The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Muhammed Ashik M I, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.
The updated version of Verna Fluidic has been launched in Indian market recently. This new variant based on Hyundai’s global model Solaris which brings lot of cosmetic changes compared to their earlier Verna variant. The front of the car is where the most aesthetic changes have been made. Hyundai hopes that the new variant should help them to outrun all the competitors in that segment.
Hyundai Verna came up with its first Fluidic variant in Indian market in 2011 and later it became the most popular mid size sedan in the country. Last year, the Korean automaker started losing their market leadership in the segment due to high competition. Hyundai Verna, Maruti Ciaz and Honda City petrol are the major players. Maruti Ciaz is 1.3 lakh cheaper than the Honda City and a lakh cheaper than the Verna. Both Maruti and Honda come with a two-year (40,000 km) warranty, while Hyundai offers a three-year (100,000 km) warranty. In terms of after sales, Maruti is second to none. Maruti Ciaz competing with their low price strategy and Honda already established huge brand name in Indian market.
The sculpted styling, powerful engines and quality interiors always makes the point of difference for Verna. The major changes in headlamps, grille and the bumper creates different look for the new Verna but the model doesn’t look hot as the previous one. The major drawback of previous variant was poor ground clearance and shock absorber. According to my opinion, Hyundai should have gone through these factors rather than going for aesthetic changes. It also makes them hard to regain their market share in mid size sedan segment.