[volkman10]

After establishing itself as the second largest palyer in the Indian passenger vehicle market, Hyundai could be planning to do something similar in the commercial vehicle market in India

Like other global CV manufacturers, Hyundai is learnt to be betting on India to shore up volumes significantly and build its standing in the global commercial vehicle industry. The Korean OEM’s success in the Indian passenger vehicle industry is expected to assist the CV business, in terms of setting up vendor and dealership networks.

The timeline and the route of entry for the Korean CV maker are not clear yet, but the company could be open to both the organic and inorganic entry strategy for India.

Link

[dZired]

Hyundai is reportedly planning to enter the Indian commercial vehicle market. The company is said to have already started exploratory activities and is looking out for the perfect opportunity to mark its debut into the segment. As per media reports, the automaker will enter the Indian CV market by introducing trucks, and will subsequently also launch its buses in the country.

Hyundai stepped into the commercial vehicle business with its buses in 1978. Trucks were added to the company's CV portfolio in 1984. The company has dedicated commercial vehicle manufacturing facilities in three countries: Korea, Turkey and China. Hyundai CVs have presence in over 130 markets across the globe. It claims to sell around 1 lakh units every year.

The Indian CV market is showing signs of growth from the past several years. Sales of medium and heavy trucks in the country have encountered a growth of 15% in the period between April-October 2016, while sales of buses grew by 33%. Hyundai appears to be enticed by this continuous growth of the market and is thus planning to boost its CV business here. Being the second largest passenger carmaker in the country, the automaker will also get help from its familiar brand name, especially in setting up dealership network and vendors for the CV arm.

Source: Autocar Professional

Link to Team-BHP News

[vinair]

Looking at how this company has altered competition in the last few years, I see no doubt why Hyundai wouldn't taste success in this new segment! They after all are a heavy equipment company, to start off with!

This news should ring a bell a two in the ears of other players, especially Maruti, who have been testing the Omni based LCV for some donkey years now!

[WAM-4]

Now is this is serious competition to established players like TATA, Ashley, DICV...

More the competition better will be the offering to the end-customer!

Though it is early days yet, I'm sure they'll ramp up quickly and pose a serious competition to the other commercial segment leaders..

[DWind]

Did Hyundai not already ink a deal with Caparo to build bus bodies on their chassis? Do we know what happened? This was before MAN entered and Mercedes Benz busses entered on their own.

[GTO]

Once you have covered the main segments, growth will only come from new ones. Hyundai has pretty much gotten the hatchback -> sedan -> SUV segments taken care of. That's why they are now entering the commercial segment. That's why a new brand - Kia - is coming in.

If I was Mahindra, Tata or Ashok Leyland, I'd definitely be worried. First, the more contemporary monocoque MPVs & SUVs took a lot of their sales away. Now, their stronghold in the commercial utility vehicle category will be challenged. Not only Hyundai, Maruti too has been very hungry to make a mark in the higher end commercial segment (at the lower end, the Omni & Eeco are very successful). With time, I expect Toyota to bring in commercial vehicles as well.

Let the games begin.

[DicKy]

Surprised to hear Hyundai entering the CV market, as it is one of the few main players in India who has not much of a CV presence.

Would be interesting to see the segment they are looking for.

The H-1 and Porter would be a good entry, but the bigger vehicles are doubtful only because they are basically the Mitsubishi FUSO models, which are sold in India as BharatBenz. Maybe Hyundai and Daimler have worked that out.

Do what the HIace couldn't do and provide a slightly expensive alternative to the Traveller.


The Porter

[Ashley2]

Originally Posted by GTO

..
If I was Mahindra, Tata or Ashok Leyland, I'd definitely be worried. First, the more contemporary monocoque MPVs & SUVs took a lot of their sales away. Now, their stronghold in the commercial utility vehicle category will be challenged. Not only Hyundai, Maruti too has been very hungry to make a mark in the higher end commercial segment (at the lower end, the Omni & Eeco are very successful). With time, I expect Toyota to bring in commercial vehicles as well.

Let the games begin.

