BEIJING - In an effort to raise its brand image and cash in on the premium import market in China, South Korean automaker Hyundai began offering long-term warranties on its top of the line models Equus and Rohens last week.

Its "Premium Assurance Program" offers a five-year warranty and 20 free maintenance services for Equus buyers and a five-year, 100,000-km warranty with 10 free services on Rohens models.

The program also entitles customers who buy Equus and Rohens this year high value retention - the company said it will buy back used models within a year at up to 80 percent of their original price.

Between one to two years of ownership, the buy-back price can reach 65 percent, while cars 2 to 3 years old can be repurchased for up to 45 percent their original price.

The company said that it is fully aware of luxury car buyers' fast-changing demands, so the repurchasing plan is designed to offer them greater flexibility.

The program also includes a free replacement if the car is damaged in an accident not the owner's fault if repairs costs exceed the car's value by 30 percent.

In addition, the company offers premium buyers home service and 24-hour emergency road aid.

Hyundai's flagship Equus model was first imported to China in 2009 following the arrival of the Rohens in 2008. Last year the automaker also launched an extended-wheelbase Equus in China to meet the local preference for roomy back seats.

Prices for the Equus in China range between 699,000 yuan to 1.25 million yuan. The Rohens sells from 390,000 to 575,000 yuan.

Hyundai also imports sports models such as the Rohens Coupe and Veloster, as well as the Santaf and Veracruz SUVs, the entry-level premium car Azera and its H-1 van.

The company sold about 37,300 imported models, mostly SUVS, in China last year, and aims to deliver 40,000 this year. The Equus and Rohens accounted for a small proportion, yet the momentum is strong, it said.

Hyundai currently has about 70 dealerships selling imported models in China.

Sunbal Kim, managing director of Hyundai Motor (China) Sales & Marketing, said in an interview last year that the company expects annual imports in China to hit 100,000 units in the next five years.

China Daily

(China Daily 01/16/2012 page19)