South Korea-based Hyundai-Kia group can leverage a lot of synergies to rule the diesel car segment in India, according to Hormazd Sorabjee, editor of Autocar India.
“The Hyundai-Kia group would be the conglomerate I would bet on right now,” Sorabjee told BloombergQuint in an interview Monday. “They have developed a good technology that can be shared across both groups and tap into economies of scale.”
Maruti Suzuki India Ltd., India's largest carmaker, said it will stop making diesel cars by April next year, as rising fuel prices and new emission norms aimed at ensuring cleaner air in some of the world's most polluted cities make them less lucrative. Carmakers like Renault India Pvt. Ltd., Toyota Kirloskar Motor Pvt. Ltd. and Volkswagen AG are also planning to stop making diesel cars, Sorabjee said.
If there's anyone who can put a dent on Maruti Suzuki's market share, it's the Koreans.Hormazd Sorabjee, Editor, Autocar India
Tepid Festive Season?
Auto sales witnessed an uptick in the recently-concluded festive season but were below expectations as buyers were completely on the “tenterhooks” amid the shift to electric vehicles and impending rollout of Bharat Stage VI emission norms, Sorabjee said.
But consumers may end up buying cars right now due to the “great deals” being offered due to phasing out of certain models as they won't meet the new emission norms, he said.
The Supreme Court has mandated automakers to sell only BS VI-compliant vehicles from April 2020, resulting in dealers offering deep discounts to lure buyers to showrooms in order to clear stocks of the existing models.
Also, the success of MG Motor India Pvt. Ltd., according to Sorabjee, has given a lot of confidence to other Chinese carmakers, such as Changan Automobile Co., Great Wall Motors Company Ltd. and Chery Automobile Co., Ltd., weighing an India foray.
The SAIC Motor Corporation Ltd.-owned brand recorded retail sales of 3,536 units of MG Hector SUV in October while bookings have crossed 38,000 units since its launch in June.
Watch| Autocar Editor Hormazd Sorabjee On India's Auto Industry
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