Hyundai Exter: Indian car market is one of the cruelest places when it comes to competition, where price almost always rules the roost. However, that the new Sub 4-metre budget-priced Hyundai Exter couldn’t usurp the more premium-priced Tata Nexon, is a curious case and probably a more nuanced truth on what clicks in the heart of consumers in the current market.
Having the value-for-money proposition in its arsenal, the Exter still isn’t quite able to eat into the goodwill that Tata’s best-selling SUV has come to garner.
Hyundai Exter The Price Equation: Unhelpful Numbers
In theory, the pricing by Hyundai with the Exter looks like a master stroke to take over the segment. At an attractive entry price of just ₹6.21 lakh (ex-showroom), the Exter’s starting price is far lower than the Nexon’s ₹8.00 lakh starting price – a significant ₹1.79 lakh margin.
This 22% price advantage is big savings in a market where even the most pious consumers count every rupee.
“When we saw early booking trends coming in, the pricing from Exter was really talking to the first time SUV buyer,” says Rajiv Sharma, an independent automotive dealer with stores selling both brands.
“Showroom traffic was increasingly composed of people coming in with the low pricing as their No. 1 consideration in purchasing the car,” he added.
This competitive pricing makes the Exter an entry into the in-demand SUV market for those car buyers who were previously confined to hatchbacks.
The psychological blockade of crossing over ₹7 lakh is still faced by a lot of first-time car owners, and Exter’s sub-₹6.5 lakh trims are a perfect fit for people taking their first step up from their two-wheeler or nano/tata car.
But this pricing advantage is somewhat reduced when you match on features. And the mid-variant Exter does add goodies such as touchscreen infotainment, auto climate, and some basic safety equipment, taking the gap down to under the ₹ 8 lakh mark for the less-loaded base variants of the Nexon.
Power Deficit: Failure to live up to the level of performance anticipated.
Of the Exter’s disadvantages in the market-scrap, the most damning is its comparatively weak performance. The vehicle is powered by a small-ish, non-turbocharged, 1.2-litre, petrol motor producing a claimed 82bhp and 114Nm.
While good for city driving, this powertrain feels pretty anemic when put to the task of passing on the highway or traveling with the family and all the luggage on board.
At the other end of the scale, the Nexon’s range does flex significantly more muscle. From the gutsy side, we’ve got a 1.2L turbo-charged powerplant pumping out solid 118 horses and 170 Nm of torque – that’s more than 2 times more power and more than 2 times the torque number comparing to what the Exter offers.
For diesel lovers, the Nexon’s 1.5-litre oil-burner churns out 113 bhp and a meaty 260 Nm of torque and it drives as if it belongs to a completely different class.
“The power differential isn’t just paper numbers,” says automotive journalist Vikram Desai, who drove both vehicles for extended periods. “It totally changes the feel when you drive a car, especially you drive it on a highway and you drive with a few people in there. The Exter lacks composure in some conditions where the Nexon shines.
This go-slow differential is even more noticeable when they’re fully loaded with people and stuff – exactly the situation many sports-ute buyers are assuming when they plop down the money.
That the Exter is also the more frugal (20.4kmpl/17.4kmpl, in favour of the Exter) only sweetens the deal further but buyers have shown an increasing appetite to put up with a slight economy penalty for better on-road behaviour.
Size Still Matter: Dimensional Compromises
The details in the design of an interior of an SUV can really make the differnece to people, personally, i think Exter has compromsied on it. Inf alot of places it seems comporomised, including things that people never see until too late to realise the mistake.
It measures 3,815mm long and is 1,710mm wide, that is much smaller than Nexon’s 3,995mm length and 1,804mm of width.
These differences in size directly correspond to performance considerations. With that extra 180mm length and 94mm width, the Nexon offers a significantly higher level of space, not least in second-row comfort and shoulder room.
If you have a young family where you often pack a few extra passengers in or you take a lot of adults, the additional space for the price is a consideration many people will have to weigh up.
The Exter’s small size does have some benefits however, especially when it comes to scooting between tightly parked cars in a city. As a result, in India, the Indian consumer has always seen bigger as better in terms of size for money and dimensional footprint is perceived as a measurable aspect of value for every paisa spent.
“Indian consumers generally associate vehicle size as being directly correlated with status and worth,” says Priya Mehta, who is a consumer psychologist.
“Most customers continue to buy the largest vehicle they can afford based upon the price of the vehicle and the payment they want to make,” said Ford vice president of product development Hau Thai-Tang.
The Safety Calculation: Reputation Vs. Specification
Safety is playing an increasingly important role in people’s car purchase decisions in India, and in this area too, the Nexon’s well-earned badge is another major obstacle for the Exter to overcome.
The Tata Nexon became the first Indian-made car to receive a 5-star rating from the Global NCAP thus, making safety a part of its market identity.
