Hyundai planning Elantra-based budget model for Russia
The Volkswagen Polo represents a new type of car line that will have special appeal in Russia, a large country that has a demand for cars but perhaps not enough capital to purchase models for other car-oriented nations.
Following VW into the market is Hyundai, who plan to launch a Russia-tailored car based on the Hyundai Elantra, with a more Russian-centric suspension. The car, currently nameless, is expected to retail around $10,000 and feature 1.4 and 1.6 L engines generating 109 or 122 hp, respectively.
Hyundai expects pilot models to come out September, with more widespread production coming in early 2011. This timeframe sets the Korean manufacturer behind the Polo but ahead of most other brands interested in the Russian market, including big names like GM, Renault-Nissan, and Toyota. The growth of the Russian car demand is surprising for a nation with an economy as faltering as Russia”s- $9,370, Russia”s average per capita income, seems too low to afford a $10,000 car.
Despite this, since February both more lenient loan standards and increased car scrappage programs have developed a significant jump- more than 50% last month alone. These new models from Hyundai, GM, Toyota, Renault-Nissan and others could prove an attractive model for transportation hungry-nations with limited bankrolls.
– By: Zain Haq
Source: Inside Line