Hyundai to Replace Santro with Kia Ray: Report

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By greeshma m | December 28, 2013 10:08 PM EST

Hyundai India is likely to replace it's iconic car Santro in the demestic market soon, claims a new report.

According to a AutoCar India report, the Korean car manufacturer is evaluating the possibility of launching its sister company Kia's popular hatchback Ray in India, as a replacement for the Santro which laid the stepping stone for the company in the sub continent market.

Kia Motors, which markets its cars in several international markets, does not have vehicles in the Indian market. But if the reports are true, the Ray hatchback, a 'tall-boy' design production of Kia, will debut in India as the replacement of Hyundai's 'tall-boy' Santro.

The Kia Ray, which is currently sold in the Korean market, comes with a 105bhp 998cc petrol engine but if sold in India, the car might get Hyundai's 1.2 litre Kappa engine. Hyundai Santro, which marked its entry in India 15 years ago, still finds takers in the country, though the updated version is long tardy.

However, launching Kia Ray in India under Hyundai could be tricky, as the report suggests Kia has been looking at the possibility of entering the Indian market on its own. According to the rumour mill, Kia Ray has been in testing phase in India. However, nothing concrete has been known till now.

"If the Ray were to be sold with a Hyundai badge, Kia is likely to charge Hyundai a hefty royalty which may make the Ray's pricing uncompetitive," reported Autocar India.

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