JOIN USMore demand from Tier-2 and Tier-3 cities: Hyundai CEO
Hyundai Motor India Limited (HMI), one of the largest car manufacturers in the country, has begun full-scale production at its only plant on the outskirts of Chennai after the Covid-19 lockdown was lifted. The company feels the demand for automobiles has started picking-up gradually as personal mobility is gaining traction. In an interview with ETB Sivapriyan of DH, S S Kim, Manging Director and CEO, HMIL, speaks about the future of the automobile industry and how the company hopes to come out of the crisis spawned by Covid-19. Edited excerpts:
Q: It has been three months since Hyundai India resumed its production at the Irungattukottai plant near Chennai. Has the company begun production at full scale?
A: We have commenced our third shift plant operations to ramp-up production at our Irungattukottai factory outside Chennai, effective from July 20, 2020. The recommencement of third shift operation is necessitated by the increasing customer demand for personal mobility across India and overseas markets. This will support and boost the economy of the Tamil Nadu state and contribute to the livelihoods of the 2.50 lakh families of the extended Hyundai ecosystem of vendor partners, dealers, and other customer-touch points. After securing all necessary permissions from local authorities as per government advisories and guidelines, our manufacturing facility is continuously and consistently being sanitised and kept safe for the employees to work starting May 8, 2020 with confidence and complete peace of mind. We have always made a number of provisions to fortify health and hygiene including frequent sanitization across the workplace, offering nutritious food to build up the immunity of employees and providing personal health and safety kit for daily usage.
Q: How have the sales been since May after the lockdown was gradually lifted? How long do you think it will take for Hyundai India to achieve the pre-Covid sales figure?
A: Looking at the current market scenario, in July 2020, the Indian auto industry reached 80 percent of the monthly average of the calendar year 2019. However, HMI did better than industry achieving 90 percent of monthly average of CY '19 with over 38, 000 units in the domestic market, marking an achievement of nearly 98 percent of last year’s corresponding sales numbers. In August 2020, the demand is expected to improve further and HMI targets to reach more than 100 percent of last year's average. We have observed that digital consumption has increased across the platforms in the past 4 months. Our digital offering Click to Buy saw good customer response with over 3.3 million visitors till date. Hyundai is also offering customers its 360 digital Service & Contact-less Service experience through the Hyundai Care app, WhatsApp, Hyundai website or a call to Dealers.
Q: Some companies say it will take up to four years to reach the pre-Covid sales. What is your opinion? Automobile sector was hit huge by the slowdown in 2019 and Covid-19 lockdown in 2020. How is the sector managing these losses?
A: Last year, the Indian automotive sector witnessed uncertainty and slowdown due to factors such as transition from BSIV to BSVI norm and revised banking norms etc. However, the growth of motorisation is progressing positively in India, the potential buyers per thousand population is still lower than US and Europe. In the current situation, we are introducing new technologies, connected features and advanced powertrains to excite and surprise our customers. Additionally, I would like to add that despite this challenging situation we have launched 8 new blockbuster products in India since last year starting from Venue, Kona electric SUV, Grand i10 NIOS and new Elantra. This year since January, we have launched four new products starting with Aura, the all new Creta, spirited new Verna and the new Tucson to offer meaningful choices to our customers in each segment. HMIL has contributed strongly in the UV segment with four super performer SUVs –Creta, Venue, Tucson, and Kona electric registering sale of 34, 212 Units (April-July 2020) showcasing customer acceptance of Hyundai SUV Portfolio. With the 500, 000 sales mark, the CRETA has set yet another benchmark in the industry, reaffirming a legacy of leadership in the SUV segment. The All New Creta has received over 70, 000 bookings (in five months) since launch in March 2020 making it the most admired brand in India.
Q: Is there any major difference between sales in rural and urban areas?
A: Post the unlock period, we have witnessed the demand for automobiles has started picking-up gradually as personal mobility is gaining traction. The demand was majorly from tier 2 and tier 3 cities than metropolitan markets due to low spread rate of pandemic.
Q: What is the company doing to get customers to buy?
A: Our first priority is to resolve customer anxiety in this challenging environment. Under the ambit of Hyundai Cares, we have introduced multiple financial schemes to enhance customer confidence through programs such as EMI Assurance and associations with banks to offer Unique Customer Centric Car Finance Schemes. These schemes are solutions to customer apprehensions and offer convenience and ease of ownership during these challenging times. Hyundai has the right mix of products in every segment to offer higher value to customers. Our strategy is to cater every customer in each segment to enhance sales volume. Additionally, being a forward looking brand, The Click to Buy has pioneered online car buying with an end-to-end solution offering customers the ability to purchase cars online and even avail for loans through a single platform without the need to visit dealerships. To further achieve our mission of being Lifetime partners of our customers – we have introduced ‘Hyundai Mobility Membership’, India’s first customer-centric smart ownership and lifestyle program. Hyundai Mobility Membership has been designed to empower our new age customers with an unmatched lifestyle experience. The retail experience is now becoming aspirational, our new customers are now looking at solutions which are beyond mobility and can offer 360-degree value additions.
Q: What is Hyundai’s plan for new launches this year? How are the company’s new launches during the Covid-19 slowdown doing?
A: India is an extremely important market for Hyundai. We have a long-term product roadmap for the domestic market, and we will abide by these plans & continue launching exciting products for our Valued Customers. Our focus is towards introducing safety and health features benefitting our customers. Additionally, we are enhancing our product offerings with a renewed emphasis on connectivity and product differentiation through our technological prowess.