[THE INVESTOR] Dealers of imported Hyundai Motor vehicles in China are seeking compensation from the South Korean carmaker over alleged unfair treatment, China Daily reported on July 18.

According to the newspaper, some of the 41 car dealers selling Hyundai Motor vehicles shipped from South Korea to China established a working group to “safeguard their rights” earlier this month.

Hyundai Motor’s vehicles are marketed through two channels in China. Vehicles produced by Beijing Hyundai and fully assembled vehicles exported from South Korea which are marketed through separate dealer networks. 

The association claims that they were not provided with sufficient stocks to operate, and that the range of models provided was also limited. China Daily also reported that Hyundai plans to ship only the high-end Genesis brand to China quoting a dealer.

The Korean automaker, however, said that while some of the claims are true, such as a drop in sales for imported Hyundai dealers, seven models including the Equus and the Grandeur continue to be shipped to China from here. The company also said that the lowest trim level of the Santa Fe has been transferred to Beijing Hyundai, the two higher trims continue to be shipped from Korea.

“We are trying to communicate with the dealers, but so far that has been difficult,” an official with Hyundai Motor’s PR department in Korea said. He added that although the company is trying to see the concerned dealers’ side, providing monetary compensation because sales have dropped due to sluggish market conditions is unlikely to be acceptable to the company. 

By Choi He-suk (cheesuk@heraldcorp.com)