[alpha1]

Originally Posted by GTO

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).



Well, this was the case in the USA before Lexus & Infinity too. That line of thought was relegated to history soon enough.

Isn't a premium / sporty car slightly different case from a truck/SUV/MUV (where Mahindra was an accepted name)?
I don't know perhaps I am just speaking from my hindquarters - and only time can tell whether I am wrong or right.

But you are correct about Lexus and Infinity.
In fact I would love Hyundai to succeed here - I am fed up with the groupthink of only Europeans can produce premium luxury vehicle.

[wilful]

Originally Posted by F150

While I was aware of the lack of diesel motor on the Elantra, I wasn't aware of the lack of marketing and dealer support for the Elantra.

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.

I think you mean the Sonata and not the Elantra.

I for one, would cheer loudly if Hyundai were to be half successful in this area - because I think it would then get other majors to bring in their heavy artillery into this market and it would be great for the customer.

[mints21]

After the fluidic design, Hyundai has become more aggressive and responsive to the needs and demands of the Indian car buyer. They have full ability to market the high end cars in India. However, one major thing which I have pointed out to many people at Hyundai is a separate lounge, facility to the buyers of premium cars like Elantra , Sonata, and Santa-fe.

A person who comes with a mindset of buying a premium car needs to be given extra attention and some kind of exclusivity in order to make him feel comfortable and cared for.

If they can improve on this, no doubt they will sell premium cars which no other car buyer has ever been able to sell.

We all would agree, Hyundai is the only company which has started the trend of loading the B segment cars with maximum features and then pricing them higher than the competition. Their B segment cars are selling like hot cakes.

Hyundai is emerging as true trend setter in India which is redefining our purchase pattern and thought process of buying a car.

[shankar.balan]

One of the truisms of brand marketing is that while it is very easy for a premium or luxury brand to move down the ladder and grant entry for new consumer segments into the brand; for a value or utility level brand trying to make the reverse journey up the value chain, is always very tough.

This is because the consumer already has a mindset and the brand has to battle with that, when it is trying to make its journey up the value chain.

This is one of the reasons why brands like Toyota, Honda and Nissan, created whole new brands to address the higher segment - Lexus, Acura and Infiniti.

This is also one reason why Suzuki was simply unable to market and sell the Kizashi, not only in India but in several other countries too. This led them to state that they will never make another vehicle like the Kizashi, but would concentrate on what they do best.

Take the case of Titan. They are so successful in the mid market. The moment they popped up with Xylys, despite its 'Swiss' pedigree etc, consumers did not bother about it at all but went straight to the 'real swiss watch' brands and category experts like Tissot etc, which were priced similarly too.

Skoda came into India with premium positioning right from the start. Indians carried no baggage relating to the Skoda brand at all. Hence they have always been perceived as 'premium european' here. Observers would remember that VW had its work cut out for it, when battling its own sibling, Skoda, for Premium positioning in the India market! Finally, remember that VW had to slowly and systematically 'strip down' the Skoda brand in an attempt to 'de-premium-ize it' and thus, make way for the VW brand to be positioned.

Hyundai came in as a competitor to the mass market phenomenon that was Suzuki and did a fantastic job of it over the last 15 years. Saying that, they are still perceived as a Suzuki alternative and NOT as a definitive premium brand, by any stretch.

Honda and Toyota, on the other hand, have clearly established a premium for themselves in the Indian market, whereas anywhere else in the developed world, they are ranked alongside and compared with Suzuki. This is why the Indian consumer seems willing enough to buy Honda Accords, CRV's and Toyota Fortuners at an exorbitant premium price, when compared with the other parts of the world where these models are sold!

I, for one, am highly sceptical about the possible success of Hyundai's foray into the Luxe segment.

I would definitely buy a Hyundai car, for its engineering, features, quality, service and price because it positively glows with these virtues!

I would NOT, however, buy it for its 'luxe-premium- classy image' because it has none whatsoever!

[Mpower]

I sat inside a Hyundai Genesis V8 at the Chicago and was shocked to see how plain it was. The shapes were at least a generation old and the quality was not even close to a Accord, leave alone a Passat. I would not even buy it at Accord level pricing.

