I occasionally make predictions about the automotive industry. Some happen, others don’t. I’ll tell you about a couple of my past predictions in upcoming posts.
For now, I want to make a prediction: we are 10 years away from an automotive marketplace that views Hyundai in the same light as Honda and Toyota.
In the 1980s Toyota and Honda, despite gaining popularity, were viewed as cheap, small cars that were simply inferior. With the launch of Acura and Lexus, both companies were able to shed the cheap and small stereotype. Through a commitment to quality and reliability, the two companies took the idea of inferiority and turned it on its head. Today Toyota and Honda seem to be the benchmark by which everyone else measures price, performance, reliability, etc.
Let’s parallel the Honda/Toyota story to what’s happening at Hyundai. All through the 1990s Hyundai was the Korean car company that produced cheap, small cars that were simply inferior. Through a commitment to quality and reliability they have been able to offer America’s Best Warranty. I see Hyundai’s recent launch of the Genesis as a parallel to Toyota’s launch of Lexus or Honda’s launch of Acura. Hyundai is proving that it can do more than cheap and small.
Hyundai Genesis
Further, Hyundai is the first car company (as far as I know) to announce mass production of hydrogen fuel cell vehicles. Being a first-mover in the hydrogen market could do for Hyundai what the Prius has done for Toyota.
What will it take?
- Hyundai will have to maintain quality and reliability. America’s Best Warranty will need to evolve and progress in order to stay the best.
- The Genesis needs to succeed. This car is key in shaping the public’s perception of Hyundai. Can it convince the masses that Hyundai is a contender in performance, styling, and comfort?
- Hyundai will need to keep its manufacturing costs at an industry low (company’s from China and India might have an advantage here, but Hyundai has a pretty big head-start to work with). Hyundai is currently able to produce the Genesis for far less than BMW, Mercedes, and even Toyota (I think).
- Finally, taking a full swing at the hydrogen market is a big gamble (which I applaud). No one knows how the hydrogen infrastructure will develop or how the public will take to hydrogen fuel cell vehicles. Hyundai’s willingness to roll the dice could have HUGE payoffs, but like all big gambles it could backfire.
My perception of Hyundai is rapidly changing. What do you think?
