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Old 19th November 2014, 14:34   #1
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Default Hyundai to focus on increasing domestic market share

Hyundai Motor India has revealed that it is aiming to increase its share in the domestic market. The company is working on a new strategy to achieve this.

Hyundai has been the leader as far as exporting cars is concerned. However, as a part of the new strategy, the company has stopped exporting cars to many European markets and is concentrating its efforts on the domestic market, which has seen a growing demand.

Hyundai is aiming to increase its annual sales from 3.80 lakh units to 4.10 lakh units. For this the company plans to launch more localised products. It aims to introduce at least three new products or facelifts every year. The company is also looking at expanding its presence in the SUV segment and looking to enter the MPV segment.

Hyundai's market share has increased from 19.1% in 2010 to 21.6%. However, catching up with Maruti will not be an easy task. Maruti's monthly sales stand at 85,000-90,000 units while Hyundai is way behind with 30,000-36,000 units. Maruti is not sitting quietly either. It plans to launch many new models in the near future.

Apart from the large gap, Hyundai does not have the capacity to increase production by much. The company's Chennai plant churns out 6.3 lakh units annually. At the most, this can be increased to 6.8 lakh units. A second plant will have to be started in quick time if Hyundai wants to gain ground.

Source: Business Standard

Last edited by Aditya : 20th November 2014 at 09:41.
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Old 19th November 2014, 15:13   #2
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Default re: Hyundai to focus on increasing domestic market share

Its high time HMIL plays a much bigger role in the Indian car market! Brand recognition/acceptance has come a long way now! They have increased their numbers significantly with grand i10/elite i20 playing bigger roles. Even the Eon is more accepted now! With the compact SUV and MUV coming in, their offerings are lot more complete. I am disappointed with their lack of safety and auto tranny - they were pioneers here with offering ABS as an option on even the base variant on Santro in early 2000s :(
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Old 19th November 2014, 16:29   #3
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by Equus View Post
I am disappointed with their lack of safety and auto tranny - they were pioneers here with offering ABS as an option on even the base variant on Santro in early 2000s :(
Indeed. Was a trifle disappointed that the new Elite i20 did not carry forward the 6 airbags and skimped on the basics like auto lock & MID not having average FE. This despite a bumped price tag on the outgoing one.
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Old 19th November 2014, 16:32   #4
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Default re: Hyundai to focus on increasing domestic market share

Just hoping that this doesn't come at the cost of quality.
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Old 19th November 2014, 16:51   #5
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by Aditya View Post
Hyundai has been the leader as far as exporting cars is concerned. However, as a part of the new strategy, the company has stopped exporting cars to many European markets and is concentrating its efforts on the domestic market, which has seen a growing demand.
IMO, the reason to stop exporting to European markets is not the local demand, but the extra safety measures needed for those markets. And I think that is the exact reason why Suzuki is planning to source Celerio for European markets from its Hungarian plant, and not from Maruti plants.
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Old 20th November 2014, 08:08   #6
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by romeomidhun View Post
IMO, the reason to stop exporting to European markets is not the local demand, but the extra safety measures needed for those markets. And I think that is the exact reason why Suzuki is planning to source Celerio for European markets from its Hungarian plant, and not from Maruti plants.
+1.

I am of the same opinion, and had posted it in the thread http://www.team-bhp.com/forum/indian...ia-europe.html (Hyundai stops exporting cars from India to Europe) long back.

But then again, we can't be certain that other companies are giving anything better till uniform rules are kept in place. IMHO - Hyundai India has identified the perceivable parameters and are working hard to keep their products updated in those parameters. For example - the exterior looks, the interior features and quality, the NVH, VFM factor etc.

These are factors which every buyer can judge without requiring any advanced tests (like crash tests), and they are concentrating their efforts to make sure their products beat others like Honda and MSIL on these departments.


PS -

Isn't the above thread mentioned discussing the same topic? Earlier thread discusses 'Hyundai stopping exports to increase domestic production', while new thread discussed 'Hyundai increasing domestic production by stopping exports'.

Last edited by CrAzY dRiVeR : 20th November 2014 at 08:09.
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Old 20th November 2014, 14:07   #7
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by CrAzY dRiVeR View Post
IMHO - Hyundai India has identified the perceivable parameters and are working hard to keep their products updated in those parameters. For example - the exterior looks, the interior features and quality, the NVH, VFM factor etc.

