Carmaker promises 300% compensation for overcharged maintenance costs


Hyundai Motor, Korea’s largest carmaker, announced its new after-sales policy on Monday, upping the ante amid fierce competition with imported car brands that are expanding presence recently in the domestic car market.

As part of its efforts, Hyundai unveiled a new after-sales program called the “Overcharge Assurance Program,” which allows car owners to discuss with company engineers whether they have paid reasonable prices for car maintenance at service centers.

If the costs are found to be overpriced, officials said that the company will repay up to 300 percent of the amount paid in excess by car owners.

Even though Hyundai now has become a global player, selling more cars abroad than in its home country, the Korean market is still important for the company, Hyundai Motor president Kim Choong-ho told reporters after a news conference.

“Fiat used to claim more than 40 percent of the domestic market (of Italy). But its market share has decreased to 15 to 16 percent. Carmakers should do well in their home countries as well as in overseas markets,” he said.

“We are going to lose money when it comes to car maintenance. But we will continue to invest in after-sales service for customer satisfaction,” he said, adding that the company took up 42.8 percent of the Korean market last year.

About potential increases in costs, the company showed confidence it would enjoy more gains from enhanced customer trust.

During a pilot program conducted over the past nine months, a total of 494 requests were made. Of 165 suspected cases, an average of 7 million won ($6,100) was offered to each of 43 confirmed cases as compensation.

Hyundai also said it is extending its remotely controlled maintenance service to its 1,410 service centers nationwide starting this month. Engineers will get direct help from the head office on repair work that requires advanced techniques.

In a bid to make customers’ experiences more unique, the company also introduced on Monday a new dealership in Seocho-dong, southern Seoul, which hosts a premium flower shop within the same space.

Hyundai has already seen positive reviews about its specially-themed dealerships.

Its Yeouido location has a specialty coffee chain Coffee Bean as a shop-in-shop, while another one in Gyeonggi Province appeals to customers’ children with cartoon characters.

The company said such a new experiment has also led to around a 15 percent increase in car sales at each dealer shop.

Early this year, Hyundai pledged that it would deliver 700,000 units in Korea, increasing its market share to 45 percent.

Kim, the Hyundai president, predicted that the carmaker can achieve this year’s sales goal despite a globally negative business environment.

Projecting the deliveries of imported cars would reach 130,000 units this year, he expressed willingness to attract new customers who had never before driven a Hyundai car.

By Lee Ji-yoon (jylee@heraldcorp.com)