Hyundai bets on America's big-car market as Asia sales slump
Hyundai expects two-thirds of its sales in the U.S. to be crossovers and SUVs by 2023.
Hyundai has a new strategy for expanding market share in the United States as sales volumes in once-dependable China have lost their momentum: crossovers. Lots and lots of crossovers.
After years of stagnation, Hyundai is counting on its new CUV/SUV offensive to grow its U.S. market share, Reuters reports, as the company aims to eclipse the 5% figure by 2023. To get there, Hyundai will shift production and dealer allotments from its current 1:1 ratio of cars to SUVs to something closer to 1:2--67% SUVs--by the end of that time frame.
Hyundai's dearth of recent market growth came about as its great-recession surge ran head-long into a changing marketplace. Hyundai's success in the aftermath of the financial collapse of 2008 came largely on the back of a revitalized sedan lineup.
After recognizing this lack of foresight, Hyundai began a push to revitalize and expand its crossover and SUV offerings. The Kona was introduced to shore up the subcompact end of the spectrum and the new Palisade will anchor the top.
Both products have been a hit with critics, and while the Kona is already a commercial success, Palisade has not yet been introduced to the market. Kia's sister vehicle, the Telluride, has hit the limits of the company's production capacity.