These are factors which every buyer can judge without requiring any advanced tests (like crash tests), and they are concentrating their efforts to make sure their products beat others like Honda and MSIL on these departments.
Not exactly. Hyundai skimped the 6-airbags (available in the earlier i20) and gives only 2 airbags in the Elite i20 in the Indian market. None is exempt-able


Quote:
Originally Posted by CrAzY dRiVeR View Post
Isn't the above thread mentioned discussing the same topic? Earlier thread discusses 'Hyundai stopping exports to increase domestic production', while new thread discussed 'Hyundai increasing domestic production by stopping exports'.
Mods, please merge them.
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Old 20th November 2014, 17:06   #8
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by Equus View Post
Its high time HMIL plays a much bigger role in the Indian car market!
Totally agreed. They offer superior quality to Maruti at excellent prices. If anyone can take the fight to Maruti, it's Hyundai. Growth opportunities are plenty: compact SUV, million rupee SUV, million rupee people mover etc.

I don't remember who stated this, but think it was the highly revered BVR Subbu. He once said that, for the first couple of years after entering India, Hyundai was incredibly aggressive and the only talk in their office was how to beat Maruti. Since the last 5 - 6 years, they've become happy with the no. 2 position instead.
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Old 20th November 2014, 17:24   #9
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Default re: Hyundai to focus on increasing domestic market share

The current trend is that Hyundai sales have more or less flat-lined +/- 10% on good & bad months respectively. As GTO rightly said their products are much superior to Suzuki in India, whilst being equally or more reliable. Yes some complain of somewhat soft suspension and steering in current crop of models (older Santro/Getz/Verna had better dynamics), but each car-maker suffers a unique problem like service/reliability/bad-build/failures etc, so I'd say Hyundai have managed the best balance of cost-safety-reliability world over. While people complain of reduced safety features currently, no one bought much of the 6 Airbag i20/Verna when they were happily selling them & as a company, demand is the ONLY reason to produce - otherwise it leads to stock-piling/inefficient plant utilization and financial loss.

This company is quick on its feet and almost revolutionized cars in India when the spacious Santro came with 4 cyl engine, 4 power windows and ABS. They have churned out more models/tweaks/facelifts in half the normal time of competition. While it has been successful so far, it is nowhere close to its potential and in my view, intelligent variant planning, slightly more affordable service and standard 5 year warranty la their international policy, should shake sales up considerably.
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Old 20th November 2014, 17:29   #10
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by GTO View Post
If anyone can take the fight to Maruti, it's Hyundai.

Correct. But what we are seeing is their new launches are actually eating into the pie of their own stable mates. Eon, xcent, grand i10 are examples - all ate into the grand-old i10, i20 and Santro's shares.

Quote:
Originally Posted by GTO View Post
Growth opportunities are plenty: compact SUV, million rupee SUV, million rupee people mover etc.
But the total share of these cars is a small percentage when compared to the hatch and sedan categories. Combined, it may add another 5-7K units for Hyundai at the maximum. When compared, a good hatch or sedan will fetch double of this figures.

Quote:
Originally Posted by GTO View Post
I don't remember who stated this, but think it was the highly revered BVR Subbu. He once said that, for the first couple of years after entering India, Hyundai was incredibly aggressive and the only talk in their office was how to beat Maruti. Since the last 5 - 6 years, they've become happy with the no. 2 position instead.
Yes, I guess they became aware that it takes a lot to be another Maruti. Safety talks aside, for a common man, the FE and peace-of-mind of a Maruti is hard to beat.

Last edited by romeomidhun : 20th November 2014 at 17:36.
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Old 20th November 2014, 17:30   #11
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Default re: Hyundai to focus on increasing domestic market share

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Originally Posted by romeomidhun View Post
Not exactly. Hyundai skimped the 6-airbags (available in the earlier i20) and gives only 2 airbags in the Elite i20 in the Indian market. None is exempt-able
I guess I didnt convey my point clearly enough.

