New Hyundai Santro reignites interest in mid-compact cars
largest carmaker, has reignited consumer interest in the mid-compact car segment while also eating into the market share of its competition.
The Korean carmaker relaunched the Santro brand in India in the last week of October and has received 45,000 bookings since. While sales in the low and mid-compact car segment have been overshadowed by the interest in utility vehicles over the past few years, Hyundai has managed to bring the small-car buyers back to the showrooms.
“Actually, if you see this mid compact segment, it used to be around 30,000 (units per month). We had the Celerio, the Tiago, and the Wagon R. But after the launch of Santro, this segment has already jumped to 36,000. So, not only have we increased the volume (of the segment), but we have also increased our visibility,” said Puneet Anand, marketing group head at Hyundai Motors India. He said that Hyundai wholesaled 8,500 and 9,000 units of the Santro during October and November, respectively, and expects to achieve similar numbers for December.
"In that segment, a very prominent player has reduced the market share by 2.3%. And we have increased that by 2.3%. So, whatever they have lost is a gain for Hyundai.
Even in November, our market share was one of the highest,” Anand said. The segment-leading Wagon R sold 13,252 units in September. In October, the month when Santro was launched, it sold 10,655 units. The Tiago went down from 8377 units to 7549 units. Meanwhile, the Celerio saw a minor increase in sales from 9208 units to 9260 units.
The sales numbers for November are awaited. However, how much of the interest garnered by the Santro is due to the novelty-factor and festive season sales will only become apparent with time. “India always has been a novelty specific market. Whenever there are new launches, you will always find there is an uptick (in sales),” said automotive analyst Jeffry Jacob, a partner with Roland Berger. “Wagon R has been holding strong in that segment for so long, even now they are selling 10,000 units (a month) after so many years.
And a new refresh is expected to come soon,” Jacob said. Maruti is readying a new generation of Wagon R for launch in 2019 followed by an updated Alto K10 around 2020. To be sure, Maruti Suzuki has only lost market share in the compact segment. Overall, the country’s largest carmaker gained 0.5% market share year-to date till October, while it is Hyundai which has lost 0.3%.
The Korean carmaker relaunched the Santro brand in India in the last week of October and has received 45,000 bookings since. While sales in the low and mid-compact car segment have been overshadowed by the interest in utility vehicles over the past few years, Hyundai has managed to bring the small-car buyers back to the showrooms.
“Actually, if you see this mid compact segment, it used to be around 30,000 (units per month). We had the Celerio, the Tiago, and the Wagon R. But after the launch of Santro, this segment has already jumped to 36,000. So, not only have we increased the volume (of the segment), but we have also increased our visibility,” said Puneet Anand, marketing group head at Hyundai Motors India. He said that Hyundai wholesaled 8,500 and 9,000 units of the Santro during October and November, respectively, and expects to achieve similar numbers for December.
"In that segment, a very prominent player has reduced the market share by 2.3%. And we have increased that by 2.3%. So, whatever they have lost is a gain for Hyundai.
Even in November, our market share was one of the highest,” Anand said. The segment-leading Wagon R sold 13,252 units in September. In October, the month when Santro was launched, it sold 10,655 units. The Tiago went down from 8377 units to 7549 units. Meanwhile, the Celerio saw a minor increase in sales from 9208 units to 9260 units.
The sales numbers for November are awaited. However, how much of the interest garnered by the Santro is due to the novelty-factor and festive season sales will only become apparent with time. “India always has been a novelty specific market. Whenever there are new launches, you will always find there is an uptick (in sales),” said automotive analyst Jeffry Jacob, a partner with Roland Berger. “Wagon R has been holding strong in that segment for so long, even now they are selling 10,000 units (a month) after so many years.
And a new refresh is expected to come soon,” Jacob said. Maruti is readying a new generation of Wagon R for launch in 2019 followed by an updated Alto K10 around 2020. To be sure, Maruti Suzuki has only lost market share in the compact segment. Overall, the country’s largest carmaker gained 0.5% market share year-to date till October, while it is Hyundai which has lost 0.3%.
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