Hyundai's new Chinese warranty plan to cover all models in the future

Gasgoo.com (Shanghai January 5) - The new comprehensive warranty plan for Hyundai's new eighth generation Sonata will eventually be extended to cover all of the manufacturer's models in the future, International Finance News reported today, quoting Li Zongxie, president of the marketing planning department. Mr. Li made the announcement during an interview done at last month's summit on the economic future of the Chinese automobile industry, hosted by the China Economic Times and cet.com.cn. The Sonata is covered by a plan that guarantees full coverage for up to five years or 100,000 km of driving distance.

The following is an excerpt of an interview conducted by the paper.

IFN: Hyundai has been putting a lot of energy in improving its product quality and brand image over the past two years. How is that coming along?

Mr. Li (pictured above): In 2010, [Chairman of Hyundai Motor] Chung Mong-koo placed a great deal of emphasis on quality, by taking [the concept of] 'quality in marketing' and improving on it, turning it into the consumer-centric 'quality in sales.' At the same time, he began restructuring the company, with the eight generation Sonata (pictured below) a perfect example of that. Following that, we unveiled the five year or 10,000 km warranty plan, which is currently the longest warranty plan in China. In the upcoming years, this plan will gradually be expanded to cover all of [our] models. Furthermore, the eight-generation Sonata contributed much to the improvement of Hyundai's brand image. The model made monthly sales of over 10,000 units several times in 2011. Hyundai's total sales for 2011 are expected to exceed [our] previously targets.

IFN: SUVs accounted for the largest number of imported Hyundais sales. Will Hyundai put more effort in improving sedan sales in 2012?

Mr. Li: SUVs constitute 70 to 80 percent of Hyundai's import sales, [while] sales for sedans are relatively small. As we continue to improve on our import vehicle business, we will aim to maintain a balance in sales among our different models, [including] increasing sales for mid- to high-class sedans. Hyundai is also focused on strengthening [our] advertising ability. Increased brand image will also help bring in more luxury vehicle sales.

IFN: Could you give us a summary of Hyundai's sales performance in 2011?

Mr. Li: Beijing Hyundai sold around 740,000 vehicles in 2011, while approximately 38,000 imported Hyundais were sold. Dongfeng Yueda Kia sold around 440,000 units.