September 23, 2020

Hyundai stays cautiously optimistic about upcoming festive season amid COVID-19 pandemic



NEW DELHI: Main automaker Hyundai Motor India is cautiously optimistic concerning the upcoming festive season with the COVID-19 pandemic shadow looming giant over the interval which in any other case witnesses sturdy offtakes for your complete home vehicle business, as per an organization official.

The South Korean auto main, which is the second largest passenger car participant within the nation after Maruti Suzuki, has seen its gross sales develop month after month since Could after the nationwide lockdown ended and corporations rebooted operations.

From zero models in April to sale of 6,883 models in Could, 21,320 models in June and 38,200 models in July, the automaker has seen gross sales develop in a sturdy method over the previous few months.

Nevertheless, with intermittent lockdowns persevering with throughout varied elements of the nation and challenges remaining when it comes to provide chain and availability of expert labour, the corporate stays guarded in its optimism concerning the festive season.

“Proper now issues look optimistic and we’re approaching the competition season with lot of positivity. We wish to construct up inventory on the dealerships,” Hyundai Motor India Ltd (HMIL) Director Gross sales and Advertising Tarun Garg informed PTI in an interview.

“On the identical time we actually do not understand how coronavirus state of affairs goes to pan out,” he added.

On the optimistic aspect, sequentially issues are enhancing which is a giant aid for the corporate, he stated.

“It’s giving us hope. Additionally, the newly launched fashions are getting good traction so all issues are optimistic and this (is) additionally as a result of lot of pent-up demand,” Garg stated.

However on the identical time there may be the pandemic state of affairs, and so how lengthy this ongoing pent-up demand would maintain is a giant query, he added.

“What occurs if a second wave comes…so all these items are additionally there,” Garg stated, including that persons are taking a look at private mobility choices, however it is rather troublesome to foretell whether or not they may prepone their buy choice or simply look forward to issues to enhance.

“So we’re optimistic, however (it) is guarded optimism and we hope that pandemic is managed, we hope that some optimistic information comes concerning a vaccine, we hope that we do not get a second wave,” he added.

Garg famous that an total enchancment in financial situation would additionally play an necessary function in jacking up demand for expensive purchases like cars.

One optimistic issue has been the continued sturdy response for the sport utility car (SUV) phase within the post-Covid situation, he famous.

“Some individuals have been saying that due to COVID-19 prospects would shift in the direction of entry degree vehicles and SUVs will not have that form of traction. Now we have been sustaining that whereas entry degree phase will broaden however on the identical time SUVs may also see traction. We are able to now see clearly that that is taking place,” Garg stated.

So long as you provide a very good product, with newest know-how and gas choices, a buyer is keen to purchase, he stated.

The corporate continued to guide SUV phase with merchandise like Venue, Creta, Tucson and Kona EV. HMIL has already offered 34,212 models within the phase in April-July interval this fiscal.

The automaker stated it has obtained sturdy response for the brand new Creta, with over 70,000 bookings within the first 5 months of launching the mannequin in March this yr.

“So we’re getting into the competition season with lot of positivity and on the identical time we have to repeatedly watch the pandemic state of affairs,” Garg stated.

He famous that smaller cities and rural areas are performing higher when it comes to gross sales when in comparison with metro cities the place restoration has been gradual.

Cities in Punjab, Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar and Jharkhand are doing higher for the corporate when it comes to gross sales, he added.

Garg stated the corporate can be ramping up manufacturing at its Chennai-based manufacturing facility to cater to any uptick in demand state of affairs.

“Our each crops are working on three shifts and repeatedly ramping up manufacturing. Vendor stocks are additionally being ramped up. September will likely be used to reinforce manufacturing and despatches so the autos attain the dealerships on time,” he famous.

When requested if the corporate additionally confronted provide chain challenges, Garg stated that as a result of sturdy communication between the manufacturing facility and distributors, there have been no main points to date.

He stated relying upon lockdowns, on a median 95 per cent of the corporate showrooms are actually useful.

On new product launches, Garg stated the automaker has already launched 4 merchandise — Aura and newer variations of Creta, Verna and Tucson this yr, and it will proceed to refresh its mannequin vary going forward.

He added that its latest initiatives like mobility membership programme would go a good distance in cementing long-term partnership with its prospects.