Monday, August 4, 2014

Will Hyundai’s New Crossover Spell The Veloster’s End?

Hyundai-Veloster-Turbo-01-443x350

In an interview with Edmunds, Hyundai CEO Dave Zuchowski spoke of a new vehicle that

"would be a vehicle that would be really designed for Gen Y, for new first-time younger buyers…Think of maybe something that looks like a Juke or something that has edgy, dynamic styling."

Doesn't Hyundai already have something like that?

The Veloster, launched in 2012, was intended to be the vehicle that attracted a younger crowd, with funky styling, a focus on fuel economy and neat tech features. Sales of the Veloster have been modest, with Hyundai moving about 30,000 units annually.

The bigger issue at hand is whether Hyundai wants to have two vehicles targeting Gen Y remaining in the lineup, and if 30,000 units is enough to sustain the Veloster's lifespan into the next-generation. For one thing, the coupe market is shrinking, whereas the crossover market is only growing. A new, Gen Y oriented crossover is also a product that could easily be sold globally, whereas a pseudo-coupe like the Veloster is very much a niche product.

If I were a betting man, I'd look for the Veloster to die come 2016, and be replaced by this new, youth-oriented small CUV. The finite marketing dollars that are at Hyundai's disposal would arguably be better spent on the CUV, rather than trying to market both cars and have their volumes split in half. One is playing in a growing segment. Soon, the Chevrolet Trax, Honda HR-V and others will join what is now the most popular segment in America. The fortunes of the coupe market are much less promising.

The post Will Hyundai's New Crossover Spell The Veloster's End? appeared first on The Truth About Cars.



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