Hyundai is seeing good sales in India. All the company’s cars sell well due to the wide range of variants and industry-first features. But there is one car that is not doing so well: the Hyundai Tucson. The Tucson is a capable product with great design and performance. But it is quite expensive. The reason for its high price is that it is manufactured in India as a completely knocked-down (CKD) model. We will explain that below. In today’s article, we will look at this locally manufactured Hyundai Tucson.
Hyundai Tucson 2021 – Changes?
Why is the Hyundai Tucson expensive?
Hyundai currently launches the Tucson in India through CKD units. In CKD, cars are completely disassembled into individual parts and then these parts are brought to our country. After that, these parts are reassembled. Although CKD cars are subject to less taxes than CBU units, a considerable amount of taxes are still levied.
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How will Hyundai lower prices?
Since Hyundai already manufactures many cars in India, they can also manufacture the Tucson in India. This will save significant taxes and costs for importing parts – which will reduce the overall cost. Given the expertise available here, this should not be too much of a challenge for Hyundai.
Locally manufactured Hyundai Tucson and benefits
Given the amount of investment, we expect Hyundai to start with the new generation of the car. This made in India Tucson will have some Indian elements. The engine specs and everything else are expected to remain the same. This locally made Tucson will help Hyundai make the price competitive compared to the competition. This Tucson currently competes with the Jeep Compass and the Citroen C5 Aircross. The locally made car will be cheaper and will allow Hyundai to take the fight to the Tata Harrier and the MG Hector.
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