Hyundai crosses 2017 target, eyes 5-6 per cent growth in 2018 – Economic Times

MUMBAI: South Korean carmaker Hyundai Motor India has exceeded its domestic volumes target for 2017 with sales of 5.2 lakh units, led by a strong demand for the newly launched Verna, a mid-sized sedan.

With the carmaker planning to launch anew entry-level car soon, it has set a target of crossing an output of 7 lakh units in 2018, with 5.5 lakh units for the domestic market, eyeing a growth of 5-6%.

Rakesh Srivastava, director, sales & marketing at Hyundai Motor India, said despite just one launch (Verna) and a couple of facelifts, the company has been able to grow well.

“2017 was a year of excellence for Hyundai, wherein the company focused on delivering quality and optimum production capacity utilisation.

We aim to sustain our growth momentum in 2018, led by an all-new product entering a new segment, which will bring us incremental buyers,” said Srivastava.

What’s significant is that not only has the average price of vehicles sold by Hyundai risen in India, helping the bottom line, even exports for the coming year will be largely mid-sized cars such as the Verna and Creta as against the small cars exported out of India like Eon, Grand and i20, which will further boost its profitability.

Apart from Maruti Suzuki, Hyundai has been the only brand which has been growing volumes every year. Today, three of its products figure in the top 10 cars sold in India, and three of its cars — Grand, Elite and Creta — have clocked annual sales of over 1lakh units.

Having aggressively addressed a segment of buyers between Rs 8 lakh and Rs 25 lakh over the past few years, Hyundai will shift its focus on volumes in the next couple of years.

Along with a new entry car codenamed AH2 which will take on the new generation Alto and Renault Kwid, Hyundai will be giving a facelift to Elite i20 later in the year and refreshing Creta SUV in 2018, and in 2019, it will bring in its sub-4 meter SUV codenamed QXi, which will allow the company to participate in the fast growing sub-Rs 10 lakh SUV space.

To complete the SUV line-up in the future, Hyundai Motor India is exploring the possibility of introducing a seven-seater Creta and a Micro SUV below QXi, but the plans are yet to be firmed up.

India is among the fastest growing markets in the world for Hyundai, and is actually larger than Europe. In fact, its headquarters have recently given India the responsibility of making Verna for the global markets.

The carmaker has committed over $ 2 billion in the Indian market starting 2017, right up to 2022.