Hyundai sits on 135,000 reservations
The country’s second-largest passenger car maker, Hyundai Motor India, is sitting on a backlog of 135,000 reservations as a shortage of chips has slowed production.
In terms of models, the highest pending bookings are for its SUV, the Creta, at 50,000, followed by the compact SUV Venue at 27,000; the Grand i10 Nios sedan comes next at 18,000.
The waiting period for the Creta is seven months, it is five months for the Venue and three months for the Grand i10 Nios. Tarun Garg, director – sales, marketing and service, Hyundai Motor India, told FE that the company is doing its best with its parent company, Hyundai Motor Company, in terms of sourcing and production. He added that the auto industry could fully recover from the chip shortage in calendar year 2023.
“Although things (regarding the semiconductor shortage) have improved, all the pain is not over yet. We expect the situation to be much better in the second half of CY22 compared to the The industry will recover completely maybe in CY23,” Garg said.
Regarding the measures taken by the company to deal with the shortage of semiconductors, Garg said that they were flexible in terms of mixing models and mixing variants. “We are working closely with the sourcing, production and R&D teams on how flexible we can be, in case we need to change some features, introduce new variants or adjust production. “, did he declare.
Hyundai achieved domestic volumes of 510,260 units in CY19. While there was a drop to 423,642 units in CY20 due to Covid, volumes improved to 505,033 units in CY21. The company sold 218,966 units during the January-May period of CY22 and is on track to break through pre-pandemic levels this calendar year.
While the share of diesel variants in the company’s domestic volumes had decreased to 22.8% in CY20 and 24.1% in CY21 from 26.9% in CY19, it improved to 27.4% in CY22 (January-May period).
So far in CY22, diesel variants have accounted for 60% of Creta, 78% Alcazar, 64% Tucson and 23% Venue volumes. Hyundai offers 1.2 liter CRDi and 1.5 liter CRDi diesel engines, depending on the vehicle.
“We have a very clear strategy. In entry-level models like the Grand i10 Nios and Aura, the focus is more on petrol and CNG options. In mid-size SUVs and sedans, there are petrol, turbo-petrol and diesel options. This type of strategy serves Hyundai very well to increase volumes,” said Garg.