Hyundai India is set to launch a new chain of premium dealerships in India. This new chain, which will probably get an independent brand name as well, will be responsible for sales of cars above the Creta crosssover in Hyundai’s portfolio. It is important to note that this information isn’t official yet and has instead been sourced from popular automotive forum – Team BHP.
If you have been following the Indian automotive industry for some time, it would be easy to notice that this move is similar to what Maruti Suzuki has already achieved. With the country’s biggest carmaker having proved the potential of a separate dealership chain for premium cars, Hyundai too appears to be ready to take advantage of this strategy in the near future.
However, we believe that this decision is more of a necessity than a strategy. Hyundai currently has 9 cars in its Indian portfolio. The company is also set to launch 5 new products in the next couple of years. Keeping 14 different models in a single dealership is a stretch, as maintaining test drive vehicles of all these models isn’t logistically and financially viable. Hence, coming with a different premium dealership can help in dividing this product burden across two channels.
The upcoming Hyundai cars in India include the Elantra facelift, the new SantaFe, Kona SUV, and 2 electric vehicles under the Mahindra Electric brand. The Kona is expected to be placed above the Creta. As a result, all vehicles above the Kona are likely to be placed at the shop floor of Hyundai’s new premium dealership chain.
The Team-BHP report also mentions that Hyundai has already established a new hierarchy within the firm to cater to this new dealer chain. Area managers are being recruited as of now. The company aims to make the new premium chain operational by 2021.