Maruti Suzuki's biggest nightmare:Hyundai Motors

People are talking about Tata Motors and especially the Nano as Maruti Suzuki's biggest headache but if you look closely an even bigger threat exists in the form of Hyundai motors.

The santro had and is doing very well in India but what has leapfroged Hyundai into centrestage is no doubt the i10.With the i10 Hyundai are able to winover a major chunk of small car buyers.Infact right now if I had to shop for a small car I would pick nothing but the i10.The fact that the i10 would be getting a diesel by the year end[2008] would mean alarm bells ringing not only in the Maruti camp but Tata too for its indica could not have faced a bigger threat.Maruti on the other hand do not have a diesel in the B segment and the other fuel options[CNG,LPG] are not necessarily as widespread as diesel.

Hyundai do not have such a blockbuster product in the B+ segment but all that could change with the launch of the i20 again expected towards the end of the year[2008].In the C segment Hyundai has not suffered as badly as say a ford.Then there is the D segment,here too the new elantra with the diesel engine is expected to bring in numbers/

But the biggest threat would be the new small car which hyundai are targeting to be sold with a price tag of $3500[Rs.1,50,000 approx].This car should cause a lot of problems to maruti especially and if there is a diesel available too at similar pricing God help Maruti.Maruti however have some time at their disposal since this car is only expected by 2012.

Hyundai have done well to realise the importance of the Indian markets much before other rivals.They have also gambled by launching the i10 first in the market and ensuring it caters to local choice as well.The end result is if you keep track of monthly car sales figures as each month passes by the gap between hyundai and maruti suzuki keeps getting narrower and narrower.Unless maruti does something drastic I have no doubt that Hyundai could unseat Maruti from its number one position.

[image source:jalponik]