NEW DELHI: After solidifying its presence in the compact and mid-size sports utility vehicle (SUV) segment, Hyundai Motor India (HMIL) sees a bigger play in mid-large segment as it launched the new Alcazar at a starting price of Rs 14.99 lakh for the petrol variant and Rs 15.99 lakh for the diesel variant. The carmaker feels Alcazar’s aggressive price and best-in-class fuel efficiency separate it from other products in the segment.
“This kind of price range will open a new segment. At present, the mid-large SUV segment is growing and we are hopeful that the new launch will increase our presence in the segment…The new Alcazar is also suited for Creta SUV customers who are looking to upgrade,” said Tarun Garg, Whole-time Director and Chief Operating Officer of HMIL.
The mid-large SUV segment, which has other 6-7 seater options from Tata Motors and Mahindra & Mahindra, contributes 14.5% to total SUV sales and 7-7.5% to total passenger vehicle (PV) sales. On a monthly basis, this segment sees sales of 20,000 units. Hyundai, with Alcazar SUV, is relatively a smaller player with about a 10% share. Amid concerns over growing inventory at dealer showrooms, Hyundai said its inventory levels are low at 4 weeks. Garg said moderation in PV sales is a normal occurrence given industry grew 23% and 8% in last two years.
“We all talk about how the CAGR has been 5% for the last five years. So when you see a growth of 23% and 8% year-on-year, some kind of moderation is natural. I don’t think we should worry too much about this,” said Garg. So far in calendar year 2024, HMIL sales have grown by 2-2.5% year-on-year.
Hyundai said its SUV portfolio accounts for 67% of its overall sales, surpassing the industry average of 53%. The company’s most popular SUV Creta, whose latest version was introduced earlier this year, has already surpassed the milestone of one-lakh-unit sales mark.
Inventory levels are low at four weeks
Hyundai, with Alcazar SUV, is relatively smaller player with about 10% share. Amid concerns over growing inventory at dealer showrooms, Hyundai said its inventory levels are low at 4 weeks. Garg said fall in PV sales is a normal occurrence given industry grew 23% and 8% in the last two years. Mid-large SUV segment, which has other 6-7 seater options from Tata Motors and M & M, contributes 14.5% to SUV sales