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Friday, May 16, 2008

Hyundai to Introduce $3,500 Car in India by 2012

Now, it seems that the low-cost car segment of Indian car market is now getting more and more competitive. Tata Motor’s much-waited Rs. 100,000 ($2,500) car, Tata Nano, will come to the Indian market this year. Recently, India’s Bajaj Auto has joined in a $2,500 car project along with Renault-Nissan. Now, it is time for Hyundai Motor India to step into this low-cost car segment. The company announced that a $3,500 car would be launched in Indian market by 2012. The car is now in evolution stage and at its research and development centre in Korea.

The Hindu reported:

"It will take at least 4 years to develop the car and we think we will be able to introduce this car by 2012 for Indian market," Hyundai Motor India Managing Director and CEO H S Lheem told reporters here on Friday.

He said the company would introduce several new models during this year in Indian market which includes Santro LPG, Accent LPG and CNG and i20.

Actually, India has one of the emerging car markets in the world and about two-third of the sales of Indian car market belong to low-cost car segment. So, you can see that this segment is alluring for the car makers. Hyundai Motor India has a strong presence in Indian market and has its own plant near Chennai from where it Hyundai i10 is being produced and exported outside India. In fact, Hyundai Motor India is exporting cars in 95 countries over the world. Though Hyundai denied that its announced low cost car would not compete with Tata’s Nano, I think, it will definitely have some competition with Tata Nano, taking the price tag into account.

As Hyundai is coming up with a price tag that is about $1,000 more than that of Nano, it is certain that Hyundai will add some excellent features to outclass Nano. Whatever the competition is about and whoever is involved in it, the price sensitive Indian consumer will definitely be beneficial because of such stiff competition among the car makers in the market.

2 comments:

jack said...

Posted this link in www.surfurls.com

SVA Search said...

Small cars like this + initiatives like carpooling and ridesharing can definitely help bring down the pollution