Hyundai Motor Co. Wednesday introduced its Fluidic Verna model in India in an effort to get a stronger foothold in the growing mid-sized sedan segment and beat off competition from Volkswagen AG, Honda Motor Co. and Suzuki Motor Corp.
Hyundai, India's second-largest auto maker, will sell the new car with two engine options each in gasoline and diesel. Both the gasoline and diesel models will be offered with 1.4-liter as well as 1.6-liter engines.
The gasoline version will be sold for 699,000 ($15,637), reaching up to 964,500 rupees. The diesel model will cost 809,000 rupees for the base version, with the top-end model costing 1.07 million rupees.
Introducing new cars will help Hyundai compete with rival auto makers in Asia's third-biggest automobile market where more people are buying new cars as rising incomes make them more affordable.
Car sales in India climbed 30% in the financial year ended March 31, the biggest increase since 1999-2000. In comparison, the mid-size sedan segment grew 33% to 366,186 vehicles.
But a spate of interest rate increases by the central bank to control spiralling inflation, and a spurt in commodity costs resulting in higher vehicle prices are threatening the automobile industry.
"With the launch of the new Verna, I am confident that it will help consolidate our position in the mid-size segment," Hyundai President and Chief Executive Steve S. Yang said at the Verna launch. "Our brand image will enhance, and we will no longer be considered a small car maker in India."
With the introduction of the new model, Hyundai Motor India Ltd. will stop selling the current Verna Transform model, said Arvind Saxena, director of sales and marketing at Hyundai's local unit.
The company expects the new version to boost Verna sales by 80% in the first year.
"As far as volumes are concerned, we expect to sell about 45,000 units of the new Verna in the very first year," said Mr. Saxena.
The company sold about 25,000 Verna cars in 2010. It also sells the mid-size Accent sedan in India.
Hyundai produces small cars such as the i10 and the i20, as well as sedans such as the Sonata and the Accent at its factories near the southern port city of Chennai. It also imports and markets the Sante Fe sport-utility vehicle.
"The Indian market is a priority for us, and we have supported this market through technology and new models," said Mr. Yang. "We will continue to provide technology. We will bring in new models in small cars, mid-size and even the premium segment."
He said the company will continue to make more investments in India to boost sales and strengthen market share.
The company has invested $1.8 billion in India since its inception in 1998.
These investments also include building a new diesel engine plant, with an initial capacity of 250,000 engines a year, which will be operational by 2013.
Hyundai, India's second-largest auto maker, will sell the new car with two engine options each in gasoline and diesel. Both the gasoline and diesel models will be offered with 1.4-liter as well as 1.6-liter engines.
The gasoline version will be sold for 699,000 ($15,637), reaching up to 964,500 rupees. The diesel model will cost 809,000 rupees for the base version, with the top-end model costing 1.07 million rupees.
Introducing new cars will help Hyundai compete with rival auto makers in Asia's third-biggest automobile market where more people are buying new cars as rising incomes make them more affordable.
Car sales in India climbed 30% in the financial year ended March 31, the biggest increase since 1999-2000. In comparison, the mid-size sedan segment grew 33% to 366,186 vehicles.
But a spate of interest rate increases by the central bank to control spiralling inflation, and a spurt in commodity costs resulting in higher vehicle prices are threatening the automobile industry.
"With the launch of the new Verna, I am confident that it will help consolidate our position in the mid-size segment," Hyundai President and Chief Executive Steve S. Yang said at the Verna launch. "Our brand image will enhance, and we will no longer be considered a small car maker in India."
With the introduction of the new model, Hyundai Motor India Ltd. will stop selling the current Verna Transform model, said Arvind Saxena, director of sales and marketing at Hyundai's local unit.
The company expects the new version to boost Verna sales by 80% in the first year.
"As far as volumes are concerned, we expect to sell about 45,000 units of the new Verna in the very first year," said Mr. Saxena.
The company sold about 25,000 Verna cars in 2010. It also sells the mid-size Accent sedan in India.
Hyundai produces small cars such as the i10 and the i20, as well as sedans such as the Sonata and the Accent at its factories near the southern port city of Chennai. It also imports and markets the Sante Fe sport-utility vehicle.
"The Indian market is a priority for us, and we have supported this market through technology and new models," said Mr. Yang. "We will continue to provide technology. We will bring in new models in small cars, mid-size and even the premium segment."
The company has invested $1.8 billion in India since its inception in 1998.
These investments also include building a new diesel engine plant, with an initial capacity of 250,000 engines a year, which will be operational by 2013.
