Main Competitors of Hyundai Motors
Hyundai is a leading global car brand based in South Korea enjoying strong popularity globally. Apart from passenger cars and SUVs, Hyundai also brings luxury vehicles and has a significant stake in the Kia brand.
Its technology and brand image are important factors driving is popularity in the global market. It has brought several market leading cars in the small car segment in the Asian markets. It is a leading brand in several other areas too. Hyundai owns the largest manufacturing plant. Its Ulsan plant in South Korea is the single largest automobile manufacturing plant in the world. It also has manufacturing plants in US, Brazil, Russia, China and India. Apart from the passenger cars, small family cars and SUVs, the brand also makes MPVs, eco friendly cars and the Genesis brand cars. Elantra, Sonata, Santa Fe, Tucson and Creta to IONIQ, Hyundai sells a very large range of highly popular vehicles.
Hyundai’s largest market is Asia where it sold more than 1.88 million vehicles in 2017. In 2021, Hyundai sold more than 3.9 million vehicles globally.. Hyundai is also one of the toughest players in the global automotive market and a major competitor of Ford Motors.
This is a list of the main competitors of Hyundai Motors. Major names among Hyundai’s competitors include – Ford, General Motors, Toyota, Suzuki, Volkswagen, Nissan, Honda, FCA (Fiat Chrysler Automobiles renamed Stellantis), BMW, Tesla & Mercedez.
Ford Motors:
Ford is among the most renowned car makers in the world. The company was incorporated in Delaware in 1919. It came into formation through the acquisition of Ford Motor Company that made and sold vehicles engineered by Henry Ford. Today, Ford Motors Company is a global brand that designs, manufactures, markets, sells and services a large range of vehicles including Cars, trucks, SUVs, electrical vehicles and Lincoln Luxury vehicles.
Apart from that the brand also provides financial services through Ford Motor Credit Company LLC. The company is consistently working to acquire a leadership position in mobility and electrical vehicles. Its main two business segments are automotive business segment and financial business segment. The other business segments of Ford Motor Company include Ford Smart Mobility LLC and Central Treasury Operations. The vehicle brands of Ford Motor Company include Ford and Lincoln.
In 2021, Ford Motors sold 4.2 million vehicle units (retail sales). It sold more than 1.9 million vehicles in the US alone in 2021.
Toyota:
Toyota is a major global vehicle brand and a tough competitor for Ford, Hyundai & Volkswagen. The brand is a globally well known maker of cars, SUVs and electrical vehicles. Its focus is now on sustainable growth and the production of electrical vehicles that have a very low impact on the environment.
Toyota sold 7.65 million vehicle units in 2021 compared to 8.95 million vehicle units in 2020.
North America is the largest market of Toyota, followed by Japan and Asia. The company sold 2.3 million vehicle units in the US alone in 2021 compared to 2.1 million in the previous year.
Toyota is known for making excellent cars. It has a large product portfolio. However, apart from the other things, it is known for excellent engineering and production capabilities.
Toyota brought the world’s first mass produced hybrid vehicle Toyota Prius in 1997. It plans to invest more in the production of electrical vehicles and bring new and improved versions of Prius. It has brought some luxury models to the market too including Camry which is now available in a hybrid version.
Volkswagen:
Volkswagen is a major car maker which has several brands in its portfolio including luxury brands like Audi. Despite the diesel scandal of 2015, VW has made a strong return in 2016 and 17. There are several reasons behind the strong position of the brand in the market including its strong financial position as well as brand image and a large product portfolio. Apart from being a market leading brand, VW has a large product portfolio that includes both passenger cars and luxury vehicles. Both Audi and Skoda are popular brands that have achieved an excellent position in the market and have been highly popular in the Asian markets. The VW group includes two divisions – automotive and financial services.
In 2017, VW achieved a new vehicles sales record despite a highly competitive and challenging environment. However, the issues arising from the diesel engine scandal continued to affect its operating profits. Had it not been for the strong market position of VW, the effects of the scandal would have been stronger which cost the brand billions in fines. The brand set a new sales record of 10.8 Million vehicles in 2017 and achieved sales revenue of 230.7 Billion Euros which was 6.2% higher than the previous year.
In 2021, VW sold total 8.576 million units of vehicles compared to 9.157 million units in 2020. Its core market region is Europe followed by the Asia Pacific. The company experienced a decline in sales in both these market regions in 2021 compared to 2020. VW sold 3.727 million units in the European region in 2021 compared to 3.929 million units in 2020. Its sales in the Asia Pacific region declined to 3.54 million units compared to 4 million units in 2020.
General Motors:
General Motors was incorporated in 2009 as a Delaware Corporation. Its automotive segment business is divided into two segments – GM North America and GM International. GM North America includes the Buick, Cadillac, Chevrolet and GMC brands and caters to the customers in North America. GM International on the other hand caters to the needs of the customers outside North America through its Cadillac, Buick, Chevrolet, GMC and Holden brands. In China, GM has equity ownership stakes in brands including Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands.
In 2017 the brand sold around 9.6 Million vehicles where China and US remained the largest vehicle markets for GM accounting for more than 4 million and more than 3 million vehicles respectively. The brand’s net revenue fell from $149,184 million to $145, 588 millions from 2016 to 2017.
General Motors sold 6.3 million units globally in 2021 compared to 6.8 million units in 2020. The company sold 2.57 million units in the North American region alone in 2021. Its net revenues in 2021 grew to $127 billion compared to $122.5 billion in 2020.
