INTERVIEW: Hyundai has learnt a few tricks to protect its castle walls

Stanley Anderson has taken over as CEO of Hyundai Automotive SA at a time when the local motor industry undergoes one of its most profound transformations.

While cut-priced Chinese and Indian brands have eaten into the sales of several long-standing legacy brands, the Korean marque has grown its market share and remains SA’s fourth biggest player behind Toyota, Suzuki and Volkswagen.

Anderson has been with Hyundai Automotive SA since its inception 25 years ago, most recently as sales and operations director, and in July replaced Gideon Jansen van Rensburg who took over as CEO of Motus SA Retail. Hyundai Automotive SA is owned by Motus.

When Anderson started with Hyundai it was a disrupter brand selling vehicles that undercut mainstream players such as Volkswagen and Toyota in pricing, just as Chery, GWM and a host of other Chinese brands are doing today.

Hyundai’s journey from a disrupter to a mainstream brand involved gaining public confidence after the bankruptcy of the previous Hyundai importer in SA. The 2010 Fifa World Cup, of which Hyundai was a major sponsor, was a big turning point, said Anderson.

“Before that, we had to work hard on gaining the public’s confidence. The i20, i35, Accent and Elantra were introduced at around the time of the World Cup, and the Elantra won the 2012 SA Car of the Year title, which gave the brand a lot of credibility in the market.”

The South Korean brand has evolved to become part of the top hierarchy that is fighting off upstarts in a car market that is becoming more commoditised, with price increasingly trumping brand loyalties, especially in premium segments.

So far Hyundai’s castle walls have stood firm and despite increased competition, the brand has outperformed the market in passenger and light commercial vehicle sales. Its sales have grown 30.3% in the first seven months of 2025 compared with 14.2% growth for the overall market, and its two top-selling models — the Grand i10 compact hatch and Exter compact crossover — both compete in the important budget segment.

Hyundai’s strong performance is partly attributed to price reductions on certain models — including the Grand i10, i20, Venue and entry-level Tucson — to be more competitive against the barrage of keenly priced imported Chinese cars that enjoy subsidies from their government.

“We’re never going to be as cheap as the Chinese, and we don’t want to be the cheapest, but we still need to offer good value for money,” said Anderson.

He acknowledges that price cuts are controversial as they reduce resale values, but says that Hyundai primarily addresses competition by emphasising total cost of ownership, including fuel consumption and service costs. It focuses on value for money by including standard specifications and avoiding optional extras, ensuring transparent pricing.

The brand’s enduring popularity is also based on a reputation for reliability, and it has one of the motor industry’s lowest warranty burn rates — the average cost per vehicle for warranty repairs or parts.

We’re never going to be as cheap as the Chinese, and we don’t want to be the cheapest, but we still need to offer good value for money.

In his role as Hyundai CEO, Anderson plans to place greater focus on corporate customers, leveraging the cost of ownership and service benefits important to businesses.

“Corporates want consistency and still look more at trusted brands when buying vehicles for their businesses,” he said.

“We’re also focusing on driving current customers into our workshops. We will use our extensive database to do more targeted marketing, for instance by offering more affordable servicing to out-of-warranty customers,” Anderson said.

In terms of growing vehicle sales, he said a challenge is the low 25% finance application approval rate in SA due to tightened lending and disposable income pressures.

Anderson believes that Hyundai Automotive owning 43 of the brand’s 100 dealers in SA is advantageous as it fosters close relationships and quick decision-making based on real-time feedback.

“The dealers sit in our exco every Monday and if there are any issues we pick it up very quickly,” said Anderson.

Hyundai’s future model plans in SA include launching the next-generation Venue subcompact crossover, a facelifted Creta midsized SUV and the new Palisade premium SUV.

Unlike an increasing number of brands offering battery-powered vehicles, electric cars are not in Hyundai’s SA near-term plans primarily due to their high cost, said Anderson.

“The electric Hyundai Ioniq 5 — which has won several international awards including 2022 World Car of the Year — would cost R1.8m in SA, and I like my job.”