Close on the heels of its new small car, the Grand i10, Korean auto major Hyundai Motor India Ltd (HMIL) has said it is developing a compact sedan based on the small car, to be launched next April. The car would compete with the likes of Maruti’s long-time bestseller Swift Dzire and Honda’s recent success, the Amaze. A compact SUV is also in the works.
“We are developing a compact sedan based on the Grand i10,” said Cha Rukh Han, senior executive director, HMIL. “It will be launched by March-April next. We are also developing a compact SUV to compete with Renault Duster and Ford EcoSport.”
HMIL does not have any product in the entry-level sedan space after it phased out the Accent earlier this year.
The passenger car industry has been sliding in recent times, withsales growing a little over 2% in 2011-12 and declining by about 7% in 2012-13. This fiscal so far, the decline has risen to nearly 10%.
The compact sedan and SUV segments have however seen decent growth this year. Sedans with less than 4 metres length attract lower excise duty than full-sized sedans, making them more affordable and practical — one reason why they are in demand even in a depressed market.