Slated for launch in the second half of this calendar year, the all-new SUV from Hyundai will be pitted against the Ford SUV but will be "roomier, more powerfull and have the characteristics of a true SUV," said a top Hyundai India official.
"The feel of a real SUV cannot be had in a vehicle which is under four meters in length", said Rakesh Srivastava, senior vice president (sales and marketing) Hyundai Motor India.
Ford's Ecosport, which is less than four meters in length, has been a runaway success for the company, forming 70% of the company's volumes.
Vehicles that are less than four-meter in length and with specific engine sizes enjoy significantly lower tax rates over other vehicles.
The new SUV is expected to be launched with petrol and diesel engines that are seen on the Hyundai Verna, and is aimed at churning volumes like the Renault Duster and Mahindra Scorpio.
While Ford Ecosport is available at Rs 6.46 lakh, Renault Duster starts at 7.86 lakh and the Mahindra Scorpio is priced at Rs 8.69 lakh, all prices ex-showroom Delhi. The new Hyundai SUV is expected to be priced between the Ford EcoSport and the Renault Duster.
"We will price our products competitively through aggressive localisation", said Srivastava.
Like 2014, Hyundai is banking on a slew of new products to push up volumes this year. This is not the first time Hyundai is entering the SUV segment. The Delhi-based Hyundai Motor India has had two SUVs in the past such - Terracan and Tucson. Its current SUV Santa Fe is a challenger to the segment best seller Toyota Fortuner.
Maruti Suzuki, Honda, Tata Motors, Volkswagen and General Motors are also lining up launches in the compact SUV space in the next two years.