South Korean car maker has made a smart shift to bigger vehicle exports adding to the bottom line.
03 Apr 2023 | 10479 Views | By Ketan Thakkar
Hyundai Motor India, the small car exports specialist, has made a smart transition to midsize vehicle exports from India as it moves up the value chain to cater to the rising aspirations of not only Indian consumers but those in global markets too.
Autocar Professionallearns that given the ...
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Hyundai Motor India, the small car exports specialist, has made a smart transition to midsize vehicle exports from India as it moves up the value chain to cater to the rising aspirations of not only Indian consumers but those in global markets too.
Autocar Professional learns that given the strong acceptance of India-made SUVs – the Creta and Alcazar – the South Korean car maker has given sole manufacturing and exports responsibility of Verna sedan to India. According to several people in the know, Hyundai Motor India plans to manufacture 120,000 units of the recently launched sixth-generation Verna sedan in the coming year, of which almost 80,000 units or 66% of its total volumes will be for exports market.
This means Verna’s exports volumes will double in FY2024 to about 80,000 units from about 40,000 units in FY2023. The sixth-gen Verna’s global responsibility will help Hyundai Motor India increase its exports volumes by over 20% in FY2024 as per the sources.
Meanwhile, due to this shift in export product focus led by the new Verna, the share of compact car exports is likely to drop from 50% to about 33% in FY2024.
In an official reply to queries sent by Autocar Professional, the Hyundai Motor India spokesperson did not give any guidance on the numbers but said, “Hyundai Motor India Ltd is exporting to Middle East, Latin America, Africa Regions. Verna is well accepted and appreciated in all the markets. We plan to start exporting the all-new Verna in June 2023.”
Unveiling the new Verna on March 21, 2023, Unsoo Kim, MD of Hyundai Motor India had said, “The all-new Hyundai Verna is being manufactured at the state-of-the-art factory in Chennai. The vehicle is made in India for the entire world and we will continue to explore new markets to expand our international presence."
Thus far, Hyundai Motor India has shipped over 450,000 midsize sedans to numerous markets globally. In the first 11 months of FY2023, Hyundai exported a total of 142,119 units.
Hyundai Motor India has already expanded its manufacturing capacity to 850,000 units in order to accommodate new models like the Ai3 CUV or SUV for incremental domestic volumes planned for FY2024. Its exports in FY2024 are expected to be in the region of 170,000 to 190,000 units, which will be its best exports in the last five years.
Making in India, for the world
Hyundai states the new Verna, which is designed for both Indian and global consumers, is bigger, bolder and sportier with a biggest wheelbase and width to offer a spacious cabin.
The company claims the new Verna is the most connected sedan in India with 118 embedded commands and is also supported by Level 2 ADAS features. On the safety front, the company claims the sedan has over 65 active and safety features with 30 standard features. To enhance its appeal, Hyundai also offers 28 genuine accessories for interior and exteriors.
In the domestic market, the new Verna will challenge the midsize sedan segment leader Honda City, which averages monthly sales of about 2,500 units. The outgoing Verna was averaging around 1,500 units a month. Now, with the sixth-gen Verna, the company aims to double Verna volumes and aspire for segment leadership.
In CY2022, Hyundai Motor India recorded its highest-ever domestic sales at 5,52,511 units, posting YoY growth of 9.4% (CY2021: 505,033 units). Cumulative sales including exports in CY2022 were 700,811 units versus 635,413 units in 2021, a growth of 10.3 percent.