Hyundai Aims To Challenge Maruti With Its Mx 800

Hyundai plans to pit its MX 800 against Maruti 800. The MX 800 is in the final stages of being designed and developed in Korea. The MX 800 is an 800 cc 4-seater car and is scheduled to hit the roads in South Korea in 1997.

The Korean giant is even contemplating to change its earlier plans to bring out its `Accent model at its new manufacturing facility being built near Chennai. Instead, it may go in for MX 800 car first and later roll out Accent. All this will depend on the outcome of the feasibility study being conducted to gauge the Indian market.

 

We are doing a feasibility study on the Indian requirement for a small car as we see a large potential in this segment, Yang Soo Kim, managing director of Hyundai Motor India, told Business Standard.

We are studying pricing carefully, drivability, maintenance and fuel efficiency, he said.

What will ultimately matter is pricing and better mileage that will enable Hyundai to break the stranglehold of Maruti in the small car segment.

The Korean firm is investing $ 700 million in the first phase in Chennai. It has already acquired almost 500 acres of land for the car project. In the second phase, another $ 400 million will be invested.

From the start-up of production in Chennai, Hyundai plans to have 70 per cent indigenisation to keep its production costs low.

At least 15 Korean firms are coming to India for vendor tie-up. All the 15 vendors will establish their facilities near Chennai. The first car is scheduled to roll out in October 1988.