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Old 23rd December 2013, 18:33   #1
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Default Rumour: Hyundai to foray into the growing luxury segment in India

Hyundai, is studying the growing luxury car market which is today the stronghold of German trio — Audi, Mercedes-Benz and BMW.

Hyundai is considering a foray into the segment with its top-of-the-range models like the Equus and Genesis sedans, and the Veloster compact sports car, for which it could set up a separate sales network.

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The Equus is Hyundai’s most expensive model and in some markets does not use the Hyundai badging to reflect a more upscale image
Quote:
India’s luxury car market is expected to grow over 20% in FY14 to about 35,000 units, from around 29,000 units in FY13, with Audi becoming the first company to record over 10,000 units annual volumes. In comparison, the total passenger vehicle volumes have contracted over 5% to 16.4 lakh units in April-November FY14 largely because of slower sales of mass-segment models.
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Other major players are Jaguar Land Rover and Volvo. Toyota has also been planning to launch Lexus, but has put the plan on hold due to rising import costs on account of a strong Yen.
Cheers!



http://www.financialexpress.com/news...ment/1210569/0

Last edited by volkman10 : 23rd December 2013 at 18:36.
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Old 23rd December 2013, 23:17   #2
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

I don't they would have success beyond the 15 L price point. I have seen only 1 SONATA so far on the road.

I personally like the ELANTRA very much and that would be the most expensive car that I would buy from HYUNDAI, beyond that price point, HYUNDAI doesnt have any brand recongition.

I think HYUNDAI cannot succeed in the 15 L + price point and is bound to fail like MARUTI did.

If they launch a separate brand like TOYOTA has LEXUS, it would have a good chance.
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Old 24th December 2013, 06:07   #3
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

The Genesis seems to be doing well in the North American markets of late(http://www.goodcarbadcar.net/search/...?max-results=3), in spite of Hyundai not having a separate division for luxury cars similar to Honda-Acura, Nissan-Infiniti, Toyota-Lexus. Having said that, India is definitely a price-sensitive market, and it would be very interesting to see, if the Genesis, can measure up against the German trio.

Last edited by PVS : 24th December 2013 at 06:08. Reason: Changes US to North America
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Old 24th December 2013, 06:16   #4
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

This is a challenging time for Hyundai to launch their luxury brands. Also tough in a market which only thinks German when it comes to expensive cars.
That said, if they can succeed where companies like Honda, Toyota & Nissan have feared to tread, it would really be something.
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Old 24th December 2013, 09:12   #5
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

I think if they get Genesis as a separate brand to India with all ASS from Hyundai, they have a good chance at making an impact.
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Old 24th December 2013, 10:49   #6
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

The Sonata, a bread and butter car for Hyundai in the US markets, failed miserably in India only because it wasn't powered by a diesel heart. Only if Hyundai has plans on bringing in the Equus and Genesis with capable diesel engines getting an entry into the luxury segment may just work for them! Petrol powered luxury just doesn't sell here. Of course exotics and sports coupes are a different ball game.

Last edited by 9thsphinx : 24th December 2013 at 10:51.
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Old 24th December 2013, 11:08   #7
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

I believe Hyundai has become a people's mover - much like the "Maruti" Suzuki brand.
It is very difficult to break such public perceptions.

People who buy high end luxury car don't buy just to go from point A to point B.
They buy it mainly to declare that they have "arrived".
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Old 24th December 2013, 11:57   #8
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

They did not have much luck with the Santa Fe in India, maybe they should look into what went wrong before going into the luxury segment.

But I agree with Alpha1. Hyundai has a specific image like Maruti and it will be hard for them to break it.

Last edited by GTO : 24th December 2013 at 12:36. Reason: As per PM
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Old 24th December 2013, 12:17   #9
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Default re: Rumour: Hyundai to foray into the growing luxury segment in India

Among the players in Indian automotive market, Hyundai has certainly proven itself to be among the better ones in gauging and responding to the market sentiments. I am sure Hyundai will do their homework, learn from Sonata fiasco, etc. before making any moves. Talks like setting up different networks for selling, are certainly in the right direction.
I would definitely give them a chance and see how they fare rather than write them off now itself.
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Old 24th December 2013, 12:37   #10
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Default Re: Rumour: Hyundai to foray into the growing luxury segment in India

I do think it could be a sensible move, considering the recent withdrawals of Accord & Passat from Indian market.

