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Hyundai leads the way in alternative fuels
Published in The Saudi Gazette on 01 - 06 - 2016

JEDDAH – Hyundai seeks to drive Hyundai sales in the region in what is considered to be difficult market conditions, according to Hyundai's new Head of Africa and Middle East Region Mike Song who was appointed this month. Former director Jin (James) Kim is returning to a senior management position in Korea.
Song said Hyundai is Saudi Arabia's top-selling brand in passenger cars, leading with the Accent, Elantra, and the Sonata. The Tucson was also named top-seller in small SUVs. "We aim to be one of the names people instinctively turn to when buying a new car," he said. "We already achieved that goal. Our customers appreciate Hyundai's combination of quality and value, with stylish design, advanced technology, and high levels of equipment, along with reasonable purchase and ownership costs, supported by high resale values."
This year for Hyundai presents the launch of two new product lines, the new Genesis as a stand-alone luxury brand and the IONIQ eco-friendly model.
In an exclusive interview with Saudi Gazette, Song shared some insights on several key issues regarding Hyundai's approach in the region in the coming years.
How much does the Saudi market make up of total sales in the region?
Saudi Arabia is our biggest market in the region, accounting for around 69% of our sales in the GCC and Levant countries. We have almost 23% of the new car market in Saudi. That's both a factor of our success in the Saudi market, where we are a leading brand, and the size of the new car market in the biggest economy in the region.
How does Hyundai plan to drive up sales during difficult market conditions? And how are oil prices impacting the business?
Market conditions are challenging affecting all carmakers. Local distributors will make special offers from time to time to attract customers into showrooms. We're focusing on what we're good at, offering attractive cars, competitively priced and well-equipped, with good after-sales support and high resale values.
We're better placed in this market than many of our rivals, because we have such strong trust and confidence among buyers, and are seen as a dependable choice in uncertain times. We are also consistently launching all-new models, such as the new-generation Elantra this year and the Tucson last year, along with enhancements and upgrades to existing products, to ensure customers know they are getting up-to-date products. We're investing heavily in research and development to ensure our models feature the latest technology.
Your Japanese and Western competitors are focusing on hybrid and electric cars in a big way. How is Hyundai positioned to counter the growing shift towards the green direction?
Hyundai is focused on the future and is leading the way in alternative fuels, ahead of most rivals. More environmentally friendly cars are a priority for the industry, and a shift towards electric drivetrains is already underway. What that entails in terms of product is still evolving. At Hyundai, we are taking a flexible approach, offering a range of technologies appropriate for different markets and customers.
We already offer full-hybrid and plug-in hybrid variants of the Sonata in several markets, and we were the first company to offer a hydrogen fuel cell vehicle as a production model, with the Hyundai Tucson FCEV launched in 2013. This year will break new ground for green motoring when we launch the new IONIQ range in selected markets – this being the first car to offer a choice of three different electric drivetrains within a single model range, buyers able to choose from full-hybrid, plug-in hybrid, or full-electric. Along with unveiling the IONIQ model at the Geneva Motor Show in March, we also announced a long-term research and development program called Project IONIQ, which aims to define the future of mobility, and the environment and safety are both very much at its heart.
We must also recognize that the internal combustion engine is still the powertrain of choice for most buyers, and will remain important for some time to come. So alongside our developments of alternative fuels, we're also working to make petrol and diesel engines cleaner, more efficient and economical, such as with our new generation of turbo-petrol engines that generate more power and torque from a smaller displacement.
Since the new Genesis model is coming out soon, how appealing is it to Saudis who are eyeing other luxury cars in the market?
Launching a new brand, especially in a very image-conscious part of the market, will be a challenge. We're making sure that the Genesis range will be appealing to buyers. The new cars look good, drive well, are exceptionally luxurious, with excellent build quality, meeting all the points people value in a premium product. Introducing the stand-alone Genesis brand will allow them to achieve their full market potential. The fact that Genesis is backed by Hyundai as a company, with high levels of customer satisfaction and trust, will also benefit the brand.
In global sales and marketing, what is Hyundai's strategy to stay ahead or at least in the sales race?
We will continue to offer high quality, reliability, good value and a satisfying ownership experience – all the things that underpin our brand today. We will invest in our products, offering innovation, and building cars that set new standards among our competition. There are still some who think of Hyundai cars, or Korean brands, as a budget alternative, when we're now among the market leaders, both in sales and in innovation. We're moving ahead quickly in being a desirable first choice. Among younger buyers, Hyundai has already become a desirable name, with models such as the Veloster seen as fashionable and practical.
Is Hyundai joining the growing pack of carmakers experimenting with the driverless car or at least streamlining your vehicles with a global Internet player like Apple or Samsung who are making forays into this segment?
It's not so much a case of joining the pack, as it is of us leading it. We successfully tested driverless cars in a controlled environment, and are currently moving those tests onto public roads in Korea. These programs are part of an investment of more than $9.75 billion that Hyundai Motor Group has committed to over five years from 2015, with the aim to commercialize driverless cars. Our aim is to make highly autonomous vehicles available for sale by 2020 and fully autonomous vehicles by 2030.
Existing Hyundai models feature a range of driver assist technologies such as Advanced Smart Cruise Control, Automatic Emergency Breaking System, and Lane Keep Assist System, that use a degree of automation to make driving safer by reducing the scope for human error.
We're also collaborating with major technology companies including Cisco to develop better in-car data systems, and better interconnections with external systems, as part of our Connected Car Roadmap, outlined in April this year. The roadmap will guide the creation a hyper-connected intelligent car – a high-performing computer on wheels – able to integrate with the digital world and the physical world.


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