Hyundai Motor Co.’s bet on edgier styling to distinguish its vehicles from competitors has paid off with two straight years of record U.S. sales. Hit the jump to read the rest of the story.
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Building on those gains is about to get tougher.

Emboldened by the success of cars such as the Elantra and Sonata that helped lure customers from Toyota Motor Corp. and Honda Motor Co., Hyundai is now gambling on the three-door Veloster and six-cylinder Azera.

The decision to craft a strategy around distinctive design still has the legs to further boost market share well beyond next year, said John Krafcik, chief executive officer of the company’s U.S. unit.

“We have demand in excess of our ability to supply, for almost all of our models right now,” said Krafcik. “With the Veloster and especially with the Azera, you’re really going to see this focus on design pay off.”

Hyundai’s share of U.S. sales has risen 0.5 percentage point in the past year to 5.2 percent in August, according to Autodata Corp.

Toyota has dropped 2.5 percentage points to 12.7 percent, while Honda is down 1.5 percentage point after the Japanese earthquake in March disrupted their supply chains and limited inventory.

Both are returning to full production, with Toyota set to begin sales this month of a revamped Camry sedan, and Honda increasing output of its new Civic compact.

“The rest of the year may not be as earth-shattering as the beginning has been” for Hyundai, said Jessica Caldwell, a senior industry analyst with Edmunds.com in Santa Monica, Calif. Honda and Toyota “will be more aggressive in the final months of the year.”

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