Hyundai enters lower end of mid-size segment

By Our Special Correspondent

CHENNAI, JUNE 12. Hyundai Motor India Ltd. (HMIL) has decided to take on the competition at the lower end of the mid-size car segment by launching a new Accent GVS that ``will bring luxury at an affordable price''.

Announcing the launch at a press conference to mark the roll out of 200,000th car from the assembly line at Irrungatuukottai near here today, Mr. Y.S. Kim, Managing Director, said the special edition of Accent GVS ``is an expression of our gratitude to the customers who have made us grow to 2-lakh big.'' This would be the beginning of a series of new products, he indicated.

Accent GVS will redefine premium cars. ``It will give the performance of the 1.6 litre Accent and carry a price that will be only slightly higher than that of the Ikon 1.3 litre vehicle,'' according to Mr. B. V. R. Subbu, director (marketing) of HMIL.

It will have a price tag of Rs. 5.65 lakhs ex-showroom Delhi. It will be fitted with a 1495cc 12 valve 4 cylinder engine. The super-dynatrac four-wheel independent suspension, it is explained, will ensure ultra low noise, vibration and harshness levels while driving at high speeds on rough roads.

The interior will feature door trims with fabric insert, deluxe console, room and trunk lights, cigarette lighter, front and rear ashtray and front door map pockets, among others. The seats will be made of semi-full cloth upholstery with 60:40 split folding rear seats and adjustable front seats headrest.

The air-conditioning and heater, power windows in the front and rear, power steering, lever controlled sideview mirrors, glove box with lock and remote tail gate and fuel filler make the Accent GVS a distinct mid-size car offering.

Mr. Subbu said HMIL had never seriously focused on the lower end of the mid-size segment. This category formed just two per cent of Accent cars sold. Volumes do not significantly contribute to the bottom line. But value does. The ability of Ikon 1.3 to generate volume, it appears, has forced the company to look at the opportunity that this category is throwing up.

To a query, the marketing director said Santro prices would go up marginally by 2.2 to 3 per cent across the country in the next two weeks.

He attributed the price hike to increasing manufacturing cost. Nonetheless, HMIL would add features to Santros even as it hiked prices, he added. Quizzed if Accent prices would also be revised, he said, ``we are working on the costing of Accent.''

Questioned if HMIL had any move to import CBUs (completely built units) in the wake of easing of policy, the director indicated that the company had, in fact, got enquiries from the diplomatic corps in Delhi. He, however, hastened, to add, that ``we are not looking for any major volume.''

On the launch of its third product Sonata Mr. Subbu said it would be positioned in the D segment of the car market. ``No other product in this category will match the luxury of Sonata,'' he declared. Indications are that it will have an indigenous content of just 40 per cent. At one point, HMIL had talked about a local content of over 50 per cent in the yet-to-be launched Sonata.

HMIL had sold 86,798 cars, comprising 69,889 Santros and 16,909 Accents, during 2000-01. It exported 5,837 CBUs during the year.

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