Hyundai Motor India is all set to enter the attractive and fast-growing compact SUV market with an all-new SUV called Creta. Developed on the ix25 platform, the global rollout of this new model will start in the second half of 2015 in India, followed soon after with sales in world markets. The Creta name will be used in all global markets.

According to Hyundai, the Creta, which evokes similarities with the word ‘creative’, will be an influential global model for the Hyundai Motor brand in one of the fastest-growing vehicle segments, helping the company reach out to many more consumers in new and established international markets.

Hyundai's compact SUV is expected to come with a wide range of powertrains such as its refined 1.6-litre diesel engine which develops 126bhp and 26.5kgm of torque. Hyundai is also considering the option of the 121bhp, 1.6 petrol engine but at a later stage. While the diesel will get a six-speed manual with an auto transmission being part of the plan too, the petrol will come with a five-speed manual gearbox.

However, since the Creta is 4.27 metres long (the ix25 concept is 4270mm long, 1780mm wide, 1630mm tall and has a wheelbase of 2590mm), it will not avail of the benefits extended to the small car category in India. The Creta is likely to be priced in the Rs 12-14 lakh range.

Hyundai will target the Renault Duster and Suzuki's upcoming compact SUV offering, the S-Cross (or Across as it is rumored to be named) with the launch of the all-new Creta.

From a sales perspective, Hyundai Motor India sold 37,450 units in May 2015, up 3.4% (May 2014: 36,205). The automaker is hopeful that the Creta, which will mark its entry into the new compact SUV segment, will help increase sales of its cars in the Indian market. At present, the company has only one SUV – the Sante Fe – in its India stable.

Growing demand for compact SUVs
With the Creta, the Korean carmaker clearly wants to cash in on the growing consumer demand for compact SUVs, both in India and overseas. Likewise, there are a host of other OEMs all set to launch similar products later this year and in 2016 in India. This includes the recently revealed SUV-ish-looking Renault Kwid slated for launch in September-October, two new compact SUVs to come from Mahindra & Mahindra, a crossover and the compact 3693mm-long 4x4 SUV (iM4) from Maruti Suzuki India.  

Despite the slow run in the passenger vehicle segment in the past two years, UV sales have begun to look up in the last fiscal. Over the past nine years, the UV segment in India has grown by 151% (see detailed statistics table above). From a total of 220,306 units in 2006-07, sales have risen to 553,699 units in FY2014-15. And FY2015-16 opened with sales of 43,526 units in April 2015, up 7% year on year.