[sidindica]

Mod Note : Please continue the discussion on the Hyundai Sonata Official Review Thread. Thanks

Of late, the compact SUV and executive sedan segment have been growing, even if volumes are limited. Honda sells about 250-300 accords, skoda about 300 odd superbs every month etc.
Fortuner aside, the captiva is the only CUV that sells in decent numbers.

Now coming to Hyundai.
Though its currently the second largest manufacturer and the largest passenger car exporter in India, bulk of its sales only come from i10 and i20 models, despite having 8 models in its lineup.

The getz is dead, santro sales have tumbled and only the verna is doing decent numbers.

With the capacity of its second plant in question (remember when Hyundai hinted at shifting bulk of its i20 production to Europe to minimise production costs and price the car competitively?) and potential sales decline in Europe due to the end of scrappage scheme, is time that Hyundai fires a salvo at higher ends of the passenger car market.
When the sonata was launched way back in 2001, it handsomely sold the accord just on the strength of its quirky styling, despite having subpar mechanicals. Then in 2003, a new accord was launched and the sonata was simply history.
Come 2005, Hyundai launched the tucson in march, again it was a success in its first year of sales. Then came many competitors, and the competent tucson is again a sales dud.

Hyundai did try to correct things with its NF Sonata, called the embera, and despite being available with a diesel option, people continued to purchase accords, its new redesign only helping to increase the sales.
The sonata was again facelifted and the car's biggest weakness, the interior, was fully redesigned and Hyundai finally had a car that sold decently, at 40-50 odd units per month, despite being cheaper than the accord and superb.

Its only time that Hyundai, which has rediscovered the meaning of "extravegent design", launches the replacements of sonata and tucson and the timing couldn't be any sooner.

Instead of spending money on marketing tired decade old products like the santro and accent "calling tham as all new" in the ads, it eould make sense to speed up these 2 crucial launches in our country. they did talk about santa fe fr the past 4 years but never launched citing high import duties (read:terracan debacle) and "brand awareness".

Come on Hyundai, you have 3 advantages in your disposal:

• third largest service network
• hassle free and decent cost of ownership
• brand awareness (if the hatchback segment is anything to go by)

Hyundai's "premium hatch", the i20 has been well accepted despite being expensive, just because is offers value (price to size to features ratio) and is currently the segment bestseller, ditto for the I10.

[sidindica]

Now coming to the 2 new launches that we need:

New Sonata (I45)

In Australia and NZ, the all new YF Sonata, just recently launched in Korea and US, will be badged as the I45 and the sonata name will be dumped. It makes sense to do the same here. Indian market, as shown in past history is very sensitive to brand and product names and any new competitive product, if it carries the same old baggage, has very little potential to succeed.

What Hyundai will have in its sleeve

• fresh contemporary styling with youthful appeal, even if it is exaggerated. We Indians love flashy looking cars and the looks of the new I45 will prove to be a huge competitive advantage. See the pictures below, and no offence meant, the accord's styling really looks confused and out of proportion, especially at the rear. It really looks like an old man's car in comparision. Same goes for its interior design.

• the engine-Hyundai will not offer any V6 option in this car anywhere. But its new theta 2 GDI (gasoline direct injection) engine is very high tech, produces 198 bhp and is in fact more fuel efficient than the current 2.4 accord, due to low rpm peak torque. It comes with Hyundai's first in house designed and built 6 speed automatic, in comparison to accord's 5 speed.

• An all new r series 2.0 CRDi diesel is also coming prducing about 140-160 odd bhp (can't recall exact figures) and if priced competitively (read: cheaper than the Honda), it has the potential to demolish the E segment, at least on paper. Skoda's diesel cars sell decently, but the A.S.S. is a nightmare.

• service network and competent dealer staff (though you know there are a few dark holes), vast and no cause of worry.

• What Hyundai needs is a proper marketing and PR team to make this product a success. Heavy promotions, test drives and converting them into purchases is the biggest challenges that lie for the top honchos.

(pictures show US market Sonata, courtesy edmunds insideline)

[sidindica]

Hyundai IX 35 (Tucson replacement)

Hyundai has ditched the tucson moniker and replaced it with a highly competent CUV, the IX 35 in many global markets (except the Americas and Korea where the tucson name will continue to be used), and the new product is a very radical departure from its forgettable predecessor.

Fluidic sculpture design looks different and has the potential to stand out in the crowd, coupled with 2.0 L CRDI engine and a competitive price of not more than 14 lakh odd, it should succeed with those who want a sporty compact diesel CUV with peace of mind ownership experience. Remember, the ridiculously high priced CR-V manages 60-70 odd units every month. Last month alone, it sold 120 odd units, a surprisingly decent figure for a 25 lakh CUV wearing the Honda badge.

Lets hope that market reaction is positive and Hyundai get serious in marketing and PR aspects this time.

EDIT: images will be put up shortly.

[AyAn!]

Yes,Hyundai India must be mulling about the IX 35 SUV and the new Sonata launch.But most importantly lets hope Hyundai gets them the CKD route or else there's no point and the brilliant IX35 may end up like the good but overpriced Tucson. The new Sonata/I45 is good but it won't stand against the Accord and for Hyundai to attract customers it should provide good value for what it is.The iX35,if priced right,should do well.

But while these models will definitely be a shot in the arm for Hyundai India and freshen up their line-up,they won't generate decent volumes.What Hyundai needs is to develop a real volume player, an in-house sub i10 800cc hatch..!

[sidindica]

Originally Posted by AyAn!

