Hyundai likely to reach 90% of last year's sales levels by end of July

Hyundai Motor India Ltd (HMIL), the second largest car maker in India, on Tuesday said that in terms of sales in June, HMIL reached 75 per cent of retail sales as compared to last year levels and in July it was expecting to hit 90 per cent of the last year's levels on the back of good traction for SUVs and hatchbacks, including the diesel versions.

After launching the new premium SUV, Tucson, on Tuesday, HMIL's Director (sales, marketing and service) Tarun Garg said that the current pandemic would not affect the company's upcoming launches in the short, medium or long-term.

"No coronavirus is going to stop Hyundai. We will continue with our launch plans in the short-term or the long term," said Garg.

While he did not disclose the upcoming launches, sources said that the line up included the all-new i20 premium hatchback. The i20 will see its third-generation model arriving in the Indian market during the festive season. The long-term plan includes a mass market electric vehicle which will hit the market in 2-3 years.

In the last 7 months, HMIL launched four products  - Aura, a sub-compact sedan in January, the new Creta in March, the new Verna in May and the Tucson, which is priced between Rs 22.3-27.03 lakh (ex-showroom Delhi).

"It is the right time to launch the new Tucson in the country. There are over 500,000 Creta buyers in India who are looking to upgrade to a premium SUV. This is where the Tucson comes into the picture," he said.

Consumer sentiment also improved with the reopening of the sales network and robust demand for various models, especially the recently launched new Creta, which has received over 45,000 bookings since its launch.

"In terms of sales in June, we have reached 75 per cent of the retail sale as compared with the last year level and in July, we are hoping to reach 90 per cent of last the year level. It is a very positive sign and it shows resilience of Indian auto industry," said Garg, adding that since some states had announced lockdowns in the last one week, this could impact the demand marginally.

HMIL's June 2019 sales were 58,807 units (domestic 42,007 and exports 16,800 ) and in July 2019 it was 57,310 units (domestic 39010 and exports 18300 units).

The demand across the geography, including tier-II and III markets is for entry level hatchbacks, as people prefer personal mobility against the backdrop of Covid-19 and for SUVs.

Last year, 34 per cent of the volumes came from from SUVs and it increased to 50 per cent.

Garg said diesel cars continued to do well despite the gap between petrol and diesel reducing across several regions in the country as customers opted for diesel vehicles for better fuel efficiency, especially at a time when fuel prices are going up.

Before the increase in diesel prices, Creta's sales included 50-55 per cent of the diesel version, which in June (when diesel prices rose) was 59 per cent. For Verna, one third of the customers opted for diesel trims.

Speaking on production, Garg said, HMIL was preparing company's vendors and manufacturing lines for the third shift by the end of this month.

HMIL said that it could operate the plants at 80 per cent capacity from the 40 per cent levels in June and the supply chain was ready for the ramp up.

The company's facility near Chennai has an installed capacity of 750,000 units a year and the company produces 11 models at the facility.