Hyundai packs a punch in entry SUVs, launches Exter mini at Rs 6 lakh

NEW DELHI: Hyundai fired fresh competition in the mini SUV segment as the company drove in the Exter, a new entry car that will take on models such as Tata Punch, Renault Kiger, and Nissan Magnite.
Hyundai has positioned the new vehicle aggressively with an entry price of Rs 6 lakh (ex-showroom), as the country’s second-largest carmaker expects 60% of its sales to come through SUVs this year.
The Korean company already has a fat SUV portfolio, that begins with the Exter now, followed by the Venue and the relatively-larger (4-meter plus) Creta, thereafter the Tucson, and ending with the Kona and Ioniq5 electrics.
Tarun Garg, Chief Operating Officer of the company, said that demand for SUVs remains strong in India and their share has been moving up with each passing month. “While the share of SUVs in total car sales was 29% in 2020, this has moved up and reached 46% at the end of 2022. We hope this trend will continue even strongly as more models get introduced,” Garg told TOI.
Currently, there are nearly 50 SUVs in India compared to a much lesser strength of sedans and hatchbacks. Not only that, most of the new launches are also in the SUV category, straddling across price points — right from the entry ones (sub Rs 10 lakh) such as the Exter and Tata Punch to the premium ones like Mahindra XUV7OO and Toyota Fortuner, and the those priced over a crore of rupees that are retailed by companies such as Mercedes, Audi, and BMW.
Most of the new launches planned, including that of electrics, are also of SUVs and auto companies believe that the trend is here to stay.
Hyundai spent over Rs 950 crore to develop the Exter, and feels that the new model will give it sufficient ammunition to garner entry level SUV buyers, who are mostly buying the Punch right now. The price of the Punch and Nissan Magnite also starts at Rs 6 lakh, while the Renault Kiger starts at rs 6.5 lakh (all-ex showroom).
Garg said the share of SUVs to Hyundai’s sales has been higher than the industry and stood at 53% in 2022. “We expect it to reach 60% this year as the Exter will attract new customers from the mass segment.”
Speaking about demand in the market, he said that while the semiconductor shortages are now coming under control, there is also a sobering of new purchases. “There was a lot of pent-up demand that came up over the last two years. Now we need to act to get new customers.”
Source: Industry