Quality and Service Under a Customer-Oriented SchemeBy Alejandro Enríquez | Mon, 03/09/2020 - 12:37
Q: What are Hyundai’s differentiators in a highly competitive market?
A: Quality and customer trust. Quality is present throughout our entire supply chain and, at the end of the day, good quality translates to savings for the final user. Hyundai’s designs are unique and even though this relates to customer preferences, Hyundai tries to integrate its designs with the human factor. For example, the success of the Creta and Grand i10 models is due to their accurate design and the addition of the equipment customers are looking for, no more and no less. Our aftersales service and innovative features are also advantages over our competition.
Q: What elements have led to a reduction in Hyundai’s production output in Mexico?
A: Most OEMs have reduced their production numbers given the supply and demand adjustments in the country. We are adjusting our production at the global level. We are focusing our production on the most in-demand products. Our goal is to operate according to a long-term vision. We have to adapt and avoid accumulating stock. Whether new Hyundai models will be produced in Mexico is still undetermined, but customers can definitely expect new Hyundai models to be launched in Mexico during 2020.
Q: How does Hyundai develop its dealership network?
A: We have a training academy in Toluca where we train dealers in both the product and aftersales service. We have a strong dealership network supported by an association that establishes how we seek to redirect or realign the brand depending on the national demand. We have 68 dealerships in the country, all with a focus on service, attitude and product.
We are certain we need to work side-by-side with our dealerships. We have all the knowledge about upcoming models, global sales strategies and our own expertise. However, dealerships close the deal with the final customer. They represent us and two brains are better than one. Within our dealership association we have committees in different areas: aftersales, commercial, financing and network development, among others. We bring important issues to the table for discussion. Together with dealerships, we set a strategy to be presented to the general committee and where we have the final saying on which strategy to execute.
We have advanced well in terms of digital sales strategies. To this end, we work alongside our dealerships to link our systems, make financial quotes and provide information online. Clients can use the website to select the settings for their vehicle. It also includes Hyundai Live, a livestream tool that lets salespeople interact directly with the user. At the dealership, clients can customize their vehicle and almost instantly get the financial quote electronically.
Q: How will a five-year warranty affect Hyundai’s sales strategy?
A: We want the customer to be happy and satisfied, and this program has worked really well for us. Naturally, it implies fewer people going to dealerships, but what we are looking for is customer loyalty. We want the customer to enjoy the experience of having a high-quality product that will eventually lead the customer back to us. This is a long-term business, which means this is the best strategy we can deploy.
Q: What is the role of financing within Hyundai’s operations?
A: Financing is important for us and for the Mexican market. About 70 percent of the vehicles sold in Mexico are financed, but our percentage is higher. An important element of our strategy is to offer lower interest rates instead of direct discounts, which maintains the car’s re-sale value. We have partnerships with two leading banks to offer the best financing option to our customers.
Q: What are your views regarding electric and hybrid vehicles?
A: Both are really important for the industry. Mexico needs to foster their adoption in terms of infrastructure. The electrification trend began almost 15 years ago and there is still not enough infrastructure to support these units. Last year, we launched a facelift of Ioniq, which has been a major success in the market. We support these models and we proudly represent the electrification trend within our portfolio.
A great myth surrounding EVs is that they do not have enough autonomy or efficiency. But vehicles have developed more capacity. It is important for customers to use one of these vehicles and experience them first-hand.
Q: What is your vision for Hyundai Motor de México?
A: We are preparing for a promising year in which we are going to present upcoming models. Hyundai is a wonderful brand. Our priority is to look for integral growth for both the brand and our dealerships under a customer-oriented scheme. This is easier said than done, especially in a moment when the industry is not as strong as we would like it to be. What I want to establish is an appropriate strategy for our products to reach the market share we want. We want our dealerships to be healthier than they are now. As for the industry in Mexico, if sales results remain stable, it will be a good starting point for a new sales cycle.
Hyundai Motor is a South Korean OEM founded in 1967. The company started selling its vehicles in Mexico in 2014 and is now the 10th largest brand in the market with a 3.5 percent market share in 2019