Hyundai will survive torrid industry times, says CEO

Gideon Jansen van Rensburg was appointed Hyundai SA CEO in 2023, replacing Neill Lynch who had been at helm of the South Korean brand since 2016. Jansen van Rensburg has been with the company since 2001, though his automotive sector career began in 1996 working as a branch accountant for a German brand.

He occupies the hot seat at a time when the global automotive industry is undergoing dwindling business, large-scale labour and economic tumult and a slowing in the electric car revolution. Locally, he leads a company that has two products in the top 30 monthly sellers list, both budget cars.

The cocktail of uncertainty is made more challenging by new Chinese brands offering competitively priced vehicles.

We start our chat in his airy office and I ask why the Grand i10 and the i20 are the only models seemingly doing well in a 13-car line up. Jansen van Rensburg says the R300,000-R400,000 price range is where most of the action occurs. According to Naamsa’s August sales report, Hyundai sold 1,328 Grand i10s and 484 i20 hatchbacks.

Jansen van Rensburg says they are popular models and the Grand i10 sales are boosted by the Cargo models that have found favour with commercial buyers. He is optimistic that the newly launched Exter crossover will boost numbers. Still, the reality is that the economy is flat and affordability is affected by high interest rates. 

“We are happy with the recent rate cuts, and they will help stimulate the economy and turn around the market but, our industry has fundamentally changed from how it used to operate,” he says. 

With more than 50 car brands on sale, Jansen van Rensburg is frank in his observation of the market. He believes some brands won’t survive under the prevailing conditions.

“Even if you look at it from a broader Motus perspective, which brands are you going to back in your national dealer footprint? It can’t be all of them,” he says.

Motus is the official importer of Hyundai in SA, including Renault, Kia and Mitsubishi. The company’s retail business represents about 40 brands, among them Chinese ones, which he welcomes as competition.

Reflecting more on the industry’s challenges, especially with the popular Chinese brands, Jansen van Rensburg says Chinese brand dealers in the Motus group are already having colourful debates about new Chinese entrant Jetour. It's a subsidiary of Chery and has all the backing of its parent but is operating independently in SA and is priced cheaper. 

“It’s the Hyundai/Kia scenario but on steroids, though the Korean brands have a well-defined separation from the start,” he says.

Will Hyundai be among the survivors, and how does Jansen van Rensburg plan to keep the brand competitive? He believes Hyundai will be a survivor and that multi-franchising is the way dealers can survive based on the volumes and the margins they make.

“Without dealers there’s no Hyundai SA,” he says.

Jansen van Rensburg says the reputation of good build quality, resale values, standard specification, the warranty of Hyundai products and a reliable parts supply over the years stands in favour of the brand’s survival.

“Looking after our customers is a proven philosophy that works,” he says. 

As to what can we expect from a product outlook, Hyundai will launch the updated Tucson in the first quarter of 2025.