Hyundai to reduce network partners as part of “future proofing” plan

Hyundai has confirmed to AM it will be reducing the number of partners it works with from 70 to around 55 by 2029 in the UK as part of its” future proofing” plans.

The Korean brand said it has worked in partnership with its retail partners to streamline the network, but made it clear that it would not be reducing the overall number of showroom locations, which is currently at 165, as part of these plans.

In fact, Hyundai is planning to maintain the number of showrooms across the UK and eventually increase this number to 173 in the future.

A third of the network will also be making investments and enhancements to their showrooms “to create a more profitable business proposition which delivers an enhanced retail experience”.

Hyundai said the aim of these improvements is address the long-term sustainability of the relationship with partners, "as well as the experience for customers throughout the sales and ownership journey".

AM understands Hyundai dealers had been given a detailed roadmap and timeline for the changes back in August 2023.

A spokesperson for Hyundai told AM: "The network is the most profitable it has ever been and the upper quartile are above 2% return on sales.

"This has been a long term project done in collaboration with our retail partners. We also want to make it clear that we're not moving away from working with smaller dealer groups and retailers as part of these plans. This is more about the right locations and the customer experience."

Ashley Andrew, Hyundai Motor UK president (left), added in a statement that Hyundai has transformed rapidly to a "desirable electrified vehicle brand in a remarkably short space of time".

He said: “Even in the past few years, the launch of the Ioniq 5 and 6 has positioned Hyundai at the cutting-edge of the electric vehicle market. 

“With that pace of evolution, we must reassess our business at every level including every touchpoint our customers have with the brand. 

“We know our products are fantastic, but our brand perception and the service we offer our customers must keep up with that pace.

“After a thorough review of our retail network – implemented with the alignment of our retail partners – we’re putting into action a long-term plan that will ensure the continued viability and growth of the Hyundai brand in the UK.”