Although the Exter is spec’d out on paper with similar safety equipment (6 airbags are a standard feature across the range), the crash safety ratings for the Exter are not as well-known for the public. This ambiguity isn’t lost on safety conscious family buyers who know that tried and tested protection counts far more then any other features.
“The safety credentials of the Nexon have almost reached legendary status in customer conversations,” notes Anita Reddy, sales manager at the dealership. “People who experience the fantasy land we have created here start to believe that good things are possible for everything they choose to do.
This isn’t limited to crash test scores, but subjective impressions of rigidity and structural strength. The heavier build and solid door closure sound on the Nexon make it sound like a tank (very reassuring when it comes to security) while the much lighter build of the Exter (unlike the Nexon’s a good thing in terms of efficiency) sometimes make it feel like it is not as sturdy.
Feature Battles: More is More; but it’s Not Better Than Less.
When it comes to comparing features the competition gets more interesting. The Exter also shows how Hyundai has been able to bring the technology transfer attitude to the help of the common man, and feature the likes of a digital instrument cluster with smartphone based wireless connectivity and voice command, at the pricing that could otherwise have been unthinkable for such advanced tech.
In return, the Nexon offers features that play up premiumness, like a panoramic sunroof, front ventilated seats, and a richer connected car platform. With relatively fewer major features at similar price points, the execution and build quality of those features tends to be of a higher quality.
“The feature competition is indicative of two completely different philosophies,” says automotive tech analyst Sameer Kapur. “Hyundai loads in as many features at every price point, it’s Tata that sells fewer features in richer packaging. Different consumers weigh these strategies differently according to their personal values.”
This difference is especially prevalent in perceptions of interior quality. With the recent facelift, the Nexon gets a far more premium interior in terms of design and materials, which carries with it the look and feel of a class-above even though it may not have as much tech as similarly-priced variants.
Market Reality: Numbers Don’t Lie
#Despite what Hyundai has done to assure a price war and the challenging value offered by the Exter, market reality says otherwise and that the Nexon continues with a sizeable lead.
The monthly sales clearly show that the Nexon (an average of 13,000-14,000 units) comfortably trumps the Exter, which frequently struggles to cross the 10,000-unit mark despite being priced lower.
This data too reflect that Indian automotive customers have come of age and don’t just care for the lowest point of entry anymore. Performance, presence, perception of safety and brand image have been looking good reasons to justify the Nexon’s premium for a large set of buyers.
The readiness to splash out on these qualities demonstrates a market that is growing up, measuring value in terms of more than simply the “pricepoint”.
“What we are seeing is the Indian car buyer is becoming far more evolved,” says automotive market analyst Arjun Nair. A couple of years ago, Exter’s price edge might have sealed the deal.
“Today’s consumer is much more informed, takes longer to the ownership cycle and is more willing to invest more upfront for what they consider gives them more value for the life of ownership.
Changing Positions from the Right Spot
The need for strategic adjustments is implied for Hyundai, based on the market reaction. Instead of seeing the Exter as a true Nexon rival, it seems, at least from indications, that the Exter will be better suited for what it is, which is an SUV for entry-level slot targeted towards first-time buyers moving up from hatchbacks and those looking at urban mobility and efficiency as a priority feature over all-terrain competency.
This change would fit Exter as growing the overall SUV market due to attracting customers who don’t currently own an SUV, rather than compete with existing models at the smaller SUV level.
This is a positioning that acknowledges the car’s obvious strengths (consumer access, economy, specification, and city-friendly size) without putting them head-to-head in a direct comparison where it’s more obvious what you’re going without.
And for potential buyers this race is a good news as no matter which phone fits you best it will offer more bang for the buck. The need to deliver better bang for the buck on every front compels constant progress from both the factory, and ever more alluring packages of power, features, safety, and quality at nearly every price point.
Hyundai Exter Conclusion: It’s not enough to have mere price wars
The comparison of the Hyundai Exter and Tata Nexon is a strong example of how far beyond just pricing car buyers in India have gone this market.
Despite the Exter’s highly competitive pricing, which makes the product all the more appealing for a set of buyers, the success of the Nexon shows that there are still buyers ready to graduate to a more premium stance for qualities they cherish.
For potential customers, the decision between these rivals will come down to personal preference. For those who are on a shoestring budget or just need a frugal innercity runabout, the Exter’s price appeal is undeniable.
Cosseted shoppers who are bullish on performance, presence and proven safety credentials may well feel that the Nexon’s sticker premium is well worth its obvious benefit.
What is certain is that both cars have found their audience in a market that’s fast becoming too varied for value judgments to be as easy as they once were.
As the automotive scene in India grows up, success will go not to only the price warrior but to the one that best understands and addresses the intricate pecking order of need hierarchy of holiday shoppers that today’s consumers are.