hyundai_maruti OK
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PREFACE
Project work is one of the most important activities of Professionalcurriculum at every level irrespective of degree or diploma. This provides usan opportunity to apply our knowledge, skills and aptitude in real life. It also
provides an opportunity to work in a group and share responsibilities.
The purpose of practical training for management students is to keep themunderstands the management of working organization in all its aspectsespecially in the area specialization. It also helps them to broaden theirhorizon and in efficiency grasping the intricacies in good stand when they
are actually in management position in an organization . It also intends tointegrate the theoretical concept with the practical working of anorganization.
The project should include relative information and details of the market sothat it is easy to draw inference from it about the current market situation .Proper execution of plans and projects are responsible for the economicgrowth of the country
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OVERVIEW OF INDIAN AUTOMOTIVE INDUSTRY
The automobile industry has changed the way people live and work. Theearliest of modern cars was manufactured in the year 1895. Shortly the firstappearance of the car followed in India. As the century truned, three carswere imported in Mumbai (India). Within decade there were total of 1025cars in the city.
The dawn of automobile actually goes back to 4000 years when the firstwheel was used for transportation in India. In the begining of 15th centuryPortuguese arrived in China and the interaction of the two cultures led to avariety of new technologies, including the creation of a wheel that turnedunder its own power. By 1600s small steam-powered engine models wasdeveloped, but it took another century before a full-sized engine-powered
vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothersCharles and Frank Duryea. It was the first internal-combustion motor car ofAmerica, and it was followed by Henry Ford's first experimental car thatsame year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-RoyceSilver Ghost that featured a quiet 6-cylinder engine, leather interior, foldingwindscreens and hood, and an aluminum body. It was usually driven bychauffeurs and emphasis was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloontires, pressed-steel wheels, and four-wheel brakes. Graham Paige DCPhaeton of 1929 featured an 8-cylinder engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged backdoor that suited more to the needs of families. In 1930s, vehicles were less
boxy and more streamlined than their predecessors. The 1940s saw features
like automatic transmission, sealed-beam headlights, and tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. This was the Indian automobile history, and today modern carsare generally light, aerodynamically shaped, and compact.
http://www.surfindia.com/automobile/automobile-industry.htmlhttp://www.surfindia.com/automobile/automobile-industry.html -
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CAR MANUFACTURERS IN INDIA
The reason behind the immense growth of the India Car Industry can beattributed to the availability of car loans, affordable rates of interest, smooth
repayment facilities and the deductions offered to the customers by theretailers.
The constant changes in the existing car models with regard to design,innovation, technology, and colors, have led to a fiercely competitivemarket. Now that technology and innovation are not alien concepts forIndian car makers, Indian cars are becoming increasingly sleek, stylish, andluxurious.
Major players in the Indian Car Industry:
Fierce competition among the major car players can be witnessed in theIndian Car industry. The India car industry is being dominated by thefollowing major players:
HINDUSTAN MOTORS MARUTI UDYOG REVA ELECTRIC CAR CO DAIMLER CHRYSLER INDIA PRIVATE LTD FIAT INDIA PRIVATE LTD
FORD INDIA LTD GENERAL MOTORS INDIA HONDA SIEL CARS INDIA LTD HYUNDAI MOTORS INDIA LTD TOYOTA KIRLOSKAR MOTOR LTD SKODA AUTO INDIA PRIVATE LTD AUDI AG BMW CHEVROLET FORCE MOTORS NISSAN MOTOR CO. LTD PORSCHE ROLLS-ROYCE MOTOR CAR COMPANIES IN INDIA TATA MOTORS
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CAR SEGMENTATION
With the expansion of Indian Automotive market over a period of time thesegmentation of car models came in to existence based on cars definingcharacteristics namely:
Size
Performance
PriceHowever with continuing growth of market SIAM ( Society of IndianAutomotive Manufacturers) implemented the segmentation of cars on the
basis of length of the cars.
CAR SEGMENTATION AS PER SIAM
MINI (A1) SEGMENT
A1 ( Mini- Upto 3400mm): Maruti 800
The segment grew very fast in the initial years of expansion ofautomotive industry in India
The segment started shrinking when new segments came intoexistence and is continuously on decline.
COMPACT (A2) SEGMENT
A2 (compact- 3401 to 4000 mm): Santro, i10, Getz Prime, WagonR,Alto, Palio Stile, Indica, Zen Estilo, Aveo U-VA, Spark, Ford FusionDiesel, Swift
The A2 segment is growing continuously and accounts for 67.8% ofthe total car market today
There are more than 50 lakhs of A1 segments users who can beupgraded to A2 segment.
THE MID-SIZE (A3) SEGMENT
A3 ( Mid- Size- 4001 to 4500mm): Esteem,SX4,Accent, Siena,Indigo, Ikon, City, Lancer, Cedia, Fiesta, Aveo, Verna, Logan andAmbassdor.
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A3 segment has started growing now and is expected to spend rapidlyin future.
Within A3 segment upper A3 segment has started growing now.
EXECUTIVE (A4) SEGMENT
A4 (Executive-4501 to 4700mm): Elantra, Octavia, Laura, MercedesC-class, Corolla, Civic, Optra Magnum.
PREMIUM (A5) SEGMENT
A5 (Premium-4701 to 5000mm): Sonata, Teana, Accord, Camry, E-class.
LUXURY (A6) SEGMENT
A6 (Luxury-5001mm and above): S-class
C (VAN TYPE): Omni, Versa.
