Hyundai Azera

Hyundai Getz

Hyundai Verna

By Nick Syn

LAST ISSUE, CARBUYER ran an exclusive on Komoco Motors’ plans for an expanded Chrysler Group line-up, in this issue we look at what’s on the cards for the company’s Hyundai brand. Coming hot on the heels of yesterday’s launch of the flagship Hyundai Azera, pictured above (see CarBuyer’s comprehensive review on page 8), is the gearing up for a model onslaught that will see Komoco replacing virtually all the older models in its Hyundai line-up with brand new or heavily facelifted cars.

Already in the showrooms is the revised Getz compact hatchback (above, middle). Earlier next year expect to see a 2.0-litre version of the new Sonata, and replacements for the Santa Fe SUV and Accent small sedan (above, right). According to Komoco boss Teo Hock Seng, “we are hoping that with the new models we can do better, we’ve been without new models for one and a half years now so we’re lucky to be where we are.”

“Where we are” currently equates to third place in the sales charts, behind Japanese giants Toyota and Nissan, and the new models should go far in helping to consolidate that position. The Sonata, in its former incarnation, was a big seller for Komoco, but the absence of a 2.0-litre variant of the new car has dented Sonata sales. This should be rectified when the new 2.0-litre engine arrives early next year, “we hope to win back many of our old Sonata customers with the new 2.0-litre model,” says Mr Teo. Another strong seller, the Getz, should also get a considerable boost with the introduction of the new facelifted version pictured above, and Komoco is also planning on putting together a special sports package for the popular compact hatchback that should include some tasty performance parts.

With the Azera, Komoco hopes that higher-end Nissan and Toyota buyers, and even Lexus owners, might be persuaded to make the switch to Hyundai. “The test is whether or not the Azera, as the flagship, can encroach on all these Japanese makes. The quality and finish are there but it’s the market who talks more than us,” remarks Mr Teo.

It’ll still be tough going, though. According to Mr Teo, prices for steel have been on the up and up, and carmakers like Hyundai are finding it increasingly difficult to keep costs steady. Add to this the continued rise of fuel prices and you have, as Mr Teo puts it, “a double whammy”.

The key to beating this, or at least to putting up a decent fight, is breadth of product range. If you have enough models, logic suggests that at least one or two sync with the vagaries of the market at any one time. “One year it’s the Getz that’s hot, the next it’s the Matrix, and it’s the same with the Santa Fe and Tucson,” remarks Mr Teo on the waxing and waning popularity of the cars in the Hyundai stable. Komoco doesn’t focus on one or two bread and butter models, rather the company tries to make sure that all its models, as far as possible, have a chance to move in serious numbers. However, predicting which exact model to push isn’t an exact science.

For Mr Teo, it’s all about “finding your place in the market”. A market which Mr Teo candidly admits is, “a bit of a mess.” “It’s too difficult to pinpoint or stabilise which vehicle type sells, you just can’t,” adds Mr Teo. Therefore, in such a situation a bigger range simply means more bases covered.

In addition, the continued downward spiral in COE premiums is something that Komoco hopes to capitalise on. “Prices go up, we have to adjust, upwards,” says Mr Teo, but the soft COE market should help by acting as a sort of pressure release valve on these basic cost increases.

In tandem with the launch of all these new models, Komoco is opening up new service centre premises in Ubi. The company will be taking over the building currently occupied by Cycle & Carriage, as the latter will move when the new Mercedes-Benz Centre in Alexandra Road opens next year. “ We already do 200 cars a day here in Alexandra Road, the problem is finding space to park them all,” says Mr Teo. The new Ubi facility will service the East of Singapore, where over 60 percent of Hyundai customers reside, and take considerable pressure off the Alexandra Road premises.

With all these developments crammed into the pipeline, could there be room for Komoco to take on even more new brands? Mr Teo is circumspect, “I think we’ve got to be very careful, especially if we’re looking for another brand. Dodge is still within the Chrysler family and we do have a Mercedes dealership in Malacca, which we got through the work we’ve done with Chrysler. Other German marques like BMW we’re not interested in. Maintaining and sustaining Hyundai will be a priority.”