Hyundai Azera May Be Full-Size Segment's Next Victim

by Derek Kreindler

Published: July 17th, 2014

hyundai azera may be full size segment s next victim

It’s hard out here for a full-size car. Sales are declining on a consistent basis, as crossovers and falling demand for V6 and V8 non-premium sedans eats into the once-proud full-size segment. Talk of Ford killing off the Taurus seems to float around, while at least half of all sales in the broader segment seem to go to fleets. Market forces might claim their next victim in the form of the Hyundai Azera.

Autoblog reports that even Hyundai execs are open-ended about the car’s future prospects in America. While the Azera is a hit in its home market of South Korea, sales are declining in the United States, and lagging behind key rivals.

While Hyundai claims that there is a place for the Azera between the Sonata and Genesis, industry analysts we spoke to (on condition of anonymity, due to the proprietary data being shared) shows that among sedan buyers, take rates for V6 engines across the mid-size segment is continuously falling. The near-term trend is said to be the eventual phasing out of the V6, similar to what Hyundai already did with the Sonata. Right now, one of the key selling points for the Azera over the Sonata seems to be the V6 engine, but if that’s no longer a factor, then that further weakens the business case for importing them from South Korea.

If that weren’t enough, the Sonata is dimensionally identical to the Azera, while boasting better fuel economy. And buyers can also be pushed towards the V6 powered Santa Fe, which can meet their space and power needs while also boasting all-wheel drive and the possibility of more cargo and passenger capacity.

#Full-sizeCar #Full-sizeSedan #Hyundai #HyundaiAzera #Sedan

Derek Kreindler

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13 of 65 comments

Signal11 on Jul 17, 2014

Hyundai's not going to "kill" the Azera/Grandeur any time soon. Not while it perennially swaps the number one spot on the KDM sales list with the Sonata. No longer offer it in the US? That's another question. If TTAC wants to cover global car news, then when it presents news and rumors like this, it should specify that it's for the American market (or clarify in the first sentence) without the reader having to piece it together. (That's what editors are for.)

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- Dtremit on Jul 18, 2014
  
  The (closely related) Cadenza seems to make more sense in the Kia lineup than the Azera does in the Hyundai lineup. I'll bet it could handle all the USDM traffic on its own.
  
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- Corey Lewis on Jul 18, 2014
  
  This is a very good point. The Grandeur is one of the top selling vehicles over there, and has been since the first XG version.
  
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- Spartan on Jul 18, 2014
  
  I think that's what they were alluding to that it would be discontinued in America, not all together. I live in South Korea and yes, the Grandeur is everywhere but it is also positioned as a different car here. It has a lot more options inside and out and comes off as a Lexus ES / Buick LaCrosse (Alpheon) competitor in South Korea vs in its Azera guise, it's a Taurus and Avalon competitor in the USA. I think there's a place for the Azera in the US market, but Hyundai needs to push it upmarket like they did in South Korea. A fully loaded Grandeur in SK is a damn good looking car with lots of tech, too.
  
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- Bd2 on Jul 19, 2014
  
  @Spartan Well, Hyundai has the new (slightly larger) and upmarket FWD AG sedan to compete against the ES and Alpheon in SK. It's greater interior room would be more appealing to US buyers, but no plans to bring it to the States (also, would be priced a bit more than the Azera - so probably won't see it unless Hyundai really wants to take a run at the ES/LaCrosse/MKZ segment.
  
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Mechaman on Jul 18, 2014

I'm not surprised. For Hyundai to keep making Azeras, that would be like Toyota making three Avalons. What's the point? The Sonata fills it's niche against Accord/Camry/Taurus, etc.. the Genesis bumps up near Avalon territory. Then there's the Equus .. their Lincoln/Cadillac, I guess.

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- Bd2 on Jul 18, 2014
  
  Toyota already does make 3 Avalons (or near Avalon-sized) with the Camry, Avalon and the ES (4 if you add the RWD GS). Not really hard. Sonata - Camry Azera - Avalon ES - new AG model (limited to Korea for now) Genesis - GS
  
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- VoGo on Jul 18, 2014
  
  @bd2 Yes, but what about Optima, Cadenza and K900?
  
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- Bd2 on Jul 19, 2014
  
  @VoGo K900 is in the RWD flagship segment, so add the LS to Camry, Avalon, ES and GS.
  
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30-mile fetch on Jul 18, 2014

I've seen a few new Azeras on the road and it just does nothing for me. Bug-eyed headlights, inflated Sonata styling inside and out. The new Avalon on the other hand looks very sharp and provides a pretty clear visual differentiation between it and the Camry. US Sales of that car doubled in 2013, to 70K while the Azera sold 11K. I can see why its future is questioned.

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- BklynPete on Jul 18, 2014
  
  Avalon, 300 and the new Impala deliver the goods and are either well-differentiated or superior to their mid-sized siblings. That is why they currently define the FWD full-size market. If more car makers understood this, I believe the FWD full-sized market would be stronger. A couple of years ago before its redesign Avalon sales were in the tank. The design was old and had little differentiation from the Camry. Lesson? Sharp design, lots of room and maybe greater appeal to the livery class will help sales. If Ford is serious about another Taurus/MKS -- I personally hope not -- they would benefit from understanding this. Instead, these two are old, inefficient designs that eat into each other's meager sales.
  
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- Bd2 on Jul 19, 2014
  
  @BklynPete Seem to forget the Cadenza which has won a couple of comparison tests. And while the Avalon's sheetmetal is more, shall we say, "striking" (the front end is an amalgamation of the Civic and hybrid Sonata) - the major refresh for the Camry will bring the 2 more in line.
  
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Corey Lewis on Jul 18, 2014

The rear door handle design and placement on that car is truly unfortunate. It looks very busted.

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