Hyundai unveils new Verna

Hyundai Motor India on Wednesday launched the all-new Verna, with prices beginning at Rs6.99 lakh for the base petrol version and going up to Rs10.74 lakh for the 1.6 diesel automatic.

Hyundai hopes to sell 45,000 units of the Verna in the first 12 months and has offered twin engine options in both diesel and petrol to straddle the entire price band. The company’s sales target works out to about 3,700 cars a month, similar to sales of competing brands such as Volkswagen Vento and Maruti Suzuki’s SX4.

As per data by the Society of Indian Automobile Manufacturers (SIAM), the old Verna sold just 1,854 units last month against 1,864 units in April 2010 so that sales have remained flat. Production was down to 1,810 units from 2,099 units year on year.

To a question on whether Hyundai will rethink its strategy of selling two cars - Verna and Accent - in the mid-sedan segment, Arvind Saxena, VP sales and marketing, made it clear that Accent would not be phased out. Accent sales have also dwindled to 1,114 units (1,468 units) in April though production has increased significantly to 3,862 units (2,940 units).

Industry experts said that the basic petrol and diesel engines are 1.4-litren motors, also found on the ‘i20’, but the 1.6 litre engines are new.

Verna competes with Maruti SX4, Honda City, Indigo Marina and Manza and also VW Vento. But it was the third-highest selling sedan in this segment in April.

Meanwhile, Hyundai said it will introduce more models in all segments in India to change its image of a small car maker and to regain 20% market share here. With production capacity in India limited to about six lakh units and export markets becoming unviable, it is diverting focus to the domestic market.

“Hyundai Motor India is very important for Hyundai Motor Co. HMIL has kept pace with the growth in the Indian market and we will offer a full line of products here,” HMC president and CEO SS Yang said.