Not necessarily. Tata and Ashok are perhaps like Hyundai in passenger car market. They have the products fitted in every corner and are reasonably better placed. So a new player entering a market can address only a portion of segment and will take time to address the complete sub segment.
BB is currently in that stage. They have 1 or 2 product in each segment with single wheel base. But say Tata or Ashokleyland have multiple options ranging from wheel base, power trains and body options etc. They have addressed many micro segments like Ashokleyland having a dedicated product for drill rig application, which itself has a volume of just few hundred, but still they have gone to that level.
So having products for each sub segments will be an entry barrier and it will take sometime for new entrant to address all those gaps.

Originally Posted by DicKy

Surprised to hear Hyundai entering the CV market, as it is one of the few main players in India who has not much of a CV presence.

Would be interesting to see the segment they are looking for.

The H-1 and Porter would be a good entry, but the bigger vehicles are doubtful only because they are basically the Mitsubishi FUSO models, which are sold in India as BharatBenz. Maybe Hyundai and Daimler have worked that out.

Possibly it could be a LCV.

Unlike 2008, the Indian premium coach market is now fully occupied with global biggies like Daimler, Volvo and Scania. And Hyundai’s premium coach products like Universe is not that attractive and may not pose serious competition to Indian and global MNC either in specification or interms of brand value. And the volumes of the coach segment is simply nothing attractive for a company to test its waters. Similarly its heavy truck line up like Xcient seems to be too futuristic for India.

As informed unlike M&HCV line up, Hyundai’s LCV line up pretty strong and have good presence across many middle east and south Asian markets. Its also to be known that Hyundai LCV were one among the benchmark products during the development of Tata Y1 aka Ultra series. So the product considerations could be Mighty or H100

http://www.cvnews.in/hyundai-to-enter-indian-lcv-space/

[GTO]

Originally Posted by Ashley2

Not necessarily. Tata and Ashok are perhaps like Hyundai in passenger car market.

Agreed, but then, so were Tata & Mahindra strong in the MUV market. Tata got displaced a long time back, while Mahindra has taken a hammering in the last 3 years due to the plethora of monocoque MUVs & SUVs.

The Bolero - once a strong 10,000 / month performer - now sells about half of that on average. Whenever I visit Deolali, I see rich farmers owning EcoSports, Dusters, Vitara Brezzas & Cretas as much as they do the Bolero & Scorpio.

[narayan]

Its a welcome move for Hyundai to step into the commercial vehicle segment but I hope they have done their home well.

1) India's CV segment is so fragmented in terms of buying behavior - LCV buyer is completely different from HCV etc

2) Financed sales form a significant part - I am hearing Hyundai is bringing their captive finance unit to India - so that will help a lot

3) Extremely cost conscious - so high degree of localisation important and virtually limited after sales income because most users prefer independent garages for servicing

4) Incumbent players like Ashok Leyland and Tata have deep market presence and a good product portfolio - they can easily trigger a price war to keep competition out - the way it was done when Bharat Benz was launched

In summary - Hyundai is well placed to make a strong mark provided it identifies a specific niche within the CV segment and then slowly starts building on initial successes rather than going with a big bang approach.

[TusharK]

Recent media reports suggest that Hyundai is currently in the process of evaluating the prospects of setting up a local commercial vehicles' business in India. The Korean manufacturer would be introducing trucks in the initial stages followed by buses. Hyundai would thus likely enter the intercity bus market in the near future. Being the second largest passenger car maker in the country, the automaker will also get help from its familiar brand name, especially in setting up dealership network and vendors for the CV arm.



Hyundai stepped into the commercial vehicle business with its buses in 1978. Trucks were added to the company's CV portfolio in 1984. This is not the first time that Hyundai has attempted to enter the Indian CV market. In 2008, they were in talks with the Caparo Group to setup a manufacturing unit in India.

Currently, Hyundai has a presence in 130 markets across the world. They have factories in Korea, Turkey and China. Hyundai claims that its global commercial vehicle sales amount to 1,00,000 per year.

Tata Motors and Ashok Leyland have dominated the CV segment in India. Hyundai is now eyeing a share of the pie along with other global players like Volvo, Daimler, Scania and MAN. In December 2016, it was reported that India topped the list of markets for expanding their commercial vehicle business.

Source: Business Standard