The carmaker has so far added three new products – micro SUV Exter, premium sedan Verna and high-end EV Ioniq 5 – in its portfolio this year. It has expanded volumes 11 between January and June. With the new model introduced Monday, the company expects its sales momentum to pick up further in the coming months.
“The semiconductor shortage is more or less behind us. Even though pent-up demand is no longer there, we are seeing healthy traction in the market,” said Tarun Garg, Chief Operating Officer (COO), Hyundai Motor India. “New customers are coming in. We expect to grow in double-digits this year.”
Garg was speaking on the sidelines of the launch of Exter, which is priced between Rs 5.99 and Rs 9.99 lakh. He said the company now has a full range of SUVs in place with this new product.
“The share of SUVs in our sales has grown to 54% this year, from about 34% in 2019. SUVs are the flavour of the season, and we see their contribution increasing further to about 60% in our volumes with this launch,” Garg said.
The Exter is pitted against the Tata Punch (priced at Rs 6-9.52 lakh) and is positioned in a segment where sales currently range between 10,000-11,000 units a month. Garg said with the introduction of a second model, monthly volumes in this category can double to 20,000-22,000 units. Hyundai has invested Rs 950 crore to develop the Exter.SUV Craze
In the broader industry, too, the share of sports utility vehicles is on a rise. Share of SUVs in total sales of passenger vehicles increased to 46% in the first half of this year from 26% in 2019. Micro SUVs comprised about 14% of the SUV segment in 2022.“It is the fastest growing sub-segment in the SUV segment and is projected to contribute 20% to sales by next year. Given the price points, it will come into the consideration set of buyers looking at hatchbacks, sedans and SUVs,” Garg said.
To meet customer demand, Hyundai is in the process of increasing capacity to 8.2 lakh units per annum at its manufacturing facility in Tamil Nadu.
Overall, Hyundai said it will invest Rs 20,000 crore over the next 10 years in Tamil Nadu to modernize vehicle platforms and expand its presence in the country’s fast-evolving electric vehicle segment. In one of the biggest product onslaughts in the electric vehicle segment, Hyundai Motor is in the process of investing Rs 4,000 crore to launch half a dozen models by 2028. The first of these models, the Ioniq 5, hit roads earlier this year. The company also sells Kona EV in India.
The investments over the next decade will be utilized to expand production capacity for internal combustion engine and electric vehicles, set up a battery pack manufacturing unit and establish charging infrastructure for EVs, among others.