Hyundai Motor India is targeting 5 lakh sales milestone in the domestic market in the near future for which it plans to launch a slew of products, including entry into new segments.
As part of the plan, the company which sold 4.11 lakh units last year, it launched the updated version of its mid-sized sedan Verna priced up to Rs 12.19 lakh (ex-showroom Delhi).
"Our aspiration is to achieve the 5 lakh sales mark in the domestic market. The updated Verna would definitely play a significant role in achieving this milestone," Hyundai Motor India Ltd (HMIL) Senior Vice President, sales and marketing, Rakesh Srivastava told reporters here.
When asked about the timeframe for achieving the sales milestone, Srivastava said: "We are looking to achieve this target soon."
In order to achieve the target, he said the company has lined up a slew of products for this year, including models in new segment.
It is expected that the company will launch cross-over version of its premium hatchback Elite i20, a compact sports utility vehicle, besides planning foray into the multi-purpose vehicle segment.
Srivastava said the domestic market remains priority for the company but at the same time it would like to retain 40 per cent share of the car exports from the country. Last year, HMIL had sold 4.11 lakh units in the domestic market and exported 2.01 lakh units.
Its current production capacity stands at 6.8 lakh units which could be expanded to seven lakh units per annum.
"Our focus is to cater to the domestic market first. The market is expected to grow now with the government taking various steps to accelerate economic growth along with factors such as cut in interest rates," Srivastava said.
When asked if the company would set up a fresh plant, he said: "We still have around 90,000 units excess capacity with us, which is enough to meet our aspiration of selling around 5 lakh units per annum in the domestic market."
The company, which is running at 99.8 per cent of its capacity, isn't forthcoming on its future plans for a new plant in India.
"We are closely looking at it now...it will depend on market situation," HMIL Managing Director and CEO BS Seo said.
With focus on the domestic market, the company is bringing in new products, entering new segments and also refurbishing the existing portfolio, he added.
In order to free-up some of the capacity, the company has phased out some of the older models, including the entry level model Santro and premium sedan Sonata, Srivastava said.
With the market sentiment improving the company is looking to grow in double digits in the current year, he said.
