AutoBeta(AutoBeta.net)08/05 Report--

At the Hyundai Communication Conference in Beijing on July 31, Wen Chengkun, deputy general manager of Hyundai in Beijing, said that Hyundai China will reopen the imported car business three years after closing the import channel. In order to promote the brand promotion of Beijing Hyundai, Gaines and N-series models are expected to be introduced into the Chinese market.

It is worth noting that the introduction of Gaines into China this time will reopen independent high-end sales channels and sales model, which will mean that Gaines and N-series will enter the Chinese market by means of imports.

It is understood that in order to restart the independent sales model of Gaines, Hyundai has set up a sales company in China, the full name is "Genisse Automobile sales Co., Ltd.". According to Qixinbao, the company, which is controlled by Hyundai Motor, was established on October 25, 2018 with a registered capital of US $50 million, while Hyundai did not say how N-series products would be sold.

It is understood that Hyundai closed all import channels three years ago. In 2014, Hyundai's import fees and profits fell sharply as Hyundai imported more than home-made cars, and Hyundai gradually shut down its exports to China, prompting a large number of dealers to defend their rights.

It is understood that the sales of Hyundai imported cars decreased year by year from 28000 in 2012 to 7000 in 2015. In 2016, Hyundai China reached compensation agreements with 40 imported Hyundai dealers across the country, while closing all channels for imported cars.

The closure of imported cars is widely seen as a preparation for Gaines're-entry into the Chinese market. Born in 2004, Gaines is a high-end model of Hyundai, at this time, although the global sales of Hyundai has risen, but the brand value has not been improved. To this end, Hyundai will separate Gaines as a luxury brand in 2015 and plan a number of models for it. By 2020, Gaines will expand six models, including three sedans, two SUV and one coupe. Hope to raise the brand height to identify with Lexus and Infiniti, the world's recognized luxury cars.

At present, the Gaines brand channel will not sell previously imported Gerry, Faith and other models, while Lawns and Yakos will be included in the Gaines channel at the same time, but the official did not say.

Although Gaines sells well in the United States, it is still a brand new brand for the Chinese market, and it is also a lot of pressure for Hyundai to re-enter the Chinese market.

As China's car market continues to be in the doldrums, the growth rate of luxury brands is also gradually slow. In addition, while the prices of luxury brands continue to decline, the competitiveness of Gaines still needs to be improved. It is understood that the import price of Gaines is about 400000 yuan, and if Gaines is successful in domestic production, the price will drop somewhat.

Of course, Hyundai's profits will also have an impact on Gaines. Figures show that Beijing Hyundai Terminal sold 350000 vehicles in the first half of this year, up 4 per cent from the same period last year. Revenue in the first half of this year was 509.5 trillion won, up 8.1% from the same period last year, while operating profit was 20.6 trillion won, up 26.4% from the same period last year. Although revenue and profits plummeted last year, sales picked up in the first half of this year.

Wen Chengkun said that with the emergence of more and more competitive products, Beijing Hyundai is expected to return to the era of annual sales of millions in 2020 or 2021.

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