Hyundai. A very good year 2022 benefiting from the distribution network

Hyundai had a very good year in 2022, which allowed it to continue to increase its market share in France. Lionel French Keogh, president of the French subsidiary, deciphered the reasons for this success, which benefits the network, and shows the same high ambitions for 2023.

In 2022, the Hyundai group has become the third largest automotive group in the world with approximately 7 million vehicles sold, including 4 million for the Hyundai brand alone, but also fourth in Europe with more than 1 million units sold. In the context reversed by the war in Ukraine, the ongoing shortage of semiconductors, disruptions in logistics, or even the return of inflation, Lionel French Keogh, president of Hyundai Motor France, is pleased that his group has also become the third in imported . brands in the French market, behind Toyota and Volkswagen.

“It is important to maintain our performance,” he declared in a press conference organized in Paris. This on the other hand “lots of changes” intervened in the hierarchy of manufacturers in 2022. It should be noted in particular that Dacia stole the third place on the podium from Citroën and that Volkswagen was overtaken by Toyota. Indeed, in a market at -7.8%, the Hyundai brand registered 47,109 registrations in France last year, an increase of 4.1%, for a market share reaching 3.1%. This is +0.4 points compared to 2021 and +1 point compared to 2020. As a reminder, Hyundai only exceeded 1% market share in France in 2015 (1.25%). And again, he added, “Our growth in 2022 is below what we specified in our business plan”, he added, specifying that Hyundai’s factories were unable to produce the 4,000 additional cars needed to achieve his goals.

“Building a brand on a solid foundation”

The boss of the French subsidiary however confirms that “This exceptional year is not the result of chance, nor of our ability to do more than others.” It is rather linked to the strategy of the group, which for several years consists of “build the brand on a solid foundation”. Claims to have “good product, but also good technology”, Lionel French Keogh said that Hyundai is particularly well placed to offer in terms of electric and hybrid models, the two technologies that make “today’s customer appetite”. 60% of Tucson registrations in 2022 were made by the hybrid version, while 50% of Konas sold in France benefited from an electric motor.

Another reason given by the president of Hyundai France to explain the success of the brand, the management of sales channels: “Brand performance is built over time in long-term sales channels, for individuals and fleets”. At 27,219 units, the individual channel represented 57.8% of Hyundai’s sales in France, while that of companies and LLDs represented 25.5% of registrations, or 12,009 units. These proportions have been steadily increasing for several years. “It is very important to stay strong in these niches to maintain brand performance,” added Lionel French Keogh, who was also proud “Enhanced Residual Values” of different models.

Big ambitions for 2023

As a result, the Hyundai network, with 201 dealers in France, shows a profitability of 2%, compared to 1.7% in 2021, 1.14% in 2020, or even 1.73% in 2019. This while their Business figure is increasing , while the average selling price, which is also increasing, now reaches 35,000 euros for a car with H from the Korean manufacturer. It is even 45,000 euros for a hybrid Tucson with Executive finish, or “the car we sell the most in France”, said the president of the French subsidiary. “We have a good profitable network”, said Lionel French Keogh. “You can’t be a successful brand without a successful network”, he added, pointing out that Hyundai Motor Europe is not planning to adopt a commission agent contract, unlike other manufacturers.

For 2023, the stated goals are as ambitious, because Hyundai aims to gain market share “greater than or equal to 2022”, that is, 3.1% or 3.2% in a market of about 1.6 to 1.7 million vehicles. This represents approximately 50,000 units. This despite the fact that the order market is at -20% since the beginning of 2023.

Top 5 best selling Hyundais in France in 2022

1. Tucson: 17,589 units (-1.8%)
2. Kona: 12,694 units (+15.4%)
3. i20: 5,776 units (+5.1%)
4. Ioniq 5: 2,201 units (+60.3%)
5. Bayon: 2,979 units (+40.5%)