Hyundai shifting focus from entry-level models
Maruti Suzuki has also indicated that it would not hesitate to discontinue its small cars.
According to a media report, Hyundai is shifting its focus from entry-level models to more profitable segments.
Hyundai is moving away from small cars like the Santro, which was discontinued last month, due to factors like falling demand, increased costs and revised safety norms.
In 2018, Hyundai discontinued the Eon, and with the Santro gone, the carmaker currently has just two hatchbacks on offer – the Grand i10 Nios and the i20.
Earlier, Maruti Suzuki has also indicated that it would not hesitate to discontinue its small cars if they become unviable due to rising costs. The statement came in the wake of the government’s decision to make 6 airbags mandatory in all cars, which is expected to increase the prices of cars.
According to RC Bhargava, Chairman, Maruti Suzuki, the company doesn’t make any significant profits on small cars. Rising costs would therefore make them unviable and the company would be forced to discontinue these models.
Source: ET Auto
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