I am only saying that Hyundai is concentrating efforts on improving what a normal buyer can judge. For example, my Xcent has such a good sound when opening and closing the doors - it feels a more solid than even the Punto. But is it due to solid construction? Not really, but clever design of the door beadings.

And also the interior look and feel which a common man appreciates. The space, quality of plastics etc is amazing for the asking price. Same goes for refinement.

But I don't think the Xcent would have the same structural integrity of the Grand i10, though I would love to be proved wrong. Hyundai knows it is not a perceivable parameter and skimped it.

About airbags - only very few guys including us miss that variant. Others would be happy if the brochure says 5 star safety, even on their cars with no airbags. Sad but true. This is not a justification that for what they do, I am only saying they are clever. Or wait, would it be cunning rather?

As per the current scenario, I feel -

Maruti = Cheaper price tag + Cheaper, but acceptable for the price feel.
Hyundai = Average price tag + Premium feel.
Honda = Premium price tag + Cheaper, but not acceptable for price feel.
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Old 20th November 2014, 17:48   #12
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Default re: Hyundai to focus on increasing domestic market share

Hyundai as a company is incredibly quick on its feet and what amazes me even more is that they get the basics right the first time the product is out. I still remember how quickly Hyundai launched the eRLX Santro with the 1.1 liter engine to counter the bigger engine in the Wagon-R or or even now that their small SUV launch is nearing. The turnaround time from acknowledging the threat to actually launching a counter product in the market is amazingly quick. And before they do that, the i20 Elite Cross is already in the works and could be launched anytime. In comparison just think how long the likes of Ford, Tata and even Maruti take to launch their brand new products.

I also agree that they offer the best combination of quality, reliability and kit for the price. The products themselves might not be terribly exciting to drive but majority of the car buying population could not care less.
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Old 29th December 2016, 09:22   #13
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Default Re: Hyundai to focus on increasing domestic market share

Hyundai Motor India is actively pursuing a 3-point agenda to drive future sales and growth in our country, namely:

- deeper penetration into rural markets,
- introducing more utility vehicles, and
- focusing on premium products and new technologies.

Hyundai claims it has more than 20% market share in the Rs 10-20 lakh segment in India, with 4 of it's products (Verna, Creta, Elantra & Tucson) doing well. Sources in the know say that Hyundai is working on stabilising it's lead in this particular segment, with expectations of growing much faster than the rest of the market.

To tackle the new emission norms which are scheduled to kick in soon, Hyundai would be introducing it's own mild-hybrid tech in the upcoming 2017 Verna and the Creta facelift by 2018.

The sub-4m utility vehicle segment will see Hyundai's contender, the Carlino concept (codenamed QXi) powered by a 1.0L turbocharged engine, enter the fray by early-2019.

Also, the company has registered healthy Y-O-Y growth in the rural sector, where it's market share of total sales stands at an impressive 23.2%, thanks to consistent sales numbers of it's 3 major hatchback offerings - the Eon, the Grand i10 and the Elite i20. To improve it's market share in the rural market, Hyundai will create products with customised offers to lure more customers, people in the know of the plans said.

The company is also mulling the possibility of launching another product in the B-segment too, which could be another compact hatch.

Rakesh Shrivastava, senior vice president of sales and marketing at Hyundai Motor India:

Quote:
“For us, the biggest challenge is to continuously bring newer, unique products in various segments to widen our appeal to the customer. We plan to launch products in segments where we are not present and then widen the offerings in areas where we already have a presence."
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Old 29th December 2016, 10:47   #14
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Default Re: Hyundai to focus on increasing domestic market share

Would be good to know how the market share stacks up when you actually run topline numbers of different car makers against the other. Suzuki may still be the leader, but the market share gap between the top 3-4 players might reduce significantly, what with entry level hatchbacks/sedans is where Maruti has a big lead over the rest. I understand why companies tend to think about market shares in terms of units. but a revenue-wise view will be interesting to develop.
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Old 29th December 2016, 12:19   #15
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Default Re: Hyundai to focus on increasing domestic market share

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Originally Posted by bhaskaracs View Post
but a revenue-wise view will be interesting to develop.
You should refer to following post by jpcoolguy

http://www.team-bhp.com/forum/indian...ml#post4106257 (November 2016 : Indian Car Sales Figures & Analysis)
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