B2 (Passenger Carrier): Tavera, Sumo, Innova.
SUVs: Tucson, CRV, Endeavour, Grand Vitara, X-Trail, Montero, Safari,Pajero.
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CHANGES IN CAR INDUSTRY IN INDIA
The latest developments in the car market in India:
In Nashik, a car manufacture plant has been established as a result of a jointventure of Renault and Mahindra & Mahindra to manufacture acomparatively cheap cars (at US$ 9,700), mainly targeting the Indian middleclasses, the youth, and the affluent classes in rural India. Tata Motors has
plans to launch a luxury car with an engine of 33 horsepower. The recentreduction in the excise duty of the small cars from 24% to 16% willdefinitely prove to be a boon for the India car industry.
Technical advancements in the Indian Car Industry:
The latest technical advancements in the car market in India include thefollowing features
Power Steering Radial Tires Anti-lock Breaking Systems Tip-tronic Transmission
The varied car markets in India:
The market for small cars now occupies a substantial share of 70% out of theannual production of 1 million cars in India. Maruti Udyog, with itslegendary Maruti -800 is the leader in the small car market. A number ofmanufacturing plants are coming up for advancements in the field of smallcars. The recent launches in the small car market in India are:
Getz Prime by Hyundai Motor Co.
Tata Magic by Tata Motors Tata Magic Palio Stile byFiat India Pvt. Ltd
Mid-sized cars are normally cars ranging from Rs. 3-8 lakh and generallymeant to be 4 seaters. The mid-sized car section has recently moved beyondthe 1 lakh target. The recent launches in the mid-size car market in India are:
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1.4 SXI Duratorq by Ford Motor Co. Indigo XL by Tata Motors
Luxury cars and premium cars are quite expensive and they are purchasedfor their design, innovation, and technology. They are usually priced overRs. 20 lakh and have many takers in India. The recent launches in the
premium car market in India and the luxury car market in India are:
Sonata Embera H-Matic by Hyundai Motor Co. Nissan Teana by Nissan Motor Co. Ltd
Sports Utility Vehicles (SUVs) have also become very popular in India asthey are considered advantageous due to their ability to accommodate more
passengers. They are ideal for trips with the whole family. The Sport Utility
Vehicle market in India is the most booming market in India presently andSUVs have become the fastest selling cars of India.
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INTRODUCTION
MARUTI UDYOG LIMITEDMaruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of
Japan, has been the leader of the Indian car market for about two decades.
Its manufacturing plant, located some 25 km south of NewDelhi in Gurgaon,
has an installed capacity of 3,50,000 units perannum, with a capability to
produce about half a millionvehicles.The company has a portfolio of 11
brands, includingMaruti 800 ,Omni, premium small car Zen, international
brands Alto andWagonR, off-roader Gypsy, mid size Esteem, luxury car
Baleno, theMPV, Versa, Swift and Luxury SUV Grand Vitara XL7.In recent
years, Maruti has made major strides towards its goal ofbecoming Suzuki
MotorCorporation's R and D hub for Asia. It hasintroduced upgraded
versions of WagonR, Zen and Esteem,completely designed and styled in-
house.Maruti's contribution as the engine of growthofthe Indianautoindustry, indeed its impact on the lifestyle and psyche of an
entiregeneration of Indian middle class, is widely acknowledged.
Itsemotional connect with the customer continuesMaruti tops customer
satisfaction again for sixth year in a rowaccording to the J.D. Power Asia
Pacific 2005 India CustomerSatisfaction Index (CSI) Study.The company
has also ranked highest in India Sales SatisfactionStudy.The company's
quality systems and\practices have been rated as a"benchmark for the
automotive industry world-wide" by A VBelgium, global auditors for
International Organisation for\Standardisation. In keeping with its leadership
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position, Marutisupports safe driving and traffic management through mass
media
messages and a state-of-the art driving training and researchinstitute that it
manages for the Delhi Government.The company's service businesses
including sale and purchase of preowned cars (TrueValue), lease and fleet
management service forcorporates (N2N), Maruti Insurance and Maruti
Finance are nowfully operational.. These initiatives, besides providing total
mobility
When it comes to Indian auto industry, the first brand that comes to Indian
customer mind is Maruthi. In our paper we are attempting to identify the
future of Maruthi Udyog Ltd which is currently the market leader. The main
questions we will be addressing are,
Can it sustain its market share
Will their be a decline in profits
What can it do to keep its growth rate?
How can it compete in the highly competitive small car segment
What are its strategic alternatives
We will analyze the competitors briefly concentrating more on TATA
motors, one of the fast growing Indian auto manufacturer.Maruti Suzuki
India Limited is a publicly listed automaker in India. It is a leading four-
wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation
of Japan holds a majority stake in the company. It was the first company in
India to mass-produce and sell more than a million cars. It is largely credited
for having brought in an automobile revolution to India. It is the market
leader in India. On 17 September 2007, Maruti Udyog was renamed to
Maruti Suzuki India Limited. The company's headquarters remain in
Gurgaon, near Delhi.
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.
HISTORY OF THE COMPANY
Maruti Udyog Limited (MUL) was established in February
1981, though the actual production commenced in 1983. Through 2004,
Maruti has produced over 5 Million vehicles. Marutis are sold in India and
various several other countries, depending upon export orders. Cars similar
to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in
Pakistan and other South Asian countries.
