Hyundai aims to double UK sales by 2012
Brand plans multi-million pound marketing campaign and aims to recruit 40 dealers

Hyundai expects a growing proportion of its network to become solus dealers as part of its ambitious target to more than double UK sales by 2012.

The Korean brand is also embarking upon a high profile multimedia marketing campaign to drive up dealer traffic.

Sales drop
Sales drop

The brand saw volumes drop by over 16 per cent last year to 29,765 units as it pulled up to 4,000 sales out of the daily rental market. It expects to sell 32,000 cars this year and plans to reach 70,000 sales by 2012.

Managing director Tony Whitehorn told Motor Trader the increased sales would encourage many of its dealers to concentrate solely on the Korean brand.

“To reach 70,000 units by 2012 we're looking at 400 vehicles per outlet. We have 144 dealers at the moment but need 180 sites and what we have to do is improve throughput in each site. I think our dealers will want to become solus and put more focus on us,” he said.

Whitehorn said around half the network currently operates on a dual franchise basis and believes that the multi-franchising model promoted by EU regulations is now outdated.

"Red herring"

“The block exemption is a red herring. If a dealer sees a business case for running one franchise then he will. If it doesn't work then he has the option to multi-franchise,” he said.

As part of its volume aspirations, Whitehorn said Hyundai is investing a multi-million pound budget into promoting the brand and its new generation products, four of which will be launched over the course of 2008.

“Our objective is to be on TV every quarter and to have a minimum five week press campaign each quarter,” he said.

However, despite this new investment, which will also see it take over London's biggest poster site in Chiswick for 12 months, the company is currently without a marketing director following the sudden departure of Jim Campbell last month.
Campbell had been with the brand since 2003 and helped mastermind its five-year warranty promotion.

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Comments
Nick says:
Here we go again! Yet another manufacturer making ludicrous predictions of a massive increase in market share, AND in a time of economic uncertainty. Tony Whitehorn suggests dealers will welcome this, and want to become solus. I'd suggest something rather different: as soon as you see a manufacturer predicting unrealistic sales growth, you know it's time to get out of the franchise. It WILL all end in tears!
19 Mar 2008 13:57:20

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