Maintaining the high levels through the launch of its new small car Eon in India, South Korean auto major Hyundai recently announced its plans to attain a 9 to 10 per cent sales growth in the country this fiscal.
"I think the car industry as a whole in India will grow at a rate of less than 10 percent in this financial year," Hyundai Motor India Ltd Senior Vice-President, Finance and Corporate Affairs, R. Sethuraman told the press after the launch ceremony of the Eon. "And the company is looking at 9 to 10 percent sales growth in this period," he added.
The company's outstanding position in the market can be attributed to its high sales figures of about 6.03 lac cars last fiscal that includes exports. Hyundai managed to bring such a satisfactory outcome owing to the export of its cars manufactured at the two plants located at Sriperumbudur in Tamil Nadu, to over 115 countries. Currently, the company accounts for 18.3 per cent of the total auto market share in the country.
"We expect that the market share will be about 20 percent at the end of this fiscal," Sethuraman said.
He informed that after the launch of the Hyundai Eon on 13th October, the company received high amount of bookings. "In the last four days we have crossed over 5,000 new car bookings. When the cars will be on road, the bookings will improve further."
Even if Hyundai's official statement claims that none of its moves have been made with respect to the deteriorating performance at the Maruti's Manesar plant, it is expected to turn the situation to its advantage. "It (market share) may increase...but I am not competing with Maruti in the small car segment." Sethuraman said. "It (Eon) is a unique car in the unique segment...it is the high end of the lower segment. So I am not saying about any competition.," he added.
As Hyundai Eon has been placed against Maruti Alto, by experts, in the domestic car market, Sethuraman ought to comment on the trend. "One to one you cannot compare it because in terms of design and engine capacity the two cars are totally different," he said.
The official of the company informed that an investment to the tune of Rs. 900 crore in order to develop the small new car, including its design and marketing.
The company aims at selling 1.4 lacs units to 1.5 lacs units of Eon annually and will export the car, mostly to South America and South Africa, from next year.
On expansion of its manufacturing plants in Tamil Nadu, Sethuraman said the company has planned to increase the capacity from 6.3 lac units to 6.7 lac units per annum by a "minimum" investment.
“The company will launch 10 new cars in the country by 2015”, Sethuraman added.
