Major OEMs in India are passing through a difficult period due to corona virus outbreak
Hyundai Motor India Ltd (HMIL) has garnered an appreciable sales figure in March 2020 amidst COVID-19 aka corona virus outbreak. The South Korean brand hit 26,300 units last month in the domestic category while exports saw 5,979 units.
Overall, Hyundai India was able to hit 32,279 units in sales last month. Despite being significantly lower than usual, this is a commendable achievement considering the current state of affairs.
Hyundai India Sales / Exports – March 2020
A detailed model-wise sales break-up will be shared by the brand soon. It was only recently that Hyundai India launched the much-awaited Creta 5-seater SUV at a starting price of Rs 9.99 lakh ex-showroom. It shares a lot with the proven Kia Seltos and has become a compelling alternative to SUVs in higher segments such the Tata Harrier, Jeep Compass and MG Hector. Meanwhile, either brand is also working on 7-seater versions of the Hyundai Creta and Kia Seltos.
Hyundai India currently sells 11 products across hatchbacks, crossovers, sedans and SUVs: Santro, Grand i10, Grand i10 Nios, Elite i20, Aura, Verna, Creta, Elantra, Tucson and Kona (electric). Some of these models are popular in export markets. Hyundai plans to launch the 2020 Verna sedan as a strong rival to the Honda City (new model coming soon), Maruti Suzuki Ciaz and Toyota Yaris. However, the ongoing corona virus lockdown and plant shutdowns could delay the sedan’s debut.
Hyundai has already updated most of its line-up to BS6 emission specifications. Previously, rules mandated that no BS4 vehicle will be allowed to be sold or registered in the country from 1 April 2020. While dealerships were offering substantial discounts to sell off their leftover BS4 stock, the current lockdown protocols left them with no choice other than to wait and hit inevitable losses.
Now, as per a conditional deadline extension, concerned authorities have allowed dealerships to sell just 10% of their BS4 stock for a period of 10 days post lockdown. This will not make things much better and many small-scale dealerships might be at the verge of ending business.
As per guidelines, dealerships with unsold BS4 stock have three options: (1) register and sell them as used vehicles, (2) consult parent OEM for a buyback, and (3) send them for scrap as per relevant norms. This has laid a heavy burden on dealerships and manufacturers alike and many who are involved in the situation are hoping for adequate support from the Indian government.