For most people, the only point of following an international trade agreement would be to cure a stubborn case of insomnia. But a recent deal between Canada and South Korea is big news because it has triggered large price cuts on Hyundai vehicles. From the Hyundai Elantra to the Hyundai Santa Fe XL, Canadians will now pay less for a Hyundai.
In the past, the Canadian government dinged every Hyundai imported from South Korea with a 6.1 per cent tariff. This extra cost forced the car maker to charge more. With a free-trade agreement between the countries, the tariff will be gradually eliminated. In turn, Hyundai is passing along savings up to $1,300.
With this change, it is clear Hyundai Canada is determined to boost sales in 2015. The company could have pocketed the extra money but instead chose to cut prices and quickly. Hyundai intends to make it clear that its vehicles offer more benefits -- at a lower price -- than any other brand.
Hyundai is returning to the aggressive strategy that spurred its incredible sales growth between 2009 and 2012. In that era, consumers doing their research quickly realized that Hyundai offered more value than other brands. According to Don Romano, chief executive, Hyundai is refocused on drawing a distinction between Hyundai and its competitors. When choosing a new vehicles, consumers will again see why Hyundai belongs on their short lists.
“Pricing is obviously a major factor in that decision, so, by adjusting the prices of Hyundai vehicles, our customers will see just how competitive our products actually are,” said Mr. Romano. Hyundai has reduced pricing on Elantra, Santa Fe XL, Veloster, and Accent.
At Castlegar Hyundai, we are impressed with how quickly Hyundai Canada made the change. And we will be working hard to communicate this new pricing and Hyundai's many benefits to our customers.