Shweta Bhanot Posted: Tuesday, Dec 01, 2009 at 0041 hrs ISTUpdated: Tuesday, Dec 01, 2009
Hyundai Motor India Ltd (HMIL) is looking at streamlining business to pare costs, says Han Woo Park, the new managing director and chief executive officer of the company. In an interview with Shweta Bhanot, Park, who was earlier the chief financing officer (CFO) at HMIL, dwells on what he calls the domestic focus strategy and how the company will look into the segments it's weak in and bolster them with the right product. Excerpts:
The Indian auto industry showing strong signs of revival, while exports are still weak. What will be your strategy going forward for HMIL?
Our emphasis will be on the domestic market more than exports. We see great potential in the domestic market and plan to optimise our efforts to increase our market share in the country in 2010. We will see which model is profitable for us and accordingly streamline our business to reap maximum benefits. Cost reduction will be on top of our mind to remain competitive in the market. Maruti Suzuki has been in the market for more than 25 years and we have been in the market for the past 13 years. We cannot compete with Maruti on years, but plan to compete in terms of quality and customer service.
Today Hyundai is better known as small car seller in the country. Is it looking at expanding its reach to other segments in a serious manner and will it be ever be a serious player in the premium segment?
We will look at the segments where we have a weak position and try to strengthen it with the right products. We have a full line of products at Hyundai Motor Company and will continue to conduct feasibility studies for products to see the possibility of introducing them in India. Premium sports utility vehicle segment is one such segment and we are studying the possibility of getting Santa Fe in the country. We also want to increase our brand image and sales volume in the country.
What about the i30 and will the Accent continue in the market or be replaced by a new model?
We are selling i30 in Europe and Korea and personally I don't think a hatchback in C segment will be acceptable in the Indian market. So, launching i30 in India looks difficult. Accent will continue to sell in the market. It is getting us over 1,000 units per month
At what stage is the new small car project and what kind of contribution will the Indian R&D centre make to the project?
Codenamed HA, the new small car project is at the design stage at the moment. The core work is on in Korea, while the Indian R&D centre will help in back-end services. The concept should be ready by the next Auto Expo in New Delhi (2012). We plan to focus on the Indian market only and no decision on exporting it has been taken yet. We are looking at 90% localisation of the new small car.
Which products can we expect Hyundai to showcase at the upcoming Auto Expo in New Delhi this January?
We plan to showcase our ability in electric vehicles and one can catch the Genesis Coupe at the expo surely
http://www.financialexpress.com/news/cost-reduction-top-priority-to-remain-competitive/548164/
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