Hyundai Motor India Limited (HMIL) has made its stand clear against luxury car makers in India by bring its new Veloster coupe to the showrooms before its official launch. It will compete against the models that established players of the luxury segment, such as BMW, Audi and Mercedes Benz, will bring to the sub-Rs. 20 lacs range in the coming couple of years. The car has already been exhibited by the South Korean car manufacturer in India at the 2012 New Delhi Auto Expo held in January 2012.
An urban, youth oriented model with three doors and a 1.6 L petrol engine, the Hyundai Veloster sells in high volumes in the US, Europe and South Korea. In India, it reached the company's showrooms located in the posh South Delhi area of the national capital on April 23, 2012. Many dealerships stated that the vehicle will be rolled out 'soon', fuelling enthusiasm among auto aficionados. They were recording the details of potential buyers and may contact them as the official launch of the Veloster draws closer.
It is expected that Hyundai will bring Veloster to India via the Completely Built Unit (CBU) and later start local production. This step was earlier followed for models like Santa Fe and Sonata, which are now developed at the company's Chennai plant. Expected to be priced below Rs. 20 lacs, Veloster is devoid of any major competitors in the domestic as well as global markets. This model will be pitted against the upcoming Audi A1, BMW 1-Series and Mercedes Benz B-Class in India.
An official working at Koncept Hyundai stated, “The Veloster will go on sale shortly though the company has not told us about the exact time of launch.” On the other hand, the official spokesman of HMIL, Saibal Raichoudhury commented, “The model is only for display. There are no plans to sell it as of now.”
Technically speaking, a coupe is a sports car with a hard top and two passenger doors rather than the conventional four, as well as a design akin to sedans. Such vehicles have gained traction among the younger crowd of US and Europe, though these are not well suited for large families, since the rear seats are not as spacious as those in the front.
According to Abdul Majeed, Auto Practice Leader, PwC, “The Veloster should be targeted at the rich class in their early 30s or even late 30s. Indian customers accept all kind of cars, its just how they are marketed by the manufacturer.”
There are hardly any coupes in the India and none at all in the sub-Rs. 20 lac segment. Audi sells the RS5 coupe in the country at a hefty price of Rs. 76 lacs, though the high cost has not deterred buyers. Since launching it in late 2011, the company has sold 30 to 40 units of the model in the nation. Its compatriot Mercedes Benz offers the E-Class coupe in India at Rs. 68 lacs, whereas the BMW 6-Series coupe and Jaguar XK coupe have price tags of more than Rs. 1 crore. By December 2012, Mercedes Benz will slot the B-Class, its first ever compact luxury car, in the sub-Rs. 20 lac segment. It will be followed by BMW 1-Series and Audi A1, which will probably be launched in 2013 and will be positioned around the same price points.
Hyundai has the first mover advantage in developing a coupe among the global volume manufacturers. HMIL's step of placing the model in the showrooms before the official launch is one-of-a-kind and will help generate the buzz for the car in the country. It is creating its brand image as well as working on its global strategy of joining the league of premium car makers with launches of models like Sonata saloon and Santa Fe Sports Utility Vehicle (SUV).
