NEW DELHI, July 10 (Reuters) – Hyundai Motor Co (005380.KS) on Monday launched a small sport-utility automobile (SUV) in India aimed toward younger automobile consumers, a transfer analysts stated is an try to reclaim share from rivals which have gained floor with new automobile fashions.
The Exter SUV will probably be priced from 599,900 rupees ($7,300) for the entry-level mannequin to 999,900 rupees for the top-end variant, going head-on in opposition to home rival Tata Motors' (TAMO.NS) Punch SUV.
The automobile will plug a spot for Hyundai within the entry-level SUV section and widen its portfolio in India – a market which is of “strategic significance” for the South Korean carmaker, its nation CEO Unsoo Kim stated throughout the launch.
“With the launch of Exter, Hyundai Motor India has turn into a full vary SUV producer,” Kim stated, including it had spent 9.5 billion rupees on growing the automobile.
India's significance for Hyundai, the world's third-largest automaker by gross sales with its affiliate Kia Corp (000270.KS), is rising because it scales again its presence in China and was compelled to exit Russia.
Automobile consumers in India are flocking to SUVs, driving up gross sales to file ranges within the post-COVID shopping for increase. Hyundai's rival Maruti Suzuki (MRTI.NS) final week launched a premium seven-seater to woo upmarket consumers.
The Exter is supplied with options corresponding to a voice-enabled electrical sunroof, dashboard digicam to take selfies, and wi-fi smartphone charger, typically seen in greater automobile fashions.
Hyundai has lately launched giant and mid-size SUVs just like the Alcazar and Creta, sending its gross sales in India to a file excessive of greater than 567,000 items final fiscal 12 months.
Nonetheless, its market share fell under 15% from a 2019-2020 peak of 17.5%, business information confirmed, with rivals Tata and Mahindra & Mahindra (MAHM.NS) rushing forward with new launches.
The Exter might assist it reclaim some misplaced share, stated Ravi Bhatia, president for India at automotive consultancy JATO Dynamics.
“Any new launch will deliver consumers to the showroom,” Bhatia stated, including that Hyundai might want to make sure the Exter doesn't cannibalise gross sales of its different small, entry-level automobiles.
“To actually enhance its share, Hyundai wants a product technique that features automobiles in increased segments as effectively, which is the place the market is rising,” stated Bhatia.
Reporting by Aditi Shah and Riddhima Talwani
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