Hyundai is now considering the low-cost version of the Santro, which will be pitted against the Maruti Alto hatchback.
Hyundai had launched the new-generation Santro tall-boy hatchback in the country in October 2018. The company is now reportedly considering a low-cost version of the Santro hatchback to target first-time car buyers and to those customers looking for a budget hatchback. The Korean brand has already discontinued its smallest and most affordable hatchback – Eon.
Hyundai Santro is no longer the entry-level car as the base variant of the car is priced at Rs 3.91 lakh and the top-spec model cost Rs 5.66 lakh (ex-showroom, Delhi). Adding to it, Hyundai believes that the market is moving upwards and most of the buyers are now ready to shed extra for comfort and features.
However, the first time car buyers stiff prefer an affordable entry-level hatchback. In the last fiscal year, the entry-level hatchbacks including Eon, Wagon R, Maruti Alto and Renault Kwid combined sales stood at 4,70,482. Going by the numbers, it is quite clear that the entry-level hatchbacks are still preferred choice among first time buyers. Hyundai does not want to lose significant number of first time car buyers. Also See – Hyundai Santro Vs Renault Kwid
Developing an all-new model will require huge investment. The new model will have to meet the stringent crash-test regulations. The company is now considering the low-cost version of the Santro, which will be pitted against the Maruti Alto hatchback. The entry-level model already misses out on several features like air-conditioning. The company could remove the dual-tone beige and black interiors. The low-cost Santro will continue with the existing design and Hyundai’s new ‘cascading’ grille. In order to price the model competitively, Hyundai could remove some features or will sell the model in a slimmer profit margin.
Video – Hyundai Venue first look