Around 1970, Sanjay Gandhi, political advisor and younger son to the then
Prime Minister of India, Indira Gandhi, envisioned the manufacture of an
indigenous, cost-effective, low maintenance compact car for the Indian
middle-class. Indira Gandhi's cabinet passed a unanimous resolution for the
development and production of a "People's Car". Sanjay Gandhi's company
was christened Maruti Limited. The name of the car was chosen as "Maruti",
after a Hindu deity named Marut.
At that time Hindustan Motors' Ambassador was the chief car, and the
company had come out with a new entrant, the Premier Padmini which was
slowly gaining a part of the market share dominated by the Ambassador. For
the next ten years, the Indian car market had stagnated at a volume of 30,000
to 40,000 cars for the decade ending 1983.
Sanjay Gandhi was awarded the exclusive contract and licence to design,
develop and manufacture the "People's Car". This exclusive rights of
production generated some criticism in certain quarters, which was directly
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targeted at Indira Gandhi. Over the next few years, the company was
sidelined due to the Bangladesh Liberation War and emergency. In the early
days under the powerful patronage of Sanjay Gandhi, the company was
provided with free land, tax breaks and funds. Till the end of 1970s, the
company had not started the production and a prototype test model was met
with criticism and skepticism. The company went into liquidation in 1977.
The media perceived it to be another area of growing corruption. [4]
Unfortunately, Maruti started to fly only after the death of Sanjay Gandhi,
when Suzuki Motors joined the Government of India as a joint venture
partner with 50% share.[5] .
After his death, Indira Gandhi decided that the project should not be allowed
to die. Maruti entered into this collaboration with Suzuki Motors, The
collaboration heralded a revolution in the Indian car industry by producing
the Maruti 800. The car went on sale on December 14, 1983. It created a
record by taking 13 months time to go from design to rolling out cars from a
production line. By the year 1993 the company had sold up to 1,96,820 cars,
mostly by selling its chief product the Maruti 800s. By March 1994, it
produced one million vehicles, becoming the first Indian company to cross
this milestone. It reached the two million mark in October, 1997 and rolled
out its 4 millionth vehicle, an Alto-LX, on April 19, 2003.
Suzuki Motor Company was chosen from seven prospective
partnersworldwide. This was due not only to their undisputed leadership
insmall cars but also to their commitment to actively bring to
MULcontemporary technology and Japanese management practices(which
had catapulted Japan over USA to the status of the top automanufacturing
country in the world).A licence and a Joint Venture agreement was signed
between Govt ofIndia and Suzuki Motor Company (now Suzuki Motor
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Corporationof Japan) in Oct 1982.MUL launched its first car Maruti800
ondecember 14,1983 at initial price of Rs.47,500.
Structure
Ownership
MUL India's leading automobile manufacturers and the market leader in the
car segment, both in terms of volume of vehicles sold and revenue earned is
a public sector initiative. 18.28% of the company is owned by the Indian
government, and 54.2% by Suzuki of Japan. The Indian government held an
Initial Public Offering of 25% of the company in June of 2003.
Ownership
Government
Suzuki
IPO
others
Govern
ment
Suzuki
IPO
others
Main divisions(brand equity)
The major services offered are,Sales of Automobiles
Authorized Service Stations
Maruti is one of the companies in India which has unparalleled
service network. To ensure the vehicles sold by them are serviced
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properly Maruti had 1545 listed Authorized service stations and 30
Express Service Stations on 30 highways across India. Service is a
major revenue generator of the company. Most of the service stations
are managed on franchise basis, where Maruti trains the local staff.
Other automobile companies have not been able to match this
benchmark set by Maruti. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man
to the vehicle.
Maruti Insurance
Launched in 2002 Maruti provides vehicle insurance to its customerswith the help of the National Insurance Company, Bajaj Allianz, New
India Assurance and Royal Sundaram. The service was set up the
company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt.
Limited. This service started as a benefit or value addition to
customers and was able to ramp up easily. By December 2005 they
were able to sell more than two million insurance policies since its
inception.
Maruti Finance
To promote its bottom line growth, Maruti launched Maruti Finance
in January 2002. Prior to the start of this service Maruti had started
two joint ventures Citicorp Maruti and Maruti Countrywide with Citi
Group and GE Countrywide respectively to assist its client in securing
loan. Maruti tied up with ABN Amro Bank, HDFC Bank, ICICI
Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to
start this venture including its strategic parnters in car finance. Again
the company entered into a strategic partnership with SBI in March
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2003. Since March 2003, Maruti has sold over 12,000 vehicles
through SBI-Maruti Finance. SBI-Maruti Finance is currently
available in 166 cities across
Maruti TrueValue
Maruti True Value is a service offered by Maruti Udyog to its
customers. It is a market place for used Maruti Vehicles. one can Buy,
Sell or Exchange used Maruti Vehicles with the help of this service in
India.
N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides
lease and fleet management solution to corporates. Its impressive list
of clients who have signed up of this service include Gas Authority of
India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan,
Singer India, National Stock Exchange and Transworld. This fleet
management service include end-to-end solutions across the vehicle's
life, which includes Leasing, Maintenance, Convenience services and
Remarketing.
Maruti Driving School
As part of its corporate social responsibility Maruti Udyog launched
the Maruti Driving School in Delhi. Later the services were extended
to other citites of India as well. These schools are modelled on
international standards, where learners go through classroom and
practical sessions. Many international practices like road behaviour
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and attitudes are also taught in these schools. Before driving actual
vehicles participants are trained on simulators.
