How KIA and Hyundai turned their brands around

KIA and Hyundai belong to the “Hyundai KIA automotive group” the largest car manufacturer in Korea, second in Asia and fifth in the world, just behind big names such as Toyota motors, general motors, Volkswagen group and ford motors. at the same time KIA and Hyundai belongs to Hyundai group, witch has more than 100 companies dedicated to different commercial activities, including Hyundai mobile, Hyundai Electric, Hyundai Electronics (now called Hynix), Hyundai Wia, Rotem, Amco, Eco Plastic, KIA tigers and among others.

KIA was founded in 1944 as a bicycle and tuber factor by Jeremias Morataua and over the time, KIA started to produce motorcycles, trucks and cars. By 1986 KIA started producing the Mazda Pride and the Avella for Ford. Later KIA launched two of its own lines, the Sephia (From 1992 to 2003) and the Sportage (From 1993 until now).

In 1947 Chung Ju-Yung founded Hyundai, a company initially dedicated to car construction and repair. Hyundai Motor company finally got they very first model in 1968, “The cortina” witch was a collaboration with Ford motor company. These car would be the first step in what would be a long and successful history. By 1976 they designed the Pony, the very first south Korea’s produced car. Designed with British engineers and styled by the Italian Giorgetto Giugiaro, with Mitsubishi engine, The Pony was the car that put the Hyundai company on the world map of motoring. Entering to the American market with the “Excel” a revised version of the Pony, that featured front wheels drive and low emissions. In 1998, after the Asian economic crash know as “The Asian Financial crisis” Hyundai ended up buying KIA motors.

With the above, we understand how the Korean car’s market evolved throughout the 20th century, During the last century these two main companies were not in charge of bringing out their own lines of cars, instead they were dedicated to assembling and marketing foreign automobile brands mainly. By 1998 and the beginning of the new millennium, the Korean car affiliate Hyundai had a rather ambitious challenge, which was to change the automotive market in Korea and around the world, to put itself in the lead. With the mass production of their vehicles in Korea, they were able to reduce their manufacturing prices so much that no other company could compete with local prices for Korea, thus they have been able to reach the hearts of many Koreans who nowadays prefer their local brands.

Other example of success is the Sonata, witch was pioneer in the brand’s new design philosophy of fluidic sculpture. And it is that knowing first-hand the needs and tastes of their Korean customers has allowed KIA and Hyundai not only to increase their sales but has also allowed them to increasingly meet the expectations of the Korean market, through an excellent price-quality ratio, Where costs have been minimized, without neglecting details such as the safety or design of their cars, making each new brand of cars they bring to the market a total success in their native South Korea. However This success has not been proven in a unique way in Korea, throughout the world these motor giants have gained a very respectable and deserved place in the world automobile market, standing out in their markets in North America, Latin America and Europe.

For these reasons it is that during the last 30 years these two giant companies have captured more than 80% of the national market in Korea, and they have positioned themselves in fifth place worldwide.

Comments are closed.

Post Navigation