Hyundai Motor India bets big on next-gen i20

Hyundai Motor India (HMIL), which has been aggressively working to ready an all-new premium hatchback (codenamed IB), is to launch the new i20 called  Elite i20 on August 11, 2014. This will be a global launch for the next-generation i20.

Speaking exclusively to Autocar Professional, a source at HMIL said: “We have been working very aggressively on the project IB from Q4 CY2013 for a well-timed launch. The management wants to strategically launch this car to create substantial sales momentum by the upcoming festive season, especially Dhanteras.”

Hyundai aims at readying close to 25,000 units of the said model soon to stay geared up for making the deliveries speedily.

Another source closely associated with the project disclosed that “we have a plan to ready nearly 25,000 units of the all-new i20 to make the required deliveries. Once the model is commercially launched, the top management, which has high expectations from this model, is quoting a volume of 12,000-13,000 units per month. That averages out to an annual production plan of nearly 150,000 units. Export of this model is on the cards too.”

It is also expected that besides catering to the domestic market, Hyundai, India's largest car exporter, may export some volume of the all-new i20 from its Chennai-based manufacturing unit starting this calendar year.

The i20 hatchback is currently offered in three engine variants – 1.2-litre petrol (5-speed manual gearbox), 1.4-litre petrol (automatic gearbox) and 1.4-litre diesel, which comes mated to a six-speed manual gearbox.

The carmaker is expected to continue using the existing i20 powertrains in the all-new i20 model as well. It is to be noted that powertrain choices largely depend upon the existing tax regime, which dictates higher taxes on the engines above 1.2 litres (for petrol) and 1.5 litres (for diesel).

The planned model will consolidate Hyundai’s position in the premium hatchback segment, which roughly stands in the anticipated price bracket of Rs 5 lakh to Rs 9 lakh. This segment currently sells the topline Maruti Swift variants (1.2 petrol / 1.3 diesel), Skoda’s Fabia variants (1.2 / 1.6 petrol motors, 1.2 diesel), Volkswagen Polo models (1.2 petrol, 1.2 / 1.6 diesel) and Fiat Grande Punto variants (1.2 / 1.4 petrol, 1.3 diesel).

However, the popular Honda Jazz is expected to return to this segment soon, marking its second entry into the India market. Expected to be a tough competitor for the all-new i20, the new Jazz is touted to come with the refined 1.2-litre petrol and 1.5-litre diesel engine options.

Illustrations: Courtesy Autocar India