After closing FY18 with its highest-ever profit of around Rs 2,130 crore and a turnover of Rs 38,000 crore, Hyundai Motor India will announce its future growth and investment plans soon.
After closing FY18 with its highest-ever profit of around Rs 2,130 crore and a turnover of Rs 38,000 crore, Hyundai Motor India will announce its future growth and investment plans soon. In an interaction with FE’s Pritish Raj, Puneet Anand, senior GM & group head (marketing) talks about new product launches, volume growth and zero emphasis on gaining more market share. Excerpts:
You had a market share of about 18% three years ago, which has now fallen to around 16%. It is believed that you had gone slow on your product pipeline, while your competitor Maruti Suzuki has come with a slew of product launches, thereby capturing more market share. What has been the reason for limited products in each segment?
We are not hungry for market share, but we are hungry for volumes and innovation. In the last 4-5 years, there has always been volume growth for Hyundai, which came largely by innovation and setting new trends.
For instance, Santro came first time with a Multi Point Fuel Injection (MPFI) engine, the first small car with a power steering and it established a paradigm shift for the people, so much so that the industry was forced to change the traditional carburettor engine to fuel injection engines. Today also, we are the segment leader in most of our products. Creta is the largest selling SUV in India above the Rs 10 lakh bracket and elite i20 is the segment leader as far as premium compact is concerned.
How is it that the volume has grown but not market share of the company?
What matters to us is volumes. Our plants are running at a 100% capacity utilisation and we are happy with that as we have been growing our volumes year -on- year. From both our plants, we have been able to churn out more and more cars. Our average ticket size has grown from Rs 5.5 lakh to Rs 7.7 lakh in the last 2 years, so customers are spending around 2 lakh more for buying the same Hyundai product.
Recently, we have seen a couple of technological tie-ups like M&M and Ford & Suzuki and Toyota. Is Hyundai open to any such collaborations?
Maruti and Toyota collaborated to use each other’s strengths. If Maruti does not have an EV or a hybrid technology, they need Toyota’s help. Likewise Toyota doesn’t have an expertise in small cars so they need Maruti for that.
The beauty of Hyundai is that we have everything in-house. We came out with AMT two years after it was launched because we did not want to tie up with a third party.
How ready are you for the BS-VI emission norms?
We are ready to comply with the government norms when they become effective. It is to be seen when will the fuel be made available.
There is lot of uncertainty around diesel vehicles due to expected price hike after BS-VI. Are you also planning to go slow with diesel vehicles?
You cannot just take an aggressive decision of shutting some of the lines of production because anything might happen in India. The contribution of diesel vehicles has gone down and after BS-VI will go down further, but policies can again change. In some states, the price gap between petrol and diesel is Rs 5 and in some it is as high as Rs 12. Diesel vehicles can be pushed where price gap is Rs 10-12.