How much Hyundai South Africa spends on fixing cars under warranty

At the recent launch of the new Hyundai Exter in South Africa, the automaker’s domestic arm confirmed that its current Warranty Burn Rate (WBR) has dropped to an average of $22 (R383) per year, down from $24 (R418) in 2023.
The WBR is defined as the average cost of warranty claims per unit submitted to the factory from which the particular model is imported.
In simpler terms, for every Hyundai vehicle in South Africa that is still covered under its original after-sales agreement, the company submits an annual claim of R383 to the factory for defects that had to be repaired.
This works out to just R32 per month per vehicle under warranty.
A sign of a reliable car
A WBR is calculated by taking the total dollar amount that a domestic vehicle subsidiary claims from its parent company for repairs or replacement parts on cars under warranty, divided by the number of cars under warranty.
A lower WBR translates to a lower number and cost of claims for a vehicle under warranty, which points to a higher level of reliability for that particular model.
It should be mentioned, however, that each vehicle on the road is built and priced uniquely, and each manufacturer functions in its own way.
As such, there is no industry-wide WBR benchmark that a car must beat to be considered “reliable”. A premium brand may have a higher WBR due to its parts and labour being inherently more expensive, and vice versa, but that does not necessarily mean it is less trustworthy.
Comparing the WBR of a certain automaker’s individual models might therefore help you find the most reliable vehicle in its portfolio, but comparing the WBR between competitors from several nameplates will not be an effective judgment of reliability.
Unfortunately, this figure is also not published by every company so you would likely have to ask your salesman for the info.
Deon Sonnekus, general manager of corporate communications at Hyundai South Africa, previously told TopAuto that Hyundai targets a global WBR of $31 (R540) per car per year.
Hence, the local average of R383 is well below target and speaks to the reliability of Hyundai vehicles in the domestic market.