Thursday, August 30, 2012

Arvind Saxena, Director – Sales & Marketing, Hyundai Motors India

Arvind Saxena, Director – Sales & Marketing, Hyundai Motors India, explains to B&E why competition is no threat to Hyundai in India, and why Hyundai does not need to worry about capacity expansions

B&E: Can we say that the second slot is not that important to Hyundai as compared to creating a profitable business environment?
AS: No, I am not saying it is not important. I am saying that the second rank is not the only thing that one works for. We are here to create a bigger brand. We are here to create a large pool of satisfied customers and the second slot is incidental. No one works for it. We will be more than happy to have a large satisfied customer base.

B&E: It has been widely reported that the company is expanding its capacity by 70,000 units. Have you already done that or is it an option that can be explored?
AS: It is an option that we have not exercised so far. But if there is more demand for our products, we will possibly look into it. But I don’t think there will be a need for capacity expansion this year, perhaps not even in 2011.

B&E: The company has focused equally on both the exports and domestic market so far. How do you see the ratio of domestic sales and exports changing, say, five years down the line?
AS: The domestic market has always been a priority for Hyundai in India. But when we realised that the demand here was insufficient, we exercised the option of making the most out of exports. This year, the domestic market will account for about 56% of out total unit sales. In five years time, this percentage could grow to 65-70%. Going forward, we will naturally maintain a higher ratio of production for domestic consumption.



 
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