Sunday, May 04, 2008

Price of Hyundai Accent Reduced to $9,995 in Canada

It seems that automakers of Canadian auto market are involved in a war of price. Recently, Hyundai Motor Co. launched a four digit price tag for its Accent model cars. Hyundai Accent cars are now on sale for $9,995 in Canada, the same price it was sold 13 years ago. This is the first time in recent memory an automaker offered a car for four digit figure. Kia Motors has also offered a price tag of under $10,000 for its Rio car.

It is said that Hyundai’s latest price will convince the consumers who are thinking of buying a second hand car. Having felt the pressure mounting in the subcompact car segment due to the entrant of new companies, Hyundai and Kia reduced the price of their small cars.

Autos.canada reported:

"Hyundai and Kia are under a lot of pressure at the moment from new entrants in the subcompact segment," said Richard Cooper, executive director of J.D. Power & Associates in Canada, adding the carmakers are likely trying to "rattle people's cages" amid a possible sales slowdown.

"We thought that `you know what? If consumers are out there shopping on price, let's give them a price that will be very very motivating to them,'" Vernile said. "We just knew that, my goodness, if you can offer a car under ten grand in this day and age, that we would have a home-run success."

There is no doubt; Hyundai has offered a very competitive price tag which seems to bring out heavy success for the company in Canada this year. In fact, Canada’s subcompact car segment has seen 17% increases in 2007 compared to the previous years. However, Hyundai Accent could not do well last year finishing fifth among the top five sellers with dropping 7.8 percent compared to the year before in Canada market. However, this year the scenario could not be totally different with Hyundai Accent sales soaring in Canada, because of their highly competitive price tag for the Canadian people.