Hyundai Motor India on Friday expanded its SUV range in the country with the launch of new model – Alcazar – priced between Rs 16.3 lakh and Rs 19.99 lakh (ex-showroom Delhi).
The country's second largest passenger vehicle maker is looking to further consolidate its position in the fast-growing SUV segment with the introduction of Alcazar which comes with six and seven seat configurations.
Hyundai already leads the SUV space in the country with models like Venue, Creta, Tucson and Kona Electric.
The company said it has invested about Rs 650 crore on the development of the new model which would compete with the likes of Mahindra XUV500 and recently launched Tata Safari and Hector Plus.
The SUV comes powered with two engine options of 2-litre petrol and 1.5-litre diesel with choices of six-speed automatic and six-speed manual transmissions.
The petrol trims are tagged between Rs 16.3 lakh and Rs 19.84 lakh while the diesel variants are priced between Rs 16.53 lakh and Rs 19.99 lakh.
As per the company, the manual petrol trims deliver a fuel efficiency of 14.5 kmpl, the automatic variants 14.2 kmpl. The diesel manual trims come with 20.4 kmpl while the automatic versions deliver 18.1 kmpl.
"This year we have embarked on a new journey as we complete 25 years of excellence in India. Hyundai has entered a new segment and we aim to redefine premium travel experiences for our customers across the country," Hyundai Motor India MD and CEO SS Kim stated.
The model will fortify the company's leadership position in the SUV segment and perfectly complement its line-up of Venue, Creta, Kona Electric and Tucson, Kim added.
India has seen a robust increase in SUV sales over the last few years. In 2015, the SUV segment contributed only 13.5 percent to the overall passenger vehicle sales. This number became about 26 percent in 2019 and further rose to 29 percent in 2020.
Hyundai currently leads the SUV segment in the country with a market share of 23.3 percent in the January-May period this year.
The company's market share in the segment has consistently grown over the years.
From 11.3 percent market share in 2015, the company's share rose to 22.7 percent in 2019 and to 25.5 percent in 2020.
Currently, the share of SUVs in Hyundai's overall sales stands at around 42.5 percent. In 2015 the, share stood at 9 percent and rose to 33 percent in 2019. In 2020 it touched 42.5 percent.
"We expect this contribution to increase to 50 percent going ahead with the launch of Alcazar. There exists a niche area in the market which we would be able to cater to with the model," Hyundai Motor India Director (Sales and Marketing) Tarun Garg told PTI.
He noted that the company is witnessing great response for the model with it having already received 4,000 bookings over the last ten days.
"We have loaded all the three trims with features. Even the entry level variants come with sunroof and connected features. Of the 4,000 bookings received so far, 55 percent customers have opted for the diesel trims," Garg said.
When asked about the production scenario at the company's Chennai-based manufacturing plant, he noted that the automaker is already in the process of ramping it up with COVID situation easing a bit around the country.
"We are fairly confident of meeting the customer demand in the days to come. Of course, global issues like supply of semi conductors would remain but we are optimistic of catering the demand," Garg said.
He noted that the Alcazar was conceptualised three years ago and so the company has already planned for the production capacity for the model along with that of the high-selling Creta.
On sales expectations from the new model, Garg said that with Alcazar and like its other models, it is not focusing on market share but in creating a new segment.
He said the model, which comes with over 90 percent localisation content, would first cater to domestic market and later could also be exported.
On new product launches, Garg said that the company remains bullish on the growth of the Indian market and would continue to introduce new products in the future as well.
"We have introduced 11 products in the last two years. So it will continue with it. If we see scope in any segment, we will not shy away from launching a product," Garg noted.
Alcazar comes with various features like Bose premium sound system (8 speakers), front row ventilated seats, air purifier, six airbags, blind view monitor among others.