CAR deputy editor Mike Fourie recently interviewed Hyundai Automotive SA marketing manager Stanley Anderson about the brand’s strong market position and the factors that influenced the pricing, specification and warranty plans of the recently-updated Santa Fe.
During the economic downturn, the compact SUV market remained relatively buoyant and many believe that was because those who decided to replace their SUVs “bought down”. To what do you contribute the sustained demand for the Santa Fe?
We have seen an increase in demand for Hyundai products in general which we attribute to a number of factors. Hyundai’s involvement with the 2010 FIFA World Cup was definitely significant, but so to was the introduction of five new models and additional value added products like our 5 year 150 000 km roadside assistance. The introduction and success of the iX35 has laid a strong foundation for the launch of the facelift Santa Fe.
The quality of our products has increased dramatically over the past ten years and the Santa Fe is no exception. This quality combined with the Santa Fe’s versatility and price positioning has ensured that it remains an accessible and sought after vehicle.
The new models offer more specification than their predecessors, yet are priced slightly below the previous versions. Was a good exchange rate the reason?
The exchange rate has definitely been the most influential factor, and in the light of the recent addition of emissions tax and the fact that the economy has still not fully recovered, we took the decision to pass on the benefit to our customers.
What decisions underpinned the particular specifications of the facelifted models?
We needed to ensure that the specifications of the new Santa Fe were on par with that of the top of the range iX35. We also wanted to increase the vehicle’s appeal and enable it to compete on level footing with similar vehicles. As you know the primary improvement was the introduction of the new R-type diesel engine. The dramatic increase in power and the lower
emissions add to the vehicles versatility and functionality.
The entertainment system has been upgraded to include iPod and Auxiliary connection as well as a 6-disc CD changer making sure it caters for both young and old.
The introduction of the rear view camera with mirror display was added to improve the safety of the vehicle for occupants and pedestrians. The Santa Fe has a high ride height and the addition of the camera improves the all-round rear visibility dramatically.
The introduction of the R-Series engine signals Hyundai’s intention to position the Santa Fe as an environmentally conscious SUV. That partly explains the omission of the V6 models, but why then discontinue the more efficient 4×2 versions?
Traditionally the sales volume of the Santa Fe has come from the 4×4 derivatives and the current pricing positions the vehicle perfectly within our product mix. The all-wheel drive system in conjunction with ESP also adds additional safety, especially in the wet.
The 2.2R CRDi features sophisticated engine technology and is required to operate on 50 ppm diesel. Will Hyundai’s warranty be voided if customers fill their Santa Fes with ordinary diesel if they run out of fuel in an area in which “cleaner” diesel is unavailable?
At the time of purchase the customer is required to sign a letter of acknowledgment in which the customer notes that the Santa Fe can only be filled with 50 ppm fuel.
Obviously it is not advisable to fill the Santa Fe with ordinary diesel for a prolonged period of time as this will cause injector failure that may result in further engine damage. In instances where the customer has no option, we suggest the customer limits the use of ordinary diesel as much as possible.
In the event that the vehicle is damaged due to the use of 500 ppm fuel, the subsequent cost of repair will not be covered by the warranty and will be for the customer’s account. However, this will not void the entire warranty of the vehicle.
The availability of 50 ppm fuel has been improving significantly, though. When we launched the iX35 diesel we limited sales of the vehicle to areas where the fuel was readily available. This meant that outlying areas weren’t able to sell the diesel iX35. Many of these places, such as Upington, now have 50 ppm fuel.
What are Hyundai’s plans with regards to the Santa Fe line-up for the future, would the local company ever consider bringing a hybrid version of the product to market?
Hyundai Motor Company has been very cautious in its approach to hybrid vehicles. They have been developing their technology for over 10 years and invested billions of dollars to ensure that once they introduce a hybrid vehicle into the market that it will commercially viable and that it will have the product quality that we are accustomed to.
Hyundai has recently unveiled the Sonata Hybrid Electrical Vehicle (HEV) and plans to launch it into the Korean and the USA markets. At present plans are to only produce this vehicle in LHD.
Once the vehicles are available in RHD we will definitely consider the commercial viability in the local market.