In an effort to find new customers and increase sales, Hyundai Motor Group has launched a major promotion in China, the only overseas market left as the coronavirus sweeps the entire world.
The South Korean automaker announced Sunday that Beijing Hyundai and Dongfeng Yueda Kia began promotions from this month. Both companies will allow exchanges within a year of receipt if the customer has a change of heart or their financial situation changes. Beijing Hyundai will replace a car with a new one within a year after its release from the factory if the customer has a car accident while allowing customers to return their cars if they find themselves unable to pay off the remaining installments. For customers who cannot keep up with installments, Dongfeng Yueda Kia offers six-month installment or gives it as a consolation instead of getting the car return.
Considering a new car loses value once it is used, it appears that the automakers have decided to increase sales in the Chinese market even if it means losses. The total sales of new cars in China plummeted in February by 79.1 percent to about 310,000 units as a result of the coronavirus outbreak, and Hyundai and Kia saw an 82-percent decrease.
In March, while the virus outbreak slowed down in China, the pandemic started affecting other major foreign markets such as the United States and European countries where the production and sales of new cars have ground to a halt. This has left China as the only market where demand is. The sales of new cars in the United States dropped by 33 percent to approximately 999,000 year-on-year in March while the figure plunged by 90 percent in Italy. On the other hand, China saw a 28-percent decline during the same period.
As world-renowned automakers try to work through the impact of the coronavirus crisis, Hyundai Motor Group plans to sell as many units as possible in the Chinese market. Since unveiling new models via online on March 10, the automotive group is expanding non face-to-face promotions.
Hyung-Seok Seo email@example.com