[TusharK]

According to a media report, Hyundai could be evaluating a stripped down version of the Santro. The new version could be aimed at first-time buyers and positioned as a replacement for the Eon.



The second generation Santro was launched in October 2018. It is available in five variants with prices starting at Rs. 3.90 lakh (ex-showroom, Delhi). In terms of pricing, it is positioned above the Eon, which has now been discontinued.

While more buyers appear to be willing to spend more for comfort and features, Hyundai believes there is demand for an entry-level hatchback. But, developing a new model in this segment that also complies with upcoming crash safety norms would not be cost effective. Therefore, a stripped-down version of Santro could be pitted against the Maruti Alto in a lower price bracket.

Source: Autocar India

Link to Team-BHP News

[Superleggera]

The Santro should have launched as a low cost model right from the beginning. Some times the greed of the manufacturers doesn't let them to analyze the market situation properly.

[artemis_fowl]

If this is a low-cost version, it should mostly come with the Eon's 0.8 and 1.0 engines (the biggest way to cut costs will naturally be, getting a smaller engine.) However, will these be BS-6 compliant?
I guess this will also miss out on the touchscreen, rear AC vents, rear wash-wipe and defogger and will directly compete with Alto/Kwid.

[Aditya_Bhp]

The Santro in the 2nd avatar has failed. It sells only because of the Santro brand. Hyundai should have priced it lower to begin with, closer to the Kwid. The higher end variants are more expensive than the Grand i10 mid variant and the Swift Vxi.
The Ignis AMT after discounts is a better car than the Santro AMT.
The base variant of the Santro is also bare bones now, I dont know what feature they have to remove to reduce prices.

[SamitMukherjee]

Last week I went to Hyundai for 90k km. servicing of my Xing.
Service adviser was praising the new Santro but at the same time said that the new Santro is not selling (quantity wise) the way they expected. The reason he said is, Tiago with a better engine has become buyer's first preference. Prices being another factor.
Although people are moving towards luxury, comfort and are ready to spend extra for these. But there are also another category of people who are buying their first car and are not willing to go beyond 4 lakh rupees.
Also, new Santro is not as popular among taxi drivers as older Xing was.
I strongly believe that Hyundai must launch a low cost version of new Santro, if necessary with 0.8L engine, which meets the need of first time car buyers and taxi drivers.

[deehunk]

What is a low cost version? If Hyundai had answers they would have priced it properly at the start itself, this is not the era of cars which were sold without power steering, A/C, right side ORVM, power windows and wheel caps. The new gen buyers are more mature and look for every possible creature comfort in their cars. It is not easy to make a low cost version out of thin air, give more options to the buyer to customise their cars and remove unwarranted warranty clauses. I have seen people afraid of even buying after market wheel covers for a fear of loosing warranty.

[hellmet]

Well, the current Santro is already cheaped out without a passenger airbag even in the top variant. How can you go cheaper than that?

[Chetan_Rao]

Santro D-lite coming up, or is there already one?

The market today expects a certain feature set even in entry-level cars, and there isn't much to strip from the already bare-bones Santro base variant.

[xcentrk]

Originally Posted by hellmet

Well, the current Santro is already cheaped out without a passenger airbag even in the top variant. How can you go cheaper than that?

Possibly by removing driver side airbag as well?

It's been some time since Santro is launched and in all of the Coimbatore I can see only a few Santro's whereas the city is flooded with Creta and Grand siblings. A colleague of mine evaluated Santro & Tiago and was completely fell for Tiago, not only for the looks but for the VFM factor and the space this little Tiago has to offer. Damn, I don't know how TATA does it, but they did nail it.

To begin with the Santro base variant is not decently loaded and I don't know what else they can remove to reduce the cost, apart from engine downsizing!

But if Santro is going to get 0.8L engine, that's one hell of poor choice from Hyundai, I believe. Let's see how it works out for them.

[ani_meher]

Originally Posted by hellmet

Well, the current Santro is already cheaped out without a passenger airbag even in the top variant. How can you go cheaper than that?

LOL, that's what I was wondering. Hyundai simply got greedy with Santro, thinking it was mature for i10 segment. Maruti too has barebones versions of many cars, but sells them as 'Tour' versions limited to taxis, and it keeps both the audiences happy - taxi as well as private customers. Will we see a Santro Tour?

[i74js]

Hyundai is operating at almost 100% of their annual manufacturing capacity unless Kia starts production and may start producing Hyundai cars alongside their own product line (contract manufacturing - very similar to Suzuki producing for Maruti & now for Toyota through their Gujarat facility).

Hyundai is thus riding on the wave when it comes to product pricing. The product these days will either sell for being VFM or being innovative (first in segment). Essentially for entry level buyers / first time buyers, there are multiple options and thus the brand recall of "Santro" alone is not sufficient to make a big difference in purchase decision.

As of now Renault, Tata and MSIL have championed the art of offering more VFM for entry level buyers by throwing several luxury and safety features in their cars thus making it difficult for Hyundai to be in the top 10 sold cars (MoM) through Santro. Instead of stripping further, the company should reconsider pricing itself and make it at par with other players.

Offering a lower spec engine will add to cost of managing production lines, engine inventory and even after sales service obligations. Using a common part bin has always added to the profits and quick turnaround of vehicles during regular and accidental repairs.

There will be pressure on the company in less than a year's time from now with
- Additional production capacity through Kia and may be internal / sibling competition too
- Euro VI norms resulting in impact on diesel offerings
- New manufactures beginning their businesses in India

Hyundai should sense the pulse !

[ACM]

They need to just look at repricing the current variants rather than creating a new lower variant. But Hyundai being Hyundai just won't do that. Well they need to improve the value proposition in some manner.

With the Venue coming in do they have the capacity for more units anyways?

[tarik.arora]

Originally Posted by xcentrk

Possibly by removing driver side airbag as well?

Can't do this because of the up-coming safety norms that mandate driver side airbag.

[GeneralJazz]

Wow! Have the bean counters over at Hyundai even stepped inside a base variant of the Santro? Theres literally nothing left to 'strip down'. It doesnt even get an audio system. The only way to further cut costs would be to remove the AC, use paper plates instead of steering wheels, and switch out the seats with plastic Nilkamals! As rightly mentioned above, they should have priced it reasonably from the start.