Hyundai’s EV Problem Isn’t Just About the Cars—It’s a Dealer Dilemma
Just 2.5% of Hyundai vehicles sold in Australia this year have been electric. That startling statistic, revealed by the company’s own CEO Don Romano, isn’t a temporary setback – it’s a symptom of a deeper issue threatening Hyundai’s ambitious EV plans. While the automaker boasts a growing lineup of electric models, from the Inster to the Ioniq 9, it’s struggling to convert that potential into actual sales, falling far behind rivals like Tesla, BYD, and even its sister brand, Kia.
The Direct-to-Consumer Backlash
Hyundai’s initial foray into the EV market, particularly with the Ioniq 5, involved a direct-to-consumer sales model, bypassing its established dealer network. While innovative at the time, this strategy created friction. Romano acknowledges this was a misstep. “We went around our dealers,” he stated, “So we have a job to do to get our dealers back to fold and to let them know that ‘no, we are going through our dealer body.’” The core of the problem isn’t a lack of desirable EVs, but a fractured relationship with the very network responsible for reaching the majority of customers.
Why Dealer Buy-In Matters for **Hyundai EV sales**
The automotive industry remains heavily reliant on dealerships for sales and service. Dealers aren’t simply showrooms; they’re crucial for building trust, providing test drives, explaining complex technologies like electric vehicle charging, and handling after-sales support. If dealers aren’t incentivized – and adequately trained – to champion EVs, consumers will naturally gravitate towards brands where they receive a more enthusiastic and knowledgeable experience. This is particularly true for EVs, which often require more education for potential buyers than traditional internal combustion engine (ICE) vehicles.
The Kia Contrast: A Lesson in Dealer Alignment
The contrast with Kia is stark. Kia has successfully sold over 5,000 EVs in Australia this year, securing a third-place position in the market. This success isn’t accidental. Kia prioritized dealer training and integration from the outset, ensuring its dealer network was equipped to handle the unique demands of EV sales. Hyundai is now scrambling to catch up, recognizing that a unified approach is essential. The difference highlights the importance of a cohesive sales strategy, where the manufacturer and dealer network work in tandem.
Beyond Training: Rethinking the EV Sales Experience
Simply retraining dealers isn’t enough. Hyundai needs to fundamentally rethink the EV sales experience. This includes providing dealers with dedicated EV specialists, investing in charging infrastructure at dealerships, and offering attractive incentives for EV sales. Furthermore, Hyundai should explore innovative sales models that leverage the strengths of both online and offline channels. For example, online configurators could be integrated with dealer appointments for test drives and personalized consultations.
The Rise of the ‘EV Advocate’ Dealer
We can anticipate a future where successful dealerships will employ dedicated “EV Advocates” – highly trained professionals who can answer complex questions, address range anxiety concerns, and guide customers through the transition to electric mobility. These advocates will be crucial in overcoming the psychological barriers that still prevent many consumers from making the switch. This role will require not just technical expertise, but also strong communication and interpersonal skills.
The Broader Implications: A Shift in Automotive Power Dynamics
Hyundai’s struggle isn’t isolated. It reflects a broader challenge facing legacy automakers as they transition to an electric future. The traditional dealer model, built around ICE vehicles, is ill-equipped to handle the nuances of EVs. Automakers that fail to adapt risk losing market share to direct-to-consumer brands like Tesla and emerging EV manufacturers. This shift in power dynamics could reshape the automotive landscape, forcing legacy automakers to fundamentally rethink their relationship with their dealer networks.
The future of Hyundai’s EV ambitions hinges on its ability to rebuild trust and collaboration with its dealers. It’s a lesson for the entire industry: a successful EV transition requires more than just great cars – it demands a reimagined sales and service ecosystem. What strategies will Hyundai employ to truly empower its dealer network and unlock the full potential of its electric lineup? Share your thoughts in the comments below!
