Hyundai's strategy is to become a premium company from a mass mkt

Chennai: After 20 years in the Indian market, Hyundai Motor India (HMI) now contributes 17% of the global volume of its parent company, Hyundai Motor Company (HMC).
According to YK Koo, MD & CEO, HMI, India is now the third "most important market" for Hyundai after China and the United States. India is also the first "single market" to become a regional headquarters for HMC in the world. "HMC has three regional headquarters," said Koo.

"These are North America, Europe, and now India." In the first half of 2018, HMI's contribution to global HMC volumes is 17%. becoming a regional headquarters will help us strengthen business planning, product strategy and manufacturing, and strengthen our decision-making. "HMI's annual volume is 7,000,000 units and its average price per model is $ 10,000, which brings in $ 6.5 billion.

HMI's future strategy is to become a premium company. "In the first half of 2018, the percentage of Combined volume for i20, new Creta and new generation Verna is over 56%, "said Koo." HMI is moving from mass to premium segment with our product upgrades and launches. Previously, we sold only 670 units of Verna, but now we make about 4,000 units a month. "

The company, which line up two new products – the new entry-level car AH2 and a new under 4-meter SUV, whose code-named is QXI, will be used as volumetric models to better crack rural markets. "We have a solid product range for SUV and compact segment," said Koo.

"AH2 will be launched in October and the QXI in April 2019." HMI will also launch an electric SUV in India next year. "The electric SUV will enter the second half of 2019," said Koo.

"We will start on the basis of CKD to test the market for India in the first stage . Once the charging infrastructure and the battery, etc., are sorted, it will be time to review the right time to start making this EV product from our factory, "he explains.

The company plans to deploy 10 million cars by 2021 (it has already deployed more than 8 million since the beginning of the year) has sufficient capacity to last until then thanks to an adjustment of its export strategy. "We plan to export 1.6 million units this year and our main markets are the Middle East, South America, Mexico and Vietnam and the Philippines Asia," he said. said Mr Koo. "But some of these countries are changing their CBU strategy to CKD." Vietnam and the Philippines have already stopped the CBU for CKD and next year Africa and South America will also switch to CKD This will open up 50,000 additional production units for the domestic market, "he added.