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The success of Toyota Corolla and Chevrolet Optra in the D segment is finally seeing competition taking off in the mid-size car segment.
The Rs 4,000-crore (Rs 40 billion) plus Hyundai Motor India Ltd, the second largest automobile company in the country, is set to roll out a new variant of its E segment offering -- the Sonata -- in the next couple of weeks.
Dubbed the S-20, the new Sonata variant will be pitted directly against the popular D segment offering from Toyota and General Motors, and will have ABS (anti-lock braking systems) as standard fitment and new interiors.
The S-20, which will feature beige coloured fabric interiors and dashboards alongside a CD changer, is a re-born avtaar of the GLS version of the Sonata.
Hyundai has three existing versions of the Sonata. At the top end, Hyundai has the Sonata V6, with a 2.7 litre engine, the Sonata Gold, and the Sonata GLS at the bottom end.
The S-20 will try to entice customers of the Toyota Corolla which has in recent times captured close to 40 per cent market in the D segment.
"In recent times we have had the experience of Toyota Corolla buyers coming in and asking for the GLS version of the Sonata, but because of production constraints, Hyundai has not been able to service this demand," dealer sources said.
It is understood that in August, Hyundai sold 25 GLS versions of the Sonata. The S-20, expected to be priced around Rs 11.5 lakh (Rs 1.15 million), Rs 100,000 more than the Toyota Corolla, will offer customers the opportunity to buy into the luxury of an E segment car at D segment prices, the source said.
In the last six to seven months, Hyundai has shifted workforce from its Sonata production lines to boost production of its popular mid-sized offering-the Accent.
Additionally, because of the demand for the Accent Viva, a hatchback variant of the Accent, it was being produced on the Sonata lines.
All these factors have contributed to a shortage in the market for certain variants of the Sonata, industry sources pointed out.
Hyundai, according to dealer sources, is expected to record a sales of about 16,000 units this month, inclusive of exports and domestic sales.
In the recent past, Hyundai has been able to consistently raise the sales bar, and has seen its sales zoom from about 10,000 units six months ago to 16,000 units in September.
"They have set a target of 1,40,000 units this financial year and by the second week of December, they expect dealers to have no stock at all. This is for the first time that Hyundai is experiencing such a happy situation," the source said.
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