Key personnel
Initially R.C.Bhargava, was the managing director of the company since the
inception of the joint venture. Till today he is regarded as instrumental for
the success of Maruti Udyog. Joining in 1982 he held several key positions
in the company before heading the company as Managing Director.
Currently he is on the Board of Directors. After completing his five year
tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The
Government nominated Mr. S.S.L.N. Bhaskarudu as the Manging Director
on August 27, 1997. Mr. Bhaskarudu had joined Maruti in 1983 after
spending 21 years in the Public sector undertaking Bharat Heavy Electricals
Limited as General Manager. Later in 1987 he was promoted as Chief
General Manager, 1998 as Director, Productions and Projects, 1989
Director, Materials and in 1993 as Joint Managing Director.
Production Milestones
1st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
10,00,000 vehicles produced by March, 1994
15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
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25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 2000
35,00,000 vehicles produced by December 2001
40,00,000 vehicles produced by April, 2003
45,00,000 vehicles produced by April, 2009-10
OTHER PRODUCTS OF MARUTI SUZUKI
Maruti
Maruti 800 STD BS III
Maruti 800 AC BS III
Omni
5 seater Maruti Omni
8 seater Maruti Omni
LPG Maruti Omni
Maruti Alto
Alto
Alto Lx
Alto Lxi
Maruti Zen
Maruti Zen Lx
Maruti Zen Lxi
Maruti Zen Vxi
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Wagon R
WagonR Lx
WagonR Lxi
WagonR Vxi
WagonR Ax
Versa
5 seater
8 seater ( DX & DX2)
Maruti Esteem
Maruti Esteem Lx
Maruti Esteem Lxi
Maruti Esteem Vxi
Baleno
Baleno Sedan VXi
Baleno Sedan Lxi
Brands and models
Till recently whenever we think of Maruthi we think of it as 800 due to the
huge sales it achieved. It was like a symbol of luxury for the middle class.
Nowsituations are changing and people are looking at Maruthi stable for the
wide range of products they are offering. The various models and brands that
are sold by Maruthi in the order of their launch are,
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Maruti 800: Launched 1983. Indias largest selling car till 2004.
Maruti Omni: Launched 1984.
Maruti Gypsy: Launched 1985.
Maruti 1000: Launched 1990
Maruti Zen: Launched 1993.Modified 2003.Production to be halted
2006New generation Zen (First generation MR Wagon in Japan) to be
introduced 2006
Maruti Esteem: Launched 1994
Maruti Wagon- R: Launched 1999 Modified 2006
Maruti Baleno : Launched 1999
Maruti Alto: Launched 2000. Currently the largest selling car in India
Maruti Grand Vitara: Launched 2003
Maruti Grand Vitara XL-7
Maruti Versa: Launched 2004
Maruti Swift: Launched 2005
BRAND PORTFOLIO OF THE COMPANY
CLASS BRAND NAMEYEAR
INTRODUCEDSLOGAN
City Car
Maruti 800 1983Change your life
Maruti Alto 2000Let's go
Maruti Zen Estilo 2005
Shape your world
Suzuki Alto (A-star) 2008Stop @ nothing
Suzuki SplashUpcoming model in
2009
Super mini Maruti Wagon-R 1999 For the smarter race
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Car Maruti Suzuki Swift 2005 You're the fuel
Compact Car
Maruti Suzuki SX4 2007 Men are back
Maruti DZiRE 2008 The heart car
Sports Utility
Vehicle
Suzuki Grand Vitara 2007Play it your way
Maruti Gypsy 1985King
Microvan
Maruti Omni 1984 Fits all
Maruti Versa 2003The joy of travelling
together
BRAND HIERARCHY OF THE COMPANY
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Bundle of competencies
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Technology
Maruthi always introduces the best technology into its product line, in
addition to all its features which are almost standard in most cars. They
introduced 16* 4 Hypertech engines across the entire Maruti Suzuki range.
These are 4 valve engines powered by 16 bit chip. This gives an ideal
combination of power and performance. They also introduced electronic
power steering system (EPS) which gives better maneuverability. Their
latest introduction Swift has all the technology like surround protection
(SSP). This includes ABS, dual front airbags, collapsible steering column,
crashworthy structure etc. They also has additional features like brake force
distribution, key less entry system. The six microprocessors are connected in
a high speed canbus. This controls engine, EBS, EPS, Auto AC, Security
and dead lock and air bag. Automatic climate control, rally based suspension
system and above all the dynamic design is what the latest entrant offers its
customers. Maruti also uses latest in IT for its operations. It uses the oracle
based packages for CRM and employee feed back. Maruti also uses oracles
ERP packages for its operations. ATFCAN and Maruti are collaborating on
Canadian CNG conversion technology.
Design and development
Maruti Suzuki is outsourcing its design and development activities to India.
They are looking towards India as their design hub. Among the company's
product development challenges, the need for shorter cycle times is always
at the top. Management wants to be able to launch new models faster and
reduce the time required for minor changes and development of product
variants. Another challenge is co-development. Maruti's goal is to
collaborate closely with its global teams and suppliers on the development
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of new platforms and product freshening. Other challenges include
streamlining the process of vehicle localization and enhancing quality and
reliability.
These challenges pointed directly to a product lifecycle management (PLM)
solution with capabilities for information management, process
management, knowledge capture and support for global collaboration; a
PLM solution directly addressing Maruti's business challenges. For example,
PLM's information management capabilities address the issue of the many
platforms, local variants and export destinations. Process management
permits concurrent development and faster change management and
provides a platform for other process improvements - for faster vehicle
development. Knowledge capture increases innovation and also reduces
costs by increasing part re-use. PLM's collaboration capabilities permit
global development by ensuring fast and accurate dissemination of product
information. For this Maruti uses one of the leading PLM software package
by UGS.
