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Hyundai to launch low cost SUVs in China

Hyundai low cost SUVs for China

Hyundai is the third largest automaker in China after VW and GM.

Hyundai and Kia have been catering to the price sensitive segments of the vast Chinese market by repositioning theirĀ old generation models to co-exist with latest iterations. However, the emergence of strong and modern low-cost products from local manufacturers like Great Wall has made Hyundai’s strategy redundant. Reuters reports that the South Korean automaker is working on a slew of low cost SUVs in a bid to keep its Chinese market share from getting eroded.

The publication’s sources say that Hyundai and Kia will use local engineering capabilities (the brands’ have a joint R&D centre at Yantai), employ local suppliers and tone down the specifications of the components to arrive at price tags which would beat the native Chinese brands.

Hyundai Carlino 2016 Auto Expo

Hyundai China will make use of local engineering capability to keep the costs low (image of the Carlino concept is used for representative purpose only).

Hyundai is reported to start production of its first low cost Chinese SUV at its Changzhou plant by November 2017. A sub-compact SUV is scheduled to enter production atĀ Chongqing plant in 2018. The Kia counterparts of these SUVs in question will also follow suit.

Great Wall Haval low cost suvs

Hyundai is facing pressure from modern low cost SUVs from Chinese automakers (Image: Great Wall Haval H8).

Also read – Hyundai Tucson starts testing in India

The low cost SUVs planned for China are not likely to be launched elsewhere but we expect these models to share modules with Hyundai-Kia’s global models. Hyundai Group is the third largest automaker in China after VW and GM but last year, the market share slid to 8.9% which is a 7-year low.

Hyundai Carlino Concept – Photos

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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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