As the auto sector moves on the slow lane, Hyundai Motor India Ltd said it is not planning to pass to customers the total incremental cost incurred in switching to Bharat Stage VI emission standard, but will do it in phases. The BS-VI emission norm would come into force from April 1 across the country and new cars cannot be sold unless they are compliant to the new standard.
"As of now, we will not pass the total cost incurred to upgrade to BS-VI immediately to the consumers. It will be gradual," Hyundai India national sales head Vikash Jain told PTI when asked whether the company will pass the cost or absorb it, given the market condition.
He said on an average, the automaker will incur an additional cost of Rs 15,000-20,000 for petrol cars and Rs 35,000-40,000 for diesel vehicles to upgrade to new emission norms. The Korean auto major also expects that the second half of 2020 will be far better. "In 2020, the auto sector is expected to remain flattish to low rate of growth of 2-3 per cent," Jain said. Speaking on the sidelines of the inauguration of their 7th dealership in the city, Gajraj Hyundai, Jain said Kolkata has a strong brand recall and commands about 19.4 per cent market share against 17.3 per cent country-wide for Hyundai.
Jain said to counter the degrowth, the company will bring in new launches and upgrades. "We have introduced new Aura which has seen a lot of traction in demand. The new Creta will also be launched soon," Jain said without elaborating.