HYUNDAI IMPROVES IN J.D. POWER AND ASSOCIATES CUSTOMER RETENTION STUDY

FOUNTAIN VALLEY, Calif., 12/10/2010

Hyundai significantly gained ground in the rankings of the J.D. Power and Associates 2010 Customer Retention Study^SM. Hyundai ranked number three among nameplates in the brand loyalty study, seven rank positions above the industry average and up eight rank positions over 2009. Hyundai has a retention rate of 60 percent, 12 percent points higher than the industry average, and 13 percent points higher than last year. Hyundai’s 60 percent retention rate is the highest the brand has achieved since the study’s inception in 2003 and is eight percentage points above its 2003-2009 average of 52 percent. Hyundai’s gains in product appeal, quality, and vehicle quality contributed to the brand’s highest increase in customer retention. Hyundai owners are more likely this year than in 2009 to cite Fun to drive (new veh.), Fuel Economy (new veh.), and Safety (new veh.) as reasons they stayed with the brand. 

“We believe these results demonstrate that customers are connecting with our new ‘Fluidic Sculpture’ design language on Tucson and Sonata and our agile driving dynamics,” said Mike O’Brien, vice president, Product and Corporate Planning, Hyundai Motor America. “We aim to raise our retention rates even higher next year with the all-new Elantra and Equus arriving in dealerships right now.”

The Customer Retention Study measures the rate at which automotive brands retain their existing customers and the reasons why owners remain loyal. Customer retention is critical to a brand’s market success, particularly during the current period of slow recovery, in which each new-vehicle sale is vital.

In addition to customer retention, the study also examines rates at which automotive brands capture customers from their competitors, known as conquesting. The importance of a fun-to-drive vehicle has also increased as a reason why brands conquest new customers from their competitors.

According to J.D. Power and Associates, now that economic and market conditions have improved somewhat, vehicle owners are increasingly citing emotional, rather than practical, reasons for staying with their vehicle brand or switching to a different one. In light of this, developing new models with attractive styling and that are perceived as fun to drive is increasingly critical for automakers in order to retain and conquest customers as the market continues to recover.

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HYUNDAI MOTOR AMERICA SETS ALL-TIME NOVEMBER SALES RECORD

• Retail Sales up 85 percent
• Total Volume up 45 percent
• Hyundai First to Report 40-mpg Vehicle Sales

FOUNTAIN VALLEY, Calif., 12/01/2010

Hyundai Motor America today announced an all-time record for November sales of 40,723 units, up 45 percent versus 2009.  November retail sales were up 85 percent from last year.  For the year-to-date, Hyundai has already established a new annual sales record with total volume of 493,426, up 23 percent versus the same 11 month period in 2009, with retail sales up 33 percent for the same period.  Fleet sales mix for the month of November was 11 percent.

“We are encouraged by a second consecutive month of strengthening industry retail sales. With Hyundai’s rapidly expanding lineup of fresh, fuel-efficient and high quality products, we’re positioned right in the sweet spot for this recovery,” said Dave Zuchowski, executive vice president of sales, Hyundai Motor America.  “Hyundai’s DNA is all about delivering best-in-class value, quality and fuel efficiency. We are equally committed to providing customers with a memorable retail experience as was recently reflected in our improved position in the rankings of the 2010 J.D. Power and Associates U.S. Sales Satisfaction Index (SSI), where Hyundai was the most improved brand in the industry and the top-ranked Asian brand.   We have aggressive plans in place to sustain this momentum into December and leverage a healthy holiday selling season to finish out this record-breaking year with a flourish.”

With the first 192 sales of Hyundai’s all-new 2011 Elantra already recorded this month, Hyundai begins a new sales-reporting methodology it hopes all brands in the industry will follow.  “The 2011 Elantra is the first of four planned 40-mpg vehicles in Hyundai’s lineup,” said John Krafcik, president and CEO of Hyundai Motor America. “But for us, leadership isn’t how many low-volume special-edition 40-mpg models we offer, but rather how many 40-mpg vehicles consumers actually buy. We aim to lead the industry in the sales of 40-mpg vehicles, and to make this a challenge that everyone can follow, we’ll be the first to report our monthly 40-mpg vehicle sales tally. We’d love to see others follow our lead.”

Elantra, Sonata, and Tucson sales for November increased 41 percent, 72 percent, and 243 percent respectively, while Genesis achieved an all-time sales record of 3,005 units, up 72 percent, marking the 17th consecutive month of year-over-year sales increases for Hyundai’s award-winning premium car.  Genesis will be joined by Equus, Hyundai’s all-new flagship, in dealership in December.

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