Hyundai Motor Company is mulling over entering the high-end car market of India, as the competition in its compact car market is getting intensified and the average level of income is driving up the demand for luxury cars.
It is expected that Hyundai will release the flagship sedan Equus, the New Genesis, and the sports hatchback Veloster once the top management gives a green light. The idea is to attract well-off Indian consumers who seek different types of vehicles.
Up to now, Hyundai has sold mainly compact and subcompact cars in India, including the Eon, Accent, Verna, Sonata, and Santa Fe. However, the automaker is considering changing its local business strategy, since the luxury car segment of the country is showing signs of explosive growth. These days, the overall Indian car market is recording negative growth due to the economic recession and reduced incentives, but the segment is an exception.
According to the Korea Automotive Research Institute, approximately 37,000 compact cars were sold in India between January and November this year, 60.3% down from a year earlier, and the sales volume of subcompact cars dropped 10.2% to about 1.158 million units. Meanwhile, the luxury car segment grew 1.4% year-on-year, and the sales volume reached over 22,000.
The competition in the A and B segments is getting tougher with time, too. Under the circumstances, global automakers are shoring up these segments as the sluggish sale extends. For example, Nissan has recently announced its plans on production and sales channels prior to the launch of its mid-market brand Datsun.