India’s second largest car maker Hyundai Motor India (HMIL) has surpassed the industry’s growth of 7% in the first eight months of 2016 (January-August) with 9% growth. The company said that Eon will only be the entry level car in India and it has no plans to launch any new model below Eon.
At a select press briefing on Monday after inaugurating the company’s only owned modern premium outlet here, YK Koo, managing director and CEO, HMIL, said: “With the successful launch of new products like Creta in the last one year, the company reported a 9% growth in first 8 months of 2016 to 3,27,844 units as compared to 3,00,000 units in the same period of 2015. With the recent launch of NextGen Elantra, followed by Tucson in October coupled with ensuing festive season, we are confident that the company will report a decent double-digit growth in 2016.”
He added that the company is looking at 5,00,000 units in domestic sales and more than 1.6 lakh units in exports in 2016.
Koo said: “The company is currently running at 93% capacity utilisation of total installed capacity of 7.1 lakh units per annum. We would achieve 100% of the same in next two years with 2 new launches every year. If domestic demand perks up, we will produce more for the domestic market, cutting exports accordingly.”
On the just launched nextgen Elantra, he said: “We already have 400 bookings in hand and its growing briskly. We have despatched 300 units to the dealers. We have ramped up production to 300 units a month and ensure that Elantra will not have more than 2 months in waiting period.”
The industry size of the Elantra segment (premium sedan) is pegged at 1,000 units a month, he pointed out.
Asked what kind of role Hyundai will play in its subsidiary Kia’s entry into the Indian market, Koo quipped: “We have no idea about Kia’s entry into India. Like media, we heard that they are entering India. Though Kia is Hyundai’s subsidiary, globally both compete each other with their own models, network and dedicated management team. We have no role to play for Kia in India. If they enter, it will be on their own.”
On the upgradation of company’s only owned outlet to global standards, Koo said, “This is the only owned outlet for us for last 18 years and we have upgraded based on Global Dealership Space Identity (GDSI) standards.”