At Maruti, styling is a cross-discipline function that requires designers,
engineers and model makers to pool their resources in a multitude of
activities that have to be performed in order to transform creative ideas into
finished products. These styling-related activities include storyboarding,
conceptualizing, rendering, tape drawing, model making, feasibility analysis,
CAD data generation and Class-A surfacing. In addition, Maruti designs
new accessories and adds value to its products interiors and exteriors
by designing/developing fabrics, colors and graphics. Some of the most
recent examples of Maruti styling are seen in change programs for the Zen,
Wagon R and Esteem product lines. Other Maruti styling efforts are in
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various stages of development. Maruti used to employ a variety of software
for its styling programs, including SCAD (Suzuki CAD), Alias, Unigraphics
and Catia. However, today Marutis styling and engineering functions are
doing almost all their work in UGS NX solutions.
Manufacturing
Markets
Maruti has a strong domestic market presence in India. It has a market share
of 47% in the domestic market. The current market share of Indian car
industry is given below, Maruti Exports Limited is the subsidary of Maruti
Udyog Limited with its major focus on exports and it does not operate in the
domestic Indian market. The first commercial consignments of 480 cars
were sent to Hungary. By sending a consignment of 571 cars to the same
country Maruti crossed the benchmark of 3, 00,000 cars. Since its inception
export was one of the aspects government was keen to encourage. Angola,
Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda,
Chile, Costa Rica and El Salvador are some of the markets served by Maruti
Exports.
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46%
14%
17%
23%MUL
Hyundai
Tata
Others
Maruti also has markets in other countries depending on export demand.
Suzuki is selling cars similar to Maruti in Pakistan and South Asian
countries. They have a major non European market which grew 78% in 05-
06. Loss of sales in Europe is due to stoppage of Alto which accounted for
80% of their exports and introduction of Swift. Algeria has emerged as
Maruti's largest overseas market with sales growing from a few hundred in
FY02 to over 6,500 (FY06). The company says it may cross 9,800 this year.
Maruti is quite bullish on markets like, Chile, Morocco, Egypt and Sudan
apart from the neighbouring countries. The auto major expects its exports toChile and Morocco to go above 5,900 and 2,300, respectively, this year. Its
volumes from there have moved from under 700 in FY02 to 3,115 (FY06)
and exports to Sudan was nil two years back. "In Egypt, our numbers are
estimated to grow to over 2,000 and 2,700 this year," according to Mr
Khattar. In FY07 it was under 200 few years back.
Meanwhile, Maruti is also reporting a high on current year exports to the
neighboring countries is on a high too. The company expects to export 9,200
units to Sri Lanka this year, a growth of over 50%, 1,200 units to Nepal,
over 1,175 to Bhutan and 700 to Bangladesh. Maruti, which saw exports dip
by 29% last fiscal, also plans to launch a new export model during '08-09 ,
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which will target the European market. The company targets to export 1,
00,000 units of the model annually.
Overall passenger car market registered 24.86% growth
Sales of compact cars jumped by 31.2%
Mid-size car segment grew slower at 14.7%.
The Government's small car policy seems to be yielding results, with the
share of compact cars increasing to 68.25 per cent in the April-July 2006
period compared with 64.9 per cent in the same period last year.
Not surprisingly, compact cars emerged as the main driver of passenger car
growth in the period. While the overall passenger car market increased by
24.86 per cent to 3,24,671 units, sales of compact cars jumped by 31.2 per
cent to 2,21,598 units in the April-July 2006 period. In fact, all the three
major carmakers (Maruti Udyog, Hyundai Motor, and Tata Motors) saw a
sizeable jump in their compact car sales in the period.
Customer segmentation and value proposition
Segmentation
Under Rs. 3
Lakhs
Maruti 800, Alto, Omni
Reva
Rs. 3-5 Lakhs Ambassador
Fiat Palio
Hyundai Santro, Getz
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Chevrolet Opel Corsa
Maruti Zen, Wagon R, Versa, Esteem, Gypsy
Ford Icon & Fiesta
Tata Indica, Indigo
Mahindra Bolero
COMPANY PROFILE
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HISTORY OF HYUNDAIThe beginning of Hyundai Motor Company dates to April 1946 whenfounder, Ju-Yung Chung established Hyundai Auto Service in Seoul, SouthKorea at the age of 31 years. The name Hyundai was chosen for itsmeaning which in English translates to modern. The Hyundai logo issymbolic of the company's desire to expand. The oval shape represents thecompany's global expansion and the stylized "H" is symbolic of two people(the company and customer) shaking hands.Hyundai Motor Company was founded by Ju-Yung Chung and younger
brother Se-Yung Chung in December 1967. In 1968 the company enteredinto a contract with Ford motor company to assemble the Ford Cortina and
Granada for the South Korean market and continued to produce them until1976. Hyundai completed construction of the Ulsan plant in six months andachieved the shortest groundbreaking to first commercial production of anyof Fords 118 plants. The eight year journey provided Hyundai withassembly knowledge, blueprints, technical specifications, productionmanuals, and trained Hyundai engineers.
