Customer Logins
Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Customer LoginsWhich vehicles topped Google's search in Brazil?
When Google released its Zeitgeist 2013, a compilation of the most googled terms of the year, the Hyundai HB20 reached the top spot for the Brazilian automotive industry. It was followed by the Chevrolet Onix and Chevrolet Prisma. The new Volkswagen Golf and the Volkswagen Beetle (locally called Fusca) rounded out the Top 5. The HB20 hatchback, the Onix and the Fusca were launched late in 2012.
There is no doubt the HB20 has written its success story in Brazil's automotive history. With 3,312 units registered in its first month in the market (October 2012), it had over 122,000 units registered last year. Polk, now IHS Automotive, forecasts that more than 125,000 units will be registered in 2014, in line with many of the vehicles made by more established brands in Brazil. Hyundai built a factory with a 150,000-unit capacity just to make the HB20, and it cannot keep up with demand. Earlier in 2013, a sedan version was added to the assembly lines, and Hyundai has already added a third shift.
Hyundai did loads of consumer research and developed the HB20 just for the Brazilian market. With potential to be successful in other countries as well, it is not exported at all. The Korean make ended up creating a very good looking car that competes in the so-called "popular" segment for offering a 1.0-liter engine, but that also competes with more premium small cars with a 1.6-liter engine.
By the way, the small hatchback segment in Brazil is the largest and most competitive one. Almost 37% of all registrations fall under this category, where 25 vehicles try to steal sales from each other, including Brazil's best seller for the last 28 years, the VW Gol. The new model is challenging make loyalty: we estimate that for each 100 HB20 that Hyundai sells, VW loses 22 sales.
The state of São Paulo led Google's search, which is very understandable. This is the largest state in the country by population, where more light vehicles are registered than in the entire country of Argentina. The city of São Paulo also led the search, which is also very understandable. It is the country's largest and richest city. The surprises popped in the second places: the state of Mato Grosso and the city of Bauru, in the São Paulo state.
Out of 27 states in Brazil, Mato Grosso is the third largest in area, but only the 19th in population. Most of the land is used for agriculture, and it is the country's biggest soy and seed cotton producer. Mato Grosso has the eighth highest GDP per capita. In Bauru, 362,062 people live there, which ranks it as the 65th largest city in Brazil, well behind other capitals such as Rio de Janeiro and Salvador. In both Mato Grosso and Bauru, pick-up trucks are successful for their agricultural vocation.
But what really pushed the HB20 to the top of Google's list? Hyundai's confusing marketing strategy. First, there is no simplified URL for Hyundai such as: www.hyundai.com.br (while Fiat and Volkswagen have: www.fiat.com.br and www.volkswagen.com.br). So when a consumer tries the most basic web URL and gets and error message, Google becomes the natural alternative. The second reason is that there is a dealer network only for the HB20, and a different network for the imported vehicles. A store selling a Sonata, for example, cannot sell an HB20 and vice-versa. Naturally, the locally built vehicles do not share the same website as the imported ones. If someone is visiting www.hyundai-motor.com.br, he or she is redirected to linhahb20.com.br to get HB20's information and schedule a test drive. The website does not inform price, and "preço HB20" was the most popular query. Preço means price in Portuguese.
Hyundai just made it faster to Google HB20.
Augusto Amorim is senior analyst, South American light vehicle production forecast, IHS Automotive
Posted 17 January 2014