Suzuki Motors:
Suzuki is also a renowned brand of automobiles and motorcycles. Apart from them the brand also produces marine vehicles. Japan is the home market of Suzuki. However, India is its largest market. In 2017, the brand sold more than 1.4 million vehicles in India. In Japan it sold around 639,000 units. India and China have grown to become important markets for the passenger and small car brands. It is why Suzuki is among the major competitors of Ford in India. Apart from a slight increase in the sales of Suzuki motorcycles in 2017 in Japan, their overseas sales fell in early all markets including North America and China. Net sales of the brand fell from 3180.6 Billion Yen in 2016 to 3169.5 Billion Yen.
FCA (Stellantis)
Fiat Chrysler Automobiles (FCA), now renamed Stellantis, is a global automotive brand that designs, engineers, manufactures, distributes and sells vehicles, components and production systems worldwide through 159 manufacturing facilities and 87 research and development centers. FCA operates in over 40 countries and sells its vehicles directly or through distributors and dealers in over 140 countries. It designs, engineers, manufactures, distributes and sells vehicles for the mass-market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands and the SRT performance vehicle designation. It also designs, engineers, manufactures, distributes and sells luxury vehicles under the Maserati brand. North America and specifically US is the largest market for FCA where it sells the highest number of vehicles.
In 2017, it sold total 2.4 million vehicles in North America and in US alone it sold around 2 million vehicles. There was also a slight decline in the net revenue of the brand which fell from 111,018 million Euros to 110,934 million Euros.
Nissan:
Nissan is also a major global car brand. North America and China are its biggest markets.
The brand achieved sales of 5.6 million vehicles in 2016 and expected to achieve the sales of 5.8 million vehicles in 2017. In 2016, its net sales in North America totaled 2.1 million vehicles whereas that in China reached 1.35 million vehicles. In 2016, its net revenue declined by 3.9% to 11.72 trillion Yen. Some of the SUVs made by Nissan have bene highly popular in the Asian markets. The brand is also working on releasing electric cars and on making its foray into automated driving.
Nissan sold 4.05 million vehicles globally in 2020 compared to 4.93 million units in 2019. Its 2020 net revenues were ¥ 7,862.6 billion. Over the last four year years, the net sales of Nissan motors have continued to decline.
BMW:
BMW is another major global brand of luxury cars and motorcycles that saw its sales and market share climbing in 2017. It owns BMW, Mini and Rolls Royce brands.
2017 was an year of growth for the brand and China was the main driver of growth for it. Its core brand BMW sold more than 2 million vehicles in 2017. The automotive market has grown highly competitive and despite that BMW managed to grow its sales by around 4 percent to 2.46 million vehicles overall. In Mainland China, the total deliveries made by BMW rose past 590,000 whereas in Americas and US there was a slight decline in overall sales. In 2017, it achieved an important milestone of having sold its 100,000th electrical vehicle and is planning to move faster ahead in the direction of electrification. Its continuously improving position in the Asian markets can be a challenge for the other vehicle brands.
BMW experienced solid growth in vehicle sales and revenues in 2021 compared to the previous year. The company sold 2.52 million units globally in 2021 compared to 2.32 million units in 2020. Th group sold 368,032 units in the US in 2021, compared to 307,876 units in 2020 (yoy growth of 19.5%). BMW’s sales in China grew by 8.9% in 2021 compared to the previous year. It sold 847,935 units in China in 2021 compared to 778,412 units in 2020.
Mercedes:
Mercedes is a well known brand of luxury cars and is owned by Daimler. Apart from Mercedes cars and vans, Daimler also makes trucks and buses. Mercedes is seeing growing sales in the booming Asian markets. Its sales in China have tripled within just last four years. In 2017, Daimler sold nearly 2.4 million Mercedes Benz cars. Growing sales of Mercedes Benz cars is going to be a challenge for its direct and indirect competitors. The Revenue from the Mercedes Benz cars rose from 89.3 Billion Euros to 94.7 Billion Euros. Unit sales increased from 2.2 Billion to 2.4 Billion.
Honda:
Honda is another major global maker of cars and motorcycles. In the Asian markets, it is also a major direct competitor of Ford. In 2017, Honda sold 3.7 Million units. This was an increase of 1.3% over the previous year. North America was the biggest market for Honda cars where it sold around 1.97 million units. Honda notes in its Annual Report 2017, ” This change was mainly attributable to the effect of launching the new Civic Hatchback Model, and a full model change of the Ridgeline model, which offset the decline in the sales volume of Accord”. The sales of Honda cars in Europe too jumped by 7%. Unit sales of Honda cars in China grew to 1.3 million units. Overall, while the revenue of Honda fell by 4.1% to 13.99 trillion Yen, the operating profit grew by 67% over the previous fiscal year to 840.7 Billion Yen.
Tata Motors:
Tata is a major Indian brand with a global footprint which has a large and diverse product portfolio including cars, buses, trucks and luxury vehicles. JLR (Jaguar land Rover) manufactures and sells a range of premium vehicles to customers around the world. While India is Tata Motors’ largest market, its other major markets include UK, US and China which account for the largest part of its Revenue. For fiscal year Tata Motors sold a total of 12,21,124 vehicles units and achieved revenue of 2,94,243 Crores INR.
Renault:
2017 was a great year for Renault in terms of overall sales and revenue. The brand’s sales in all its market grew. It sold total 3.76 million vehicles. Its alliance with Nissan and Mitsubishi was also successful in 2017. This alliance became the world leader in sales of passenger cars and light commercial vehicles with over 10.6 million units sold. Renault’s revenue reached 58.8 Billion Euros in 2017. Europe is the biggest market of Renault. In France alone the brand sold 673,852 vehicles (highest), followed by Russia and Germany. Its best sellers of 2017 included Clio, Megane, Logan, Captur and Sandero. The brand has set ambitious plans for future and is planning to enter into new strategic joint ventures for the development of electric and light weight vehicle segments. Apart from China, Brazil, India and Iran are also potentially important markets for the brand.
Sources:
Annual Reports of the respective brands