Hyundai is no doubt very aggressive in all segments, unlike Honda, but, Equus, Genesis & Veloster do not have glorious past behind to attract deep pocketed buyers middle age buyers. Few kid from rich families may use the Veloster for their crazy experiments, but beyond that I do not see a big market for younger non-European brands in the luxury segment. IMO they should leave this segment for British, German & few other European brands, unless this is ploy to sell few more Sonatas, by making it appear VFM.

They should concentrate on ride quality, bigger diesel engines & classy SUVs in the short run that can rake in the moolah, footfall to the showrooms & strengthen the brand premium, till it is premium enough for buyers.

But, I salute the aggressive intent of the Korean manufacturer , which unlike the Japs has taken all failures in strides, & managed to climb the ladder of brand image & premium. Honda & Suzuki should learn from Hyundai rather than give up (crucial markets) so easily.
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Old 24th December 2013, 12:44   #11
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Default Re: Rumour: Hyundai to foray into the growing luxury segment in India

With the right product at the right price, I don't see why a Hyundai luxury car won't sell in India. Plus, Hyundai has big diesel plans for the Equus and Genesis. Equally, the marketing has to be a masterpiece. Hyundai will face the same challenges as Lexus (related thread).

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Originally Posted by F150 View Post
I don't they would have success beyond the 15 L price point. I have seen only 1 SONATA so far on the road.
Quote:
Originally Posted by alpha1 View Post
I believe Hyundai has become a people's mover - much like the "Maruti" Suzuki brand.
If a 15 - 18 lakh Elantra can top its segment, clobbering the best from VW, Skoda & Toyota, I don't see why a 25 lakh Sonata cannot. The main reason behind the Sonata's failure is the lack of a diesel motor and horrible marketing support (dealers aren't interested, no test-drive cars available, lack of promotions etc.).

@ Alpha1 : There's also the example of a relatively crude brand like Mahindra emerging highly successful with a 15+ lakh product (XUV500).

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Originally Posted by wilful View Post
Also tough in a market which only thinks German when it comes to expensive cars.
Well, this was the case in the USA before Lexus & Infinity too. That line of thought was relegated to history soon enough.
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Old 24th December 2013, 12:47   #12
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Default Re: Rumour: Hyundai to foray into the growing luxury segment in India

Quote:
Originally Posted by F150 View Post
I don't they would have success beyond the 15 L price point.

If they launch a separate brand like TOYOTA has LEXUS, it would have a good chance.
My thoughts exactly. I do not see people paying that much money for a Hyundai.

I think a re-badge would be required. Does Hyundai have a Luxury brand such Infinity & Lexus are to their parent companies ?
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Old 24th December 2013, 13:17   #13
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Default Re: Rumour: Hyundai to foray into the growing luxury segment in India

Quote:
Originally Posted by GTO View Post

If a 15 - 18 lakh Elantra can top its segment, clobbering the best from VW, Skoda & Toyota, I don't see why a 25 lakh Sonata cannot. The main reason behind the Sonata's failure is the lack of a diesel motor and horrible marketing support (dealers aren't interested, no test-drive cars available, lack of promotions etc.).
.
While I was aware of the lack of diesel motor on the Sonata, I wasn't aware of the lack of marketing and dealer support.

Is the un-interested dealer network an indication of the perception of the brand at the dealer level or is it due to the lack of diesel motor on the Sonata, the dealers know that this is not going to sell.

Last edited by GTO : 25th December 2013 at 18:40. Reason: Updated Elantra to Sonata on request, thanks
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Old 24th December 2013, 13:39   #14
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Default Re: Rumour: Hyundai to foray into the growing luxury segment in India

I am sorry but it would be a wasteful exercise. A 50 lakh rupee Hyundai will just not sell given the Germans in the market. It will be an uphill task even for a Lexus let alone Hyundai.
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Old 24th December 2013, 14:19   #15
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Default Re: Rumour: Hyundai to foray into the growing luxury segment in India

2014 Hyundai Equus ...Base price : $61,000

Mercedes-Benz E550......Base price: $61,400

If Hyundai prices the Equus like this, they might as well not launch it.

See the pics below from Hyundai & M.B. Would anyone choose a Hyundai over a E550 for $400.

NO WAY!!!
Attached Thumbnails
Rumour: Hyundai to foray into the growing luxury segment in India-hyundai-equus.png  

Rumour: Hyundai to foray into the growing luxury segment in India-e550_mbusa.png  

Rumour: Hyundai to foray into the growing luxury segment in India-e350_mbusa.png  


Last edited by mikem : 24th December 2013 at 14:21. Reason: edit
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