On Monday, Hyundai Motor Company launched the Tucson, its premium SUV, which the company said will compete with Toyota Fortuner, Mitsubishi Pajero and Ford Endeavour – as Korean automobile chaebol seeks to increase its share in the utility vehicle space.
The segment, which sells 3,500 vehicles, is dominated by Fortuner, Hyundai’s competitive pricing is expected to make some dent in Toyota market share in the premium UV space.
Hyundai launched the Tucson at an entry price of Rs 18,99,000 for the petrol version, and Rs 21,59,000 for its diesel variant. The company launched five variants of the Tucson.
“The premium SUV segment sells only 3,500 units… There is a huge cap between where the Creta ends and where the premium SUVs begin. The gap is a blue ocean,” said Y.K. Koo, managing director of Hyundai Motor India.
Tucson will fill the gap between the Creta and the its flagship Santa Fe. Hyundai had revealed the vehicle at the Auto Expo, early this year.
Hyundai, is betting heavily on the SUV segment – as it continues to grow at 37% -- the fastest growing passenger vehicle segment in India. SUVs comprise of 22.7% of the country’s passenger vehicle sales.
Koo expects Tucson to sell up to 1,000 units every month. That’s low compared to Creta’s 8,000 units sale, but the move is in line with Hyundai’s “modern premium” brand positioning.
“The profitability of the premium cars such as the Elantra and Tucson is low, but as a carmaker it is our responsibility to bring these vehicles,” to said Koo.