Hyundai wants to grow in India as Vw and Ford increase their market share

Article by Christian A., on May 26, 2011

In response to gains in market share by rivals, Hyundai Motor Co. is studying a plan to make a network of up to 1,000 rural outlets and is presenting a more affordable small car. Volkswagen AG and Ford Motor Co. have both increased their share.

Arvind Saxena, Hyundai’s India director for sales and marketing, said that the carmaker has been examining these markets and seeks to focus on expanding the network in those areas. He didn’t provide a timeframe for this plan.

Hyundai wants to concentrate its expansion in rural areas that have a small number of dealerships as the growing economy in India is distributing wealth beyond the urban regions. Hyundai’s sales in India increased by about half the rate of the overall market in the last fiscal year.

Its rivals -- Ford, Volkswagen and Toyota Motor Corp. – have offered more models and have opened showrooms in cities. Darius Lam, a Bangkok-based analyst with J.D. Power Asia Pacific, said that the focus will have to be on rural markets as it will be increasingly difficult to grow in urban markets.

To increase rural sales, Hyundai will soon offer the Santro, its cheapest model in India, with a price tag that’s lower than 293,902 rupees ($6,576). He didn’t say though when it will go on sale.

It’s expected to go up against Maruti Suzuki India Ltd.'s Alto compact, the best-selling car in the country. Saxena said that Hyundai aims to add two new models a year in India. Last Thursday, it unveiled a new version of the Verna sedan, which has a starting price of 699,000 rupees but could go as high as 1.07 million rupees.

Topics: hyundai, india, vw, ford

If you liked the article, share on:

Pin It

Comments

Recommended

Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries