The carmaker says high interest rates are prompting consumers to now opt for cheaper models
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by Brad Anderson
3 hours ago
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Despite predictions of the sedan’s decline by industry pundits in previous years, Hyundai has defied expectations by announcing plans to boost production of the Sonata and Elantra. This strategic move aims to bolster sales in the U.S. market for the coming year.
Hyundai sold 801,195 vehicles in the U.S. in 2023, an 11% increase over 2022 spurred on primarily by demand for its crossovers and electric vehicles. It shifted 132,149 Elantras and 45,344 Sonatas and while it hasn’t said how many examples it hopes to sell of each this year, it believes they will appeal to buyers seeking more affordable vehicles on the back of rising interest rates.
Read: 2024 Hyundai Sonata Arrives In America With Bold Looks And Optional AWD
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“Automakers are reevaluating vehicles on the lower end of the price spectrum because interest rates for the past decade have been low, which has fueled people to buy larger vehicles with more amenities,” Edmunds executive director of insights Jessica Caldwell told Auto News. “For people where affordability is an issue, and there’s obviously a lot of them given how much the cost of everything has gone up, a return to sedans is where the market will go.”
Significant updates were introduced for both the Elantra and Sonata for the 2024 model year. Alongside a host of visual updates applied to the sedans, the Sonata is now also available with all-wheel drive. Shoppers can pick up the keys to a new Elantra for as little as $22,625 or $28,500 for the new Sonata.
According to Hyundai Motor North America chief executive Jose Muñoz, dealers have requested more sedans and he believes they are a “key factor for profitability” for the brand this year.
“The best mobility option in terms of affordability with a lot of technology with safety features, good design, are the passenger cars,” he said. “Before, with 0 percent or very low interest rates, consumers wanted to buy the top trim with all the goodies and all the technology. Now they’re saying, ‘I may not need that.’”
