeful Hyundai will be able to hold the ship steady in 2016 in South Africa, on the back of a number of key model introductions.
One of these is the new ix35 sports utility vehicle (SUV), which has reverted back to its original name, the Tucson.
“We sold 526 units in March, which shows you there is still some money in the market,” says Anderson.
The Tucson range in South Africa currently offers no diesel option. However, HASA is testing a 1.7 ℓ diesel engine, which may be introduced later this year.
The new Elantra will also make its debut in the third quarter of the year.
Hyundai’s much-anticipated Santa Cruz pick-up is only scheduled for launch in South Africa in 2019 or 2020, notes Anderson.
The arrival of the Creta SUV is not yet a certainty, he adds, as the local vehicle importer and Hyundai, in Korea, are still negotiating a suitable price on this vehicle.
The Creta is not HASA’s answer to the booming local small SUV segment, warns Anderson. “It will fit in just under the Tucson. It is actually quite big in size.”
South Africans will have to wait quite some time for the local introduction of Hyundai’s Genesis luxury subbrand, he adds.
With the Genesis G90 competing with the likes of the Mercedes-Benz S-Class, HASA will wait until the introduction of the more affordable G70, which is more of a C-Class competitor, before considering rolling out the premium brand in South Africa.
Genesis is also working on two SUVs, which may also be considered for South Africa.
The Hyundai Ioniq hybrid is also being weighed for South African introduction, says Anderson, with the expectation that it will be a small-volume seller, should it reach domestic showrooms.
In total, HASA aims to sell around 38 000 units in 2016.
Sales for the Korean brand peaked five years ago, when it reached 53 000 units a year.
Expect Steep Price Increases
Anderson expects new-vehicle prices to increase between 3% and 5% each quarter this year.
“This means new-car price increases will be 15% to 20% this year, with importers, rather than local manufacturers, probably getting closer to the 20% mark.
“Importers will probably increase their prices by around 5% more than local manufacturers. We have, however, seen some strong price increases from local manufacturers in recent months.”