Korean Ain't Cheap: Hyundai Hits Price Milestone with 2006 Azera

Date posted: 04-26-2006

ANN ARBOR, Mich. — Hyundai Motor America's new 2006 Azera sedan hit an average transaction price of $27,500 in March, the highest transaction price for a Hyundai product ever in the United States and well above the $24,000 average transaction price for the 2005 XG350 it replaced, Inside Line has learned.

The Azera starts at just under $25,000 and is racking up double the sales of the XG350, said Michael Deitz, Hyundai manager of model line planning. Still, Deitz admitted, "75 percent of Americans won't even consider a Hyundai." He said the company is still working to win over U.S. buyers. "From an embarrassment factor, when a consumer buys his second or third Hyundai, they don't feel like they have to justify it anymore," he said.

Deitz said the company was having success with its Hyundai Challenge, a test-drive program for consumers that pits the Sonata against the Honda Accord and Toyota Camry, but not its domestic rivals. "It may be free advertising, but we want consumers to know we are competitive against the imports [rather than] brands losing market share," Deitz said.

He noted that Hyundai now has 700 U.S. dealers and is on its way to 1,000. Prospective dealers are wooed with trips to Korea. Hyundai expects to hit 500,000 U.S. sales this year on the strength of Azera sales, as well as the introduction of the new Entourage minivan, Deitz said.

What this means to you: Hyundai's stock is rising with American buyers, as evidenced by how much they are willing to pay for its products.