Hyundai's march to the top of the automotive heap in Canada is not a blip or an aberration. It's real and likely permanent.
Last month, Hyundai Canada's sales soared 38.4 per cent. On the year, sales have leapt 25.7 per cent.
Hyundai types trot out the brand story to explain this: highest-ranked non-luxury brand and fourth overall in the J.D. Power and Associates 2009 Initial Quality Study. And so on.
True, but Hyundai also has the right new models in the right segments at the right prices.
Take the compact Hyundai Elantra. It's an okay car, but nothing special other than pricing.
The Power Information Network (PIN) reports that when cash rebates are factored in, about 70 per cent of Elantra buyers paid $17,999 or less. Affordability is the story here.
Next, have a look at what vehicles the new Hyundai owners are trading in. PIN says 8.2 per cent are dumping a Ford and 14.8 are getting rid of a Chevy or a Pontiac. Honda, Toyota and Mazda also figure prominently in trade-ins. And one-third of Elantra buyers are repeat Hyundai customers. Loyalty at work.
Hyundai is very likely making money on new car sales, too, despite generous handouts.
Data from DesRosiers Automotive Consultants suggests real consumers are buying most of those new Hyundai vehicles. Hyundai is No. 4 in Canada for car sales - behind only Toyota/Lexus, Honda/Acura and General Motors.
A warning: Hyundai doesn't separate retail from marginally profitable fleet sales, so DesRosiers counts every sale as one to a real consumer. Nonetheless, Hyundai's performance in Canada is spectacular.
Barring a dramatic rise in the South Korean currency that makes exports cheap, Hyundai will stay on this roll next year and beyond. Loads and loads of new models are coming in the next 12 months, including a new Sonata midsize sedan, the Equus luxury sedan, a new Tucson small SUV, a new Accent subcompact and a new Santa Fe midsize SUV.
Within two years, Hyundai will have hybrids with lithium ion batteries and mainstream cars equipped with Internet connections (at least in Korea), so the high tech side is covered, too.
Hyundai is for real and the competition better take notice.