Hyundai founder, Ju-Yung Chung
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The leader of the Hyundai-Kia Automotive Group was changed by founder,Ju-Yung Chung in 1999 after the Asian financial crisis and governmentmandated breakup of the Hyundai Group. Previously the automotive groupwas being managed by the founder's brother. His son, Mong-Koo Chunghad performed well managing Hyundai's after-sale service and dealerships.Mong-Koo was the catalyst of an extreme turnaround for the company.During the 80s and 90s, his uncle focused on Hyundai Automotive's growthand producing as many cars as possible. Product quality and customersatisfaction suffered. From his experience working with dealerships andangry Hyundai customers, Mong-Koo knew well the damage to the Hyundaireputation and the high cost of warranty repairs.
When Mong-Koo began broadcasting his intention to turn Hyundai into atop-five automaker, few outside the company took him seriously. Hyundai,like many family-controlled Korean companies, was ultra-hierarchical andslow to change. Managers rarely cooperated with one another and divisionchiefs ran their operations as personal fiefdoms. "When a problem occurred,each division would blame other divisions," says Lee Hyun Soon, Koreanhead of R&D.
Mong-Koo's first step was to replace members of top management withengineers. He formulated a strategy to challenge Toyota for quality.
Extensive work with consultants, J.D. Powers, and benchmarking of theworld's best automotive companies followed. He also sent teams to Americato study weather, road conditions, and driver habits. Quality control staffincreased tenfold to 1,000 and they reported directly to him. Employeeswere encouraged and rewarded to offer suggestions. One example that istold is that a worker reported the Sonata and XG350 sedans had differentlyshaped spare tire covers. Sharing the cover saved Hyundai about $100,000
per year.
There are reports that the Korean government requested that Mong-Koo stepdown as Hyundai Automotive's chairman in 2000 so that it could be led by anon-family member. Mong-Koo refused, arguing that he was best qualifiedto lead the company.
Mong-Koo Chung has earned a reputation for an obsession with quality.The new Sonata's launch in Korea was delayed for two months for 50 items
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management wanted fixed. Employees in the Asan factory workedfeverishly to correct items such as a tiny error in the size of the gap betweentwo pieces of sheet metal near the headlight. The problem was not visible tothe human eye and was narrower than 0.1 millimeter. Numerous managersand employees worked on the problem for 25 days before it was solved.
The Hyundai Group spent most of its history operating as one of SouthKorea's largest chaebols, or conglomerates. The group displayed spectaculargrowth since its founding in 1947 and its rapid expansion--to a point whereits interests included car manufacturing, construction, shipbuilding,electronics, and financial services--reflected the achievements attainedduring South Korea's economic miracle. The South Korean economy took aturn for the worse during the late 1990s, however, which prompted PresidentKim Dae Jung to launch a series of reforms aimed at dismantled large, often
corrupt, chaebols. By 2001, much of the Hyundai Group had beendismantled. Roh Moo Hyun, elected President in 2002, continues to reformthe South Korean business sector.
Hyundai's growth was linked inextricably to South Korea's reconstructionprograms following World War II and the Korean War as well as to thestate-led capitalism that resulted in a polarization of the country's corporatestructure and the domination of the economy by a number of conglomerates.World War II left the country devastated, and the small recovery Korea had
been able to make following this conflict was reversed during the Korean
War, which lasted from 1950 to 1953. The chaebols, which are similar toJapan's zaibatsu, worked with the government in rebuilding the economyand formed an integral part of Korea's economic strategy and its drive to
build up its industrial base.
One man, Chung Ju Yung, stood at the center of Hyundai's progress from1950 until he died in 2001. Chung, considered a founding father of theKorean chaebol structure, left school at an early age and developed what has
been described as an autocratic and unconventional management style. He
noted those areas of industry that the government had selected as crucial toeconomic development and structured the group accordingly.
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HYUNDAI MOTOR COMPANY
Founded in 1967
Brand value of US $ 4.45 billion- 2007 ( Business Week)
Hyundais brand ranking improves by 3 places in best Global BrandsSurvey 2007( 75 to 72)
Sale of 3.7 million units world wide- 2005 (including the Kia brand) 6th largest auto manufacturer in the world- Hyundai- Kia Automotive
Group
Sold in 193 countries through a network of over 5000 dealership
2006 Ideal Vehicle Brand- Hyundai- Auto Pacific USA
Official sponsor and vehicle supplier- FIFA World Cup, Germany-2006
Challenges for Hyundai Motor in the 1980s
The 1980s were to prove equally eventful for Hyundai Motor Company.After the oil shock of 1979, the government took steps to protect theindustry, which had by then made large investments in plants andequipment. It kept a tight grip on the development of this sector and in 1981divided the market, restricting Hyundai to car and large commercial vehicle
manufacture. These regulations were revised in 1986 following the recoveryof the market, and Hyundai was able to resume manufacture of lightcommercial vehicles.
By the middle of the decade, Hyundai had taken Canada by storm. Its Ponysubcompact vehicle became Canada's top-selling car less than two yearsafter entering the market. Hyundai's sales in Canada, where it was alsoselling the Stellar, shot from none in December of 1983 to 57,500 units inthe first nine months of 1985, topping those of Honda and Nissan combined.Total production in 1985 had risen to 450,000.
In 1985, the company announced plans to build a car assembly plant atBromont, near Montreal, and at the same time decided to enter the U.S.market. The entry into the U.S. market, begun in 1986, proved an immediatesuccess. Its low-priced Excel model was well received, and of the 302,000cars exported in that year, 168,000 were sold in the United States, wheresales were to increase to 263,000 the following year. Hyundai's initial
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success in the United States, though, faded before the end of the decadewhen sales began to flag. Problems in the company's key overseas marketwere attributed to the lack of new models, increasing competition in theweakened U.S. car market, and the severe strikes that hit the company in thelatter part of the 1980s and in 1990.
