Asian brands have been enjoying much success in the United States in recent years. The Asian invasion of the U.S. auto market is led by the surging Toyota Motor Company which is poised to take over General Motors spot.
But aside from Toyota, other Asian brands are making waves in the U.S. auto scene. One of the brands coming from the Orient is Hyundai. The company is known for producing the Hyundai Tucson and the Sonata. While the company is the largest car manufacturer in South Korea, they have yet to make a major bid for a good share of the U.S. auto market.
The company saw the need for them to increase their names popularity in the United States. To address that issue, the company is planning to enter the luxury vehicle segment following in the steps of Toyota and Honda which created a luxury division for the United States automobile market. The company announced that their outing in the premium segment of the U.S. auto market will culminate last year after releasing a sketch of their luxury vehicle named the Hyundai BH.
Following the announcement, CNN also reported that Hyundai is entering the luxury vehicle market to upgrade its image as a maker of quality vehicles and not just specializing in economy vehicles.
Jake Jang, the spokesman for Hyundai, has this to say about the release of their newest model: “We will launch the ‘BH’ in the first half of 2008 in South Korea and will begin to sell the premium sedan in the United States, the major export market for the model, late 2008. The luxury vehicle is aimed at the American consumers who are known for their affinity for vehicles which provides not only good performance but also luxurious features. This is evident on the strong sales of luxury brands like Lexus.
In order for Hyundai to be a strong competitor in the luxury vehicle field, the company will be equipping their BH with a V8 engine that will be designed to perform at a level similar to that of luxury vehicle already being sold in the market.
The move by Hyundai to produce luxury vehicles is to boost profit in the U.S. market and this would counter the declining demand for their vehicles in the South Korean auto market. Aside from the luxury sedan, Hyundai is also planning add premium models in the near future. If one looks at the reason for the success of luxury brands like Lexus, it would benefit Hyundai if their first luxury vehicle is reliable.
Reliability is, of course, what luxury vehicles have that is greater than non-luxury cars. So for the Hyundai BH to be successful, it has to be as tough as a Volvo motor mount. The reliability of Hyundais first luxury vehicle will determine the success of the companys venture in the luxury vehicle market.