Hyundai Commercial’s exponential growth set to continue in South Africa


The launch of the upgraded HD series and H100 Bakkie by Hyundai Commercial Vehicles in South Africa is another step in the exponential growth of this division of Hyundai Automotive SA – and is representative of the global rapid expansion of Hyundai’s commercial vehicle operations and sales.

Hyundai H100

The Commercial division of the Hyundai Motor Company of Korea has grown from 3 factories in 2005 to 11 in 2011 – inter alia from Vietnam to Russia, Morocco, Brazil and Ecuador. The vision of the Hyundai Motor Company’s Commercial Vehicles division is to be among the global top 5 in 2016 with sales of

348 000 units – 4,5 times as many as the 77 000 sold worldwide in 2011.

“Part of the expansion strategy is to increase the heavy duty component compared to small and medium trucks by 2016. That means Hyundai wants to become a serious competitor among the heavies in the truck market. The global ratio of Hyundai heavy-duty trucks this year to small and medium units is expected to be 19% to 81%. Hyundai Motor Company aims to increase the heavy component to 37% by 2016, which will enhance brand image and profitability”, says Wade Griffin, director for Commercial Vehicles at Hyundai Automotive South Africa.

“Although the world economy continues to be in turmoil – and we are not immune from this – the outlook for growth in the segment for medium commercial vehicles in South Africa seems to be positive at the moment, with March and April sales 5,7% and 18,2% up compared to the same months in 2011. The sales growth of Hyundai’s commercial vehicles in South Africa has been nothing less than exponential since 2009, when we sold 66 units. Last year we sold 355, and our target for 2012 is in the region of 600,” says an upbeat Griffin.

This growth is supported by the establishment of a network of dedicated commercial dealers in the Hyundai Automotive SA network. “We already have a web of 39 selling dealers in Southern Africa, including Namibia and Botswana, and 41 dedicated service centres. Parts distribution is done from our warehouse in Germiston where we have an active stock holding of R61,5 million.

“Our Parts Distribution Centre in Germiston maintains a first-pick ratio of 92% to our dealers. That means customers’ vehicles spend as little downtime as possible and that businesses do not experience unnecessary stoppages,” says Griffin, who is assisted at Hyundai Commercial in South Africa by his deputy and general manager in the division, Danie de Beer.

Hyundai H100 2012

Hyundai Commercial made a bold statement at last year’s Johannesburg International Motor Show when it had its own exhibition stand among competitors in the “truck hall”.

“The potential product offering from Korea is vast,” says Griffin. “It includes several trucks in the heavy commercial vehicle segment, such as 12-tonner and 17-tonner, and a 28-tonner and 36-tonner in the extra-heavy commercial vehicle category. The Hyundai Motor Company also offers a range of specialized products, ranging from tankers to fire engines, cement mixers and dump trucks. It is evident that the potential for growth in South Africa will not be stifled by a lack of products.”