Aslan′s aim to target imported cars seems hard to be achieved

[Kim, Song-Yi] It seems quite clear that Hyundai’s Aslan has been floundering in the market so far. It, ultimately leads Hyundai to reconsidering of its original plan- check the imported vehicles through Aslan-, since Aslan’s market power is virtually evaluated as zero.

According to Hyundai, about 598 units of Aslan were sold in November. When it compares with Sonata(10,328units) and Grandeur(8,180units), and Genesis(2,657units), its sales volume is certainly low, although the sales volume grew from 375 units of October.

So far, 8,061 units of Aslan have been sold. About 733 units are sold as a monthly average, which is quite lower than 8,705 units of Sonata, 6,887 units of Grandeur, and 2,995 units of Genesis are sold averagely(per a month).

The name ‘Aslan’ means ‘lion’ in Turkish and is used to mean ‘elegance and intrepidness’ of the car. What Hyundai’s original plan was to deliver customers some touch, which an imported vehicle cannot give, with this front-wheel-drive premium sedan.

With its aim, Aslan came out to target major imported cars. BMW 5 series, Mercedes-Benz E Class, Audi A6, and Lexus ES are thought to be its competitive models.

Till November, about 17,017 units of Mercedes-Benz E class, 14,583 units of BMW 5 series, and 11,686 units of A6 have been sold. Lexus has quite lower sales volume, 4,684 units of ES have been sold so far. These numerical values show clearly- Aslan is defeated at the competition.

Since last October, when Aslan was officially released, Hyundai implemented aggressive marketing strategy. Not only newspaper or TV ads, Hyundai also operated ‘Aslan Space’ at DDP and its showrooms located in five different regions to give customers an opportunity of test drive as well as a trial ride conference held for customers.

Based on the customer complaints and data that have been made since last year, Hyundai has made some remedial actions like renewed convenience systems and lower price with its 2016 Aslan released on 7th.

For G300(3.0), HUD and EPB system are changed as options, and Driving Assist Package that was adopted only for G330(3.3) is now available. The price is reduced by 1,030,000won to 2,450,000won based on models.

Moreover, Hyundai offers ‘Aslan used car price guarantee program’ which guarantees used Alsan price with 75%(one-year used), 68% (two-year used), and 62%(three-year used) of its original price. Within a month from the release, customers not satisfied with Aslan can exchange it for Grandeur or Genesis through Hyundai’s ‘vehicle exchange program’. Certainly, there is no doubt that Hyundai is offering huge and exclusive support plans for Aslan

Despite of Hyundai’s such efforts, the outlook of Aslan does not seem bright. Last year, before the sales began, many automobile journalists showed concerns towards Aslan, as it does not have its own impacts in the market.

Aslan belongs to large sedan. It is neither mid-size sedan such as Grandeur nor full-size sedan like Genesis. It is between of them, which means Aslan’s position in the market is vague. By the Cannibalization effect, its vague position in the market is the biggest problem.

Therefore, many customers consider Aslan as Gradeur’s premium trim. Benz E class, BMW 5 series, Audi A6, Lexus ES may be too high for Aslan to reach.

In short, Hyundai’s concern towards Aslan may not seem to be solved easily.