Hyundai going into battle for the top slot in small cars

New Delhi: Hyundai Motors has decided to fire a larger volley of smaller cars into the Indian market, in a bid to wrestle its way into the top slot.

Being the latest entrant in the low-cost mini-car segment, the Korean motor company has announced plans to develop its low-cost car in India, with the all-critical design and technical support from its research facility in Hyderabad.

As part of its expansion plans and to compete with Maruti Suzuki in the small car segment, Hyundai Motor India Limited (HMIL) plans to launch a new 800cc car in the domestic market. According to Hyundai, research and development (R&D) the new car is under joint development at R&D centres in Hyderabad and Namyam (Korea). The company plans to roll out the car within the next three to four years. (See: Hyundia's new 800cc cars to roll out in India in three to four years)

Defending the bottom of the pyramid
Market sources say the new small car will help Hyundai defend the lower end of its market. The entry level of the car market has been redefined by the much awaited Tata Nano, which sent shockwaves through the global automotive world with its Rs1 lakh ($2,500) price. Driven by the fact that the Tata's could do it, a number of global companies such as GM, Toyota, Renault-Bajaj, Fiat and Volkswagen are embarking on their micro-car programmes, and one with a prototype already out is two wheeler company Bajaj.

Hyundai Motor India has reportedly undertaken a mammoth feasibility exercise to delve into the mind of the Indian consumer, trying to come up with a better mapping of driving conditions, styling cues and technical specs for the proposed small car.

Given its experience in the Indian market, and all the insight generated thus far from its research, Hyundai is planning to come out with a petrol car, just a notch above Tata's Nano.