Back to normal: Hyundai to ramp up production to cut down wait list

Hyundai to resume third shift at the plant from Monday

By:June 19, 2021 8:23 AM

The country’s second-largest passenger car manufacturer, Hyundai Motor India (HMIL), which has emerged as the leader in the sports utility segment, will ramp up production at its Chennai plant by restarting the third shift from Monday. The company is hopeful that the increased production will help it in cutting down the wait list for delivery of vehicles, which on average is about 4-5 weeks at present.

Speaking to media persons, after the global launch of the company’s latest SUV, Alcazar, Tarun Garg, director, sales, marketing & service, said the wait list for SUVs is longer because of high demand but the company is trying its best to ramp up production to address the issue. “There is waiting period of four to five months for the Creta, eight to ten weeks for the Venue and now the waiting period for the Alcazar will be four to eight weeks,” he said.

Hyundai has invested about `650 crore on the development of the Alcazar model, which will compete with the likes of Mahindra’s XUV500 and the recently launched Tata Safari and Hector Plus. The petrol trims of Alcazar are priced between `16.3 lakh and `19.84 lakh while the diesel variants are priced between `16.53 lakh and `19.99 lakh.

Giving details about the production ramp-up, Garg said that HMIL would re-introduce the third shift at the Sriperumbudur unit from Monday onwards as it expects 75% of the demand to be back by end June and 80-90% by August and September. The third shift was suspended when the second wave of Covid hit Tamil Nadu and the employees demanded enhanced safety measures.

With the gradual easing up of the lockdown restrictions, now almost 80% of Hyundai’s dealerships have opened up in the country.

Hyundai currently leads the SUV segment in the country with a market share of 23.3% in the January-May period this year. The company’s market share in the segment has consistently grown over the years. From 11.3% market share in 2015, the company’s share rose to 22.7% in 2019 and to 25.5% in 2020. Currently, the share of SUVs in Hyundai’s overall sales stands at around 42.5%. In 2015, the share stood at 9% and rose to 33% in 2019. In 2020 it touched 42.5%.

Garg said that the Alcazar will initially cater to the Indian market and exports maybe considered at a later stage.

The company has secured 4,000 bookings in the last 10 days. “The 4,000 bookings is very good number, considering the fact that it is premium segment and a segment creator as well,” he said.

The Alcazar is the fifth SUV from the Hyundai stable after, Creta, Venue, Kona Electric and Tucson. It has been positioned between Creta and Tucson.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News