Hyundai is working on a crossover-like budget hatchback to take on the highly successful Renault Kwid. Codenamed Hyundai AH, the small car is expected to be ready for the market sometime in 2018. The car has been spotted on test once again. This time along side its rival Maruti Alto.
Powering this new car will be a new petrol engine, codenamed AH2. Production of this new engine has already commenced at the Hyundai plant in Chennai.
Details of the small car are still sketchy but we expect emerging markets like India and Brazil to be the primary markets (just like the Kwid). Hyundai’s current crossovers are widely acclaimed for their styling in the global arena, so capturing that essence in a small package wouldn’t be much of an effort for the brand’s designers.
Hyundai India has the resources to match the new budget car’s localization level with that of the Kwid to come up with an attractive pricing. Going by Hyundai’s products, such a budget car would be more premium than it rivals.
Hyundai is likely to come up with a new platform for the AH small car so that it can be future proof as far as crash regulations are concerned. We can expect simple and modern powertrain with emphasis on fuel efficiency. Vendors are expecting the Hyundai AH bring in an incremental volume of 95,000 to 1 lakh units in a year.