Hyundai Motor Company Launches Alcazar, Strategic Model for India

Mid-size SUV, Targeting the Premium Market

Hyundai Motor Company will launch the mid-size SUV Alcazar in the Indian market on the 18th.

[Asia Economy Reporter Ki-min Lee] Hyundai Motor Company will officially launch the premium mid-size sports utility vehicle (SUV) Alcazar, its strategic model for India, on the 18th. As the prolonged spread of COVID-19 in India has eased this month, Hyundai plans to accelerate its local market penetration through the Alcazar.

Hyundai will hold an online launch event for the Alcazar at noon (local time) on the day. The Alcazar, marketed as a 6-7 seater premium SUV, has been regarded as Hyundai's key product to secure demand for family and luxury vehicles in India, where the company has mainly sold small and compact SUVs such as Creta, Venue, and Tucson. Therefore, Hyundai enhanced the product by equipping the Alcazar, based on the Creta, with 18-inch alloy wheels, automatic air conditioning, a panoramic sunroof, and advanced driver assistance features.

Earlier, Hyundai had revealed teaser images of the Alcazar on April 8 and planned to launch it on the 28th of the same month, but postponed the launch due to the worsening COVID-19 situation in India. Additionally, Hyundai's plant in Tamil Nadu, India, halted operations for five days starting April 25, causing further difficulties.

With the launch of the Alcazar coinciding with the easing of COVID-19 spread in India, Hyundai's position is expected to strengthen. The Indian automobile market is considered a major large market where Hyundai is compensating for sluggish sales in China. In fact, Hyundai sold 230,208 units (wholesale basis) in India through May this year, which is 8% more than the 213,352 units sold by its China subsidiary during the same period. Hyundai's market share in India, which had been around 16-17%, rose to 24% last month.

A Hyundai official said, "Creta has received a good response in India, and with the introduction of the Alcazar, our SUV lineup in the local market has become solid," adding, "Unless there are special variables, we expect to exceed this year's sales target of 477,000 units in India."