South Korean carmaker Hyundai Motor has entered India with its slogan in English: “New Thinking, New Possibilities”. When Hyundai announced its entry into India in the nineties, companies like Maruti Suzuki, Premier, Hindustan Motors, Tata and Mahindra had a monopoly in the market. But soon the company became so famous among Indians that it is now the second largest car company in the country.
Like a guest arriving in a new country, Hyundai’s journey from entry-level to second place isn’t easy. Recently, the company completed the largest IPO in Indian history, with a scale of US$3.3 billion (approximately 27,870.16 billion rupees). The story of Hyundai’s journey in India, which started about 28 years ago with small cars like the Santro, is quite interesting. Let’s take a look back at the history of modern cars and see how it got to where it is today.
Welcome to India:
When Hyundai entered India in the 1990s, it had local brands Tata, Mahindra, Maruti Suzuki and Hindustan Motors. On May 6, 1996, the South Korean carmaker began its journey across much of Asia as Hyundai Motor India. On the same day, the company opened its first factory in Tamil Nadu. Just a year before Hyundai arrived, companies like Ford, Opel and Honda had already arrived in India.
Launch of the first car:
Even before coming to India, Hyundai conducted extensive research and the company realized that it had to be popular with the common man if it wanted to succeed in the Indian market. With this in mind, Hyundai launched its first car, the Hyundai Santro hatchback, on September 23, 1998. This small car performed wonders as soon as it was launched, bringing a new option to those Indians who dream of owning a Maruti car.
A small car makes a big picture: 1998
The company has equipped the Santro with a 1.1-liter petrol engine based on Hyundai’s global model Atos. The car’s small size made it not only economical, but its stylish appearance also made it an ideal city car at the time. Hyundai has launched its first car in the Indian market with a starting price of just Rs 2.99 lakh. The car competes directly with the Maruti 800, which is by far the best-selling car in the segment.
As time went on, Santro’s story evolved and the company started including famous Bollywood actor Shahrukh Khan in its ads. The car also gained popularity with Shah Rukh Khan and soon found its way into every household in the country. There is an interesting story behind the name of this car. In fact, the name Centro is formed from the first two letters of the city of Saint-Tropez in southern France.
Santro played an important role in cementing Hyundai’s roots in India, and by early 1999, Hyundai became India’s second-largest automaker, behind Maruti Suzuki. On March 31, 1999, Hyundai Motor India officially announced the news. Now, other local giants have realized that a new but powerful competitor has entered the market.
Entry into sedan market: 1999
On October 14, 1999, Hyundai Motor launched the Hyundai Xcent as its first sedan in the Indian market. After the success of the Santro, the Accent also proved to be a better fit for the company. Among SUV and hatchback models, Xcent is favored by consumers. The starting price of this 1.5-litre 4-cylinder sedan was just Rs 3.75 lakh. Today, you can’t even buy a hatchback at such a low price.
New milestone year: 2000
Standing on the threshold of the new century, the Indian automobile market is undergoing a period of major change. This year has proven to be much better for Hyundai, too. On April 27, 2000, just 19 months after launching operations in India, Hyundai Motor produced its 10th car at its Chennai plant. Later, on June 12, the company announced the sale of 100,000 Santro units. The company’s grip on the market appears to be growing, and on November 29, Hyundai launched its 150,000th vehicle.
Ultra-luxury sedan launched: 2001
Hyundai behaves like a slow burner. In the form of the Santro, it introduced customers to the brand through a budget car, slowly increasing the popularity. Growing demand for cars among Indian consumers has also provided support to the company. On July 18, 2001, Hyundai Motor launched the ultra-luxury car Hyundai Sonata in India. The car, which had stylish looks and state-of-the-art features, was priced starting at Rs 11.99 lakh.
The Hyundai Sonata is known for its unique looks and advanced features. The car is powered by a 2.4-litre MPFi petrol engine and comes with features such as power steering, power windows, electrically adjustable mirrors, Anti-lock Braking System (ABS), premium interiors and more. This was a completely new thing for the average consumer at the time. This car helped Hyundai become a powerful automaker.
Entering the SUV segment: 2003
So far, Hyundai has consolidated its position in the market and the company is fully ready for new experiments. On August 4, 2003, the company launched the high-end SUV Terracan, entering the sports utility vehicle field. The SUV was equipped with a 3.0-litre diesel engine and was priced starting at Rs 18 lakh. Based on a ladder-frame chassis, the car is also equipped with an all-wheel drive (AWD) system. In December, the company announced the launch of its 500,000th vehicle.
Powerful premium hatchback: 2004
In 2004, the company launched two new cars. In April, the company launched the Elantra sedan, but it won’t play much of a role going forward. But on September 10, the company launched the Getz as its premium hatchback in the country. In this car, the company equipped it with a 1.4-liter gasoline engine, which is a common engine in today’s compact SUV cars. The starting price of the car at that time was Rs 4.5 lakh. Due to its high price, there is nothing special about this car.
i10 and i20 write a new story: 2007-08
Over the past few years, Hyundai has understood the needs of Indian customers. As a result, the company launched the new i10 hatchback on October 31, 2007. The car gave stiff competition to Maruti Suzuki at the time due to its stylish looks. With a starting price of just Rs 3.82 lakh, this car is very popular among Indian families.
On the other hand, the Getz’s failure was disappointing for the company, but it wasn’t the end of the premium hatchback segment. The company was ready again and launched the new premium hatchback i20 the following year, on December 29, 2008. The two cars gave Hyundai Motor a new impetus, and the company also started exporting cars to other countries. On February 22, 2010, the company announced that it would export 1 million cars as soon as possible.
The average customer who goes above and beyond: 2011
Hyundai has been in India for more than ten years now. The journey that started with the Santro has expanded to luxury cars like the Santa Fe. But Hyundai realizes the important role the middle class plays in its popularity. With this in mind, the company launched EON, the cheapest car in the world on October 13, 2011. This is the first time the Maruti Alto 800 is meeting a direct competitor. The car was launched at a price of just Rs 2.96 lakh. As new models continue to be launched, on October 17, 2013, the company announced the launch of its 5 millionth vehicle.
Focus on SUVs, start a new journey: 2015
By 2015, the tastes of Indian car buyers are changing rapidly. So far, many foreign companies have intensified market competition by introducing new market segments. Hyundai also launched the new CRETA on July 21, 2015. Although the SUV segment in the market has giants such as Tata Motors, Ford, Mahindra and Toyota, this is a big step forward for Hyundai, which is popular for hatchbacks and sedans.
But the Creta has become so popular that more than 1 million units have been sold so far. The company has since launched the new Venue and last year it also launched the Exter in the market. The position Hyundai has achieved among Indian customers in 28 years has not been easy for everyone. Even today, Hyundai remains the second largest carmaker and the company faces stiff competition from Tata Motors for this position.
