India to make Hyundai i10 for the world

In its most aggressive launch in the Indian market since the Santro eight years ago, Hyundai Motor India (HMIL) unveiled the much-awaited compact car i10 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.

The new car is expected to be a major volume player for the Korean car maker and may surpass the Santro (2 lakh cars were sold annually in India, as well as exported) in the next two years. 
 

CLOSE RACE
i10's competitors 
(all prices ex-showroom Delhi) 

Indica V2 Xeta Rs 3.49 lakh 

Wagon R LX Rs 3.31 lakh 

Zen LX Estilo Rs 3.24 lakh

Hyundai i10 Rs 3.39 lakh 

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 aims to sell about 2,00,000 units (i10, Santro and Getz together) in Asia, Europe, West Asia as well as other regions next year.

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."

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.

The company is also strengthening its research and development work at the Hyderabad centre and will invest more than $40 million there.

HMIL is also looking at exporting 50 per cent of its car production in India. By 2008, the company plans to produce 6,00,000 units at its Chennai plant and half of this will be exported. India will account for 30 per cent of the company's international production by next year, Choi said.

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.