Hyundai LogoHyundai Motor India managing director HS Lheem announced that Hyundai will be developing a Rs 1.5 lakh (RM11,360) car for the Chinese and Indian markets.

The car will be developed in India at R&D facilities in Hyderabad and Chennai with support from Korea, with a target launch set somewhere in 2011 or 2012. Hyundai is the number two car manufacturer in India and their cheapest car is the Hyundai Santro (Hyundai Atos) which sells for Rs 2.7 lakh (RM20,450).

India is a market where both the Hyundai i10 (rebadged 2008 Picanto) and the Hyundai Santro are offered, but the more expensive i10 are slowly eating into Santro sales because the Indian market is maturing, and at that price point they’d rather pay a little bit more in terms of monthly installment to get something that looks better and more modern.