Hyundai to export new 4S Verna to Middle East and Latam markets

Hyundai Motor India will kick off exports of its new 4S Verna to the Middle East and Latin American countries almost immediately. Nine countries are on the radar in this geography, according to Rakesh Srivastava, senior VP (sales and marketing).

Last calendar year, Hyundai Motor India exported 201,000 units and had a 40 percent market share of exports. This year it plans to hold onto this market share and export to over 100 countries.

Srivastava confirmed that the company is finalising distributor orders in various regions and will continue to be the largest exporter in 2015 as well.

While the basic Verna was launched in India in 2006, the fluidic Verna made its presence in 2011 and saw production of around 4,500 units a month. It was a segment leader in the market where it operated and is now pitted against the likes of the Maruti Ciaz that sells around 6,000 units a month and the Honda City, which is selling 7,000 units as month. Thus far, the Verna has sold 278,000 units in India while globally its sales are in the range of 2.3 million units across 66 countries. 

BS Seo, managing director and CEO, HMIL, said that the company’s Sriperumbudur plant is not constrained by production capacity despite utilising 99.8 percent of the existing capacity. At present, the two Chennai plants produce 680,000 vehicles per annum that can be scaled upto 700,000 units annually before the company looks at fresh investments in a third plant.

Seo added that Hyundai is setting up two new plants in China and one in Mexico and could set up another facility in India if there is market demand for it. Setting up a new plant would take around 14-16 months, he said.   

Last year, Hyundai sold over 400,000 lakh units in the domestic market and is looking at sales of 500,000 units this year. At present 20 percent of this is contributed by the rural markets where it has 320 outlets.

The company is targeting double-digit growth this year while the auto industry is expected to grow in single digits.

In the first two months of 2015 (till February 18), it has sold 34,005 units with exports estimated at 12,500 vehicles.