In five short years, the Korean marque has turned its fortunes around, writes MICHAEL MCALEER, Motoring editor
BACK IN 2004 in a small town hall in Latvia, we were presented with Hyundai’s grand plan for the SUV market. The occasion was the launch of a new mid-sized SUV, the Tucson. Coming in only slightly smaller than the Santa Fe but better priced, to most of us it seemed the Koreans, not content with taking on the more established brands, were out to destroy their own market.
It was clear to experts that this cocky little Korean firm with the goal of being a top five brand by 2010 was full of confidence, even if several models didn’t stand up to the scrutiny.
Turn the clock to September 2009 and we’re in the firm’s plush new European headquarters outside Frankfurt. The Tucson didn’t simply steal sales from the Santa Fe at the time; it combined with its larger sibling to make Hyundai the dominant SUV brand in Ireland, and several other markets besides. The LG presentation screen that’s the size of a two-storey house carries details of the brand’s overall sales to date this year.
For the first six months of this year, its global sales – when combined with its Kia sibling – make it the world’s fourth largest car firm. Job done, it seems. Even in Europe, one of the toughest markets for outsiders to crack, Hyundai now boasts a 2.3 per cent market share, up from 1.7 per cent last year. This in a market down 11 per cent this year to date.
The firm has benefited greatly from scrappage schemes. Customers trading in older cars are more amenable to the value message Hyundai has offered to date, and are attracted by promotions like five-year warranty deals in certain countries.
Next up is a significant revamp of the model range and a distinct identity for the Hyundai brand. The recent launch of the i10, i20 and i30 has featured a change in the car’s naming policy, and that’s due to continue with the Tucson replacement – christened the iX35. In years to come, all models will follow the new naming scheme.
The brand’s image is also being changed, in part due to efforts of former BMW designer Thomas Burkle, now Hyundai’s chief European designer. He is leading the effort to give the brand a distinctive look, courtesy of a prominent hexagonal profile for the front grille that is to feature on all cars.
To keep the brand fresh and the new image alive, Hyundai plans a nine-model global product offensive over the next 13 months. While some will not make it to Ireland and those that do are unlikely to enter forecourts before 2011, the list includes the iX35, a facelifted Santa Fe, a Sonata replacement called the VF, two new small family people carriers and an expected facelift to the i10 and i30.
After that will come a replacement for the Santa Fe, likely to be called the iX45. To top it all, Hyundai is seriously considering bringing its Genesis saloon – the winner of this year’s US car of the year – to Europe in the near future. It could well be followed by the high-performance coupé version of the same car.
But first it will unveil the iX35. Aside from the new-look front grille, there are more curves and creases in the bodywork, giving it a similar look to rivals like the Ford Kuga.
It’s slightly larger than the likes of the Nissan Qashqai, with more family-functional bootspace. Up front and inside there is a more European feel and finish, with deep-set dials in the driver-side binnacles that remind you of something from Alfa Romeo rather than from an Asian marque. The years of bland Korean plastics are over.
The engine range of interest to Ireland is a 2-litre diesel at 136bhp or 173bhp with either six-speed manual or automatic. This will be the engine on offer when the iX35 arrives in spring of next year. By the end of 2010, however, a new 1.7-litre 115bhp engine with six-speed manual transmission will be on offer. With Hyundai’s new start-stop technology, it will have official combined emissions of 139g/km.
Of course, Hyundai is not infallible. In an effort to show that it too can make mistakes, the Koreans announced that they were considering bringing the Equus flagship executive model to Europe. Claiming that it offers Maybach quality, the sheer lunacy of such a claim is underlined by the fact the car would struggle to compete with a 1990s Rover 75. With switchgear that belongs in a museum, the Equus could do more harm to the Hyundai brand than all its competitors could muster in the last five years.
The Equus aside, Hyundai looks like securing that top-five position ahead of schedule. The ambitious model offensive should further bolster its efforts. For now the iX35 offers a signal to the positive design direction the brand is preparing to take. The Koreans are no longer a future threat to the established European and Japanese brands: they’ve arrived.