India takes pride of place for Hyundai

It was precisely 20 years ago when a relatively unknown Korean brand launched its compact car in India.

Not many people had heard of Hyundai in this part of the world, which was more used to Japanese brands in the two-wheeler space and, of course, Suzuki’s formidable presence in Maruti Udyog.

Yet, the Santro caught the eye of the customer and it was a matter of time before it quickly emerged as the first serious rival to Maruti’s dominance in the small car space. Its manufacturer, Hyundai, was no longer the alien Korean brand but a smart, agile company that was quick to respond to market requirements.

Headquartered

As the importance of India grew as a manufacturing hub for Hyundai, it was only fit that it was elevated to the status of regional headquarters. This recent move now means that there will be faster decision making here with a greater deal of autonomy.

The Indian arm is Hyundai’s fourth-largest manufacturing region after Korea, the US and China. It produced over six lakh cars in 2017 and is well on its way to touching a million annually in the next few years. Cumulatively, the goal is to roll out 10 million units in the first half of 2021.

Cars are shipped out from India to 88 countries and the combined tally thus far is 2.67 million, which are exported to Africa, the Middle East, Latin America, Europe, Asia and Australia.

Santro comeback?

The Santro is no longer around but is tipped to make a comeback this year in a completely new avatar, which is testimony to its enduring brand appeal. Though Hyundai still has not officially confirmed if the Santro brand will go with this new family car, it seems almost certain that this will happen.

After all, there is tremendous legacy associated with this compact car, which paved the way for Hyundai in India. It roped in a brand ambassador in the form of Shah Rukh Khan who is still associated with the company even after a good two decades.

“Normally, film actors will be remembered for the films they have done. I think a part of my ‘legacy’ would most certainly include my relationship with Hyundai,” Shah Rukh Khan told this writer in an interview. Yet, he made no bones about the fact that the brand ambassador is just a wrap-up as the product eventually has to be good.

“It would be stupid of me to think that Hyundai does well just because of me. I do my job as best as I can and try to keep up with Hyundai in my own line of work,” said Khan.

Beyond Santro, some of Hyundai’s top sellers in recent times have been the i10, i20, Verna, and Creta. One could argue that market leader Maruti produces nearly three times as much but Hyundai has emerged its first serious rival. After all, there have been prominent exits in the form of fellow Korean brand Daewoo, Peugeot (now planning a comeback) and General Motors.

Taking Maruti on

Time and again, rivals have attempted to take on Maruti but have not quite managed to hang in and fight it out. Fiat promised the moon with the Uno, which debuted before Santro, but it just fizzled out. American and European companies have not cracked the code either and it is only Hyundai that remains the nearest challenger.

There have been some misses in this journey like the Getz, which was launched with much fanfare but missed the bus. Likewise, a lot was expected from the entry-level Eon but it perhaps lost out initially in the diesel craze.

The Eon entered the market a couple of years after the Tata Nano, which was grabbing the headlines as the ₹1-lakh car. Hyundai’s R&D team pulled out all the stops for this car, which is now doing reasonably well as the Alto’s rival. Petrol is back in favour in the small car segment and with market pricing now in place, diesel does not enjoy the same price differential as it did in 2011-12.

It will be interesting to see the road ahead for Hyundai with the added halo of regional headquarter-status for India. Clearly, it will have a lot to offer in the coming years by way of alternative fuel options like electric.

A lot has also changed in the last 20 years for Hyundai, which is now among the top global auto-makers. In India, it will have to contend with a Maruti-Suzuki and Toyota combine though these are still early days.

Its own group company, Kia Motors, has also set up shop in India with plans to launch an SUV next year from its plant in Andhra Pradesh. While there will be synergies at the back-end in the form of sourcing parts, the two Korean brands will fight it out in the market as fierce competitors.

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