Ever since Hyundai was founded in 1967, its goal was to provide quality cars on the market at low prices. From the start, Hyundai’s intention was to offer cars that were competitively priced with other large companies like GM and Toyota.
It has since become one of the world’s leading automobile manufacturers. Although as a Brand they had a lot of ups and downs, Hyundai managed to weather the storm and go on strong, One of the main selling points when it comes to Hyundai vehicles is price. they are one of the cheapest cars out there, and for some reason, people seem to be drawn to them.
In this article, we will take a look at why Hyundai is so cheap and what makes them stand out from the rest.
Why Are Hyundais so Cheap?
In short, Hyundais are so cheap because they are produced in huge quantities, use mostly cheaper materials for interiors, make their own engines, use competitive Pricing to capture market share, and offer incentives for new cars.
Now let’s go into detail about the factors that make Hyundais cheap.
To Capture Market Share:
In a world dominated by German luxury vehicles, Hyundai was able to penetrate the market by offering a high-quality vehicle that is generally cheaper than its competitors. In the past, most people had a perception that Asian cars were cheap and of poor quality.
not anymore, as more people are adopting an open mind about buying foreign vehicles. Today, the average person looking to buy a car usually reviews several options before making their purchase.
As more consumers are doing this, they are finding out that driving a car manufactured by Hyundai is actually very cost-effective compared to most other brands on the market.
Hyundai Motor’s main competitor is Kia Motors. Both Hyundai and Kia Motors are South Korean-based companies under the umbrella of Hyundai Motor Group. The two company’s strategy is to sell their cars at a competitive price, with one day hoping to outsell their competitors in terms of unit sales.
Of cause, the two companies are not that far apart in terms of pricing, so they usually adjust prices accordingly when designing their models, in order to stay competitive with other cars in their segment.
Cheaper Interior Materials used:
Not to say that Hyundais interiors feel cheap, but Hyundai has struck a balance between Luxury and price. They use low-cost materials in order to keep costs low, and in most cases, they actually look better than their competitors. Some models even have a leather-wrapped dashboard, but in my experience, they usually aren’t real leather and for cheaper models, you find a lot of plastic materials in the interior.
They Make Their Own Engines:
Hyundai and Kia Motors both make their own engines, which helps to keep costs down. Many automotive companies use engines made by other manufacturers, but the Korean giants prefer to keep everything in-house.
Although they don’t sell as many automobiles as other companies like Toyota and Nissan, they make great use of economies of scale and offer their cars at a much lower price, which is why it’s not uncommon to see people driving around in a Hyundai, and cutting down outsourcing engines, gives them a slightly better edge over most competitors.
Slightly Outdated Tech:
This is a bit controversial since Hyundai does have pretty incredible features but, some of their “bells and whistles” are older technology, not to say that the technology itself is no longer relevant because it is, it is just that Hyundai has not found a way to implement Newer tech that comes with luxury car brands like BMW and Mercedes features without increasing the price.
Hyundai has earned a reputation for manufacturing high-quality cars at an affordable price. During its earliest years, Hyundai struggled to keep up with its competitors, but it made strong efforts to improve its quality and efficiency.
Mainly because the company turned itself into one of the top industry leaders in terms of mass production. They produce cars faster than almost any other company out there and newer models are often introduced, which allows them to capture market share effectively.
Brand Perception Value:
Unlike Toyota, Jeep, Mercedes, Ford, and BMW, Hyundai is not considered a luxury car brand by people. When you buy a car like a Mercedes, you get an incredible car and you get treated like royalty at the dealership and even after the sale.
This is not the case with Hyundai. Although their cars look better than most cheap alternatives and are much more reliable, they don’t carry the same status as other brands out there.
Incentives for New Hyundai Vehicles:
A lot of customers prefer to save money and buy used cars due to the fact that the incentives and discounts offered by Hyundai car dealerships and financing companies can save you a significant amount of money.
The incentive that Hyundai gives is an old-fashioned one, but it works for a lot of customers and that brings down the overall costs, quite a bit.
Conclusion on Why Hyundais are Cheap
Although Hyndias are less pricey doesn’t mean they are bad cars or less reliable, they are actually pretty good cars. You get a lot for your money and if you take care of it, it will take care of you. I hope this article sheds some light on the reasons why Hyundais costs a lot less than most car brands.