Crash in India

Hyundai Motor sold 500,539 units, a record high, in the Indian market thanks to the popularity of the small SUV Creta, placing second in terms of market shares (17%).
Hyundai Motor sold 500,539 units, a record high, in the Indian market thanks to the popularity of the small SUV Creta, placing second in terms of market shares (17%).

 

Shanghai Automotive Industry Corporation (SAIC) is expected to take the first step into the Indian automobile market for the first time in the Chinese automobile industry, having a considerable impact on Hyundai which already has an advantage in the Indian market.

The Chinese automaker will take over local plant management rights between April and May. It is expected that produced cars will be put on the market next year.

According to foreign media and industry sources on March 13, SAIC, which enjoys the largest sales volume in China, has registered its corporation under the name of MG Motor in India and is planning to sell cars under the brand name in the future.

MG was originally a British car brand, but it was merged into SAIC (formerly known as Nanjing Motor) more than a decade ago. SAIC appointed Rajiv Chhaba, a former head of GM India, as CEO of MG.

In 2010, SAIC tried to launch five Chinese models such as compact cars, sedans and light trucks in the Indian market only to fail to do that. This time, it is said that it will produce and sell mid-sized sports utility vehicle (SUVs) through local production.

To this end, SAIC is on the verge of acquiring a GM plant in Halol, Gujarat of India. Some foreign observers say that if the union problem is solved, production will start as early as April. It is expected that the first model will come into the market next year.

The point is its impact on Hyundai Motor, which has already secured the second largest share in the Indian market, and Kia Motors, which is considering its Indian plant site. Hyundai has been steadily maintaining its second place in India with the exception of the 2003 to 2007 period (third place) since 1999. Maruti Suzuki is the number one player in the market, which accounts for about half of the total sales in the Indian market.

Last year, Hyundai Motor sold 500,539 units, a record high, in the Indian market thanks to the popularity of the small SUV Creta, placing second in terms of market shares (17%).

In the Indian market, Mahindra & Mahindra (M&M) stands third with a 7.7% share, Tata fifth with 4.8%. Both automakers are Indian companies. They outweigh not only Japanese automakers such as Honda (4th), Toyota (7th) and Nissan (9th) but European car makers such as Renault (6th) and Volkswagen (10th).

Meanwhile, Hyundai Motor is planning to launch eight new models in India from this year to 2020 to keep its competitive advantage. Three of them were known to be new cars that include eco-friendly models.

 

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