Companies that run small numbers of cars are viewed by Hyundai as the perfect launch pad for a drive into the company car sector.

Fleet director Jeff Peyton-Bruhl, who joined Hyundai three years ago to set up the fleet operation, is making headway during a tough market when many companies are delaying buying new cars.

Go to the December Small Fleet Review Digital > >

Hyundai’s fleet sales have slipped by just under 19% in a market down more than 23% year-to-date, which equates to a slight rise in market share from 0.83% to 0.88%.
New product is central to fleet success. Hyundai is moving from a niche manufacturer to a mainstream carmaker with its A-C sector trio of i10, i20 and i30 now accounting for the lion’s share of volume.

The company recognises that the toughest sale is into the large user-chooser fleets; that requires good quality vehicles across several generations. 

“We have to start by developing the market lower down the fleet scale. We are having success with smaller companies who see the value in Hyundai especially with our five-year warranty, low P11D, low CO2, high specification and strong residual values,” says Peyton-Bruhl. 

“All these factors mean that when we go in to discuss costs with fleet buyers, we come out with an order almost every time. In fact, we are so inundated with enquiries that we are doubling our fleet sales team.”  Small fleets are pursued via the dealer network. 

Peyton-Bruhl is piloting a new initiative intended to give dealers much greater focus on local businesses. It is funding small business development managers at five dealerships.

“We are investing £40,000 per dealer to set them up,” says Peyton-Bruhl. “There’s a possibility we will extend it. Dedicated prospecting is key.”

Hyundai emailed a newsletter to 10,000 small businesses with information about green issues, health and safety and duty of care. It is also employing a prospecting company that warms up the companies. At the point they need a test drive, the contact is handed over to the dealer.

The plan is to appoint 40 fleet dealers in three years to give the geographic coverage needed to appeal to corporate buyers from a sales and aftersales perspective.

Research by Small Fleet Review suggests that 45% of companies outright purchase their entire fleets. Another 29% use both outright purchase and contract hire.

Outright purchase fleets have a good fit with Hyundai because of its five-year warranty.
Peyton-Bruhl is targeting a 2% share of the fleet market by 2013.

Future Models

  • ix35 – the new name for the Tucson due in the second quarter of next year. Described by Jeff Peyton-Bruhl as a “blingier, sportier Nissan Qashqai”. With a direct injection, 149g/km of CO2 petrol engine or new high-powered, low emission 2.0 and 2.2-litre diesels.
  • Facelifted Santa Fe that will have a hybrid option taking it below 160g/km.
  • i40 due 2011, designed in Europe and intended to be sold “on its looks – that was the brief given to the designer”, says Peyton-Bruhl.
  • i20 and i30-based mini-MPVs due 2011.