Hyundai Reaps the Benefits from “Scrappage”
06/08/2009
Year on year figures at the end of June 2009 show that Hyundai has increased its Market Share from 1.30% in 2008 to 2.14% for 2009.
That equates to a 22.12% increase in new car registrations in the first half of the year, falling just short of the 20,000 unit mark.
There are a few main reasons for this dramatic rise
- - Production and supply being secured and enhanced for the i10 city car.
- - The new i20, Getz replacement, going on sale in January 2009.
But the main reason (for the 91.11% increase in registrations for the month of June 2009 compared to 2008) is obviously the Government's Scrappage Scheme.
The total scrappage orders in the UK is currently standing at approximately 120,000 with Hyundai accounting for over 17,000. The i10 itself has over 10,000 orders meaning that 1 in every 12 cars ordered in the UK through the scheme is a Hyundai i10.
The new i20 supermini has nearly 5,000 orders, being named as "scrappage best buy" by What Car? magazine.
Tony Whitehorn, the Hyundai UK Managing Director, said "In this sector of the market and in this economic climate, buyers are incredibly price conscious. Other car companies have piled on the pounds with punitive price increases, meaning that comparative mainstream models can cost 30 percent more. That's too big a difference to ignore, especially as the i20 has a better NCAP rating, a longer warranty and a generous level of equipment".
With about 180,000 scrappage order spaces remaining it is doubtful that the scheme will run the full term to March 2010. Hyundai UK must therefore be hoping that the momentum can be maintained with their current models and that new models being introduced soon (e.g. the Tucson replacement) will only push Hyundai further. Time will tell.
If you have any queries concerning the above, please contact Nick Tyler on telephone number +44 (0) 161 493 1930.