USA: Hyundai to Spend Big on New Sonata Marketing

According to Automotive News, Hyundai Motor America is planning to spend about half its estimated $500 million to $550 million budget for 2010 on two redesigned vehicles: the Sonata and Tucson. Both are slated to go on sale in the first quarter of 2010. While the overall marketing budget is the same as that in 2009, Hyundai Motor America will spend more to introduce the redesigned Sonata than it has on any vehicle launch in the brand's history.

According to Joel Ewanick, vice president of marketing at HMA, Hyundai will spend about twice what it did for the Genesis luxury sedan in the summer of 2008 with the all-new Sonata mid-size sedan. Reports say Hyundai spent $80 million on the rear-wheel drive sedan. Hyundai Motor America is well aware of the success that comes with heavy marketing, as it especially realized this with the highly successful Assurance Program that allows buyers who lose their jobs to return cars within a year of purchase. Hyundai sales were up 1 percent last month in an overall market down 27 percent. The brand's 4.4 percent market share is a significant leap from the 3.1 percent last year.

With the completely redesigned Sonata, Hyundai plans to make a serious run at the Honda Accord, Toyota Camry, Chevrolet Malibu and Ford Fusion. The majority of the money will be spent on network broadcast and network cable TV, with a hefty share towards major sporting events like the Super Bowl. Hyundai will also spend big on the upcoming FIFA World Cup to be broadcast on ESPN, as well as continuing sponsorship of the Academy Awards. For the all-new Tucson, Hyundai will spend about the same as it did with the Genesis.

"The Genesis brought new, incremental customers, but the volume with Sonata and Tucson could be significant," Ewanick said.

[Source: Automotive News]

Hyundai Reports September Global Sales

Hyundai Motor Company posted its global sales data for the month of September and reported a 61.3 percent rise compared to a year earlier. This increase was aided by the launch of the redesigned Tucson and Sonata, as well as strong sales from overseas plants.

Domestic sales rose 118.0 percent to 68,570 units in September from 31,449 units a year earlier. This can be attributed mainly to the Korean government’s tax benefits offered since May to consumers who exchange their vehicles older than 10 years for new ones. More working days in Korea, compared to September 2008, also influenced the results.

The best-selling model in Korea last month was the Sonata, selling 16,299 units. Of this figure, 9,517 units were the redesigned YF Sonata that was launched in Korea on September 17. Cumulative overseas sales, including both exports from Korea and sales from overseas plants, rose by 50.0 percent to 238,611 units in September, up from 159,031 units a year earlier. Strong sales from Hyundai’s overseas plants in China, India and the Czech Republic contributed to this increase.

Exports from Korea increased by 43.9% to 88,331 units for the month compared to a year earlier, while sales from overseas plants rose 53.9 percent to 150,280 units.

[Source: Hyundai]