Midsize sedan battle moves into top gear as Hyundai Verna readies to push back

The Korean carmaker's sedan has been pushed from the No 1 spot to third position by the new Honda City and Maruti Suzuki's new offering Ciaz

Honda’s City and Maruti Suzuki’s new Ciaz are seeing robust sales. Both are mid-sized sedans. But Hyundai’s Verna is finding the going tough in the segment. In the third spot (behind City, Ciaz) in terms of units sold from October, the model has been clocking lukewarm sales.

For the 2011-to-2013 segment leader, the first knock came when the new City rolled out in January 2014. The launch of Ciaz in October pushed the Verna further to the third spot.

Verna’s sales, which had fallen more than 1,000 units a month after the City launch, halved when the Ciaz hit the market. The Ciaz replaced Maruti Suzuki’s SX4, which failed to excite.

Experts said Maruti Suzuki’s sales network and brand played a role, but the big reason for the success of the Ciaz was aggressive pricing. “The Ciaz is cheaper than both the City and Verna by about Rs 40,000-100,000 across variants. Maruti Suzuki clearly hit the sweet spot with pricing,” an industry executive said.

In January 2015, Verna sales dropped 57 per cent year on year to 1,620, close to segment laggards Volkswagen Vento and the Skoda Rapid, both of which sell around 1,000. In the month, the City and Ciaz set individual records with 7,671 and 6,005 cars sold, respectively.

The Ciaz is giving the City a run for its money in New Delhi and Mumbai, where sales are neck and neck at about 500, according to a Maruti Suzuki executive. “The Ciaz is receiving good response in top cities like Delhi, Mumbai and Ahmedabad. Customers are appreciating its looks, styling and fuel efficiency,” a Maruti statement added.

But Hyundai is planning a facelift for the Verna scheduled to hit the roads on February 17. Expected to take the challenge to Honda and Maruti Suzuki, bookings have been opened for the new Verna, which apart from a new face promises better driving dynamics and comes loaded with projector lamps, LED tail lamps, a touchscreen system with navigation, and six-speed automatic transmission.

Gaurav Vangaal, senior analyst for light vehicle forecasting at IHS Automotive, said the new Verna was expected to add incremental numbers for Hyundai, but regaining lost ground would be a challenge.

“The City and Ciaz are pushing others to the corner of the segment. Honda City with a diesel offering since last year has proven its worth for the Indian consumer while Ciaz numbers are exciting and if Maruti Suzuki is able to sustain them, it will change the dynamics of the segment. As far as Hyundai is concerned, it is good at surprising the market with futuristic designs and high-end features,” he said.

But whether that will enough to push the Verna back into pole position in its segment remains to be seen.