Korean automakers have dominated the global automobile market for the past few years. They produce high-quality and relatively inexpensive cars that are popular in all countries. These vehicles are ahead of their competitors in key indicators and are gradually becoming leaders in sales ratings. Let’s try to figure out the secret of Korean automakers’ rapid progress and determine the main reasons for the popularity of the models they produce.
Factors of success of Korean automakers
Correct priorities
Korean car manufacturers achieved success thanks to their unique approach to business. They quickly got their bearings in the market situation and correctly prioritized development areas. First of all, the Koreans focused on the quality of their products. They invested much money in their developments and financed their partners’ projects. This approach always made it possible to have something unique and exciting that competitors could not offer. Then, Korean manufacturers focused on budget and middle-class vehicles. And here they hit the mark since these cars have long been at the peak of popularity worldwide. And finally, the Koreans made it their priority to produce environmentally friendly vehicles, which quickly became in demand in all countries.
Timely entry into the US automobile market
The world’s leading automobile market is, of course, the American one. Success there will automatically bring the company a good profit and make it the industry leader. Korean manufacturers chose the best time to appear in the USA. Hyundai did it in 1986 when inexpensive but high-quality vehicles were at the peak of popularity in America. This made it possible to report huge profits from sales of the Excel model in the first year and receive funds for further expansion of its influence in the USA. Kia appeared on the American market in 1993. They began selling their models only in Oregon. Gradually, they captured other states, and within two years, they started offering their models to half of the US population.
Good Reputation
Korean automakers entered the international market with a good reputation in their homeland. This initially helped them earn the trust of foreign buyers. High quality and the standard reliability and safety of cars made Koreans the favorites of millions. This allowed them to create an image of ideal companies, which helped them successfully sell their future models. Also, automakers from South Korea avoided loud scandals, quickly resolved emerging problems with clients and suppliers, and fought honestly with competitors. All of the above made it possible to improve their reputation further and gain certain benefits from it.
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Reasons for the popularity of Korean cars
Optimal price/quality ratio
The main reason Korean cars were successful worldwide was that they were always of good quality and never very expensive. Combining these two factors made even the least successful models popular with buyers. Such cars became available to everyone, regardless of their financial capabilities. They also began to be sold at Kia Rio salvage auctions and other similar online platforms. This further expanded the company’s customer base and helped the Koreans succeed in the global automobile market.
Environmental friendliness
As mentioned earlier, Kia and Hyundai identified the potential of environmentally friendly models. They started producing them earlier than many competitors, which gave them a certain amount of time to attract as many customers as possible. They did a great job and became one of the leaders in the number of electric cars and hybrid models sold. The rapid growth of the market for this type of car only improved the positions of Kia and Hyundai, turning them into serious players in this segment. Today, Korean automakers compete equally even with American, Japanese and Chinese companies. Every year, they introduce new environmentally friendly models quickly becoming popular worldwide.
Safety
In the modern world, thousands of accidents occur daily, in which many people are injured or killed. In this regard, a high safety level is a crucial indicator of any car. In this aspect, Koreans are far ahead of most competitors. All Kia and Hyundai models are equipped with advanced systems and safety elements. Their presence makes it possible to reduce the likelihood of accidents and reduce their negative consequences. Also, all Korean manufacturers’ models are equipped with various driver assistants, significantly reducing the human factor’s influence on the trip’s safety. According to assessments of such status organizations as NHTSA and IIHS, many Korean-made models received the highest possible scores for safety. This feature has become an additional factor in increasing the popularity of cars in South Korea.
Reliability
Many people have the opinion that inexpensive cars are always unreliable. However, the Japanese and Koreans first broke this stereotype. The representatives of South Korea achieved the standard reliability of their vehicles and took the leading places in the corresponding rating. All their models very rarely break down due to the high quality of components used in the production of cars. The situation is also positively influenced by the professionalism of the employees of Korean companies, who know precisely what is needed to make the released vehicle as reliable as possible. The best proof is the long-term warranty on Kia and Hyundai cars. In this indicator, the Koreans are even ahead of the Japanese, who have always been considered the best manufacturers of reliable vehicles.
Large selection of models and modifications
Companies from South Korea were able to offer customers cars that are ideal for them. This became possible due to the breadth of the model range. In it, everyone found the best option for themselves in terms of characteristics, design, speed, functionality and cost. The choice is made even more remarkable by the many available modifications of a particular model. They all differ significantly from each other, so the customer can easily find what he is looking for. Many competitors of Kia and Hyundai also offer customers a wide selection of cars, but they still lag behind the Koreans in the number of modifications they have created.
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Prospects
Korean expansion is still in its early stages. Despite this, various automakers are already showing excellent sales figures and becoming severe global players. Kia and Hyundai will gradually expand their presence in Asian, European and North American countries. This will potentially allow them to capture a large part of the global market for budget and mid-range models and become leaders in this segment. At the same time, growing competition from Chinese, Japanese and American manufacturers may slightly slow down the pace of development of Korean companies. However, it is expected to be stable over the next few years.
In the future, the Koreans plan to expand their influence on the premium car segment. Kia and Hyundai are already trying their hand in this direction, but it is too early to talk about good or bad results. Among the luxury models available today, the new generations of Kia Quoris and Kia Sorento, Hyundai Equus, Hyundai Grandeur, and Genesis G90 should be highlighted. Many of them will improve in the future, each becoming more similar to the leaders of the premium segment.
Korean automakers created a real miracle. They captured the world automobile market in a very short time and are today its key players. This became possible due to a good reputation, correct prioritization, timely decision-making and high-quality manufactured models of different price categories. In the future, the expansion of the Koreans will continue, so there is no doubt that they will continue to expand their presence in different countries.