Yes,Hyundai India must be mulling about the IX 35 SUV and the new Sonata launch.But most importantly lets hope Hyundai gets them the CKD route or else there's no point and the brilliant IX35 may end up like the good but overpriced Tucson. The new Sonata/I45 is good but it won't stand against the Accord and for Hyundai to attract customers it should provide good value for what it is.The iX35,if priced right,should do well.

But while these models will definitely be a shot in the arm for Hyundai India and freshen up their line-up,they won't generate decent volumes.What Hyundai needs is to develop an in-house sub i10 800cc hatch..!

That is already under development and is going to be launched in Q3 2011.

[Ramsagar]

Great insight scoop master.
Are these vehicle expected be launched shortly in India?

[mkh]

I think they need a killer sedan- one that replaces the verna. All they gotta do is make the interiors more contemporary, ride handling better- rear suspension only part to be improved. The shape is always something that a new model has new. The Engine that serves the verna is still fine and at par with the competition. In fact the hatch and premium hatch has enough to choose from, its the sedan segment that is seriously lacking choice( new offerings)

[sidindica]

Hyundai Sonata (I45) images courtesy edmunds insideline

[sidindica]

Hyundai IX 35 images

[Latheesh]

New Sonata looks really good, from some angle IX 35 looks like last generation Acura MDX.

[A350XWB]

Good analysis Sid, but I have my doubts.
Even in an "educated" forum like T-Bhp, I regularly come across comments like "Why should I spend this much for a Hyundai?", "Oh, it's a copy of the XYZ model from ABC, Hyundai just copies from others", "The tyre is just circular like the Ford Model-T " etc etc.
In a country like ours, where people are mostly aware of only certain brands, and have blind faith in those brands, it's difficult for Hyundai to introduce high end cars and succeed.
I definitely agree that the i20 and Verna were right steps and Hyundai has to take it easy. As somebody already mentioned above, what they desperately need is a Verna replacement. The engine (CRDi) is a killer, throw in Airbags and give it a facelift, better interiors and better driving dynamics and you have a winner. There will be no-competition (below 10L) for a car like that.

[recshenoy]

Guys,

Hyundai IX 35 looks neat in white but in pics of other colors, could see lot of quirkiness in body design (too many curves) i must say! is it me or some else also feeling same.

Any new of Santa-Fe?

[Yusha]

I like both the cars and I feel if Hyundai launches them, they will sell but how much is the question. Hyundai will not be able to make a serious dent in the segments these cars represent keeping in mind that Hyundai will get the pricing just right.

I agree with what A350XWB said. Improving the Verna will benefit Hyundai more. I think its time for Hyundai to wake up and phase out the Santro and the Accent. Both these cars have been replaced. I dont think why Hyundai should continue to sell these cars alongside their replacements, i10 and Verna.

This is something which Maruti also does very well.

[harishnair]

The IX-35 suv looks good and could be able to pull in some sales if they bring it with the 2.0L R-line diesel engine and price it in the 16 to 19lac region.

I'm very much doubtful on the prospects of the I-45 sedan. It does look good, but brand value does come in to play as and when compared to the competition.

IMHO, Hyundai should release the new Elantra/I-30 sedan with the 1.6L CRDi and price it on par with the ANHC. And then slowly build up their image before releasing the I-45.

[Gilead]

Nice posts, sidindica.

Originally Posted by sidindica

Of late, the compact SUV and executive sedan segment have been growing, even if volumes are limited. Honda sells about 250-300 accords, skoda about 300 odd superbs every month etc.
Fortuner aside, the captiva is the only CUV that sells in decent numbers.

Not really. The Endy sells 300-400 a month. The Captiva sells about 50 if I am not mistaken.

is time that Hyundai fires a salvo at higher ends of the passenger car market. When the sonata was launched way back in 2001, it handsomely sold the accord just on the strength of its quirky styling, despite having subpar mechanicals. Then in 2003, a new accord was launched and the sonata was simply history.
Come 2005, Hyundai launched the tucson in march, again it was a success in its first year of sales. Then came many competitors, and the competent tucson is again a sales dud..

Hyundai has the same problem as Maruti when it comes to selling premium sedans and SUVs. Indians perceive them as a small car maker and probably won't touch their competent premium sedans and SUVs. Folks prefer badges like Honda, Toyota, Skoda or maybe even Ford going by Endy's above average numbers. If the Figo is a success, Ford may have issues selling cars like the Focus and Mondeo which are apparently in the pipeline.

Originally Posted by sidindica

What Hyundai needs is a proper marketing and PR team to make this product a success. Heavy promotions, test drives and converting them into purchases is the biggest challenges that lie for the top honchos.

I agree that the I45 is a very good looking car, but I am certain that the Accords and the like will continue to outsell it because of the badge. I really hope it launches here and provide us more competition in the D segment. I am sure that Hyundai has a fairly competent markekting team. You can't compete with the wily Maruti if you don't. The issue with premium sedans and SUVs is profitability. Lack of marketing support for the Embera is a purely business decision and not because they don't have marketing people.

The IX35 looks rather weird to me.

Originally Posted by A350XWB

Good analysis Sid, but I have my doubts.
Even in an "educated" forum like T-Bhp, I regularly come across comments like "Why should I spend this much for a Hyundai?", "Oh, it's a copy of the XYZ model from ABC, Hyundai just copies from others", "The tyre is just circular like the Ford Model-T " etc etc.

Please don't tell me brand and badge are not important. It has nothing to do with education. I read in today's Eco T that Infosys employees are pissed off because of changes in bands and designations. Will someone who was a Senior Manager till now be happy to be designated as Tech Lead even if the pay is same. Works similarly when it comes to cars. Even Toyota had to introduce Lexus because of badge issues.