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Korean firm Hyundai is planning to launch two vehicles every year in India. The pipeline includes smart hybrids, sub four-metre SUVs (sport utility vehicles) and AMT (automated manual transmission) vehicles. The company hopes to grow six-seven per cent year-on-year.
Speaking to the media as the company completes 20 years in India, Hyundai Motor India managing director and chief executive Young Key Koo said the last two decades were significant for the company globally.
Speaking to the media as the company completes 20 years in India, Hyundai Motor India managing director and chief executive Young Key Koo said the last two decades were significant for the company globally.
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Hyundai Motor Company has transformed into a global automobile firm from a Korean company and India played a key role in this transformation. Today, Hyundai Motor India Ltd (HMIL) accounts for nearly 13 per cent of Hyundai's volumes globally and it is the third-biggest market for Hyundai after China and the US.
In India, Hyundai sold 4,189,875 units till April cumulatively, said Koo. The company has invested $3.1 billion till now.
Hyundai’s exports started in 1999 from India with 20 cars, now this has increased to 2.3 million units cumulatively, making the company the largest car exporter from India.
On way forward, he said, HMIL's vision was to be a great workplace, market leadership, most beloved and trusted brand and modern premium brand. Market leadership is not just about volume, it is about quality and brand, he said.
Hyundai also said it would launch two new products every year and will have offerings in every segment. Each product would attract minimum $100 million to develop.
Rakesh Srivasthava, senior vice president - marketing and sales, HMIL said that we have committed to make Hyundai as a market leader with its core value and brand direction.
In the last 20 years from one product the company now got 10 products. He claimed that all the products are segment leaders and trend setter.
The pipeline includes smart Hybrid, while declining to give any timeline Srivasthava said that globally Hyundai has got a strong technology. The Indian Government is also supportive to bring this technology and the company will bring the technology at a right time.
Currently Hybrid segment is dominated by Maruti Suzuki with its Ciaz and Ertiga, while Toyota has one product ‘Camry’.
The other focus would be SUV, he said, the SUV market is growing since geography is big and road conditions are challenging. To meet the demand Hyundai will bring one product above Creta and one below, which will be sub 4 mete in 2-3 years.
On the SUV Creta, Koo recently said waiting period for the product is around four months and Hyundai is planning to bring it down to two months by increasing the production volume to 13,000 units from 10,000 units from June 1st. Of the 13,000 units, around 10,000 units will be for domestic and balance would be for exports.
Koo said the vision for the next 20 years for HMIL is to be most beloved brand and a great place to work and not chasing number one position, which is held by Maruti.
Taking the leadership position in the near future will be difficult for the Korean car marker, mainly due to manufacturing. The company can produce around seven lakh units, while Maruti’s capacity is more than double of Hyundai’s. Koo said for the next 3-4 years the company can manage with the existing capacity.
During the current year, Hyundai set a target of around 6.65 lakh units, including five lakhs in domestic and balance in exports. Last year the company sold 4.70 lakh units in India.
According to Koo, the export market has slowed down due to crude oil prices. The main markets, which HMIL has been catering includes South America, Africa, Middle East and Asia. He hopes from the second half export would improve.
