High class Hyundais

Newswheel staff :: 29 November 2005 :: Filed under Saloon, SUV, Hyundai, Hyundai Azera, Hyundai Santa Fe, Europe & UK, US

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Korean outfit eyes up luxury market

While GM and Ford flirt with catastrophic failure and several other large automakers battle just to to break even, cheap and cheerful Hyundai is making a mint. Since 1999, it’s been the fastest growing major car-maker. But if the Korean outfit’s success has so far been based on bargain basement pricing rather than high quality product, get ready for a metamorphosis. It could be time for the usual luxury car brands, both in Europe and Japan, to take Hyundai seriously.

Until recently, being Korean hasn’t held much cachet among consumers in the West. But the rise of electronics giant Samsung (now much bigger than its long established Japanese rival, Sony) is just one example of how the Koreans are becoming serious global players. In December Hyundai will launch the Azera saloon in the US, its most expensive model outside its home market yet, and probably the first Hyundai capable of competing on features and ability rather than just price. Along with the recently unveiled Santa Fe SUV, the Azera is the first step in Hyundai’s plans for a high-quality product renaissance similar to the process that Samsung has pulled off over the past five years.

The Hyundai Azera. Bigger than an S-Class inside. Allegedly.

The Azera will come packed with enough features to humiliate the opposition (in the US, that’s the Toyota Avalon, Nissan Maxima and Ford 500 – none of which are terribly familiar models in Europe). Headlines specs will include eight airbags, a six-CD changer, traction and stability control and most incredibly of all, more interior space than a Mercedes S-Class or BMW 7 Series. And it’ll be quick too. With the same 3.8-litre 263bhp V6 as the Santa Fe SUV on board, the Azera will hit 60mph in just 6.5 seconds. However, Hyundai’s basic strategy of undercutting the opposition on price will remain. The Azera and Santa Fe will be better equipped, cheaper and just possibly more capable than the competition.

Of course, there’s more than a whiff of familiarity about Hyundai’s strategy: the big Japanese brands embarked upon a similar journey 15 years ago or so. It’s also worth noting that the likes of Lexus have struggled to really make gravy in European markets (Nissan hasn’t even attempted to launch its high-end Infinity brand on this side of the pond). What’s more, models like the Azera and new Santa Fe will likely remain an order of magnitude below the best from BMW, Mercedes and Lexus in terms of quality and ability. But what about the cars that succeed them? That’s when we’ll see if Hyundai really has what it takes to do what even Lexus hasn’t managed so far – to take on the big German brands on home soil.

P.S. There’s no word on whether the Azera will make it to the UK, but for now it seems unlikely.

Linkage:
Businessweek