 "Hyundai to enter compact SUV space next year")
The buzz around the sub-four metre compact sports utility vehicle (SUV) space is reaching new highs with Hyundai confirming its plans of entering that segment in 2017.
The Korean carmaker will showcase a concept codenamed HND-14 at the Auto Expo in Delhi on Wednesday, which will become the basis of the future compact SUV which is to take on Maruti Suzuki’s Vitara Brezza that is set to be launched on Wednesday.
This new SUV will be designed, developed and manufactured in India to be later exported to serve Hyundai’s overseas markets. Hyundai’s Hyderabad-based technical centre will take inputs from potential customers at the expo to convert the concept into a model.
Rakesh Srivastava, senior vice-president (sales and marketing) Hyundai Motor India, said, “2016 would mark 20th year since Hyundai set foot in India. We have ten brands, out of which five are compact cars. In the SUV space, we have two vehicles—Creta and Santa Fe. But, above and below Creta there is a white space.”
The HND-14 will be among a bevy of 17 products that Hyundai will showcase at the expo. Apart from its 10 regular in-production models, the list will include some of its global models like the Genesis and i30. The company will also launch the SUV Tucson, positioned between Creta and Santa Fe.
In fact, Hyundai’s confidence in the compact SUV space is reinforced by the recent success of the Creta, which has become the market leader in its segment—clocking average monthly sales of 7,000 units. Its collective booking has surged to 100,000 units since its launch six months ago.
“The HND-14 will come into development cycle eventually. We are one of the large players in hatchback segment; we are amongst the leaders in the sedan and the SUV segments. The new compact SUV will plug the gap in our product offering," added Srivastava.
The new SUV will compete against the Ford EcoSport and the Mahindra TUV300, besides the Brezza. Hyundai is not so keen on going below this segment, unlike Mahindra & Mahindra, which launched a nano SUV called KUV100 for a price on par with a B segment hatchback like a Maruti Wagon R or Hyundai i10. The utility vehicle space, where Mahindra & Mahindra has a market share of around 40 per cent, will see most of the action in the coming period. Manufacturers like Tata Motors, Renault, General Motors and Honda are targeting a slice of the pie.
All of Hyundai’s recent launches such as Grand i10, Xcent, Elite i20 and Creta have met with success even as its plant near Chennai runs to near full capacity. “We would be doing 500,000 domestic units sales this year which is 65,000 more than what we did last year. We would not be the first to achieve it, but we would certainly be the fastest to reach there," added Srivastava.
WHAT’S IN STORE
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Korean carmaker will showcase a concept codenamed HND-14 at the Auto Expo
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The HND-14 will be among a bevy of 17 products that Hyundai will showcase
