Hyundai cuts prices of 5 popular cars

Hyundai Motor announced Thursday that it has cut the price of five popular models by up to 1 million won to enhance affordability. It is seen as an aggressive marketing strategy to secure market dominance this year.

Discounts are being offered on the top two trims of the Sonata, Genesis, Genesis Coupe, Santa Fe and Veracruz without changes to the option packages.

For example, the 2.0 Modern trim of the popular Sonata mid-sized sedan is now available at 26.28 million won, a 220,000 won discount, although all the premium features remain the same such as leather seats, a parking assist system and alloy wheels.

The Premium Special trim of the full-sized luxury sedan Genesis is now 1 million won cheaper at 54.24 million won with all the premium features.

Sport utility vehicle Santa Fe’s 2.0 and 2.2 Exclusive trims have had their prices reduced by 900,000 won and 940,000 won respectively.

The nation’s largest automaker said it decided to drop the prices to allow more customers to buy top-of-the-line models.

“More and more customers choose the top trim models as they prefer those equipped with various convenient features,” a Hyundai Motor official said. “Thanks to the discounts, we expect more customers can enjoy premium features.”

The move also comes as a countermeasure after policymakers’ ended relief from individual consumption tax on Dec. 31, which was introduced temporarily from September to boost domestic spending last year, he said.

The strategy to cut prices is seen as an effort to gain a competitive edge over rivals in the local market, especially as imported brands have aggressively widened their target markets by introducing not only premium sedans but also compact cars here. Foreign firms’ combined market share surpassed the 10 percent mark last year for the first time.

Many imported brands have introduced vehicles priced between 30 million and 40 million won with those vehicles taking up about 30 percent of the local market.

Hyundai also froze the price tag of its flagship sedan, the Grandeur, when it launched an upgraded model last December.

It said the car’s design, safety and comfort features have been improved but the price has not changed, which goes against the company’s long-term convention.

Market insiders expect Hyundai’s decision will influence other domestic automakers such as Renault Samsung Motors, GM Korea and Ssangyong Motor.

“The price cut by the market leader shows how competitive the market is,” said E-Trade Securities analyst Kang Sang-min. “With the growing presence of imported brands here, price competitiveness may be the first option to boost sales amid the economic downturn.” <The Korea Times/Kim Tae-jong>