Hyundai Motor India Limited is currently the second largest passenger car maker of the country, besides being the largest passenger car exporter. The company is actively competing against Maruti Suzuki to topple it from the helm of Indian car market. Although things have not been easier for South Korea based company, still it has managed to eat in a considerable market share of Maruti Suzuki and is further expected to gain more in the coming years. The company recently announced its plans to outpace the leading car company of India in the next 4 to 5 years. As told by Hyundai, it will bring in two or three new models every year to challenge the position of Maruti Suzuki.
This new found strategy adopted by Hyundai seems to be working well as the recently launched Grand i10 model has been faring well in the Indian car market. The model has been able to generate a stern interest in Indian customers owing to its availability in a diesel engine, besides the power packed features. According to Industry experts, Hyundai has rightly offered a diesel version of Grand i10 to leverage the gap between entry-level i10 and premium i20 model. Furthermore, as i10 hatchback is only available in petrol version and since i20 happens to be a premium hatchback, the potential buyers were left with limited options. Now with the addition of Grand i10, it has addressed the needs of those buyers that previously refrained from buying the costly diesel variant of i20.
Also to mention, Hyundai is strengthening its car portfolio in the hatchback segment because it knows that this segment has been the main revenue generator for Maruti Suzuki since the past decade. Therefore, in order to tap into the market share of Maruti Suzuki, Hyundai needs to direct its energies towards introducing newer products in the small car segment. Industry experts are predicting that Hyundai might be in line to incorporate diesel engine in the entry-level Eon model as the car has not been able to perform as per the expectations of the company. Also to mention, the best seller of entry-level small car segment, Alto 800 is only available in petrol version so the scope of launching a diesel version of Eon increases as Hyundai might be thinking of gaining a first mover advantage.
By the introduction of diesel engines in all of its hatchbacks, Hyundai will reap huge benefits as the buyers that are more inclined towards buying Maruti Suzuki's vehicles will opt for Hyundai's cars. In the coming years, the diesel cars of Hyundai would be a gamer changer for it and with more model launches lined up for the future, the company seems to be on the right track in order to fulfil its dream of becoming the leading car company of India.
