Beijing Hyundai: Let the price cut enhance the modern awareness of Beijing
In the past, Korean cars were often seen as second-rate compared to American, European, and Japanese brands, placing them third in the global automotive hierarchy. However, this perception began to shift after 1998 when Hyundai Motor Company set its sights on becoming one of the top five automakers worldwide. To achieve this goal, the company recognized the strategic importance of the Chinese market.
Beijing Hyundai, a late entrant into the Chinese auto industry, faced a major challenge: low brand recognition among consumers. In response, the company launched aggressive pricing strategies early in its operations. Just one year after its establishment, Beijing Hyundai introduced significant price reductions to increase consumer awareness of its modernization efforts and catch up with more established competitors.
Li Xiaohao, Deputy General Manager of Beijing Hyundai, explained that the deeper reason behind these price cuts was not just about competition but also about cost efficiency and improved management models. After the initial phase of simple assembly, Beijing Hyundai emerged as one of the fastest-growing joint ventures. The company quickly outgrew its original production capacity of 78,000 units per month, prompting urgent adjustments to the production line.
These changes helped improve product supply and capital flow, allowing customers to access more vehicles while reducing costs. Over time, these improvements would enhance the brand’s overall marketing performance. According to a leading market research firm, Beijing Hyundai’s Sonata had already captured 10% of its segment’s market share, with the Elantra 1.8 close behind. Both models showed strong growth momentum.
This year, Beijing Hyundai aims to sell 130,000 units, with the Sonata expected to reach 70,000 sales. While price cuts have helped initially, Li Xiaohao emphasized that building brand value is the real key to long-term success. He admitted that Sonata’s brand recognition in China is still low, and some consumers remain skeptical about the quality of Korean cars. However, he pointed out that the company has sold over one million units nationwide without any reported quality issues.
The first generation of Sonata, launched 17 years ago, achieved impressive global sales, and Beijing Hyundai remains confident in its quality. Li Xiaohao noted that today’s car market isn’t just about price—it’s about comprehensive strength, including brand influence. When people choose BMW or Mercedes-Benz, they often value the brand as much as the product itself.
To strengthen its position, Beijing Hyundai is investing heavily in brand building, expanding its dealership network, and improving customer service. As of now, it operates over 100 4S stores nationwide, with a target of reaching 180 by the end of the year. Even Li Xiaohao personally visited Honda dealerships to study their networks.
Looking ahead, the company is confident that with continued growth in scale and quality, it can compete with Japanese brands. When asked about the relationship between brand and product promotion, Li Xiaohao said that while both are important, the company focuses on gradually building its brand image through product promotion over the next few years.
GUANGDONG YONGLONG ALUMINUM CO.,LTD , https://www.yonglongaluminium.com