Hyundai Europe will not participate in the price war in the EV field, because that would needlessly harm the residual values of existing cars. For lease customers, lowering prices would even be a direct disadvantage, says the CEO.
At least that is what Hyundai Europe CEO Michael Cole is said to have told Automotive News. Cole says he is not crazy about what Tesla is doing, followed to a greater or lesser extent by Ford, Volvo, and (still) some Chinese brands. Cole: “The pricing has to make sense. Competitive positioning is part of that logic, as are sales targets and profitability. Consistent price is also important, both for our direct customers and for our financial partners.”
With those financial partners, Cole is referring to leasing companies, among others, and there is perhaps an even greater argument for going for stable prices. Cole points out that leasing companies cheerfully continue sharply falling prices in their lease rates, which would therefore be higher if prices fell. After all, price drops mean depreciation, and such a lease provider feels that in its own wallet. For the significant part of European customers who do not buy an EV, but lease it, a stable price is therefore pleasant, according to Hyundai.
Hyundai simply does not have a good reason to lower prices. Last year it again sold more ‘conventional’ cars and more EVs in Europe, while an all-new Hyundai Kona will appear this year. Also as an EV, of course.