The Hindu Business Line : Hyundai aims at 20% market share

Hyderabad April 20 Hyundai Motor India Ltd is eyeing a 20 per cent market share in the country's automotive industry and is confident of achieving the target next year.

"This number is achievable but currently we are constrained by capacity issues. As we increase our capacity with a total investment of about Rs 6,000 crore, we would be able to balance domestic market needs with exports," Mr Heung Soo Lheem, Managing Director, said.

Addressing a press conference here, after the nationwide launch of its Verna CRDi SX, a top-end model of its three box car, Mr Lheem said that the first quarter this year was witness to a slight drop in the company's domestic sales due to the need to cater to the buoyant demand from global markets. The company exports about 1.2 lakh cars to over 65 countries from India, of the total production of 3.2 lakh.

The Hyundai Verna CRDi SX is priced at Rs 7.96 lakh and Rs 8.18 lakh for the ABS option. While the engine and the mechanicals remain the same, the new SX comes with a host of new features such as automatic climate control, and a few convenience add-ons.

SANTRO TWIN

Mr Lheem said that the proposed twin model of the Santro car would be positioned in the A Plus category as against Santro's, which is in A Minus category. This is to be launched by the end of 2007 or early 2008. Alongside, the company is close to rolling out diesel variant of its bigger hatch Getz by the third quarter of this year.

Asked about its plans for a diesel plant in India, Mr Lheem said, "the current volumes does not require a separate plant for the company. However, if the domestic diesel car volume for Hyundai crosses the 50,000 cars, we would certainly evaluate and set up a plant in India."

LENDING RATES

On the impact of higher lending rates for automotive loans, Mr Lheem said that they have certainly had an impact on car purchases. Therefore, the company is working closely with ICICI Bank, SBI and with dealers to offer loans at a more attractive rate.

"We are now offering at 9.9 per cent and we may look at extending the current 8.99 per cent loan option for some more time," he said.

On the company's move to enter into auto finance, Mr Lheem said that globally "Hyundai Finance is active and Hyundai Capital is a joint venture with GE. We have commissioned a study with IIM and are evaluating the roll out of this facility in India."

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