Hyundai India To Go Slow On Getz

Hyderabad, Aug 25 | Updated: Aug 26 2004, 05:30am hrs
In spite of good number of enquiries coupled with an encouraging response from its dealers, auto major Hyundai Motor India Ltd (HMIL) has decided to go slow on its soon-to-be launched new sedan Getz. The company has decided to limit the production of Getz until the capacity expansion of Santro and other cars gets stabilised. The Korean chaebol has also decided to pump in $80 million exclusively for Getz production and bodyline over a period of next one year to gradually scale up the production and go aggressively during next year. It has also ruled out any price increase in any of its cars.

Disclosing this to FE here on Wednesday, Mr B V R Subbu, President, HMIL, said: "We expect that the demand for our existing ranges outpaces the supply, hence we need to limit the production of our proposed new car - Getz - at least for the next seven months." Mr Subbu was in Hyderabad to launch two new service centres of one Hyundais leading dealer in Hyderabad - Lakshmi Hyndai.

The ongoing capacity expansion of Santro and other cars, is estimated to be around 250,000 cars-a-year by the end of this fiscal as against 200,000 cars last fiscal, Mr Subbu said. Having generated huge enquiries from the public across the country coupled with an encouraging response from our dealers for Getz, the company fears that it may fail to meet and satisfy the exact requirements of dealers as well customers, Mr Subbu pointed out.

Until and unless the company stabilise the capacity expansion of Santro as well other cars, Hyundai will have to restrict its monthly production of Getz below the four-digit level and fall short of customer demand. "We expect the production capacity of Getz will be around 800 a month, which is far below our expectations," Mr Subbu said. The company had planned earlier to launch the car in August but now seems to defer it during Ganesh Chaturti i.e. mid-September, he added.

"We need at least $80 million (around Rs 400 crore) to put up a dedicated body as well assembly line to manufacture and scale up its production and we hope it will be done over a period of 12 months time," Mr Subbu emphasised. Getz, which will be positioned between B and C segments, will be pitched against the likes of Ikon, Esteem and Corsa, he said. However, he refused to get into other details of the new sedan.

Meanwhile, the company has targeted a sale of over 200,000 cars during the fiscal as against 172,000 cars last fiscal. "We expect a 20 per cent growth over last fiscal," he added.