Hyundai Motor India is on a roll. They are looking forward to a magnificent target – the 5 lakh sales magic figure in the current domestic market within a few years. It also plans to launch a myriad of products soon which will include an entry into newer car segments.
The company sold 4.11 lakh units last year in 2014. To celebrate this achievement, it launched an updated version of its mid-sized sedan Verna priced up to Rs. 12.19 lakh (ex-showroom Delhi).
A senior car analyst from India said that Hyundai Motors will definitely achieve this task by 2016 since their updated Verna car is already booming in sales. He also expects the company to launch a new cross-over version of their premium hatchback, the Elite I 20, which is a compact sports utility vehicle. The domestic market should remain a priority for the company but at the same time it should likely seek to retain 40 per cent of its share from their car exports out of India. In 2014, had sold a total of 4.11 lakh units within the domestic market and exported close to 2.01 lakh units. Its current per annum production capacity is currently close to 6.8 lakh units which should soon see an expansion to 7 lakh units.
Since the government is taking bold steps to accelerate economic growth it should fairly cut down on interest rates. The company has announced recently that it is no mood to set up a new plant since they will still have an excess of 90,000 units after meeting their magic figure.
Their current plant is running at exactly 99.8 per cent of its total output capacity which doesn’t necessitate the need for a new plant, at least for 5 more years. They have also phased out some of their older models, like the iconic model Suzuki and their premium selling sedan, the Sonata. This will help them free-up some of the load on their output capacity.
The current market sentiment is improving the company’s outlook and it hopes to achieve this magic figure within this year only. This will help the company to win back considerable market share which it is currently losing out to its competitors owing to lesser production output which they need to fulfill according to demand. This new supply chain will help Hyundai to establish a stronger presence in the market compared to newer competitors like FIAT and Nissan, to name a few.
If you are a current Hyundai customer, this will be beneficial to you too since you can now get an exchange on a Hyundai car with more ease and not have to wait for a longer time to get your car delivered to you.