Hyundai Motor India Limited, India's second largest passenger car maker, has embarked on a ambitious plan of outpacing Maruti Suzuki to come up on the leadership position in the hatchback space by the end of 2020. Following the same, the South Korean auto maker is planning to introduce a number of new models. Speaking on the development, the Chief Coordinator of Hyundai Motor India, C H Han, said that the parent company is looking for dominant position in India, “If not in numbers but definitely to be the most-loved brand.”
However, he refused to entertain any comment on the sales target. Ranked as the fifth largest car maker in the world, Hyundai is planning to introduce three compact cars in the India auto market in the next 1.5 years. Reportedly, the auto maker is planning to introduce a new hatchback, named Grand i10, which will be equipped with a 1.1 litre diesel engine. Sources hinted that this model will square off against the likes of Maruti Suzuki Swift.
"We will continuously introduce one or two new models every year. In the small car space, we should have products in every segment, and it should be one of the best," Han said. "We are also very strong in bigger car segment already, that's why I think we have a bright future in India and we will continue to build our market share," he added.
It must be noted that the compact small car segment accounts for almost 52 per cent of the entire passenger vehicle market in India, with sales amounting to 1.41 million units in fiscal 2013. Interestingly, Maruti Suzuki held almost half of the entire share with a share of close to 48 per cent, whereas Hyundai India came as a runner up with 22 per cent share. However, in the first quarter of ongoing fiscal, Hyundai India managed to make its market share to 25 per cent. With plans to launch a number of new models, the auto maker is looking towards great achievements.
It must be noted that Hyundai has lined up around 8-10 new models for the Indian auto market in a few couple of years. As a part of launches, the company is planning to bring in a sub-4 metre sedan in the later half of next year, which will be then followed by a Multi Purpose Vehicle (MPV), which will compete against the Maruti Suzuki. The launch of a compact Sports Utility Vehicle (SUV) is also on the cards of the company, which is anticipated to be placed between Ford EcoSport and Renault Duster. Introduction of flagship saloon Genesis in the Indian auto market has also garnered some strong believes.
On the other hand, industry experts are of a view that it would be a difficult task for the South Korean auto maker to battle down the Maruti Suzuki. An auto expert said, “Hyundai definitely will eat into Maruti Suzuki's share, but the gap is so large that it is highly unlikely that Hyundai can overtake Maruti.... Not in the next 5-7 years at least. Maruti Suzuki on its part is not sitting still. The company is aggressively building its portfolio of diesel cars and bigger cars as well. The fact that Maruti has regained some lost market share in the recent past clearly underlines the strong affinity the brand enjoys today.”
Expressing his views on the situation, Puneet Gupta, the Associate Director at market research and sales for IHS Automotive, said, “They have proved multiple times, that they can introduce new products in the market and establish them as well. The future product portfolio too looks very exciting. But the challenge will be on the capacity front. Unlike Maruti Suzuki which has clearly laid out capacity expansion plans, Hyundai India is very cautious on that front.”
