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View from the top: Why Hyundai is attracting UK retailers

Last year, Hyundai UK recorded its best annual new car sales yet, with a 17% climb year-on-year to 37,600 units, securing the Korean brand a 1.47% market share.

However that wasn’t its only success story. Growth in its aftersales business saw turnover from parts sales increase by almost £3m to £23.9m.

The carmaker puts a great deal of emphasis on providing aftersales value, according to Mike Staunton, Hyundai UK national franchise manager.

It is the only manufacturer to provide a five-year fully comprehensive, unlimited mileage warranty on every vehicle in the range and also has a dedicated aftersales strategy which is designed to bring benefits to dealers by focusing on value and customer retention.

Operated under the brand Smiles, it delivers competitive menu service pricing which encourages Hyundai drivers to continue to visit their dealer for all their aftersales needs.

In addition this includes a reward scheme, which provides owners with a free 12-month membership to the RAC on their third annual service, effectively extending the three-year breakdown assistance package which is standard on all its new cars.

In 2004, Hyundai was successful in filling most of the open points in its dealer network, which resulted in an increase to 168 dealerships. But in order to have true national coverage it hopes to increase that to 185 outlets – a small number of key open points still remain in the Home Counties and London.

In fact, Hyundai has become such an attractive proposition that the UK’s largest dealer group, Pendragon, recently increased its representation of the brand to three outlets, and has more in the pipeline.

So what is key to becoming one of Hyundai’s retailer partners? “An understanding of modern motor retailing processes, a sound business structure and profitability, plus the ability to sell volumes in line with our long-term aim of becoming the 5th largest global carmaker,” says Staunton.

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