Hyundai expands mid-large SUV range with new Alcazar facelift

IPO-bound Hyundai Motor India has expanded its mid-large SUV (sports utility vehicle) range with the 2024 Alcazar facelift. The new Alcazar facelift is launched at a starting price of Rs 14.99 lakh, and has both petrol and diesel variants. The mid-large SUV segment currently accounts for 7 per cent to the overall domestic passenger industry. Apart from the 2021 Alcazar version, Hyundai currently has Tuscon in mid-large SUV segment. 

According to Tarun Garg, COO and whole-time director at Hyundai Motor India, the new Alcazar will give boost to mid-large SUV segment. He observed that the newly launched vehicle would find niche as a second car amongst customers. "Many of the Creator customers once they want to upgrade from a creator to the next car. So Alcazar, the new Alcazar, gives them a great opportunity for that," said Garg.

Hyundai Alcazar was launched in 2021, and has clocked 75,000 sales so far. Notably, Alcazar contributes 4 per cent to the overall sales of Hyundai Motor India. At present, diesel variants contribute 57 per cent of the total Alcazar sales, whereas petrol variants contribute to 43 per cent of the total Alcazar sales. Moreover, manual variants account for 44 per cent of the total Alcazar sales, whereas automatic variants account for 56 per cent of the total Alcazar sales.

In terms of possibility of a CNG variant, Garg noted a growing affinity amongst customers for diesel variants in SUVs. For entry-level cars of Hyundai Motor such as Aura, the penetration of CNG is 85 per cent, whereas for Aura and Exter, the penetration of CNG is 17 per cent collectively. "When we come to the mid SUV segment, customers do not want to compromise on the initial torque, then diesel becomes a very good option. So that is why we offer diesel in the mid SUV segment. In Creta, petrol to diesel ratio is 60 to 40. In Alcazar, almost 57 per cent is diesel. So we offer petrol and diesel to the customers in the mid SUV range," says Garg.

Notably, the company is planning to introduce electric vehicle variant for Creta by Q4 of FY25. Interestingly, Hyundai Motor Group has planned a full line-up of 21 EV models by 2030. Amidst the recent slowdown in EV sales, the company is developing a new EREV (extended range electric vehicle) strategy, which will combine the advantages of internal combustion engines (ICE) and EVs, according to Hyundai Motor Group.