Part and parcel of every South African city skyline are the trusted car brands and their showroom floors that we’ve come to know so well. As the mass migration to digital shopping continues, it’s only natural to wonder whether these properties will remain occupied, or whether they’ll be replaced for website homepages?
We asked George Mienie, AutoTrader CEO and Stanley Anderson, Hyundai Automotive South Africa’s Sales and Operations Director, to give their input on the shape of SA’s motor property industry.
“Although some car dealerships are moving towards a more digitalised experience, car dealerships themselves are not at any significant risk of disappearing,” says AutoTrader CEO, George Mienie. “The South African public is extremely reliant on private transport. Until it’s entirely safe for cars to be bought and sold online there will always be the need for a dealership.”
Here Anderson, answers questions on what Hyundai looks for in a new property:
1. What does Hyundai look at when choosing a dealership site?
“Location is always the most important factor, along with the potential for new vehicle sales in that specific area. Secondly, we will look at the establishment of dealerships in areas where our competitors are represented and us not. Thirdly we look at the proximity of the site to major shopping centres or business hubs, such as ‘motor cities’, which would draw customers in.”
2. How big does the property need to be?
“For us it’s a minimum of 6 000 square metres for a prospective new dealership. Our dealership's building structure has to cover between 2 500 and 3 000 square metres.”
3. How do you find your new sites? Do you go through a property agent?
“We do get approached by owners of sites who contact us directly, but generally, if we would like to establish a dealership in a specific area, we would work through a commercial property agent.”
4. How much does it cost to set up an average dealership?
“Our overall cost could be anything between R40 million and R60 million.”
5. When was the first Hyundai dealership opened in South Arica?
“There was a Hyundai presence in the country before Hyundai Automotive SA was established in 2000. During this period the first Hyundai dealership was opened in 1995.”
6. How many Hyundai dealerships are there in South Africa?
“Since Hyundai Automotive SA became the official importer and distributor of Hyundai vehicles in South Africa in 2000, and has since grown the dealer network to 108 in South Africa, Namibia, Botswana and Swaziland.”
7. Why has Hyundai decided to do a national revamp of its dealerships?
“It is a brand decision and a requirement from Hyundai Motor Company in Korea. The dealerships are the places where the customers interact with the brand, and it has to stay fresh and current.”
8. What will change?
“Almost everything! We will have new corporate signage, colours and identity; improved waiting areas for a better customer experience; new furniture, and in some case new tiling, fresh paint and new lighting.”
9. Would Hyundai ever consider placing a dealership in a shopping mall?
“Interesting question! We already have a showroom in Menlyn Mall in Pretoria, which has given mall visitors a Hyundai brand experience in a relaxed environment. So far we are very happy with the results.”
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