Hyundai Motor Strengthens Position in Indian Market with Launch of Compact Sedan Aura

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company, which is aggressively increasing its market share in India by introducing popular models such as Venue, has started solidifying its market share with the launch of the new compact sedan 'Aura'.

According to industry sources on the 19th, Hyundai began pre-orders for the locally strategic compact sedan 'Aura' in India on the 3rd of this month. Scheduled for release on the 21st, the Aura is a coupe-style compact sedan featuring Hyundai's design concept of 'Sensuous Sportiness'.

The Indian compact sedan market is a huge market with monthly sales reaching 25,000 units, with Maruti Suzuki's Dzire and Honda's Amaze established as competing models. Hyundai has set a strategy to gain an advantage in the Indian compact sedan market by emphasizing Aura's stylish design and powerful powertrain.

The Aura will be launched with three engine lineups: 1.2 Kappa gasoline, 1.0 turbo Kappa gasoline, and 1.2 Ecotorq diesel engines. The 1.0ℓ turbo gasoline engine, developed independently by Hyundai Motor Group, delivers a maximum output of 100 horsepower and a peak torque of 17.5 kg·m.

Hyundai Motor Company Compact Sedan Aura

Two promotional videos for Aura uploaded on Hyundai Motor's official YouTube account in India have each surpassed 2.8 million and 2.6 million views within half a month, receiving a total of 4 million views and enthusiastic responses. Local Indian media reported, "With the launch of Aura, equipped with new design and advanced technology, Hyundai is expected to gain an edge in the fiercely competitive Indian compact sedan market."

Hyundai accelerated its market share expansion in India last year by launching the compact sport utility vehicle (SUV) Venue. The Venue, launched in India in May, surpassed 100,000 contracts within eight months, raising Hyundai's market share to 17.4% last year. This is the best performance since 2015 and is significant as it was achieved amid a contraction in the Indian automobile market last year.

Kia Motors, which officially entered the Indian market last year, has shown an even faster response. Kia's Seltos achieved 100,000 contracts within five months of its launch, and since the end of last year, Seltos produced at Kia's Anantapur plant in India has begun to be exported to South Africa and other regions.

Thanks to the popularity of the Seltos, Kia ranked 9th in the industry with a market share of 1.55% in its first year of market entry in 2019. This achievement, surpassing strong global competitors such as Volkswagen and Nissan, is regarded as a successful case of early market settlement.

This year, Hyundai Kia Motors plans to strengthen its new car lineup to target the Indian market, including Hyundai's compact sedan Aura and Kia's entry-level SUV. Earlier, Kia Motors President Han-woo Park mentioned at the Anantapur plant opening ceremony, "We plan to increase the production models at Kia's India plant to four, including the Seltos, within two years."

Hyundai Motor Group's Global Management Research Institute forecasted the Indian automobile market to grow by 4% compared to the previous year, reaching 3.03 million units this year. It is the third-largest market by country after China and the United States. A representative from the Global Management Research Institute stated, "Pent-up demand due to policy uncertainties will be realized, and due to the base effect from last year's market slump, the Indian automobile market is expected to revive this year."