Hyundai has stopped production of its entry-level Santro hatchback at its Tamil Nadu plant. Launched in 1998, the Santro introduced the Korean carmaker to the Indian customers. The first generation model was on sale until 2014; Four years later, Hyundai brought back the Santro as a replacement for the Eon.
Hyundai re-introduced the Santro in 2018 at a starting price of ₹3.9 Lakh, going up to ₹5.5 Lakh for the top variant. At launch, the Santro had new design cues and was even sold with a CNG option for its 1.1-litre petrol engine. Hyundai has placed the Santro at the top of the budget segment and comes with features like rear AC vents and touchscreen. However, the car still lacked some basic features like intermittent windshield wipers across all variants.
The entry-level variant of the Santro was quite expensive for what it offered. It also lacked a factory-fitted AC at that price. Also, at launch, the higher variant of the Santro was priced higher than the entry-level variant of the now-discontinued Grand i10, which was more spacious and came with a more powerful 1.2-litre engine.
In 2019, Hyundai saw the repositioning of the lower variants of the Santro to take on the entry-level hatchback segment rivals, which included stalwarts like the Alto and the 800cc Renault Kwid. The advent of stringent BS6 norms resulted in higher cost costs, which translated into even higher retail prices.
The sales of the Santro were initially at a peak, but later, mostly on a decline, and customer interest is also declining. An increasing consumer trend towards higher-end vehicles such as SUVs or SUVs also contributed to the decline. Maruti Suzuki sensed this trend long back and replaced its slow selling Alto K10 with the S-Presso high-riding hatchback which offered SUV-like styling cues. S-Presso sales stood at around 67,000 units in FY22, averaging around 5,500 units per month. Meanwhile, Santro sales averaged around 2,000 units per month for FY22.
Also, the recent government order on mandatory fitment of six airbags could be another nail in the Santro’s coffin as Hyundai will have to re-engineer the car to meet the requirements, and the additional cost may not justify the condition of the car. Will hold Additionally, with the upcoming BS 6.2 emission norms, upgrading to the 1.1-litre engine – which is only available on the Santro – would not be economically justified.
The Grand i10 Nios will now be Hyundai’s entry-level model for India. Hatchback starts at ₹ 5.39 Lakh (Ex-showroom). There is talk of Hyundai introducing a micro-SUV under the Venue (with a facelift due soon), which, with its high ride character, could be the future of the SUV, the Santro.