Cars

Hyundai Solaris – B-class car market leader

Hyundai Solaris – B-class car market leader

The Korean Hyundai Motor Company product, Hyundai Solaris, is undoubtedly the leader in the Russian supermini car market.

According to the information of the Association of European Businesses, the Hyundai Solaris sales have reached 115’900 over the past year, which is the second-largest number following the Lada Granta sales result. Now an average cost of the model varies from 575’000 to 700’000 rubles, depending on configuration. The car is fuel-efficient, as it has one of the best fuel consumption figures in this class, 5.9 litres per 100 km.

The Researching Center “Effet” specialists have undertaken a study on the satisfaction of car-owners with the model and have calculated its’ running costs.

Satisfaction with model in Russia

Basing on the study, the majority of the Hyundai Solaris car owners are happy with the quality of the vehicle. The foreign model allows feeling pleasure in driving, staying unalarmed about safety and feeling easy on the Russian road. The study has also established the identity of a typical Hyundai Solaris car owner.

The representatives of middle class are those who mainly buy and use this make of vehicle. Among them are such occupations, as motor mechanics, builders, metal turners, business persons, bank workers and lawyers.

The drivers have featured the following pluses of the car: the price-quality ratio, fuel economy, well-coordinated work of transmission, climate control system and sound insulation, comfort and elegance of interior.

Owners’ occupation

Satisfaction with the model, %

Discontent with the model, %

Notes and feedback

Taxi drivers

70

30

§ Weak engine

§ Would like to increase clearance

§ Would like to add seat tilt adjustment

§ Problems with clutch

§ Too expensive

§ Rigid catenary suspension

§ Central locking blocks

§ Feeble optics of headlights

Builders

70

30

§ Fust after the air-conditioner is turned off

§ Gearbox heating

§ Noise from the heater

Metal turners

90

10

§ Right headlight weeps
Businessmen

90

10

§ The price was normal before the crisis, now it’s too expensive
Managers and bank workers

80

20

§ Would like a better sound insulation

§ Feeble optics of headlights

Lawyers

90

10

§ Would like to reinforce the paint coat
Motor mechanics

90

10

§ The car is OK for such price

At the same time, some of the owners have pointed at small drawbacks, defects and flaws. For instance, one of the respondents would like to have the ground clearance increased by 2 centimeters, so that it could be possible to densely site the vehicle in an overcrowded parking lot, having placed the forecarriage above the border.

The rest car owners mentioned other flaws: rigid catenary suspension, an increased value in a down economy, a noise from the heater, feeble optics of headlights, a steam condensate when the air-conditioner is on in warm weather, gearbox heating. The most unsatisfied with the car among the drivers were the taxi drivers, which is clearly enough: the car is the main workplace tool for them, and they know all its’ specifics firsthand.

Cost of ownership in Russia

Under the conditions of the economic crisis the question car owning cost is vital. Many aspects influence the car price: loss in value during vehicle use, fuel costs, insurance and maintenance costs, taxes and parking prices. It is necessary to primarily examine the key factors: loss in value, maintenance costs and insurance, and fuel costs.

Loss in value

A loss in value – is a distinction between the price for a new car and the price for the same 3-year-old car with mileage. A rise in prices for the new cars in recent times has led to an increase of this part of loss in value.

The RC “Effet” has studied the loss in value of Hyundai Solaris. For instance, the price for a 3-year-old car in a good condition with a mileage about 50’000 kilometers is about 400’000 rubles, whereas the identical new car is on the average 680’000 rubles, and the loss in value amounts 280’000 rubles or 24.3% of cost of the new car.

Maintenance and insurance

An average full insurance cost for a new Hyundai Solaris is 80’000 rubles per one year for a driver with a 3-year driving experience. The total sum for a year insurance amounts about 220’000 rubles, including possible discounts. The average maintenance cost in a maintenance service of a dealer is 12’000 per year, and the total sum is 36’000 for 3 years.

Fuel costs

If we take 50’000 km as an average 3-year mileage figure, the gas consumption for Hyundai Solaris is 29’590 liters. If the price for one liter of RON gas is 36.63 rubles (as of 16.03.2016), the 3-year costs will amount 108’058 rubles. In this way, an average for operational costs is about 364’058 rubles (52% of acquisition price).

Prospects

Now Hyundai Motor Company is on the firm ground in Russia. According to mass media, the automobile plant Hyundai is uninterested in staffing reduction, and it raised the wages for all its’ workers on January, 1.

In 2015 the “Rolf” selling group opened the second Hyundai dealership in St. Petersburg. The general director of the group, Tatyana Lukovetskaya, claims that Hyundai is planning to stay for long on the Russian market, “as the Koreans are engaged in manufacturing in Russia and maintain a high level of localization…They will stay on the market at all events…”

According to the information of the Association of European Businesses by November, 2015, “the Hyundai share in the Russian market has increased from 7.4 to 10.2% for one year, the Kia share – from 7.9 to 10.2%, whereas the rest manufacturers only decreased it”. Both the low prices for cars and the exit of GM from Russia have made it possible for the Korean manufacturer to expand its presence in the Russian market.

Despite the expectations of a significant stagnation in the world car market in 2016, Hyundai is planning to expand its presence here.

Concerning the prospects for Hyundai Solaris in Russia, this product is at its mature stage now, the model is well-known and mass-market, and it earns a constant profit to the company. Although, every product has its life time, and after the mature stage there will be an inevitable recession. Hyundai is ready for it, and Solaris will give place to a new saloon car in 2016.

Let us hope, that the brand will consider wishes of the Russian car drivers and all market members will stay glad with each other.

Sources: Researching Center Effet , AEB, Vedomosti, Vedomosti, Vedomosti