Hyundai Motor India, which on Thursday launched the new version of its compact hatchback Venue, said the semiconductor shortage is still a major concern for all carmakers. The company is still sitting on a backorder of about 25,000 units of the old Venue.
“We have given a priority to all those customers who had booked the old Venue, and their booking seniority remains. That is why people who book the new Venue will have a relatively longer waiting period,” Tarun Garg, director, sales, marketing & service, Hyundai Motor India (HMIL), told FE. “It is very difficult to say when the semiconductor shortage will ease. We are sitting on 135,000 pending bookings, and are trying our best to increase production,” Garg said.
However, he was bullish on Hyundai’s growing market share in the SUV segment and said the company has contributed to the growth of this segment in the passenger vehicle market. According to data from the Society of Indian Automobile Manufacturers, in CY15, sport utility vehicles (SUVs) formed 13.5% of the passenger vehicle market and hatchback cars 49%. But in January-May 2022, the market share of SUVs increased to 41% and that of hatchbacks reduced to 35%.
“A lot of credit goes to Hyundai’s early focus on SUVs, starting with the Creta mid-size SUV launched in 2015 and the Venue entry SUV launched in 2019,” Garg said.
In India, SUVs can be broadly divided into three categories: entry SUVs that are less than 4 metres in length with prices around the `10-lakh mark, mid-size SUVs that are up to 4.5 metres in length and priced `10-20 lakh, and full-size SUVs (longer and more expensive).
According to HMIL, while SUVs formed 41% market share, entry SUVs have become the single-largest car body type in terms of sales, with 21% market share in CY21. “In CY17, entry SUVs formed 8% of the market. In CY18, this increased to 10%. In CY19, when the Venue was first launched, it rose to 12%, and then to 14% in CY20 and 21% in CY21,” Garg said.
He said the Venue is one of the few car models whose sales have risen despite the economic shock due to the pandemic and the ongoing semiconductor shortage. In January-May 2022, the Venue contributed 22% to HMIL sales.
“In CY19, HMIL sold an average 8,805 units of the Venue per month. During January-May 2022, sales rose to 9,500 units per month,” Garg said. “The Venue also attracted a lot of first-time buyers to the Hyundai family. In CY20, 29% Venue buyers were first-time car buyers. In CY21, this increased to 30%, and in January-May 2022, as many as 36% Venue buyers were first-time car buyers.”
The new Venue has been launched starting `7.53 lakh, ex-showroom, for the petrol model, going up to `10.69 lakh. Diesel variants are priced from `9.99 lakh to `12.32 lakh. “Diesel engine still has a decent demand even in the entry SUV segment,” Garg said. “In the Venue, 23% sales have been coming from diesel.”