With an eye on retaining its pole position, Hyundai has internally approved funding for an entry-level SUV codenamed Ai3 CUV for 2023. That will take on Tata Punch and add to the volumes in the coming two years. The company is likely to add a new Ioniq electric SUV from the global portfolio in 2022.
“SUVs are the flavour of the season and customers increasingly prefer SUVs to other body styles,” says Tarun Garg, director sales and marketing at Hyundai Motor India, “As a leader, we continue to explore new segments and conduct market research to cater to customer needs. We cannot comment on specific product segment, but we will continue to excite the market in the future as well.”
Hyundai Motor India has already committed to bringing in 6 all new EVs in the coming 5-6 years and the majority of its future EVs could be SUVs.
In a market of 1.2 million, Hyundai Motor India sold close to 2.5 lakh SUVs in 2021. The segment contributed to about half the domestic sales. Hyundai sold 1.25 lakh alone of Creta SUV, while the Venue, sub-4 metre SUV also eclipsed 1 lakh unit sales in 2021. In the last five years, more than 8.35 lakh units of Hyundai SUVs have been sold.
The company aims to further capitalise on the full year of sales of Alcazar in 2022 with Creta continuing to lead the segment despite new competitions. The addition of new vehicles to the portfolio will further add heft to future volumes even as Maruti Suzuki readies a range of SUVs in the future.
Sitting on about 1 lakh pending bookings, Hyundai Motor India is eyeing yet another year of double digit growth in 2022. The company has guided vendors with a production plan of 7.3 lakh units for 2022, which is a 20% growth over 2021.
Declining to share specific growth guidance, Garg said Hyundai was looking at growth, with the supply chain situation improving.
“We are not yet out of the woods but it appears that the worst is behind us, and things are going to get better in 2022,” Garg said. “We are cautiously optimistic even as there is a shortage of semiconductors. There are a lot of positives – good customer sentiment, a swelling order book and low interest rates – to drive the market in 2022. We will keep a close watch on the third wave and its impact and fuel prices.”