Hyundai’s dealers are in better position due to right strategy and support: MD

Hyundai Motor India Ltd (HMIL), India’s second largest passenger vehicle maker, said the conditions of its dealers are much better than others in the industry and its dealer partners remain strong despite the impact of the pandemic.

“As far as we know, there are no big issues faced by our dealer partners. We are carefully monitoring the situation and we are also preparing some measures to support them,” S S Kim, Managing Director & CEO, HMIL told
BusinessLine during an interaction after the roll-out of its 10-millionth car at its factory near Chennai in the presence of Tamil Nadu Chief Minister M K Stalin.

Rise in bookings

Also, production and launch of vehicles in tune with the market requirements have helped dealers stay afloat during these challenging times. For example, the company’s increased focus on the SUV segment with new launches have augured well as the bookings for Hyundai’s new SUVs continue to rise, thereby benefiting both dealers and the company.

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While Hyundai’s Creta continues to be top selling SUV in the country, its recently launched Alcazar has attracted a good number of buyers amid disruptions caused by the pandemic.

Industry analysts also point out that inventory levels for passenger vehicles have remained stable at 23-25 days. Consequently, waiting periods in key models, particularly for SUVs, have continued across OEMs.

Kim confirmed that its product launch plans are intact though there could be some delays in new launches. But no change in overall growth plans of the company.

Gradual recovery

While he expects the domestic market to see gradual recovery, exports are also expected to pick up in the coming months. HMIL sees bright prospects for export of its new SUV Alcazar to several markets such as Latin America, Africa and Middle East.

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“We expect exports to remain strong and the share of exports in total sales will be maintained at 25-30 per cent of our total sales,” said Ganesh Mani, Director-Production, HMIL.

On Wednesday, HMIL, which is celebrating 25 years in India, marked the production of its 10-millionth car with the rollout of its new SUV Alcazar at its Irrungattukottai factory near Chennai.

This is the fastest rollout of 10 million cars achieved by any manufacturer in the Indian passenger vehicle market, said Kim.

Hyundai rolled out its first millionth car, Santro, in 2006 in just seven years and six months post-commencement of commercial production in 1998. Its 5 million milestone came in 2013. But for the pandemic, HMIL would have achieved the 10-millionth roll out in March 2021 itself.

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Tamil Nadu Chief Minister M K Stalin, who launched several community-centric initiatives of HMIL, said the South Korean auto major played a key role in the efforts of transforming Sriperumbudur as a major global production hub, while contributing to the industrial development of the state.

“While Hyundai has achieved a record of 1 crore production, it has also exported 31.3 lakh cars from this factory to 88 countries,” he added.

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