Sunday, October 16, 2011

EON threatening many small cars of A, B and B+ segments


Normally this date is considered inauspicious i.e. 13th. Still Hyundai went ahead with its global premiere of EON. The car as per the company has been created with Indian customers in mind and then it will be globally introduced. The car is having great features in this segment. We can place this in B segment but with its agressive pricing, it will be easier for it to attract customers of A segment and B+ segment as well.

Hence it is a potential threat to all the cars in these three segments. The car is having fluidic body and is definitely capable to turn heads around. Interiors are way ahead of others giving you the feel of being in C-segment car. Another plus in favour of this car is the average which company claims it is having 21 kmpl. My company MD with 6 feet plus height was able to accomodate himself with small discomfort on the rear seats.

Maruti will be definitely facing the biggest threat to its not only Alto, but also for other models llike Estilo, Maruti 800 and even Santro itself facing threat of cannabilization. Hyundai is currently facing capacity constraint with its numbers fixed at 630,000 cars per annum. It is already running at almost full utilization will be left with only one option to sacrifice exports over domestic demand to win market share.

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