In terms of powertrain, they are still focused on V8s with nothing to offer against the turbo 6 cyl competition.

[AyAn!]

Well, one thing they need to do is implement independent, upscale outlets for these premium offerings. As a premium/luxury car buyer, one would be terribly cross to see it share the showroom floor with the likes of piddly Eons and Santros.

Originally Posted by GTO

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

I'd like to think that they were merely building upon the Scorpio's image which was already a shot in the arm for M&M, since it was launched. Besides, the territory where Hyundai is aiming for is a different ball game together, and rest assured it'll be a hard nut to crack for them.

But general observation has showed that buyers in this segment usually play safe and go ahead with established, trusted players. Even a highly calibered brand like Volvo struggles a tad with it's offerings. Hyundai's biggest hurdle will be undoubtedly it's vanilla image, maybe a little high dosage luxury-VFM marketing would help.

[GTO]

Originally Posted by extreme_torque

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, only if they sell for 30 lakhs, the kind of:

Size
Power
Quality
Equipment
Luxury

That the Germans do for 50 - 60 lakhs.

[vb-saan]

Looking at the way they’ve progressed (as a brand) in the past few years, I won’t be surprised if Hyundai get it right in the luxury segment. For a start, they need to get rid of the soft image they carry. For e.g.; their foray into the performance category did not yield any outstanding results (with the Veloster).

For the Indian market, I am keenly looking at the arrival of new Santa FE – to see how successful it can be in the 20+ lakhs segment.

[Jeeper1941]

Originally Posted by GTO

It will, only if they sell for 30 lakhs, the kind of:

Size
Power
Quality
Equipment
Luxury

That the Germans do for 50 - 60 lakhs.

No one in their right mind will spend 30 lakhs on a Hyundai, irrespective of how luxurious or powerful it is. People who spend upwards of 30 lakhs on their cars are spending that money to make a statement, which is simply not possible with a Hyundai.
It may be a good car but at the end of the day it is still a Hyundai.

[extreme_torque]

Originally Posted by GTO

It will, only if they sell for 30 lakhs, the kind of:

Size
Power
Quality
Equipment
Luxury

That the Germans do for 50 - 60 lakhs.

If that was the case, Accord would have been a preferred choice over the 3 series executive editions and the entry level A4. Snob value matters a lot in the 30 lakh rupee segment. Hyundai just don't have the pedigree.

They also don't have one 'halo' car in their lineup. Even Ford's and Chevvy's have the GT40, Mustangs and the Corvette's.

[zenren]

Originally Posted by extreme_torque

If that was the case, Accord would have been a preferred choice over the 3 series executive editions and the entry level A4. Snob value matters a lot in the 30 lakh rupee segment. Hyundai just don't have the pedigree.

Accord might have been one of the preferred choices for many if it had a diesel engine.

[shashank.nk]

I hope that they succeed with this venture! Simply because it gives us more options than sticking to the euros. The key launch for them will be the upcoming Santa Fe in the next year, if it can grab market share from the mighty Fortuner that would indeed be very promising.

They surprised us with the i20 sales figures, lets see if they can replicate the same in the 30L price bracket.

[sridhar24]

If Hyundai goes ahead and launches Eqqus, i'm pretty sure they will not be successful even with a premium brand. That too at a price tag of nearly 30L INR, its impossible to sell in a market where only european cars are known as luxury cars.
Probably Genesis would be a better choice to start with.
To some extent Hyundai is also a mass market maker, so it would be difficult for tthem to change that image in the indian market. We all know what happened to Suzuki Kizashi, even though its a good product.

[extreme_torque]

Originally Posted by zenren

Accord might have been one of the preferred choices for many if it had a diesel engine.

Over an equivalent diesel BMW/Audi/Mercedes? I dont think so and that despite that fact that Honda's brand pull in India is more than Hyundai.

[zenren]

Originally Posted by extreme_torque

Over an equivalent diesel BMW/Audi/Mercedes? I dont think so and that despite that fact that Honda's brand pull in India is more than Hyundai.

Over an equivalent feature-stripped BMW/Audi/Merc diesel is how I would put it.

Of course, I'm not saying all customers would buy Honda over German trio. At least a good fraction might consider features over the brand.