Hyundai says Chinese cars no threat ... yet

Emerging country will be a force but not for some time
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The brand that built its reputation on budget cars, Hyundai, is leaving the bargain basement and heading upmarket.

The Korean maker is so committed to becoming what it calls a "new modern premium" brand that it is about to vacate the cheap end of the new-car market in Australia.

Once the $12,990 Getz sells out in the next few months the starting price for a new Hyundai locally will be $15,990 for the i20 hatch.

When asked if Hyundai felt threatened by the emerging budget car makers from China, the president and CEO of the company, Steve S Yang, told Australian journalists in Seoul yesterday: "That should be a point we consider in the future [but] not this time."

Ironically, Hyundai is one of a growing number of car makers who sell more cars in China that in their home market.

Both Hyundai and General Motors sold more cars there last year that in their homeland.

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