Hyundai i10's future linked to i20's success

Hyundai Australia will review the launch of the i10 mini car after the new i20 light car is bedded into the Australian market. And counter-intuitively a strong performance for the i20 will likely see the smaller car left on the shelf.

Speaking at this week's launch of the i20 light car in Sydney, Hyundai Australia CEO Edward Lee stated that a successful introduction of the i20 would almost certainly see plans to launch the i10 shelved.

Explaining his logic, he pointed to the price difference between the outgoing Getz light car and the more expensive, more comprehensively equipped i20. If Hyundai can achieve even 60 per cent of the current Getz volume (of around 2000 units per month) with the i20, discussion regarding the introduction of the cheaper i10 to replace the Getz when it exits the Australian market around the middle of 2011 will be moot.

"Until now we have been seen as a price leader with the Getz," Lee explained.

"Price is important but more important is value. [If i20 is well received] Probably we can give up the position of price leader. We cannot compete with the Chinese on price, and we don't want to compete with the Chinese on price – we want to compete with premium [small car] brands, so we may not need the i10," Lee opined.

"i20 is different car from Getz – it has a much higher specification and is aimed at a different buyer," Lee reitereated.

The other factor that may tip the sacles in the i10's afvour is the establishment of a demand for mini-cars in Australia.

Lee: "Right now we do not see a market for mini cars in Australia. But if the market emerges we can satisfy it with the i10. It has been well received in Europe…

"We have to keep watch," Lee stated.

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