Hyundai's problem is marketing and brand positioning. I suspect that the Accord and Camry buyers who do not drive a Sonata are either totally unaware that the Sonata is in the same class, or they still see Hyundai as a cheap brand. Much like Honda was perceived back in the 70s and early 80s. Hyundai can easily fix that, just like almost every other import brand has done. Look at Fiat now. They were one of the worst, and they are improving. If Fiat can turn right-side up in the US market, anyone can.
Not only does the Sonata have a higher ATP than the Camry, so does the Kia Optima.
I have not followed this product placement lately... Do you know if Hyundai is positioning the Azera against the Avalon or if it is the Automobile media (car magazines and web sites).
The Azera has always competed against the Avalon - a full size FWD w/ a floatier ride.
The '13 Azera starts at $32,250 + freight whereas the '13 Avalon starts at
$30,990 (the Azera doesn't come w/ a base trim, tho that will change for the 14MY).
The Kia Cadenza is even more expensive, starting at $35,100 + freight (higher than the Genesis sedan).
The Cadenza is more luxurious than the Azera and Kia sees the Cadenza as competing against both the Avalon and the Lexus ES (since Kia won't have a compact/entry level RWD luxury sedan like Hyundai).
I remember when the Genesis was introduced, it was positioned against the Lexus LS, BMW 7, and MB S. I suspect it was Hyundai, because C&D just took that and ran with it in one of their comparison reviews. It was a massive mistake, because the Genesis got shelled. It was smaller and under-equipped in every way against those models. However, the article closed that the Genesis crushes the Avalon (their addition to the comparison). When I looked at them back then, C&D was right-- the Genesis was in a space by itself and at a killer price point.
Hyundai never positioned the Genesis against the flagship sedans since Hyundai already had the Equus as its flagship; Hyundai did, however, point out/market that the Genesis had rear passenger room comparable to a full-size RWD sedan.
If Hyundai is positioning the Azera against the Avalon, then they are making the same mistake they made with the Genesis originally, and they will hurt the brand.
Why?
They are both premium (not luxury) full size FWD sedans.
But Hyundai cannot command the same price as their competition for equivalent vehicles across their entire product line. An amazing number of Accord and Camry buyers do not even consider or test drive a Sonata. The reasons for that have a lot to do with consumer perception, but perception can become reality.
Again, the Sonata has a higher ATP than the Camry (as does the Elantra over the Corolla).
And despite the brand perceptions, it's Kia offering a
$38k SX-L trim for the Optima and not Toyota (for the Camry) or Hyundai (for the Sonata) for that matter.