What Stands in Hyundai’s Way?

If the tentative second-quarter and first-half global performance report released Thursday is any indication — with year-to-date revenue up more than 20 percent and net profit up 41 percent — Hyundai’s surge appears to be rolling along.

However, what may pose a “threat” to Hyundai’s snowballing momentum in the new-vehicle market are the upcoming launches of some of competitive products, namely the 2012 model-year varieties of the Honda Civic and Toyota Camry, according to Edmunds senior analyst Jessica Caldwell.

Launches of strong products from competitors might “eat into Hyundai’s sales,” she told Auto Remarketing on Thursday.

But Hyundai could be well-served by “differentiating the customer experience” and continuing to push unique marketing efforts that are a bit out of the realm of traditional techniques, Caldwell explained. For example, she noted the promotion that allowed consumers to bring their Hyundai vehicles back to the dealership if they lost their job.

Future projections aside, the second quarter and first half of the year certainly were promising for the Korean automaker.

According to information posted on the automaker’s global website, first-half worldwide sales climbed 12.5 percent year-over-year to 1.97 million units, with 323,000 being sold in the U.S., a 26.2-percent increase.

Sales revenue was up 20.2 percent for the first half, coming in at 38.33 trillion South Korean won (KRW). Second-quarter sales revenue was 20.09 trillion KRW, a 19.1-percent gain.

Net profits jumped 41.3 percent for the first half to 4.18 trillion KRW. Quarterly net profit was 2.31 trillion KRW, a 37.3-percent uptick.

Caldwell boils Hyundai’s success down to a combination of three factors: good design, good value and launching entries in high-volume segments.

“I think if you have that combination, generally speaking, you’re going to do well,” she said.

Additionally, Hyundai has managed to grab some conquest sales, especially in light of the production issues for its Japanese rivals. In fact, Caldwell pointed out that the percentage of Honda owners moving over to Hyundai in recent months has never been higher.

But, as Caldwell illustrated earlier, new launches from competitors are on the horizon.