Hyundai decided to move up market with the introduction of the Sonata, afour-door sedan, in late 1988; initial sales, though, proved disappointing. Ayear later, this car was being manufactured at the Bromont plant, followingthe opening of the factory in 1989. In the same year, Hyundai signed a dealwith Chrysler Corp. to build 30,000 midsize, four-door cars for the U.S.company, starting in 1991. Chrysler was linked to Mitsubishi Corporation,which in turn was affiliated with Hyundai, in which it held a 15 percentstake.
Hyundai planned to increase production at the Canadian plant to 100,000 bythe time the Chrysler deal came into effect. Export sales, which were also hit
by the appreciation of the won and the depreciation of the yen, remainedsluggish. Increased wage costs also affected the group but had the advantageof boosting domestic sales that, for the industry as a whole, increased 50
percent to 356,000 units in 1989.
Hyundai in the Early 1990s
The group became intent on reducing its dependence on the U.S. markets.By 1990, the domestic market was proving increasingly important to theessentially export-oriented group. Both the car and construction marketswere enjoying strong demand at the end of the decade. This situation helpedHyundai Engineering & Construction, like the vehicle operations, to take upthe slack created by declining markets abroad, particularly in the MiddleEast. The group had accumulated experience in a broad range of plantconstruction, including Korea's first nuclear power plant. Meanwhile exportsin the shipbuilding sector were showing a marked improvement.
Following the creation in 1983 of Hyundai Electronics, Hyundai stepped upits presence in the electronics field and produced semiconductors,telecommunication equipment, and industrial electronic systems. Thecompany, which focused on industrial markets, sought to increase its
presence in consumer electronics, despite formidable competition fromdomestic companies such as Samsung and Goldstar.
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The group as a whole had proved itself capable of taking diverse markets bystorm and was determined to maintain and expand its markets by steppingup research-and-development spending. However, the country's drivetowards democracy brought new uncertainties. In the changing economicand political environment, the group faced a labor force seeking higherwages, a less competitive currency, and increasing competition in the all-important overseas markets.
Faced with this changing political scene and a less favorable internationalrate of exchange, Hyundai shifted gears in the early 1990s. In automaking,its largest enterprise, it worked to regain lost ground in the United States,where demand for its low-priced Excel and somewhat higher-priced Sonatamodels slumped in the wake of widespread consumer complaints and adepressed entry-level market. Hyundai's new Elantra sedan, selling for
$9,000, was to be its lead item in the U.S. market. The group's chairman atthat time, Chung Ju Yung's younger brother, Chung Se-yung, was expectinga new day for the group, as Korea itself matured with new labor and politicalfreedoms.
As Korea's second-largest conglomerate, with 1990 revenues estimated at$35 billion, Hyundai Group was clearly to play an important role in the newKorea. Indeed, the Hyundai founder and chairman, Chung Ju Yung, chose
personally to play a new, political role in that development, founding a newpolitical party early in 1992 with a view to promoting open-market policies.
Chung's Unification National Party (UNP) promptly won 10 percent ofNational Assembly seats; Chung himself then retired from his Hyundaichairmanship to set his sights on the Korean presidency. The Hyundaiconglomerate, already forced by the government to pay billions in backtaxes, came under even more severe government pressures after Chungformed his party. Regulators charged illegal political contributions by oneHyundai company and accused others of tax evasion. In addition, Hyundai'sability to finance its operations was threatened by other government actions.In return, Hyundai, at this time headed by Chung Se Yung, threatened to
withhold huge investments planned for the coming year. In 1993, havingfinished third in South Korea's presidential election, Chung Ju Yungreportedly said that he would resume chairmanship of the Hyundai Groupand would reorganize the corporation into many specialized, independentlyrun companies. In 1995, his second-eldest son, Chung Mong Koo, wasnamed chairman of the group while Chung remained honorary chairman.
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In auto and personal-computer sales, Hyundai companies movedaggressively. In mid-1992, Hyundai's new Motor America president, Dal OkChung, took over in the Fountain Valley, California, headquarters. Amongother marketing devices, Hyundai offered generous rebates and free two-year service warranties that covered even windshield wiper blades. By early1993, Hyundai was offering the first auto engine it had designed and madeitself, as opposed to the Japanese-made Mitsubishi engines that were used inits earlier models. More than ever committed to the smaller vehicle, Hyundaiwas selling autos in more than 100 countries.
In personal computers, Hyundai in mid-1992 took a drastic step when itmoved its entire electronics operation to the United States, the world'slargest computer market. Hyundai Information Systems had already enteredthe direct personal-computer market, cutting prices and offering toll-free
telephone support and sales. The new operation, based in San Jose,California, had entirely American leadership, headed by IBM veteran andformer CompuAdd president Edward Thomas. The California advantage wasmainly proximity to the market, which meant lessened inventoryrequirements. These developments showed the Hyundai Group to have thesame innovative and energetic approach that had characterized its earlierventures.
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The Dismantling of Hyundai
The latter years of the 1990s brought with them economic turmoil for South
Korea. In order to restore the nation's financial health, President Kim DaeJung, who took office in 1998, launched a series of restructuring programsdesigned to reform the chaebols, many of which had become heavily debt-
burdened. His reforms included changing the ownership, business, andfinancial structures of the region's large conglomerates. By this time, theHyundai Group was responsible for approximately 20 percent of Korea'sGDP. As such, its financial health was directly related to South Korea'soverall economic condition.
