NEW DELHI: Hyundai Motor India, the country’s second-largest vehicle manufacturer, plans to consolidate its market leadership in the fast-growing sports utility vehicle (SUV) segment with the introduction of it is latest product, Alcazar - a seven-seater premium offering.
In the domestic market, SUVs are considered volume drivers and almost every manufacturer is eyeing a share of the pie, with new product launches at different price points.
Also Read | How citizen data led India’s covid battle
In 2020, the South Korean manufacturer managed to eclipse Maruti Suzuki India Ltd, the country’s largest car maker, to become the market leader in the SUV segment as sales zoomed after the launch of its compact SUV Venue, and the midsized Creta.
Hyundai and Kia have a leading share of 35.95% in India’s SUV market, while Suzuki has 22.4%. SUVs are considered more profitable than hatchbacks and smaller sedans because of the high margins manufactures can command on these.
Alcazar, will sit on top Creta in the product portfolio and will help the company reach out to a new set of customers who prefer a more premium offering. It will compete with the likes of Mahindra and Mahindra’s XUV 500 and MG Motor India’s Hector.
According to S S Kim, managing director, Hyundai Motor India, 2021 will add a new chapter in the history of the automobile manufacturer as it gears up to enter and redefine a new segment.
“Hyundai Alcazar will supersede aspirations of new age buyers and redefine existing benchmarks to ensure customer delight. As Hyundai completes 25 years in India, we will re-emphasize our commitment to Indian customers with the global debut of Alcazar that will be “Made In India’ and Made first for India," added Kim.
Hyundai, however, does not have significant market share in the premium SUV segment despite having launched successful global models such as SantaFe and Tucson.
The seven-seater SUV space has also grown, with the success of new products like MG Motors Hector and it is important for Hyundai to enter this segment in order to maintain its leadership. The company will be eying to upgrade its existing Creta customers to the new Alcazar.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.