Y K Koo, managing director and chief executive officer of Hyundai Motor India Limited spoke to Shahkar Abidi about the future plans of the company.
South Korean auto major Hyundai has released the sixth generation Elantra in the Indian market. The car was first introduced 26 years ago and has clocked over 11.5 million units around the globe till date. On the sidelines of the launch event in Mumbai, Y K Koo, managing director and chief executive officer of Hyundai Motor India Limited, the largest passenger car exporter and second largest car manufacturer in the country, spoke to Shahkar Abidi about the future plans of the company and the reason for choosing Elantra to drive growth in the executive sedan segment.
Q. Why Elantra, when the executive sedan segment is not doing good in India?
A. The Indian market is definitely moving towards SUV segment and as a result, there is a tremendous demand for it. Also, India being a highly price sensitive market, there is a great demand for small cars. However, we believe that lack of demand in the executive sedan segment is because there is a lack of good car models in the segment. With the launch of the new Elantra, we hope to revive the segment.
Q. Why did you choose Elantra instead of coming up with an entirely new model to target the segment?
A. Elantra has a 26-year-old history and has seen an evolutionary change from the time it was first launched in 1990. Its popularity can be gauged from the fact that so far since its launch, more than 11.5 million units have been sold globally. It is a global bestseller and has set forth new standards in its every generation. The new Elantra builds upon the momentum of history with a strong value proposition and is the best Elantra ever.
Q. How much is your current market share in the executive sedan segment and how much you plan to increase that with the introduction of new Elantra? Do you think your plant capacity would allow for it?
A. At present, we have about 15% of the market share in the executive sedan segment and we have a target to reach around 30-35%. It is not just that we want to be the market leader in this particular segment but in all the segments in which we operate. Indian auto market is growing at 6% but we are growing at 9%, which is much above the industry growth. We are the largest passenger car exporter and second-largest car manufacturer in the country. As far as capacity is concerned, all I can say that we are fully equipped to meet the growing demand and realise our targets.
Q. Who is the target customer for the new Elantra?
A. The target customer for the new Elantra is someone who has a modern lifestyle and is an educated business elite seeking exclusivity. He/she is someone who is married, self-employed, an additional buyer in the age group of 30-40 years.
Q. What are your future plans for the new launches?
A. In order to drive the volume and to maintain a strong leadership position in the market, we plan to launch at least 1-2 new models every year. Our next launch will be a hybrid car in the mid-price segment which may happen in the next year.
Q. How does the future look like for the Indian automobile market?
A. The monsoon has been good this year - well spread across the country reviving the economy, which I think is good for the auto sector. The festive mindset of the public due to the upcoming festival season combined with the release of arrears of seventh pay commission definitely gives a new hope for the time to come. All these factors will give a further push to the economy in general and auto sector in particular.
a_shahakar@dnaindia.net
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