Vehicle manufacturer Hyundai Automotive South Africa (HASA) achieved a record number of sales in 2012 and hopes to break this record in 2013. The company believes that, with a sufficient supply of vehicles, it can grow ahead of the market in terms of sales and, in turn, gain market share.

As the global demand for Hyundai product increases yearly, HASA has had to take action to ensure sufficient allocation of stock to its dealerships in South Africa. HASA says it will ensure sufficient supply of the iX35 model through a supply agreement that it signed at the end 2012 with the Hyundai plant in the Czech republic. This agreement will double the amount of iX35 models allocated to the South African market this year, with the first allocation already on its way.

HASA marketing director Stanley Anderson predicts that the automotive market will grow at a similar level to last year if the interest rate remains at its current levels. “As the interest rate is the biggest driver of vehicle sales, with the prime rate at 8.5%, I predict market growth of between 8% and 10%.”

He expects the company to experience growth ahead of the market and also foresees that its vehicle segments will grow at the same rate.

HASA, which is one of the three major players in the South African passenger car market, says it is in a fortunate position, as the demand for its vehicle brand in South Africa is exceeding the supply of its vehicles. Globally, the demand for Hyundai has also increased in the last two years, owing to new model releases and its vehicle styling and design, says Anderson.

However, he points out that the company does not plan to open South African assembly plants, as Hyundai Motor Company does not allow any complete knock down vehicle operations in the country to ensure the quality of all Hyundai vehicles leaving its plants. There is also no plan to expand its 108-strong dealer network, as it has a healthy throughput at its dealerships.

“As and when we are confident that we can supply more dealerships, HASA will consider growing its dealer network mainly into rural areas that are not yet represented, but it is unlikely to happen over the next 12 months,” Anderson says.

He highlights that, in the meantime, the car manufacturer’s planned vehicle launches for 2013 will help HASA maintain its momentum, noting that there are several future vehicle launches that are expected to help maintain the company’s momentum in the market by attracting buyers to the showroom.

HASA launched its latest large sport utility vehicle – the Santa Fé 2.2 premium, executive and elite model ranges – in mid-January and the i20 diesel and i10 1.2 Glide models were launched this month.

Further, the long-awaited Veloster sports coupe should make its local debut in April to compete with cars like the Audi A1, Mini Cooper and Volkswagen’s Scirocco.

The Veloster will feature a 1.6 l gasoline direct-injection (GDI) engine, which is a first for Hyundai, and will also feature in the 2013 Sonata that will make its debut in May. The GDI engine has more power, emits fewer emissions and consumes less fuel.

Anderson says HASA maintains a good balance between brand building and aggressive retail advertising in South Africa. At brand level, the company will aim to maintain the awareness of the Hyundai brand this year and strongly advertise its new vehicle releases and high-volume segment vehicles such as the i10 and i20.

Successes for HASA’s Elantra 1.8 GLS in 2012 include winning the South African Guild of Motoring Journalists’ Car of the Year competition, being awarded best compact saloon by South African motoring magazine Car and being announced Top Car magazine’s best buy for 2012.

HASA was also named best automotive company of the year, while the i10 was awarded best budget car by Car magazine.