Hyundai Will Build More Lower-Priced Cars

By

Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

, Automotive Editor - February 20, 2024
2024 Hyundai Elantra

While some automakers, mainly American ones like Ford and Chevrolet, have completely ditched sedans, Hyundai continues to offer the compact Elantra and midsize Sonata. Both are available as hybrids and for shoppers that want an all-electric sedan from the brand, there’s the IONIQ 6. The South Korean automaker is looking to grow in 2024 and to do that, Hyundai will increase production of the Sonata and Elantra, claims Automotive News.

The outlet spoke with Hyundai Motor North America’s CEO, Jose Muñoz. Muñoz stated that Hyundai wants to achieve “double-digit growth” in 2024 and will rely on increased production of the Elantra and Sonata to reach its goal. Hyundai is really betting on U.S. customers purchasing affordable vehicles with the prices of cars going up and higher interest rates.

Last year, Hyundai Motor Company sold 801,195 vehicles, up 11% from 2022. Another double-digit increase would see the brand get closer to the 900,000-vehicle mark. Hyundai’s strategy to reach its goal is to focus on the sedan market, which other automakers have abandoned. It looks like Hyundai wants to capitalize on the issue of the lack of affordable vehicles in today’s market as automakers shifted to EVs, SUVs, and pricey vehicles when inflation and interest rates were low.

Hyundai’s plan may just work. Honda told Automotive News that it has seen increased interest in smaller vehicles like the Civic and HR-V “because of affordability issues.” The Civic and HR-V are Honda’s most affordable options. Nissan also told the outlet that it’s looking to boost sales of its affordable models that include the Sentra, Versa, and Kicks for 2024.

2024 Hyundai Sonata

"Automakers are reevaluating vehicles on the lower end of the price spectrum because interest rates for the past decade have been low, which has fueled people to buy larger vehicles with more amenities," Jessica Caldwell, executive director of insights at Edmunds, told Automotive News. Unfortunately, automakers have to change plans, as automobile loan rates remained high at 7% in January.

The sad part is that small, affordable cars have all but disappeared. Hyundai got rid of the Accent after the 2022 model year, forcing shoppers to look into the Venue. The Nissan Versa is one of the cheapest cars on sale and it starts at $17,530 (with destination). While that’s affordable, it’s certainly not cheap.

For shoppers on a budget, finding a vehicle under $25,000 is getting harder and harder, while finding a car under $20,000 is almost impossible. Last year, Caldwell stated that only 0.3% of vehicles on sale had a starting price tag of less than $20,000, claims Auto News. According to data from Kelley Blue Book, the average transaction price for a new vehicle in January was $47,401.

In an attempt to boost sales for the Elantra and Sonata, Hyundai has made meaningful updates for both sedans. The 2024 Elantra arrives with updated exterior styling, updated safety features, and new wheel designs. The 2024 Sonata receives a more substantial refresh with a new exterior design, updated tech features, a slightly revised cabin, available all-wheel drive, and an updated powertrain.

Pictured: 2024 Hyundai Elantra (Top), 2024 Hyundai Sonata (Middle)

Source: Automotive News (Subscription Required)

Explore the Cheapest Lease Deals

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

Privacy Terms of Use Your Privacy Choices Disclaimer Cookie Policy Manage Preferences
COPYRIGHT 1999-2024 MH Sub I, LLC dba CarsDirect.com