Hyundai Motor India has discontinued the sale of Terracan, its top-end sports utility vehicle, in the country. This follows the market's poor response to the vehicle, with the company only selling 200 Terracans in 2005.
"This is the first case in India's automotive history where a global major is withdrawing a popular brand due to a poor response from the market," industry analysts said.
The company had high expectations from the Terracan when it was launched in August 2003, with projected annual sales of 700-1,000 units.
"Unfortunately, on account of low demand, we had to stop Terracan sales. India as a market is not mature enough for high-end SUVs, which might be a reason for Terracan's poor performance," said an official spokesperson for Hyundai Motor India.
The 4710 mm SUV has a 2.9 CRDi, turbocharged and intercooled diesel engine with a five-speed manual transmission. The model was priced at over Rs 20 lakh (Rs 2 million), ex-showroom Mumbai.
"It is in the mindset of an average Indian customer to dream of a high-end sedan. But when it comes to an SUV, he is not ready to bear that high a price," said a leading Mumbai-based automobile analyst.
For such a customer, an SUV meant an M&M Scorpio or Chevrolet Tavera, he added.