CarLease UK have always been true fans of the Kia and Hyundai product; both manufacturer’s have always formed an important part of our car leasing options, particularly with high mileage leasing where the vehicles benefit from positive residual value support.
With both Hyundai and Kia increasing sales across Europe, market share continues to rise (3.5% and 2.7% respectively) which must be now coming to the attention of European car markers. Both Hyundai and Kia also appear to be in an enviable position, in that factory production is running at 100% and currently demand is outstripping supply. Contrast this with some of the European car manufacturers who are unable to create demand for their vehicles across Europe and currently face an over-supply situation, as well as continued group action and strikes.
While Hyundai and Kia have certainly made some fantastic developments, their next step is to produce desirable and forward thinking product which brings about the emotional purchase as opposed to the practical/cost-efficient purchase. Already Kia are starting to achieve this, launching the new Kia Pro C’eed GT, as a high quality competitor to the VW Golf and Audi A3 customer. With the Sportage having already won various accolades in 2012, Kia are well placed to continue growth. It will therefore be interesting to see what Hyundai launch to maintain growth alongside its sister company.
Although Hyundai and Kia are not UK or European based companies, their continued success does bring about employment opportunities, as well as other income such as tax, to our economies. As the motor industry is set to face a difficult 2013 and 2014, the European manufacturers will have to find a way to keep going against the obvious pressures.