Hyundai Preparing to Hike Prices in Response to Rising Quality, Demand

Hyundai Preparing to Hike Prices in Response to Rising Quality, Demand

When we first drove the all new 2011 Sonata, we commented that the time to buy the car is now, before Hyundai gets smart and jacks up the price. That price-hike may come sooner than later, with company CEO Steve S. Yang recently commenting that it is one of the automaker’s “main goals.”

“When our quality is almost equal to (Tier 1 non-luxury brands), then our prices should be similar,” he said at a meeting at the automaker’s U.S. headquarters.

Unfortunately for Hyundai its perception by consumers hasn’t yet caught up to its reputation with the automotive press, or with its solid quality, reliability and dependability statistics. To combat this imbalance, Hyundai will launch a marketing campaign focused on the brand’s recent awards. Through quality products and a new corporate image, Hyundai wants to become one of the top three automakers in quality, and one of the top five in perceived quality within the next five years.

Hyundai has already increased its prices with incremental changes over the years and the result has been positive. When combined with the brand’s improved quality, efficiency and a long list of new products, the average amount paid for a Hyundai by consumers has increased 11 percent since 2008 and that number is only going to head North from here.

[Source: Ward’s Auto]

  • Chad

    So, the price hike is more about trying to appear to be as good as the other brands, not a result of higher component costs. If they are making profits now, why raise the cost of the car? Isn’t that just be greedy where the extra greed isn’t needed?

  • MQ

    Chat… read the article… the reason why they are thinking of raising the price is b/c it has better quality… not just b/c it is as good… but better.

  • Chad

    I read the article. Better quality does not always equal higher cost. Hyundai/Kia have increasing sales every year, which means their per unit costs are going down…that whole scale of production thing.

    Also, quality does not equate to features. And some of the features that automakers are adding aren’t worth the price they are justifying for them.