Lackluster Hyundai May Sales Drive Automaker to Double Effort
May wasn’t a pretty month for Hyundai North America. Despite the approach of summer, the sun wasn’t shining on the Korean automaker’s US sales. The brand reported frustratingly low sales numbers for the month of May. Hyundai May unit sales totaled 63,610–a full 10% less than in May 2014.
Reactions to Hyundai’s Low May Sales
In response to the underwhelming May sales results, company shares are down 10% to their lowest in five years. The automaker’s advocates point out the unfavorable currency environment caused by the weakening yen and euro against the stronger won. Critics blame the automaker’s reliance on sedans as opposed to the popular SUVs.
“May proved to be a bit difficult for us as it appears more customers were out looking for big trucks and SUVs than cars,” confessed Bob Pradzinski, vice-president of National Sales for Hyundai Motor America. “With that said, we’re putting plans in place to make sure our dealers are best equipped to get the right mix of vehicles into customers’ hands during the popular summer selling months.”
The results aren’t all doom and gloom, though. Year-to-date sales are at 303,648–up 2% for the entire year. The month’s Hyundai Genesis sedan sales are up 18% and Sonata Hybrid sales up 40%. The biggest sales disappointments were the Accent, which continues to rapidly lose ground, and the Santa Fe.
Hyundai needs to hop on the bandwagon and start presenting itself as a creator of quality SUVs, not just sedans. It also needs to hurry its reveal of the redesigned Elantra and increase production (something the automaker is doing but won’t see the results of until September).
News Sources: Bloomberg