 "A Grand salvo fired at the Swift")
The Korean auto major, Hyundai Motor India (Hyundai), made an aggressive move today by launching a new global platform in India. On its crosshairs is the market for entry-level premium hatchbacks, an emerging compact car segment.
It is making no bones about pitting the Grand i10 (which doesn't share i10's platform) against Maruti Suzuki's Swift. Pricing the Grand between Rs 4.29 lakh and Rs 6.41 lakh (ex-showroom, Delhi), Hyundai has tagged it lower than the Swift by Rs 20,000-47,000.
B S Seo, Hyundai's managing director and chief executive officer says, "The Grand is a world-class product developed for the Indian market. We expect the Grand, with its excellent value proposition and unique features, will serve a wide range of customers in India."
The Grand i10 comes with two engine variants in manual transmission. An automatic transmission variant would follow soon. While the petrol variant is priced from Rs 4.29 lakh to Rs 5.47 lakh, the diesel version comes for Rs 5.23 lakh-6.41 lakh (ex-showroom, Delhi). The company claims the diesel-driven variant delivers fuel efficiency of 24 km per litre, as against 22.9 kmpl offered by the Swift's 1.3 litre multijet diesel engine. The petrol-powered Grand offers a mileage of 18.9 kmpl.
The new platform would help Hyundai launch three-four new models according to industry sources. Hyundai lacks an entry-level sedan, a segment that is, again, doing brisk business with models such as the Swift Dzire and Honda Amaze. The platform will lend itself to an entry sedan for Hyundai, now that the warhorse Accent has bowed out.
Industry experts fear that the Grand may cannibalise Hyundai's existing offering in the compact hatch space. But Hyundai has that figured. Rakesh Srivastava, senior vice-president (sales & marketing), says, "There are 23 models in the segment currently, we have three products. We are differentiating and positioning our products on the basis of engine capacity. We have discontinued the 1.2 litre petrol engine option in the i10 about one and a half months back. Now the Eon is available in 800-cc petrol option, the i10 in 1.1-litre variant and the Grand in 1.1-litre diesel and 1.2-litre petrol engine options. Together, the i10, Grand and i20 will help increase our volumes and share in the premium hatchback category".
The entry model of the Grand will cost Rs 80,000 more than i10's base variant. "The Grand is a new product and has no discounts. The i10 is priced between Rs 3.95 lakh and Rs 4.45 lakh, with discounts of around Rs 50,000. There is a significant price gap between the two models", says a senior executive in the company.
Grand i10 has been tweaked by its Indian engineers to suit the local demand of more space. The wheelbase is 100-mm longer than its European counterpart. The Grand incorporates some segment-firsts such as rear AC vents and 1GB storage space in the audio system. Hyundai has invested close to Rs 1,000 crore to develop the new product.
The Grand is targeted at consumers aged between 25 and 35 years, single or married with a small child. The consumer sets eyed are mid-level executives, professionals or owners of small and medium enterprises.
In a market that has been on a prolonged slowdown, Hyundai is banking on the Grand to spruce up sales. Hyundai reported a marginal increase in domestic sales at 28,311 units in August from 28,257 units in August 2012.
It is making no bones about pitting the Grand i10 (which doesn't share i10's platform) against Maruti Suzuki's Swift. Pricing the Grand between Rs 4.29 lakh and Rs 6.41 lakh (ex-showroom, Delhi), Hyundai has tagged it lower than the Swift by Rs 20,000-47,000.
B S Seo, Hyundai's managing director and chief executive officer says, "The Grand is a world-class product developed for the Indian market. We expect the Grand, with its excellent value proposition and unique features, will serve a wide range of customers in India."
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The Grand is positioned between the i10 and the i20 and is expected to consolidate Hyundai's presence in the entry level of the premium hatchback segment. The segment is dominated by the likes of the Ford Figo, Toyota Liva and Nissan Micra, apart from the bestselling Swift. Last fiscal, the Swift sold an average of 15,400 units per month. According to industry data, as many as 330,000 entry-level premium hatchback cars last year.
The Grand i10 comes with two engine variants in manual transmission. An automatic transmission variant would follow soon. While the petrol variant is priced from Rs 4.29 lakh to Rs 5.47 lakh, the diesel version comes for Rs 5.23 lakh-6.41 lakh (ex-showroom, Delhi). The company claims the diesel-driven variant delivers fuel efficiency of 24 km per litre, as against 22.9 kmpl offered by the Swift's 1.3 litre multijet diesel engine. The petrol-powered Grand offers a mileage of 18.9 kmpl.
The new platform would help Hyundai launch three-four new models according to industry sources. Hyundai lacks an entry-level sedan, a segment that is, again, doing brisk business with models such as the Swift Dzire and Honda Amaze. The platform will lend itself to an entry sedan for Hyundai, now that the warhorse Accent has bowed out.
Industry experts fear that the Grand may cannibalise Hyundai's existing offering in the compact hatch space. But Hyundai has that figured. Rakesh Srivastava, senior vice-president (sales & marketing), says, "There are 23 models in the segment currently, we have three products. We are differentiating and positioning our products on the basis of engine capacity. We have discontinued the 1.2 litre petrol engine option in the i10 about one and a half months back. Now the Eon is available in 800-cc petrol option, the i10 in 1.1-litre variant and the Grand in 1.1-litre diesel and 1.2-litre petrol engine options. Together, the i10, Grand and i20 will help increase our volumes and share in the premium hatchback category".
The entry model of the Grand will cost Rs 80,000 more than i10's base variant. "The Grand is a new product and has no discounts. The i10 is priced between Rs 3.95 lakh and Rs 4.45 lakh, with discounts of around Rs 50,000. There is a significant price gap between the two models", says a senior executive in the company.
Grand i10 has been tweaked by its Indian engineers to suit the local demand of more space. The wheelbase is 100-mm longer than its European counterpart. The Grand incorporates some segment-firsts such as rear AC vents and 1GB storage space in the audio system. Hyundai has invested close to Rs 1,000 crore to develop the new product.
The Grand is targeted at consumers aged between 25 and 35 years, single or married with a small child. The consumer sets eyed are mid-level executives, professionals or owners of small and medium enterprises.
In a market that has been on a prolonged slowdown, Hyundai is banking on the Grand to spruce up sales. Hyundai reported a marginal increase in domestic sales at 28,311 units in August from 28,257 units in August 2012.