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Hyundai and Kia acquire record-high US car market share
Sales of cars and trucks in the US, the world’s largest automotive market, have been hit hard by the recession and global economic slowdown.
It has caused nearly a one third lower demand for new vehicles this year.
That was especially evident in the first two months of the 2009 when US, Japanese and European automakers experienced some huge decreases in their sales.
And while majority of carmakers have been loosing ground lately, there are some (Hyundai, Kia and Subaru) who have taken the financial crisis as an opportunity to grow.
Many car companies have cut their ad budgets during a recession, but recent study showed that increasing investment in advertising during times of economic difficulties can help boost sales and expand market-share in the long run.
And that’s exactly what Hyundai and Kia have been doing lately. None of the Korean automakers have stopped it’s advertising and it seems like both Korean carmakers, have upped their advertising budgets in America this year.
Particularly Hyundai, which has spent $ millions to present their latest range of cars to the public. Just remember their Superbowl commercial ads, aired during the Superbowl breaks, with an average cost of $3 millions (each ad). And they have aired some similar ads during the 2009 Oscars event as well.
Thanks to effective advertising campaigns, generous incentive programs and attractive product portfolio, Hyundai and Kia topped 7.6 percent market share in February 2009, which represents the highest monthly car market share Hyundai-Kia Automotive Group has ever held in the US market!
Kia Motors, which has been together with Subaru, the sole automaker in the US that saw it’s sales increasing in February, now holds 3.2% of the US market, while at the same time last year, the company had held less than 2% of the market.
Kia February 2009 sales have increased 0.4 percent to 22.073 units and the company is confident of having a bright future ahead. Kia has two brand new models on it’s hands right now.
First Soul crossovers have already been deliverd to the consumer, while Forte, another new model, will be joining the Kia range shortly. Both models are high-volume cars so we completely understand Kia’s optimism.
On the other hand, Hyundai experienced a slight drop in sales last month selling 30.621 units in the USA (-1.5%). But in spite of it’s sales decrease, Hyundai managed to increase it’s US car market share to 4.4% from last years 2.6%.
Chung Mong-koo, Chairman of Hyundai-Kia Automotive Group told in his speech during an annual shareholder meeting of Kia Motors, Hyundai-Kia will embrace the worst crisis the global automobile industry has seen in decades as an opportunity to boost sales and raise the company’s profile worldwide.
“The global auto industry is now in the midst of a fierce battle for survival. We will overcome the global auto crisis by putting our priority on increasing sales and investing heavily into research & development and improving quality” told the 71-year-old Hyundai-Kia Chairman. [Kia News]