The Xcent, which will take on the Maruti Suzuki Dzire, Honda Amaze along with the upcoming Zest from Tata Motors, will be available in two 1.2-litre petrol and 1.1-litre diesel engine options.
At present, Maruti’s Dzire is the segment leader and is priced between Rs. 4.85 lakhs and Rs. 7.32 lakh (ex-showroom, Delhi).
The Xcent is the sedan version based on the same platform as the Grand i10 compact car, which HMIL launched in September last year.
“Developed with the best of Hyundai Motor’s world-class technologies, Xcent will create a new benchmark in terms of quality, design, space, features and driving pleasure in the compact sedan segment,” said BS Seo, Managing Director and CEO of Hyundai Motor India.
“We have invested a lot of effort in pricing Xcent competitively to offer excellent value.”
With the launch of this model, the company is expecting positive sales growth this year after witnessing an overall decline of 1.2 per cent to 6.33 lakh units in 2013.
The new model will complete HMIL’s portfolio in the sedan segment from the entry level sub-4 meter to the premium executive.
“The compact sedan segment has been one of the main drivers of the Indian car market with around 24,000 units per month. We believe the segment will continue to grow and Xcent will further increase growth,” HMIL senior vice president told reporters. , Rakesh Srivastava. New Delhi.
HMIL has a total production capacity of 6.75 lakh units per year at present and aims to fully utilize it. While the company is focusing on the Indian market, it also plans to export the Xcent in due course.
This model is among four new models the company plans to launch in the next two years, including a compact SUV, to enhance its position in the market.
The Xcent would help the company further consolidate its position in the domestic market, Srivastava said.
“We are the second largest automaker in the country and we are hungry for volumes and market share. Last year our share in the country was 20.7 percent. We believe Xcent would help further increase this market share “, he added. .
Xcent’s main competitors are Dzire, which is clocking in at around 16,500 units per month, and Amaze, which is currently selling around 5,000 units per month.
Tata Indigo, which sells around 2,500 units per month, and Mahindra’s Vibe are the other cars in the compact sedan segment, which is estimated to sell around 24,000 units per month.
Srivastava said that the company has upgraded its production capacity to 6.8 lakh units per year from the previous 6.3 lakh units.
“We can further improve it to 7 lakh units. The increased capacity would help us reduce lead times for various products.”
The company sold 3.8 lakh units in the domestic market last year, while 2.53 lakh units were exported to the global markets.
Commenting on the recent excise cut, Srivastava said the move would help the industry grow in the current year.
“It is a welcome step by the government. It will definitely boost growth in the domestic auto market, which is expected to grow in single digits this year,” he added.
When asked about launching a compact sport utility vehicle, Srivastava said, “We’re not looking to launch the compact SUV this year. But this segment definitely interests us.”