[GTO]

Thanks to a Team-BHP Fan (who prefers to stay anonymous) for sending this news in. Heartfelt gratitude for sharing it with other enthusiasts via this Team-BHP page!

Hyundai has confirmed 5 future vehicles for the premium segment. These are going to launch in the next 3 - 4 years (new Elantra, Santa Fe, Kona and 2 EVs). The goal is to make a new premium category and replicate the model of NEXA. Hyundai wants this to be in place latest by 2021. Yes, they will be coming out with separate Hyundai outlets for the premium range of vehicles above Kona. Existing dealerships would be considered to open entirely new setups (similar to how Maruti offered Nexa dealerships to existing Maruti dealers first).

A new hierarchy has already been created in Hyundai, and Area Managers are being recruited from August 2018. They will only be responsible to look after the premium existing range i.e. Creta and above. They will be training dealers to treat the customer with velvet gloves.

Also, Hyundai India has some serious future plans to compete with sister concern KIA which will also offer similar category products by 2020. While they belong to the same umbrella, Hyundai & Kia are working on clear strategies to try to avoid the kind of product cannibalisation that hurt Nissan and Renault.

[CrAzY dRiVeR]

Originally Posted by GTO

Yes, they will be coming out with separate Hyundai outlets for the premium range of vehicles above Kona.

More of a necessity than the need for premiumness IMO - the same opinion I had expressed initially when NEXA concept was revealed.

Currently Hyundai has nine vehicles in its portfolio in India, with the new Santro getting ready for launch, i30 being under tests for quite a long time, Brezza competition under development and a new micro SUV announced for development. SanteFE is a CBU and can be brought back anytime - so they are looking at around fourteen cars to be displayed in their showrooms in the near future, which is a difficult task as the showrooms not only tend to get crowded - but won't be able to stock all test drive vehicles for so many cars in their different formats - petrol, automatic, diesel etc.

The strategy does make sense considering the sheer numbers, and this was excluding the electrics and such vehicles which have less probability to finally make it to our market. Moreover, new premium dealerships can concentrate on promoting the Hyundai brand beyond the 20L barrier where they currently seem to have got stuck, in terms of success. Dealerships will happily sign up too - if they are promised that the Creta (which sells around 10k units a month) will be part of the new network.

Ideally - I would like to see all cars below Creta in a showroom and all above Creta in the new premium shoroom. Unlike Maruti - Hyundai doesn't have to move a car like i20 (Like Maruti did with Baleno and Ignis) to their premium showroom as Creta alone should be enough to bring in the profits.

Increasing pressure for Maruti though - with Kia also coming in bigtime!

PS - Hope Hyundai atleast shows some more courage and brings the N division to India through this premium network.

[volkman10]

Originally Posted by CrAzY dRiVeR

Increasing pressure for Maruti though - with Kia also coming in bigtime!

Do not forget the Toyota angle in the picture, from 2019 and even more when EV pitches in.

The sales channels will end up to be Maruti Suzuki, Nexa and Toyota ( with cars shared between Maruti and Toyota)

[Chetan_Rao]

One hopes the separate channel would be used to sell actual premium products, not just move random ones there and charge extra for the 'premium' experience with no actual product differentiation, à la Nexa.

[CrAzY dRiVeR]

Originally Posted by volkman10

Do not forget the Toyota angle in the picture, from 2019 and even more when EV pitches in.

Not sure why I'm not very excited at all!

Corolla would be a good addition to NEXA, atleast helping to build up the premium image for Maruti. But remains to be seen how the other products like Toyota's version of Brezza and Baleno fares in the market.

In comparison - Kia uses the Hyundai platform but makes products that are complimentary to the range, not just badge engineered. Like the European version of equivalent Hyundai cars.

Originally Posted by Chetan_Rao

à la Nexa.

That happened mainly due to the initial failure of the SCross. Maruti had the plan in place, but just not the right products. Situation could have been different if it was the Vitara launched instead of SCross, with the Ciaz joining the lineup.

Baleno was a necessity to keep the new NEXA dealers happy.

[ranjitnair77]

I think this is a very welcome move indeed. When I was in the process of buying a Verna last year, the dealership experience in Pune was quite poor overall.

