Hyundai Leads the Way in the Warranty Market


In a move that is indicative of the confidence Hyundai Motor Company Korea has in its products, Hyundai has extended the standard manufacturer’s warranty it offers on all its passenger vehicles and the H100 Bakkie in South Africa, Namibia, Botswana and Swaziland.

The standard 3 year or 100 000 km warranty has been increased to a staggering 5 year or 150 000km manufacturers warranty. This change is valid for all new passenger vehicles and H100’s retailed from 1 November 2007. This makes it the best manufacturer’s warranty in South Africa, and the first of its kind to be applied across an entire product range.

“Introducing a value-added product like this is the next best thing to launching a new vehicle,” said Alan Ross, Managing Director of Hyundai Automotive South Africa. “We must never lose sight of the fact that the value of a vehicle to a customer is not just in the vehicle’s styling and list of options, but also in its after-sales service and support.

“Hyundai’s continued efforts to improve the quality of its products can not only be seen in recent industry surveys, but also in the number of loyal Hyundai customers that are experiencing hassle-free, day-to-day driving. This resulted in us not having a second thought about launching a product of this nature.”

The manufacturer’s warranty offered by Hyundai Motor Company Korea covers a number of various vehicle components.

These include components which make up the vehicle’s engine, transmission and gearbox, drive lines and final drives, drive couplings, steering, front and rear suspension, brakes, exhaust, electrical system and air-conditioning system. The full extent of this warranty is explained in detail in the service book
provided with every new vehicle bought.

This is also not just a mere warranty extension such as that which Hyundai customers can take out when they purchase a vehicle. This is an increase in the duration of the full manufacturer’s warranty and has the full backing of Hyundai Motor Company Korea.

According to Hyundai, its customers replace their vehicles after approximately two and a half to three years. “This means that the average 3 year warranty period is more than sufficient to meet customers’ needs,” said Stanley Anderson, Marketing and After-sales Director of Hyundai Automotive South Africa.

With Hyundai’s new 5 year or 150 000 km manufacturer’s warranty a customer can either drive their vehicle for longer without having to worry about the warranty expiring, or they can resell the vehicle to a new owner while the vehicle still has a significant portion of the warranty remaining. “This is quite significant and we believe that it will have a positive impact on the resale value of our vehicles.

The residual values of our vehicles should also improve and as a result customers could look forward to reduced leasing payments,” Anderson continued.

The longer warranty period also adds more incentive for Hyundai customers to service their vehicles at Hyundai dealerships. “We are aware that there is a tendency for customers to service their vehicle through non-approved service centres once their vehicle is out of warranty.

We would like to prevent this from happening. Hyundai has invested vast amounts of capital in after-sales service and our technicians have spent numerous hours in training to ensure that our customers and their vehicles get the best quality after-sales care. Our customers can only benefit from this.”

“The positive effect this will have on resale and residual values can only serve to strengthen our brand even further,” Anderson concluded. “We hope that our current and future customers will continue to share the confidence we have in the Hyundai brand and in the products which bear our emblem.”

The introduction of the 5-year warranty is an example of Hyundai’s continuing commitment to quality that was acknowledged in many case studies such as the J.D. Powers survey (see website for details), where Hyundai was ranked as the top mass–market automotive brand in terms of initial quality.

The Commercial Vehicle division of Hyundai Motor Company Korea has also increased the Manufacturer’s Warranty on the HD65 and HD72 to 2 years or 100 000km.

The Hyundai extended manufacturers warranty is the best of its kind in South Africa.