AutoPundit : Indian automobile news and reviews » Hyundai plans small car below Santro

Hyundai plans small car below Santro

The Nano effect is showing up, yesterday Hyundai Motors India Ltd said it is gearing up to develop a small car, which will be a little smaller in size than its best-selling ‘ Hatchback Santro’ in the next three years. The car will be a little smaller in size but with more space inside than the Santro and will be a market model which achieves all global parameters.
Renault and Nissan Motor are studying the feasibility of a 3,000 dollar car with motorbike maker Bajaj Auto while others including Toyota Motor and Volkswagen have also expressed interest in a cheap car. Annual passenger vehicle sales in India are estimated to nearly double to 20 lakh units by 2010 due to rising incomes and new launches.

Currently the cheapest version of the Santro is available at an ex-showroom price of Rs 2.7 lakh and with an eye on a low-priced car, Hyundai may possibly look at a price point close to Rs 2 lakh. Small cars have been the biggest volume churner for Hyundai in India through its Santro and now with the i-10. However, it has not been able to make much of an impact in sedan segment where only ‘Accent’ has given it some success.