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Hyundai plans new model in 2003

D John Samuel Raja

Hyundai Motor India Ltd is planning to launch a new model by the third quarter of calendar 2003.

The model, which is being developed exclusively for India, would be positioned between the B (premium hatchbacks) and C segment (mid-premium) of the passenger car market, HMIL president A P Gandhi said.

According to Gandhi, "Substantial work in terms of product design and development had been completed and the new product would be built on a new platform. We are also planning to launch a product that would satisfy Sonata owners who are looking for better product offering".

Apart from domestic sales, HMIL would export the car to markets in Latin and South American countries which are, at present, not being catered to.

Currently, Santro, the company's flagship product, is a major player in the B-segment with sales of 71,573 units in calendar 2001. Sonata, its premium offering, was launched only last year.

Gandhi said, "The change had begun in the Indian passenger car market along the global lines". He, however, refused to divulge whether the new product would be offered as a replacement for Santro. "We are aiming for greater commonness of parts to minimise production costs," Gandhi said.

Asked about the performance under the Export Promotion Credit Guarantee scheme, he said that HMIL had completed obligations for two licenses whose tenure began in April 15, 2001 and December 15, 2001, respectively.

As per the EPCG scheme, the Centre levies low or nil import duty on capital goods imported for production and, subsequently, companies need to export goods worth four times the imported value within eight years. HMIL has EPCG obligation of around $800 million.

Asked about expected sales during the remaining three months of the current financial, he said combined sales would reach 90,000 units during April-March 2001, 10,000 units less than the projected sales. He blamed the depressed market for the lower-than-anticipated sales.

Meanwhile, the company is expected to showcase three of its latest offerings in the auto exposition to be held in Delhi. They include: Hyundai Elantra, Hyundai Terracan and Hyundai Tuscani. While Terracan is a sports utility vehicle, Elantra is billed as an intermediate offering between Accent and Sonata.

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