In a desperate bid to check the emergence of a possible new segment leader Maruti Suzuki Alto 800, top industry experts are pinning Hyundai Motor India Limited (HMIL) to come up with a new revised strategy.
HMIL, the country's largest exporter and second largest passenger car maker, is known to introduce big discounts on its popular models, in order to lure the Indian masses towards its retail outlets. Evidently, very often the South Korean auto giant is successful in pulling off the stunt and ends up recording some decent sales as well.
At present, the Maruti Suzuki Alto 800 entry-level small car is shattering all the advanced bookings and sales records in the Indian auto market and has stolen all the limelight from Hyundai Eon. The two entry-level offerings are fighting for market domination and have significantly confused the domestic car enthusiasts as in which way to go for – Hyundai or Maruti Suzuki.
Evidently, it is only the Alto 800's top-end model LXI that comes fitted with a power steering and Air Conditioning system (AC) and carries a retail value around Rs. 3 lacs in the country. The mid-level variant Alto 800 LX lacks power steering but features an AC, while the base model of car is left without both attributes. Interestingly, the mid-level variant of Hyundai Eon called D Lite Plus that fetches a price tag close to Rs. 3 lacs, comes fitted with both power steering and AC. Therefore, any customer whose primary driving needs are in the urban areas, is expected to find Alto 800 and Eon similar in terms of pricing, regardless of the prevalent mindset that the Hyundai entry-level product is pricier than that of Maruti Suzuki.
Accordingly, if the South Korean auto player introduces a cash discount around Rs. 10,000 to Rs. 20,000, the Hyundai Eon will surely turn the tables on Maruti Suzuki Alto 800 during the ongoing Diwali festivities. Further, a revamped promotional campaign can help steering the Indian car enthusiasts back towards the Hyundai stores. Maruti Suzuki as we all know is quite stubborn regarding doling out discounts and festive offers on its best selling fleet. Hence, a discount coupled with attractive ad campaign can help Hyundai in altering the fortunes of its Eon entry-level in Indian car market, besides posing a great alternative for Maruti Suzuki Alto 800.
