Hyundai’s upcoming compact SUV ix25 will flaunt high levels of localisation to keep production costs at a minimum. The company has been having a great year so far and looks set to take things forward in 2015. The country’s second largest car manufacturer is set to launch their first compact SUV and update quite a few of its existing products, which may include the likes of Eon, Verna and Elantra. They also have their flagship sedan, Sonata, coming in a new avatar.
So how does Hyundai do it? With a competitor as large as Maruti Suzuki, whose, market share continues to hover around almost half of the whole market, Hyundai’s 21.9 per cent share seems like a highly respectable figure. High levels of localization is one of the major reasons they say…
Just like its existing models, Hyundai India, as per a report on Financial Express, will be aiming to have 90 per cent localisation for its upcoming ix25 as well. The SUV has already been launched in the Chinese market but India shall be getting it only in 2015, very possibly in this financial year itself.
Such high levels of localisation should definitely help the company in reducing the costs involved in production which shall allow Hyundai to price the product aggressively. Pricing in a market like India is obviously the key to making any product successful. The ix25 will be no different. Being the first real rival to the Renault Duster, it has a lot of ground to catch up. Unlike the Ford EcoSport, the ix25 cannot avail excise duty benefits and high localisation levels will be its savior as it can save itself from the hassles of currency fluctuations etc.
The report further claims that the management aims to surprise the market with the pricing. Now, this is real interesting! Competition Duster starts at Rs 7.86 Lakhs for the petrol variant and Rs 8.70 Lakhs for entry diesel (both ex-showroom Delhi) before ongoing discounts. Can we expect a similar shocker as EcoSport..? We would love to read “Hyundai ix25 Launched at Rs 6.99 Lakhs” 😉