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NEWS
Hyundai keen to return to sub-light sector
But exchange rate a sticking point for Euro-sourced i10Hyundai Australia says it regrets not having a sub-light hatch in its portfolio, but adds that the exchange rate between the Aussie dollar and volatile Euro makes the business case difficult.
The i10, which is built in Turkey, Malaysia and India, would be an ideal competitor to the likes of the Suzuki Alto, Volkswagen up! and Mitsubishi Mirage were Hyundai able to offer the model locally. But with Australian models to be sourced from Turkey, HMCA says the diminutive model would end up being sold at a loss.
“We’ve just got to crunch the numbers on it,” said HMCA’s Chief Operating Officer, John Elsworth.
“It’s tough getting cars out of Europe at the minute, especially when they’re in the end of the market that’s very price sensitive, which obviously that is.
“Eighty Euro [cents] down to 70 is a 15 per cent swing, and that’s a big swing. We have to manage the cost side of the business so as to not pass on the exchange rate to the market, and that’s the challenge.”
Elsworth added that despite the challenge, HMCA was keen to have a sub-light segment player back in its portfolio.
“It’s a big segment, and Hyundai’s famous for its small cars, so it’s very important from an image point of view for us to still be in that market. We’re actively working on it, but it’s very tough to make the numbers work.”
A HMCA spokesperson said that although the model was also available ex-India, the Turkish built model’s specifications and equipment levels made it a more suitable choice for the Australian market.
The issue of European vehicle sourcing doesn’t seem to faze Volkswagen. The up! is built in Slovakia and sells locally from $13,990 (plus on-road costs). Suzuki sources the Alto from India and retails it here from $11,790 (plus ORCs), while Mitsubishi’s Thai-sourced Mirage is offered from $12,990 (plus ORCs).
The sub-light hatch section is growing in Australia and is increasingly popular with first-car buyers. The VFACTS segment, in which the models compete, accounts for 11.5 per cent of the passenger car market – or just over 108,612 vehicles (year-to-date as of October 2013).
Using the three models listed above as an example, year-to-date sales total 7884 for the Mitsubishi Mirage, 2490 for the Suzuki Alto and 1361 for the Volkswagen up!. Across the board, each model’s sales are up compared to the same time last year, with the Mirage faring particularly well at 7.3 per cent compared to the same time last year.
The Hyundai i10 is offered in five-door body style with a range of trim and engine options that include 1.0, 1.1 and 1.2-litre petrol and 1.1-litre diesel engines. These are offered with a choice of four-speed automatic and five-speed manual transmissions. An electric model known as BlueOn, premiered at the 2010 Seoul motor show, is also available in selected markets.
In parts of Europe, the i10 retails from a little over 6000 Euro and is offered from 8345 Pounds in the UK.
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Written byMatt Brogan
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