Hyundai Motor India increases industry share in the general SUV segment from 22.71% in CY2019 to 25.48% in CY2020
In the calendar year 2020, the industry share of Hyundai Motor India Ltd (HMIL) in the passenger automobile (PV) segment reached the highest ever—to 17.4% (in wholesale as properly as in retail), up from 17.3% in 2019. One of the factors is HMIL riding the SUV wave. According to business sources, when in CY2015 SUVs contributed 13.5% to general PV sales, in 2019 this rose to 25.6%, and additional to 29% in 2020. And of the 7.2 lakh SUVs sold in India in 2020, HMIL sold 1,80,237 units. This was led by the Creta (96,989 units) and the Venue (82,428 units), and this helped the enterprise enhance its sales share in the general SUV space from 22.71% in CY2019 to 25.48% in CY2020.
Of the 12 models HMIL sells in India, 4 are hatchback vehicles, 1 electric, 3 sedans, 1 in the fleet segment, and 3 SUVs—and these 3 SUVs contributed to about 42% total enterprise sales in 2020.
Tarun Garg, director, sales & promoting, HMIL, says that the company’s method of launching the new Creta and the new Tucson in 2020, supported by the Venue launched in 2019, as also dozens of variants with distinct transmissions, engines and fuel possibilities, contributed to development.
In truth, in 2020, the Creta became India’s biggest promoting SUV across segments. Not discontinuing diesel engines post-BS6 emission norms also helped. Garg says that, as far as sales of the Creta are concerned, 60% come from the diesel engine variant. “It shows that the demand for diesel vehicles, especially midsize SUVs, is substantial, if a carmaker can offer a good product at a good price,” he says. In particular markets such as Punjab, as a great deal as 79% sales of the Creta are of the diesel engine variant—as also in Andhra Pradesh (76% diesel), in Uttar Pradesh (70% diesel), and in Rajasthan (71% diesel). “Even in the sub-4 metre SUV such as the Venue, 38% sales were of the diesel engine variant.”
The ‘choice’ route
In addition to the pent-up demand and a section of commuters shifting from public transport to private autos post-lockdown, what has helped general sales of Hyundai vehicles in specific is the sheer quantity of option on supply.
HMIL at present provides hatchbacks, sedans, SUVs and an electric automobile. As far as fuel possibilities are concerned, it sells seven distinct petrol engines (4 naturally-aspirated and 3 turbocharged), 4 diesel engines, two CNG engine possibilities, and 1 electric. The enterprise also has a wide variety of gearbox possibilities: two manual, 1 iMT, and 5 automatic (AMT, 6AT, 8AT, IVT and DCT).
“The aim is to be in the consideration set of any Indian buyer for any type of mobility need related to four-wheelers,” adds Garg. “Be it owning a new car or a used car for shared mobility or even subscribing a car, we have an option.”
Customers are not downgrading
Garg says that when soon after the lockdown there was an apprehension that automobile-purchasers may well downgrade from function-wealthy variants to simple ones, maybe due to muted financial sentiment and salary cuts, this has not occurred. “At least at Hyundai we have seen people are not downgrading. For example, in the new Creta, about 60% bookings went to the variant that has a panoramic sunroof, and even in the hatchback i20 85% of the demand is coming from the Sportz and above variants. It shows that a car is still an aspirational buy and customers aren’t really compromising on features,” he says.
Within the hatchback segment, when the company’s new i20 and even the Grand i10 Nios have noticed rising demand, sales of its entry-level hatchback, the Santro, have not grown at a related pace—these, in truth, have come down from about 8,000 units per month when the new-generation Santro was launched in late-2018 to about 3,000 units now. Garg says the initial-time automobile-purchaser is upgrading to larger hatchbacks.
“In 2015, the compact low hatchback sub-segment contributed to 13.4% overall sales, compact mid 12.5%, compact high 14.8% and compact premium 8.2%. In 2020, the compact premium hatchback sub-segment improved its sales share from 8.2% to 13%, and this shows that more and more customers now prefer compact premium hatchbacks over entry-level hatchbacks.”
Hyundai SUV sales 2020
Creta: 96,989
Venue: 82,428
Kona EV: 223
Tucson: 597
Total: 1,80,237
Market share of Hyundai in SUVs
2019: 22.71%
2020: 25.48%
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