Hyundai Motors, the second largest car manufacturing company of India launched its latest model Hyundai Eon in Gurgaon few days back. It is the lowest priced car Hyundai has ever produced. Targeted at the first time users, Hyundai Eon has been designed and priced keeping in mind the taste and preferences of Indian Customers. It has posed a serious threat to Maruti suzuki’s Golden Car Alto. Alto created a monopoly for about 7yrs through its economic price level and standards. The Demand Curve of Alto shifted to right continuously for 7yrs because: it was priced between 2.5lacs to 3.2lacs. It gave a mileage of 19.7kmpl to 20kmpl.
Eon enters Indian Industry with a price starting from 2.7lacs and mileage of 21.7kmpl. Now my readers might be thinking that am only saying about price and mileage whereas there are other factors also while choosing to buy a particular car. But, price and mileage are the first things that strikes a Indian mind when one decides to buy a car. Coming back to Eon, I feel that it is going to be tough for Maruti Suzuki Alto and Chevrolet Spark as Eon targets to sell 1900 cars in Kerala alone by December 2012. Its interiors is also far better than Alto. But one cannot deny the fact that Maruti has the Goodwill advantage. Its cars are a constant success for decades. Let it be Maruti Suzuki 800 or Alto, they have satisfied Indians for a decade.It all depends upon how Hyundai uses their platform to promote Eon and Maruti to revise its strategies.