Hyundai Motor India plans to further strengthen its SUV portfolio in the country as the vertical illuminates other segments, boosting passenger vehicle sales in the domestic market, a senior company official said. The company, which is the second largest passenger vehicle manufacturer in the country, is preparing to launch a seven-seater model in the country.
“The SUV segment is currently the market driver. We have a global edge in SUVs. Therefore, moving forward we are going to further strengthen our range in the country,” said Hyundai Motor India Limited (HMIL) MD and CEO S.S. Kim told PTI. The company led the SUV space in the country with sales of 1.8 lakh units by 2020. It sells models such as Location, Creta and Duson in the market.
SUV sales in the country have been experiencing a boom in recent years. In 2019, SUV sales accounted for 25 percent of total passenger vehicle sales. In 2020, the sales share of this segment rose to 29 percent, up from 33 percent in January this year.
When asked if the company plans to introduce an MPV in the country, Kim said: “There is a market demand for multi-seater vehicles, so we are producing some products that can introduce new ones in the future, especially multi-seater (MPV) but multi-seat. Built-in vehicle. ”
However he did not share other details about the release timeline or model. The automaker sells 11 models in the country, but does not have an MPV in its product line.
Commenting on exports, Kim said the epidemic has affected the company’s exports over the past few months. However, he noted that the company’s export volume is now expected to increase significantly as global geography matters better around the world.
During the April-January period of this fiscal, Hyundai led the way with 82,121 units shipped, down 47.01 percent from the previous year. Kim said the company will continue to supply diesel products in the country as the demand for such models is very strong in some states.
“We will continue to manufacture and sell diesel cars in many segments. If a customer wants certain products, we will give it away as we are a customer-centric organization,” he said. Regarding government policies, Kim said initiatives such as the Productivity Incentive (PLI) scheme would help the company further strengthen its overseas exports.
“Government support for the industry is very important not only in the domestic market but also in exports. From the company’s point of view, we are the first OEM to launch exports of Made in India products,” he said. With new players coming in, government support is now very important, he said.
Kim said it would be very beneficial if the domestic auto industry could get some support from the government. “The government is expected to present a summary of the PLI project in the first week of March, so we are following it very closely. We are committed to the Atmanirpar initiative. The PLI project not only enhances the growth of the industry but also makes the country a very strong manufacturing base for developing the project,” he said. He said.
When asked about the company’s position on corporate average fuel efficiency (CAFE) and real-time emission (RDE) testing regulations, he said the implementation of initiatives could lead to an increase in material costs and ultimately an increase in vehicle prices.
“We fear that the price increase will have a negative impact on market demand and will lead to lower demand. Therefore, if the government decides on a one-year or three-year postponement that will be very helpful for market recovery,” he added. He said the vehicle manufacturer has the necessary technology and would be willing to follow the regulations if the government decides to implement them from the original timeline.
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