After closing the year with expected sales of 5,60,000 units, which is a growth of 14.4%, Hyundai Motor India has set a growth target of 8-9% for 2010 in the domestic market on the back of company?s strong product line-up across all segments. However, the stimulus package should continue to drive the growth momentum, says Arvind Saxena, director (sales and marketing), HMIL while speaking to FE?s Yogima Seth. Excerpts:
With several global players foraying into the compact car segment, how do you gear up to take on the challenge?
We have been competing well in the Indian market and will continue to do so with our strong product line up and a spread-out dealer network. 2010 is expected to be a good year considering the current growth momentum and the fact that the company will be able to cater well to the domestic market as it shifts the average monthly production of 5,000 units of i20 for European markets to Turkey that will give us an additional capacity. Consequently, our domestic sales will go up by 8-9% this year over 2,89,000 units sold in 2009. Moreover, as scrappage incentives are being withdrawn in western countries, we expect our total domestic to export sales to be 55% and 45% respectively as against 2008 when they were nearly the same.
What has been the development on the small car the company has been working on?
The small car project is important as it will help us to be present in the segment where there is huge potential and which is currently not being catered by us. The car, which will be smaller than Santro, is being developed in Korea.
What is the company?s plan for smaller diesel engines?
Hyundai has a 1.1 litre diesel engine in its global stable but bringing it into India for Santro and i10 will not be feasible as it will be too expensive. As a company we are still evaluating the manufacturing of diesel engines in India as it is still much cheaper and subsidized vehicle.
What are your expectations from the upcoming Budget?
Government?s action of reduction in excise duty as part of the stimulus package has helped us to sail throughout the year and we expect the Centre to continue the current level of excise relief and if possible add some exports benefits too.