Demand for better mileage is making it difficult for Hyundai to keep up with demand for the new Accent.
Hyundai, which is making an aggressive push to claim the fuel-economy crown long held by Japanese automakers such as Toyota and Honda, has discovered that pitching 40 mpg is a fast way to draw customers into its showrooms.
The Korean maker also appears to be breaking from its major rivals suggesting it is on the way to delivering fuel economy numbers in excess of 50 mpg by 2025, not far off of the federal government’s proposed jump in the Corporate Average Fuel Economy, or CAFE, standard.
“Hyundai aims to be the fuel economy leader and our ‘4 x 40’ strategy is accelerating our overall fuel economy improvement, which now tops 35 mpg across the entire lineup,” said John Krafcik, president and CEO, Hyundai Motor Americal, who has said Hyundai’s entire fleet already meets the 2015 fuel economy standard of 35.6 mpg.
“But we really see 40 mpg as a starting point. We committed to at least 50 mpg corporate average fuel economy by 2025 and remain the only automaker to set our sights so high,” Krafcik said.
The EPA is floating the idea of boosting the CAFE rating to 56 mpg by 2025, down from earlier proposals that reached as much as 62 mpg – but still significantly higher than most automakers want.
Hyundai says it has already sold more than 100,000 vehicles getting better than 40 miles per gallon through the first six months of 2011 – accounting for 29% of its total sales and a whopping 40% in June.
Hyundai will soon have four models that reach at least 40 mpg on the Highway, this year including the Elantra, Sonata Hybrid and the all-new 2012 Accent, which just started to hit dealerships last month – helping account for the big jump in sales. The fourth model, the Veloster – will add a new spark to the fleet this fall.
Krafcik said Hyundai is using a mix of technologies to improve the efficiency of our standard, internal combustion engine vehicles, combined with the smart application of hybrid technology, we believe we are on the right path.
Hyuundai introduced the “4 x 40” strategy with the launch of the Elantra in December 2010. The stylish, American-made sedan continues to set a torrid sales pace, 79% ahead of last year through the end of June.
Every 2011 Elantra sold achieves 40 miles per gallon highway fuel economy with no special options or equipment required. Sonata Hybrid and Accent have reinforced the company’s 40 mpg strategy, and both are just starting to reach dealerships in volume.
With Veloster still to come, Hyundai is positioned to grow its 40 mpg sales volume through the end of the year, Krafcik said.
Hyundai’s growing strength also is altering the balance of power in the in the U.S. market long dominated by the Big Six American and Japanese companies. Hyundai’s growing sales – which hit a record in 2010 and are on track for another record in 2011 — could make it more difficult for Japanese car makers such as Toyota and Honda to regain market share as they recover from the devastating earthquake that rocked Japan last March. But, analysts caution, the Koreans could make it much more expensive for General Motors, Ford and Chrysler to gain market share, as well.