comparison, the total passenger vehicle volumes have contracted over 5% to 16.4 lakh units in April-November FY14 largely because of slower sales of mass-segment models.
Other major players are Jaguar Land Rover and Volvo. Toyota has also been planning to launch Lexus, but has put the plan on hold due to rising import costs on account of a strong Yen.
Puneet Gupta, principal analyst, IHS, said launching a luxury brand would be a good strategy for Hyundai, though it is more about placing the brand than the volumes per se. “Opening different dealer networks make sense, because consumer expectations are different in the luxury segment. At some stage most mass carmakers have to come with their luxury range in an emerging market like India. It is a good idea to establish the luxury brand early, because later competition will get tough after Toyota’s Lexus and others enter”.