Here’s the news wrap up of the day.
Hyundai Planning MPV To Rival The Ertiga
In a recent conversation with CarAndBike, Tarun Garg, SVP of Sales and Marketing, Hyundai India, said that he was surprised to see the growth of MPV segment.
“MPV as a segment, I think not only Ertiga but Renault in fact, redefined the segment altogether. It was very interesting and surprising to many of us, so yes there are opportunities available in India and we are looking at all available opportunities in all segments across portfolios, even MPV. We wait to see when we bite the bullet.”
Renault Triber, Maruti Suzuki Ertiga and XL6, Toyota Innova and Kia Carnival have covered various price points really well. Their success has proved that there’s a demand for people movers at all price points. The Datsun Go Plus is an oddball, though. All of these cars remain unchallenged in their respective segments but the Ertiga just happens to be at a sweet spot as it’s fairly affordable, adequate and desirable. We believe this is where Hyundai could launch its first MPV.
Thanks to Covid-19, travelling together in large groups may take some time gathering momentum again. That should give Hyundai enough time to catch up without losing ground to its rivals. Watch the entire interaction here:
R&D Costs Cut In Auto Sector
According to Deloitte India partner, Rajeev Singh, the Indian auto sector, the R&D costs towards alternative fuels will suffer a pushback and delay the outcome by 2-4 quarters. Carmakers may also exit segments that aren’t returning a healthy profit. A recent shift to upgrading to BS6 norms and unsold BS4 inventory due to a strict deadline has already put a serious dent in carmakers’ bottom line. And, the COVID situation is making matters even worse. Mr Singh said:
The COVID-19 lockdown has had a multiplier effect — the industry has been at a complete standstill since March 24. A prolonged truncation of consumer demand due to the lockdown is significantly affecting auto sector revenues and cash flows. Eventually, some companies may even choose to take a strategic call to exit unprofitable markets and vehicle segments. Dealers face a significant burden to liquidate unsold BS-IV inventory, estimated to be worth Rs 6,300 crore. The industry has responded in a very matured manner taking care of employees, customers and other stakeholders.
Toyota Yaris Cross Spotted Just Days After Official Unveil
Toyota had just unveiled its Yaris Cross compact SUV and we already have real-world spotting of the car. Unlike the Yaris sedan we have in India, the Yaris Cross doesn’t use the 4-cylinder 1.5-litre petrol engine. The Yaris sedan we have here is essentially a rebadged Mazda 2. The Yaris Cross, however, gets a 3-cylinder 1.5-litre petrol engine with hybrid tech and all-wheel drive. The engine here will drive the front wheels while the electric motor at the rear can chip in to assist or take over propulsion duties. The 2021 Toyota Yaris Cross will go on sale in the Japanese and European market. It’s not on the cards for the Indian customers.
Hyundai iMax MPV – For Representation Only
Car Floor Mats Get 8% Reduction In Excise
According to the Supreme Court, the car floor mats should be considered under the ‘carpets and other textile floorings’ category. This will result in a reduction of excise duty of 8%. So far, they were under the subhead ‘other’ within ‘car accessories’ category, which attracted a 16% excise duty.