Hyundai Motor Accelerates Overseas Online Sales...Sudden Brake in Domestic Market

Hyundai Motor Sees Significant Growth in Online Sales Overseas Including the US and India

[Asia Economy Reporter Changhwan Lee] Hyundai Motor Group's online sales platform, first introduced in the United States last year, has shown a utilization rate of over 95%. This is analyzed as a result of local dealers actively using the online sales network due to difficulties in face-to-face sales caused by the COVID-19 pandemic. This contrasts with the domestic market, where the online sales network has not even been introduced due to union opposition.

According to the automotive industry on the 25th, Hyundai Motor introduced an online sales platform called ‘Click to Buy’ to major overseas markets in 2017. By using Click to Buy, consumers can select a car online and designate a pickup location, reducing the hassle of visiting a dealership. It was first introduced in the UK, Singapore, Australia, and Russia, and was officially launched in large markets such as the United States and India in the first half of last year.

Within Hyundai Motor, the online sales potential in the US and India is considered high, and efforts are focused accordingly. As a result, in the US, less than a year after its launch, more than 95% of local dealers are using Click to Buy. The performance in India is even better. As of January this year, the cumulative visitors to India’s Click to Buy reached 7 million, with over 4,300 actual contracts concluded.

While expanding the online sales network overseas, it has not yet been introduced domestically. This is due to concerns that the introduction of online sales could lead to a crisis for domestic field sales staff.

In fact, Kia’s announcement of online pre-orders for its first dedicated electric vehicle, the ‘EV6’, has met with strong opposition from the sales union. The company explained that nothing has been concretely decided yet, and even if it proceeds, only reservations will be accepted online, while actual sales will be conducted at dealerships.

However, the union argued, "The introduction of online pre-orders for the EV6 raises suspicions that it presupposes online sales for all models," and "Unilateral introduction of online reservations could cause significant confusion in the sales field." The union warned that it would launch full-scale protests, including one-person demonstrations and rallies, to block online pre-orders.

This situation is similar not only for Hyundai Motor but also for other domestic automakers. Korea GM and Renault Samsung also require that actual car contracts be made only on-site.

While the domestic automakers hesitate, imported car brands are rapidly advancing. BMW Korea sold 470 units of an online limited edition through its online purchase channel, ‘BMW Shop Online’, last year. This year, it plans to maximize online marketing and increase limited edition sales by more than tenfold.

Mercedes-Benz currently operates online stores in 14 countries worldwide and plans to shift 25% of total sales online by 2025. Mercedes-Benz Korea is also preparing to launch an online sales platform within this year in line with this trend.

This content was produced with the assistance of AI translation services.