• Unprofessional sales advisors who rarely followed a process or valued my time.
• Shabby showrooms with poor maintenance.
• Cars not available for test drives.
• Offering customer cars for test drives.

I contrast that with my Nexa experience which was very good, for cars that were cheaper. Perhaps just the feeling that they were a premium outlet and the right set of processes elevated the game. I hope Hyundai moves very quickly on this.

I think every car buying experience should be at this level, not just premium cars. It is a very special occasion for a person who buys an Eon. You are also looking at someone who will come back for an upgrade in the future.

[strawhat]

Am I the only one who is beginning to see parallels with classes in flights? The economy class being normal dealerships and business/first class being Nexa.

Nothing wrong with this strategy per se, as long as customers are treated to "actual premium" cars not just the service.

[sharktale]

Though I appreciate the effort Hyundai is putting in thought in rivalling with a Nexa competition, in my opinion, it would be of huge advantage, if they make their showroom line EV ONLY, probably cause :


1. EV only showroom would help them increase Time Spent/Visit by the customer, and also ensure the resources in the showroom suit the EV needs. Imagine some Free charging points existing inside the dealership, which can be used by Hyundai EV customers.

2. The prospective buyers will also be benefited, as they could have a one-stop shop for all their EV needs.

3. Hyundai can aggressively market the EV phenomenon and pip it's existing rivals like (Mahindra Reva). Marketing EVs compared to Premium showrooms is a much better value proposition.

4. EV only showrooms would give Hyundai a first-mover advantage in that segment. I guess Kia can handle the premiumness for now. Hyundai can focus on improving EV volumes. Moreover, premium customers from the various ranges would definitely lookout for an EV to spend and save their precious money.

[avdhesh15]

It's a good decision considering Hyundai have cars in a very vast range. The effort and skill in selling a 30-lac car is much more different than selling a 3-lac car.

Maruti being the first mover had initial hiccups and issues. Hyundai will (hopefully) learn from their mistakes and try to correct them during their launch.

[Jeevith]

Is this also a stepping stone for someday bringing in the Genesis brand?

[Sahil]

Originally Posted by GTO

While they belong to the same umbrella, Hyundai & Kia are working on clear strategies to try to avoid the kind of product cannibalisation that hurt Nissan and Renault.

Not to forget Skoda and VW, biggest disaster on strategy that has resulted in the "cheaper brand" winning over the flagship

[petroguzzler]

Originally Posted by CrAzY dRiVeR

Dealerships will happily sign up too - if they are promised that the Creta (which sells around 10k units a month) will be part of the new network.

I don't think that would happen. I think that the portfolio of the proposed premium dealerships would start with models like the Tucson and Elantra etc. In other words, cars with thick margins and relatively low volumes.

[kiku007]

Originally Posted by CrAzY dRiVeR

More of a necessity than the need for premiumness IMO - the same opinion I had expressed initially when NEXA concept was revealed.

Currently Hyundai has nine vehicles in its portfolio in India, with the new Santro getting ready for launch, i30 being under tests for quite a long time, Brezza competition under development and a new micro SUV announced for development. SanteFE is a CBU and can be brought back anytime - so they are looking at around fourteen cars to be displayed in their showrooms in the near future, which is a difficult task as the showrooms not only tend to get crowded - but won't be able to stock all test drive vehicles for so many cars in their different formats - petrol, automatic, diesel etc.

>9 cars require a split dealership strategy which isn't applicable anywhere else in the world?

The "premium con" continues in India.

[naveen.raju]

A good move from Hyundai but I seriously hope that they won't give more importance/preference to this "premium" outlets. A lot of work needs to be done in their existing showrooms/dealerships (customer satisfaction). And as the sales and service go hand in hand, they need to take a serious look in improving their current service quality standards (the Indian Car Dealerships section shows the sad picture).

[ajmat]

Some Hyundai dealers are already informally doing this in Bangalore. Smaller showrooms sell i10, i20, Cretas and Vernas. The larger showrooms display the Tuscon and Elantra with the lesser models tucked somewhere at the back.