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Pent-up Demand Now More Sustainable, Will Drive Growth Beyond Festive Season: Hyundai Motor India

Hyundai Logo (Image Source: Reuters)

Hyundai Logo (Image Source: Reuters)

Hyundai recorded its highest-ever monthly domestic sales in October at 56,605 units amid the pandemic.

After recording its highest monthly domestic sales ever in October, automobile major Hyundai Motor India now foresees a more sustainable trend in pent-up demand.

Accordingly, this trend is expected to drive growth even beyond the festive season till the end of FY21.

In a conversation with IANS, Hyundai Motor India’s Director for Sales, Marketing and Service, Tarun Garg, said: “We see a more sustainable demand pattern now. It might not be as high as October or November. However, we expect it to last at least till March 31, 2021.

“A survey conducted by the company has shown that nearly a million customers had to postpone their car purchase due to the pandemic and the subsequent lockdown. Now, we are seeing that demand is coming back into the market. This is in addition to the usual high demand during the festive season.”

Garg further said: “However, we also have to understand that nothing is concrete as of now due to the unknown dynamics of the pandemic. There is a vaccine upside and a second wave downside associated with all these projections. But the current trend does suggest a stable and sustainable demand outlook till the end of March 2021.”

The company had recorded its highest-ever monthly domestic sales in October at 56,605 units amid the pandemic.

It reported a 13.2 per cent growth in its domestic sales compared to 50,010 units sold during October 2019.

“All our dealerships are operational and re-stocking activities have picked up. Generally, we see a healthy demand trend in October. November’s sales are expected to be higher on a YoY basis but it is too early to say if they will be higher on a sequential basis,” Garg said.

“That said, we see India’s immense potential in long term, especially in the time period of the next 4-5 years due to low penetration of car ownership in the country,” he added.

According to Garg, the company’s efforts to offer the maximum range of cars across all fuel types has made it a preferred automobile brand in India.

“We have strived to offer the widest choices to the customers, especially in the diesel category, when you see the sales performance of Creta or the Venue. Going forward, we will keep on providing more choices. We have introduced the All-New i20 in the premium hatchback segment. In the last one year, we have launched six different models,” Garg said.

At present, the company offers 11 car models across segments including Santro, Grand i10, Grand i10 Nios, Elite i20, Aura, Venue, New Verna, All New Creta, Elantra, New 2020 Tucson and the Kona Electric.

Garg disclosed that the company has received a healthy booking response for the All-New i20.

“We have received over 10,000 bookings for the All-New i20. The premium hatchback is the largest sub-segment in the hatchback market. We foresee the All-New i20 to gain more traction in the coming time,” he said.

Last week, the auto major had launched the All-New i20.

The vehicle’s petrol variants are priced between Rs 6.79 lakh and Rs 11.17 lakh, while the diesel fuelled version’s cost is in the range of Rs 8.19 lakh to Rs 10.59 lakh.

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“Pricing is a very important element in India, and one of our key winning strategies is to provide the latest and the best technology at the most affordable price points,” he said.

The All-New i20 comes with 5 BS6 powertrain options, including “1.5 l U2 CRDi Diesel with 6-Speed Manual Transmission, Advanced 1.2 l Kappa Petrol with 5-Speed Manual Transmission and IVT and Best-in-Segment Enthralling 1.0 l Turbo GDi Petrol with 6-Speed iMT and 7-Speed DCT”.

On production cycle, he said that the company has balanced the manufacturing rate with that of demand in an optimal ratio.

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first published:November 10, 2020, 14:04 IST