Hyundai Motor India expects to see growth in demand for its vehicles in 2020 on the back of a slew of product launches slated for this year, a senior company executive said. The company, which, on Tuesday, launched Aura, a new compact sedan, is expected to introduce newer models of Tuscon, i20, Creta and Verna. Hyundai is also looking at entering the multi-purpose vehicle segment in the country.
“We should see positive growth [this year]. With product launches planned this year, we expect to outperform industry in a very competitive environment, and hopefully, gain market share,” the company’s MD and CEO S.S. Kim told The Hindu. In 2019, Hyundai saw its sales decline about 7% compared with a decline of 13% for the industry. Mr. Kim added that in 2020, the industry should see low single-digit rise in demand. “Automotive vehicle demand will be determined based on various factors... maybe the most important and basic one will be the macroeconomy factor,” he said.
Given the impending transition to newer emission norms, growth may remain flat in the January-March quarter, he said. “From the second quarter, we are cautiously positive about demand.” The Aura, priced between ₹5.79 lakh and ₹9.22 lakhwill compete with the likes of Maruti Suzuki’s Dzire and Honda’s Amaze.
Asked why the firm chose to introduce a compact sedan amid declining sales in the segment, he said, “A lot of first-time buyers and family-centric car owners want to drive a sedan.” The segment ended 2019 with sales of 3.38 lakh units or about 11% of the industry, he added. “Even if it is decreasing, it remains a substantial volume...”
He said the company was also looking to enter the multi-purpose vehicle segment in India, and is conducting a feasibility study for the same. He added that the firm may also come out with a first-of-its-kind product and which could not be placed in any segment as of now.
