Hyundai Motor (005380) President Jose Munoz said the pricing of the new "The All-New Avante," which has drawn consumer criticism for being expensive, reflects strong global demand for the model. He also signaled that the company could adjust prices later by trimming features or increasing incentives if necessary.
Munoz made the remarks at a press briefing held immediately after the CEO Investor Day on the 26th, responding to a question about the pricing controversy. "Price is the first factor Hyundai Motor considers," he said.
The Avante that Hyundai recently launched has faced consumer criticism after its price rose by at least 3.36 million won from the previous seventh-generation model. Critics noted that the fully loaded version of the Avante hybrid approaches 42 million won, undercutting the model's reputation as the nation's go-to first car.
Munoz said market conditions, including raw material costs, were factored into the new Avante. "Raw material prices went up, and there were difficulties in logistics due to geopolitical issues," he said.
The latest features installed in the Avante were also cited as a factor behind the higher price. The new Avante is the first model to feature Navigation-based Smart Cruise Control 2, which automatically slows the vehicle at certain points while smart cruise control is engaged, on ordinary roads as well as highways. The company also equipped the Avante with Pleos Connect, its next-generation infotainment system.
"Features that were unthinkable five years ago have been added, the vehicle has grown larger, and we used better materials, all of which affected the price," Munoz said.
He also said the Avante's popularity influenced the pricing decision, meaning strong global demand was reflected in a higher price than before.
"The Avante is a product with very high demand, so every region is competing to receive as much Avante volume as possible," he said. "That has been reflected in the price, and in the end, the price is set by consumers."
He also signaled the possibility of future price adjustments. "If a price adjustment is needed, we will make it, whether by adjusting content or using incentives," Munoz said.
