Hyundai, Toyota to cooperate in motor sports division
The chiefs of Hyundai Motor Group and Toyota Motor Corp said on Sunday that the two carmakers will cooperate in the motor sports division in their first public appearance at a racing event.
Hyundai Motor Co has introduced a new small sport-utility vehicle (SUV) called the Exter in India, targeting young car buyers and aiming to regain market share from competitors who have gained momentum with their latest car models. Priced from ₹5.99 lakh ($7,300) for the base model to ₹9.99 lakh for the top-end variant, the Exter will directly compete with Tata Motors’ Punch SUV.
The launch of the Exter allows Hyundai to fill a gap in the entry-level SUV segment and expand its product lineup in India, a market of strategic importance for the South Korean automaker, according to Unsoo Kim, CEO of Hyundai Motor India. The company invested 9.5 billion rupees in developing the Exter.
India is becoming increasingly important for Hyundai and its affiliate Kia Corp, as they scale back their presence in China and exit the Russian market. The demand for SUVs in India has surged, propelling sales to record levels during the post-COVID buying boom. Hyundai’s competitor Maruti Suzuki recently launched a premium seven-seater SUV to attract upmarket buyers.
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The Exter boasts various features, including a voice-enabled electric sunroof, dashboard camera for taking selfies, and a wireless smartphone charger, typically found in larger car models.
Hyundai has experienced success in India with the launch of large and mid-size SUVs like the Alcazar and Creta, which contributed to a record-high sales figure of over 567,000 units in the last fiscal year. However, its market share dipped below 15% from a peak of 17.5% in 2019-2020, as Tata and Mahindra & Mahindra surged ahead with new product releases.
According to Ravi Bhatia, President for India at automotive consultancy JATO Dynamics, the Exter has the potential to help Hyundai regain some lost market share. However, the company needs to ensure that the Exter does not cannibalize sales of its other small, entry-level cars. To truly boost its market share, Hyundai should consider developing products in higher segments, as that is where the market is growing, Bhatia added.
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