Hyundai to launch two models every year in India

To boost up its strategy for the Indian market, South Korea’s largest car maker, Hyundai Motor yesterday announced it will launch two models every year in India that would include diesel cars, including a 1.2 litre engine hatchback.

“Every year, we will launch two models, that may include variant,” Hyundai India Managing Director and CEO Heung Soo Lheem told reporters. He informed the company would launch a diesel version of its premium sedan ‘Sonata Embera’ by the fourth quarter of this calendar year.

When asked on the kickoff of the mid-size 'Verna', he replied it was on the cards. “We plan to launch the car within this year itself and are working on it," he stated, adding that it will come in both petrol and diesel variants.

Lheem, however, stressed that on-going mid-size offering 'Accent' will not be phased out after the launch of the ‘Verna’. “It will be continued and we have no plans to phase it out,” he said.
He said that the Accent had a high demand in export markets like Algeria and Morocco. “Around ten per cent of Accent sales last year were through overseas markets,” he said.

The world's seventh largest car maker company, which has made India the hub for small car 'Santro', faces a capacity constraint, Lheem said. “We have an export backorder of 21,000 units and are working to meet that,” he informed.

Currently, Hyundai has an annual capacity of 2,50,000 units, which it is ascending up to 3,00,000 units by going in for a third shift at its Chennai plant. Furthermore, it is setting up a 3,00,000-unit second facility which is possibly to be operational by October next year.

Lheem said Hyundai anticipated retails to be around 3,00,000 units this year against 2,50,000 last year. “Around 2,00,000 units will be sold in the domestic market while the rest will be through exports,” he said.

Responding to an enquiry on the launch of the 1.2-litre diesel compact car, he said Hyundai had an engine of that size and that could be sourced and manufactured in India as well. Though, he declined to give any time-frame for this.

Replying to the further enquiry whether this engine would come on the Santro, Lheem said it was not feasible going by the model's size. “It is not possible on the Santro,” he said, slightly indicating that the 'Getz' would sport the engine.

“Hyundai India is an Indian company and we need an Indian face to deal with our dealers, employees and the Government. It is in the process,” Lheem said.