Hyundai Motor Dives Into Certified Used Car Market With Online-Only Sales Strategy

Hyundai Motor is set to launch an online-only certified used vehicle business on October 24th, marking a significant expansion of its revenue channels.

Addressing Prevailing Distrust, Solidifying Market Dominance

Until recently, regulatory hurdles prevented conglomerates from entering the used vehicle sector. However, with the advent of relaxed rules three years ago, Hyundai Motor, the largest carmaker in the nation, swiftly expressed its intention to participate in the market.

Korea Times noted that the prevailing customer distrust towards the local used vehicle industry drove this strategic decision. Hyundai aims to alleviate this distrust by ensuring complete oversight of the processes involved, from the purchase of used cars to their subsequent sale to customers, according to Korea Joongang Daily.

According to the company, over 2.38 million used cars were sold in the previous year, surpassing the number of newly registered vehicles by 1.4 times. More than 900,000 used cars were from Hyundai and Genesis, accounting for approximately 38 percent of the market share.

To establish further dominance, Hyundai has set an ambitious sales target of 5,000 used cars for the remainder of this year, with plans to increase this target gradually.

Ensuring Quality Standards, Enhancing Customer Experience

Only vehicles in good condition, less than 100,000 kilometers traveled, and under five years old will be offered through the certified sales channel. The company has also pledged not to sell vehicles with a history of accidents, safeguarding customer satisfaction.

Buyers of Hyundai's certified used cars can expect additional benefits, such as a certified warranty. The company will provide a free two-year or 20,000-kilometer warranty against defects for customers who purchase Hyundai vehicles through this newly launched service. This comprehensive warranty underscores Hyundai's commitment to customer satisfaction and reinforces the confidence in its certified used cars.

"Hyundai will play a crucial part in improving the nation's used vehicle market by building a transparent and fair used vehicle trading culture and enabling customers to make more reasonable and wise choices," Hyundai Motor Vice President Yoo Won-ha said.

To facilitate the commercialization of used vehicles, Hyundai plans to operate two facilities in Yangsan, South Gyeongsang Province, and Yongin, Gyeonggi Province. Recognizing the potential for demand growth, the company intends to expand the number of these facilities nationwide.

Additionally, Hyundai has outlined plans to launch an online platform enabling customers to sell their used cars directly, offering them reasonable prices and enhancing the overall customer experience.

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