Hyundai and Maruti are set to lock horns in what promises to be yet another keen tug-of-war in the compact car segment.
The Korean automaker made its intent known on Thursday with the launch of the 814cc Eon, clearly targeted at the top-selling Alto, which averages sales of 25,000 units a month.
Maruti has been in the midst of a labour crisis at its Manesar plant for some weeks now. Yet, this did not stop the company from announcing the launch of a special edition Alto for Diwali. So, who is going to emerge the winner this time around?
The pricing
The Eon is a tad dearer than the Alto with six versions ranging from Rs 2.69-3.72 lakh (ex-showroom) with the latter starting from Rs 2.39 lakh to Rs 3.36 lakh for its eight versions. The Santro Xing is, incidentally, in a similar price space as the Eon at Rs 2.85-3.97 lakh (seven versions) and it will be interesting to see if it follows the same route as the Maruti 800 which made way for the Alto.
Emerging force
There is no question that Hyundai has been Maruti's most aggressive rival in India. Globally, it has climbed the sales charts rapidly too and is among the top five carmakers, a list that includes General Motors, Toyota and Volkswagen. Across the world, the automotive industry acknowledges Hyundai as a force to reckon with in the coming years.
The Eon reflects this growing stature and its styling/design are clearly intended at India's youth, which account for over two-thirds of the total population. It is this buyer base that is expected to give the car its targeted 1.5 lakh units annually.
Challenging the Leader
“It would be silly to think that the Alto will disappear overnight but there is no question that it does look staid next to the Eon,” an auto sector official said. Over the years, Maruti has stood up to competition and launched a host of products to keep its lead intact in the small car space.
Yet, the Eon could just be a different ballgame given that the India of today is quite different from even five years ago with more and more young professionals entering the job market. “These are customers who want the smartest cell phones, bikes and cars. The Eon has killer looks at a competitive price and it will be the ideal entry-level car for them,” an industry observer said.
The people's car
The Tata Nano (three versions ranging from Rs 1.47-2.05 lakh) was meant to fill this need as a people's car but it just hasn't been able to make any headway since it was launched. Sales are still barely a little over 2,000 units each month and the momentum could be further derailed if the Eon surges ahead.