At the inaugural day of the Auto Expo, Hyundai has unveiled its new Sonata premium sedan and a new multi-purpose vehicle (MPV) concept, the 'HexaSpace'.
The sixth version of the Sonata series will be launched in February and will compete with models such as the Honda Accord, Toyota Camry and Nissan Teana.
"The new Sonata will strengthen our brand signature," Hyundai Motor India's Managing Director and CEO, Mr H.W. Park, said.
The eight-seater HexaSpace concept is targeted at urban customers in the 30s and 40s age group and is expected to hit the market in about 3-4 years. Development of the MPV will happen jointly with Hyundai's Indian R&D team.
"It is a very good move as far as the market is concerned. We did not have a product in the MPV segment and we see this segment growing. This will help us in increasing our spread in the market," Mr Arvind Saxena, Director for Marketing and Sales, Hyundai Motor India, said.
Local manufacturing
Hyundai plans to locally manufacture Sonata, a move that has already been made for the Sante Fe SUV. This will help the company get higher margins through savings on import duties.
"This does not mean that we have to pass on the lower cost to the customer because we have been taking a hit on our margins to sell it at the current price," Mr Saxena said.
Asked if the currency fluctuation is affecting the margins of the company, Mr Saxena said, "Yes, to some extent. We hope the situation will improve in the second half of the fiscal."
He added that revival of the auto industry is not expected in the current and next quarters and Government intervention would be needed to boost sentiments.
Sales are expected to be better from the second half of 2012, though the whole year growth is likely to be in single-digits.