Hyundai plans compact car with price lower than Santro

CHENNAI, India (Feb 6, 2008).  The Economic Times reports that Hyundai is planning a compact car of its own.  Call it the Nano effect, but the lure for cheap compact cars is growing by the day. Hyundai Motors is working on a new compact car that would be priced lower than the ‘Santro’ and could be rolled out within three years.

The South Korean auto major , that inaugurated its second manufacturing plant here, said the new car would be smaller than the Santro and sport a lower price point and will be developed keeping in mind the global market.

However, company’s India president Ashok Jha said the project was in an initial stage at the moment and refused to comment on specific queries on the new offering, saying it was “too early”.

Currently the cheapest version of the Santro is available at an ex-showroom price of Rs 2.7 lakh and with an eye on a low-priced car, Hyundai may possibly look at a price point close to Rs 2 lakh. Jha said the company’s upcoming research and development centre at Hyderabad that would focus on developing low-cost technologies would be a contributor to the project.