Hyundai and Kia Motors have faced slumps this year in the US and Chinese markets. Instead, it has been in Europe where they have recovered from their struggles among the world’s largest markets. Between January and August, Hyundai/Kia experienced an eight percent growth rate in European market sales compared to the year before – thanks in large part to the “i” series of compact and hatchback models favored by Europeans.

“We are planning to lay the groundwork for a new leap forward in the European market with high-performance brands,” said Thomas Schmid, chief operating officer (COO) for Hyundai Motor’s European headquarters, while attending the Paris Motor Show, which opened on Oct. 2. For that show, Hyundai presented the i30 Fastback N, the third model under its high-performance brand.

“By expanding our high-performance lineup, we are looking to change from a ‘good value brand’ image to a high-tech image,” Schmid said.

High-performance vehicles along sports car lines are a highly competitive area where automakers stake their image in the luxury brand market with dynamic acceleration, cornering, and refined exteriors. Hyundai Motor began its high-performance vehicle development in 2015 with the “N” brand. Last year, it launched the i30 N in Europe; its first high-performance model in South Korea was released in June 2018 with the Veloster N.

Kia previously ventured into the high-performance sports sedan market with the Stinger and Hyundai with the Genesis G70 brand.

The move was a reflection of steadily growing global demand for high-performance models. Mercedes-Benz, BMW, and Volkswagen each have high-performance brands with the AMG, M, and R, respectively.

“Hyundai Motor is a risk-taking company. While there are cultural differences, swift technological advancements are being made with Hyundai Motor’s trademark speed,” Schmid said.

“The brand’s stature has risen through eco-friendly, high-performance, and sport utility vehicles (SUVs),” he explained.

As of August, Hyundai and Kia had sold 715,000 vehicles in the European market this year. The sales trend suggests they are poised to break one million in sales by the end of the year. Europe would be the third overseas market where Hyundai and Kia have sold over one million vehicles in a year, after the US and China. It would also be the first time they cross the million-vehicle mark in annual sales in the 41 years since Hyundai first ventured into the European market in 1977 with sales of 300 Pony vehicles in Greece.

“Despite difficulties with stagnant growth and environmental regulations in Europe, we’ve managed in the space of 10 years to surpass BMW and others to rank fifth for sales,” Schmid said.

“The competition really starts now,” he added.

Schmid expressed certainty that the N brand would bring Hyundai Motor a high-performance image.

“Hyundai Motor is the only company offering every kind of eco-friendly vehicle from purely electric cars to hydrogen electric cars, hybrids, and plug-in hybrids. By expanding our N brand lineup with its environmentally friendly technology, we are aiming for a definite image change,” he said.

By Hong Dae-seon, reporting from Paris

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