Hyundai- Nishat putting some vehicles on display at Emporium Mall.
Its too early to say if Hyundai Nishat will introduce this vehicle locally. Means if it will ever be assembled locally. Possibility is Hyundai offer it as CBU only.
Hyundai, KIA are in CAT- A status for development of new plant and have been given 50% subsidy on duty for 100 units of each models and variants for marketing and launch purposes till 2021 . KIA introduced the Carnival van under same clause and that is why the price is much less as its attracting very little duty. KIA also imported Carnival under commercial vehicle class which has further reduced the overall duty on it.
After 2021 the regular duty structure will come in force and price of locally produced such vehicle will hover around the same price bracket as rest of currently available locally priced cars. In layman language if Hyundai ever produce the Santa FE sometime in future, it will be around the same price point as Toyota Fortuner.
After honeymoon time is over , as of imported products, CBU will cost an arm and leg like any other model as taxation / duty applies according to engine capacities as applicable on rest of current players.
The vehicles pictured here is Santa Fe is 4th generation. Its a 2 row, 5 seat vehicle as standard but a 3 row 7 passenger option is also available.
Internationally its available in 185hp 2.4L NA engine, a 232HP 2.0L turbo engine and a 2.2L diesel engine. There is a due chance these vehicles are 2.4L variants and as per my opinion , if Hyundai ever sold them as CBU it will be with 2.4L engine.
Currently Santa Fe assembled in US and South Korea plants for majority of global sales and possibility of local production in Pakistan has a slim chance as of now because of our market size. While Hyundai in start will try to capture a mid size sedan like Elantra and an entry level hatchback in small car segment.
It does not make sense for Hyundai to invest on dedicated assembly line to produce a vehicle which is not need of masses especially a new plant because our market needs a sub 2 Million and a sub 3 Million vehicle as its has the major demand and Hyundai MUST capture these segments to pose a challenge to currently local producers. We can expect a sub 4 Million crossover as well in shape of Tucson.
I think Hyundai is playing smart like any other car company by not showing it's real cards and obviously they will not show or reveal what is in their pipeline as far as locally produced vehicles / offerings until they have fully functional local assembly line. These demo display products are more of " show of power " glamour and attraction for public , marketing and not necessarily means these vehicles will be made locally.
I can make a rough wild guess, if Santa FE is sold as CBU, even after 50% duty subsidy, expect price near +/- 6 Million. Few of KIA Sportage according to some sources were sold by KIA recently near 5 Million that too with duty subsidy and intentionally Sportage price starts few thousand dollars below Santa FE. If today Honda Atlas get same 50% reduction on duty , a CRV might cost almost around 6 Million , which is currently for sale over 11 Million.
Hopefully in future if local Hyundai grows we might see more product offerings. Overall a very good signs for PK automotive sector that competitors are coming and buyers will have more choices and options.
A US made Santa FE starts a little over $25,000 in US for a base model while fully loaded cross $35,000. Hyundai sell on average 130,000 units of Santa Fe in US every year.. .
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[f.wahab@Pakwheels]
