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Hyundai Launches New Compact Car “i10″ From India
Posted by Pradeep Sadanapalli | November 1, 2007 | 31,891 views
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Hyundai’s new car “i10″,which is priced between Rs 3.39 lakh and Rs 4.9 lakh (ex-showroom Delhi)
In its most aggressive launch in the Indian market since the Santro eight years ago, Hyundai Motor India (HMIL) today unveiled the much-awaited compact car i10 for the global markets, which will cost Rs 3.39 lakh.
Positioned in the compact segment, i10 will take on popular car models from the Maruti stable including Wagon R LX (Rs 3.31 lakh), Zen Estilo (Rs 3.24 lakh) and Tata’s Indica V2 Xeta (Rs 3.49 lakh). All prices are ex-showroom in Delhi.
H S Lheem, managing director, Hyundai Motor India, said, “Of course this car will be a major volume player which will be made at our new plant in Chennai. We expect to sell 2 lakh units of this model in the next two years.”
The i10 will be available in 10 colours. It will be exported to over 70 countries, Jae Kook Choi, president, Hyundai Motor Company, told reporters at the launch function for the i10.
Hyundai Motor Company is not only looking to leverage India’s manufacturing capabilities to expand its presence in the global market and consolidate its presence in the premium compact car segment in the domestic market, but also enhance its research and development carried out from India.
“The new car will be a debut from India. It will be manufactured only out of the India plant,” said Hyundai Motor Company President, Mr Jae Kook Choi. Hyundai is currently the largest exporter of cars from India and with its second facility becoming operational, the country would become its largest base outside South Korea.
Mr Choi said that the company would be investing $40 million in expanding its research and development facility in Hyderabad and will employ 800 local engineers by 2009.
The company already has one centre with 100 engineers in Chennai. “We are investing in Hyderabad to set up a fully integrated R&D automotive facility to develop fully conceptualised cars that can be manufactured and exported from India,” said Mr Choi.
Hyundai Motor India Ltd, President and CEO, Mr H.S. Lheem, said that “By July, our second plant will be operational. This would increase our capacity to 5.3 lakh cars by next year, out of which 50 per cent will be exported and the remaining 50 per cent will be sold in the domestic market.”
The company that has currently about 18 per cent of the domestic market share has set a modest target of 20 per cent by next year. Commenting on future launches that could possibly take Hyundai’s share closer to largest car maker, Maruti Suzuki, Mr Lheem said, “We have promised our dealers two new models every year for the domestic market. Yes, 20 per cent market share is a conservative target. But may be we can have another target after we achieve this.”
HMIL is also setting up an engine and transmission facility at the same location where its second plant would be operational.
Bullish on the compact car segment, the company launched its i10 at a price between Rs 3.39 lakh and Rs 3.98 lakh (ex-showroom Delhi) for the domestic market with a 1.1 litre petrol engine.
“Within the compact car segment that accounts for 70 per cent of the cars sold in India, mid size segment is growing at 54 per cent. While Santro is positioned as a low end compact car, i10 will be positioned in the premium category,” said Mr Arvind Saxena, Sales and Marketing, HMIL.
Lheem said that by January next year, HMIL will start exporting the diesel variant of i10 with a 1.1 litre engine. “We intend to launch the same diesel engine variant in India as well sometime next year,” he said. The engine will be imported from Korea. The company might also look at a 1.3 litre variant.
Dismissing reports that Hyundai may stop making the popular Santro (available in seven variants in a price band of Rs 2.9 lakh to Rs 4.18 lakh), Managing Director Heung Soo Lheem said, “The i10 will not replace the Santro brand and neither will we stop its production. The i10 will be positioned as a car for people who are looking to upgrade their existing car.”
According to figures made available by the Society of Indian Automobile Manufacturers, Hyundai Motor’s car exports gained 14 per cent to 67,625 units between April and September this year, constituting 68 per cent of all car exports from India in the half-year period.
SOURCES:
Business Line
Business Standard
Topics: Consumer Market, What's UP, Travel, Business News |
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