Hyundai Motor Becomes Toyota's Biggest Competitor

Hyundai Motor Group quickly seizes the performance of the global market, which can be reflected by the evaluation of auto brands in various countries. In November 2011, the American automotive media released a brand evaluation survey. Hyundai Motor and Kia Motors won the "A" for the first time and beat Honda and Subaru's "A" to top the list. The survey made a comprehensive evaluation of brands from eight aspects including market share, price stability, customer loyalty, and inventory time.

The customer's evaluation of the car itself is also high. In 2009, the modern "Genesis" won the title of America's most authoritative "North American annual model". The title was awarded to the best car in the North American market every year and commended. This is the first time South Korean car has won this honor. This result shocked the mass media.

In the past, U.S. users rated Hyundai cars poorly. But now, not only has its quality been rated highly, even the design has been considered cool. Hyundai Motor's used car prices are generally higher, and some models have fewer new car kickbacks than Toyota and Honda. It is a thing of the past to be cheaper than a Japanese car. Nowadays, Hyundai is selling well even if there are relatively few deals.

In emerging countries, the evaluation of modern cars is equally high. American research company JD Power's "2011 China market auto product evaluation", modern "Bernner" won the small car market champion. Hyundai Group officially launched "Berner" in the Chinese market in August 2010. Chinese users evaluate that it reflects the preferences of Chinese consumers, has a modern design and fuel efficiency for Chinese consumers. As of October 2011, the cumulative sales of the car reached 11,684 units.

In addition, in the "Middle East Model of the Year" selection, Hyundai also has four models that won the 2011 championship. The evaluation evaluated the cars sold in five countries in the Middle East or above in the past one year in 21 categories. This year, the modern "Elantra" and "Accent" won the championships of the quasi-medium and small car categories respectively. Kia's "Optima" and "Sportage" won the championships of medium-sized cars and small-sized off-road vehicles (SUVs) respectively. From January to October 2011, Hyundai’s sales in 17 countries in the Middle East increased by 6% year-on-year to 241,000 units, and Kia Motors increased by 3% to 151,500 units.

To increase brand awareness, more advertising and more publicity are also key. In 2010, Hyundai Motor Group's advertising expenses increased by 42% year-on-year to 1.26 billion US dollars; Kia Motors' advertising expenses increased 48% year-on-year to US$775.7 million. Among the global auto makers, the highest advertising cost is GM (3.59 billion US dollars), followed by Toyota (2.86 billion US dollars), and the third is the public (2.24 billion US dollars). Hyundai followed, but the rate of increase in its advertising costs was fastest among all automakers.

The overseas plant Ulsan Factory, which was established one after another, is the main factory of Hyundai Motors. It covers an area of ​​1.5 million pings (1 ping = 3.30378 square meters) and consists of five independent production plants. In addition, there are special docks for berthing 3 42,000-ton car carriers at the same time. The factory currently employs 34,000 people and has an annual production capacity of 1.7 million vehicles, making it the world's largest single factory. In addition, Asan has an integrated plant that produces 300,000 units of medium- and large-scale automobiles each year.

The main plant of Kia Motors is the Hwaseong Plant, which has a production capacity of 580,000 units. In addition, the Sorin Factory and the Gwangju Plant have annual production capacity of 350,000 units and 420,000 units respectively.

In the case of a small domestic plant expansion in South Korea, Hyundai Motor Group began to shift its main force of production to overseas.

Hyundai Motor Co., Ltd. has rapidly implemented the layout of overseas factories in line with the development of local products, lowering exchange rate risks, and seeking global optimization of production (cost, delivery time, logistics, trade friction, and other factors). In 2007, before Lehmann fell, its overseas production ratio was only 28.9%, compared with 45.5% in 2010. Hyundai Motor Group currently has a production capacity of 3.5 million units in Korea and an overseas production capacity of 3 million units. It is expected that by the end of 2012, its overseas production capacity will expand to 4 million units.

At present, Hyundai operates overseas production in six countries and Kia in three countries. In 2012, Hyundai will set up a factory in Brazil. In addition to meeting local needs, factories set up in emerging countries can also become important outlets for exports. For example, India has become an export base for small cars. About half of its products are exported to Western Europe, Africa and Central and South America.

The decisive strategy of the leader has made Hyundai become the biggest rival of Japanese companies. The foundation for the smooth development of Hyundai Motor lies in the strong leadership of President Zheng Mengjiu. Looking around the world, President Zheng has long been interested in the automotive market in emerging countries and has rapidly upgraded the quality, technology, and design of modern automobiles. The American auto magazine "Car News" gave it a high appraisal and selected Zheng Mengji as the strongest CEO of the Asian auto industry for two consecutive years (2010 and 2011).

Based on its core business, automotive business, Hyundai Group actively promotes diversified development. At the end of 2004, Hyundai announced that it would be involved in the steel industry. In 2010 and 2011, Hyundai completed the operation of the blast furnace, and the third blast furnace plan was in progress. Hyundai Group aims to strengthen the one-stop production system from steel materials to finished cars. In addition, in April 2011, Hyundai Motor Group acquired the modern construction of an enterprise that could be called an original modern financial asset.

While the Hyundai Motor Group has grown rapidly, many problems have also emerged. Despite occupying 80% of South Korea's market share, the Korean market itself is in fact stagnant. Delays in electric vehicle solutions, diversification of business profitability, and caste management of top management personnel are all problems that Hyundai Group faces. In September 2010, Hyundai Motor Group established its 10th anniversary. In 10 years, sales have increased 5 times and net profits have increased 7 times. Hyundai Motor Group, which once introduced Mitsubishi Motors Technology, has become the largest competitor of Japanese companies. Can the Japanese auto industry claim that the strongest Toyota can keep its position? Japanese companies are looking for ways to implement a global strategy that is risk-free and decisive.