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breathtaking pace of new car launches has virtually pushed the beautiful Hyundai i10 out of sight. Maruti Suzuki Ritz launch almost complimented the Korean car manufacturer on it achievement. It made the made car manufacturer Hyundai Motors stand up and take notice of the newcomer. [link widoczny dla zalogowanych]
Hyundai i10 has drawn praise from all corners of the automotive industry, including its rival Maruti Suzuki. Last year, Hyundai sold 1.04 lakh units sold of which only 40 percent were generated in the domestic market. The bulk of the sales come from exports to its overseas market. Hyundai has made India the global manufacturing hub for its i-series of cars. For the year 2009, it is heading to set new sales records due to scrappage scheme in Europe.
The launch of new small cars in India has posed a threat to Hyundai Indias plans. The fact is the i10 is the only car in the large volume segment. If i10 goes into problems Hyundai officials will a worried lot. As sales of most other Hyundai cars are sliding down rapidly [link widoczny dla zalogowanych], the i10 is the only flagbearer. It is the only car capable of keeping the company buoyant in this year.
The i10 has grown older in comparison to Maruti Suzuki Ritz, Honda Jazz and Fiat Grande Punto. It may not perform as well as it did last year. There is the Hyundai i20 which has performed beyond expectations but [link widoczny dla zalogowanych], volumes are still not high enough to generate big revenues. Hyundai has its work cut out for the year.
As if this was not enough, other car manufacturer has lined up small cars for launch this year. General Motors announced it will introduce mini car in the Rs 4 lakh category exactly where the i10 is placed currently. The new LPG version of Chevrolet Spark by General Motors has already been introduced last month. Volkswagen Polo is scheduled to enter Indian small car market soon. Also in the line is the small car from Ford Motors. The small car segment which generates the highest volumes in India is getting crowded by the day.
Hyundai officials say they are prepared to meet all challenges head on. There are plans to launch two new cars every year to get sales driven by new car launches. It is also investing $200 million to develop 800 cc car in two years time. Hyundai is also pushing up the distribution network to 550 service centres and 300 car dealerships. Hyundai will also set up 100 dealerships which will only sell cars additionally. They are expected to come up in rural Indian car market.
Over the years Hyundai has carefully developed its network and penetration in the country. It also made India the global manufacturing hub for i-series of cars. This has given Hyundai a better leverage in pricing these cars to capture the domestic and overseas markets. It is well placed to think beyond boundaries of a country, unlike Maruti Suzuki.