As a result of government pressures, Hyundai and other South Koreanchaebols, including the Daewoo Group, set plans in motion to sell off manyof their businesses in order to pay down debt and shore up profits. Hyundai'sconcentration remained on autos, electronics, heavy industry, construction,and finance. Even as the group struggled under its debt load, it strengthenedits holdings with the purchase of Kia Motors Co. Ltd. and LGSemiconductor.
Despite the government's involvement, Hyundai was slow to comply withrestructuring demands. Its questionable accounting practices often made it
the target of negative publicity. Rivalries between members of the founder'sfamily also led to bad press, leaving many investors anxious about the futureof the group and its member companies. Indeed, many Hyundai affiliates,including Hyundai Engineering & Construction and Hyundai Electronics,were nearing bankruptcy as debt continued to spiral out of control. By 2001,total group debt reached W35.87 trillion ($25.59 billion).
Hyundai Motor Co., on the other hand, was prospering as Korea's largest carmaker. The auto concern officially separated from the Hyundai Group inSeptember 2000, signaling the start of sweeping changes that led to theeventual dismantling of what was once South Korea's largest conglomerate.In August 2001, nine core Hyundai companies, including HyundaiEngineering & Construction and Hynix Semiconductor Inc. (formerlyknown as Hyundai Electronics Industries), left the chaebol. The separationcut Hyundai Group's assets to just $20.8 billion and left it in control of 18
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member companies. Hyundai continued to be pared down the followingyear.
South Korea had bounced back from its economic crisis of 1997 and 1998 tobecome a leading global force in the technology sector. By 2003, foreigninvestors owned over a third of the shares of companies listed on Seoul'sstock exchange. During 2002, Roh Moo Hyun was elected president ofSouth Korea. Feeling the pressure from foreign investors, he maintained thatharsh reform would continue within South Korea's chaebols. A May 2003Business Weekarticle supported the efforts of the new president, who statedthat "slowly and steadily, good governance has been asserting itself inKorea." Indeed, it appeared as though the powerful, family-run Koreanchaebols were a thing of the past. While this marked an end to the HyundaiGroup's history, it pointed to a fresh start for many companies bearing the
Hyundai name.
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HYUNDAI MILESTONES
1967 Hyundai Motor company founded 1968 Licensing agreement signed with Ford 1974 Pony- Koreas first independently designed and manufactured
model 1976 First Pony exported to Ecuador 1985 Excel launched 1986 Entered US market with Excel 1988 Sonata launched
1991 Developed first proprietary engine 4- cylinder Alpha 1996 Cumulative exports surpass 4 million units, Cumulative
production surpass 10 million units. 1998 Grandeur XG launched, Grand opening of Chennai plant in
India, Acquired Kia Motors Corp. 2000 Santa Fe launched 2004 Cumulative exports surpass 10 million units
HYUNDAIs BRAND COMMUNICATION
Drive your way is corporate slogan which represents our pledge to become aleading Global brand. Our foremost priority is to both inspire and satisfy ourcustomers. Therefore, the customers lives (your way) become moreconfident (Drive) and that we will always stand by the side.
BENEFITS OF A STRONG HYUNDAI BRAND
A strong brand leads not only the improvement of corporate image, but isalso the source of long term profit.
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HYUNDAI MOTORS INDIA LIMITED
The Start- 1996
HMIL (Hyundai Motor India Limited) was established in 1996
State of the art plant at Irrungattukottai near Chennai, constructed at atotal cost of $ 614 million.
Installed capacity to make 2 lakh 50 thousand cars per annum and 1lakh 30 thousand engine transmission units per annum.
In process to increase capacity to 6 lakh units per annum by 2007
The Start- 1997
Production commences.
Localization of 70%, which is one of the highest, amongst all carmanufacturers.
New Horizon 1998
The Santro was launched.
Creates history by becoming one of the best selling compact cars.
Hyundai becomes Indias second largest car manufacturers in sixmonths.
New horizon 1999
The accent is launched.
Santro wins Business Standard Motoring Car of the year award.
New horizon 2000
100000th cars roll out.
Santro zip drive launched.
Export of santro and Accent started.
Santro and Accent bag JD Power Asia Pacific Award.
New Horizon 2001
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Sonata was launched.
Santro wins Business Standard Motoring Car of the year awardagain.
200000th cars roll out.
2001 IQS and APEAL honours from JD Power.
New Horizon2002
300000th cars rolls out.
Accent Viva launched.
New Horizon 2003
HMIL awarded Manufacturer of the year by CNBC Auto CarIndia.
HMIL declared car maker of the year at ICICI overdrive awards. 400000th cars roll out.
The Santro Xing launched.
The Terracan was launched.
New Horizon 2004
1500 exported to Europe under model name Atos. 500000th vehicles roll out.
The Getz was launched.
The Elantra was launched.
New Horizon 2005
The Tucson was launched.
The Sonata Embera was launched.
New Horizon 2006
The all new Hyundai Verna was launched.
New Horizon 2007
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The sonata Embera CRDi VGT was launched.
Santro crosses the 10 lakh mark.
Getz Prime was launched.
Automatic variant of the Sonata Embers CRDi VGT launched.
Santro CNG launched Fastest 15 lakh cars roll out.
Hyundai i10 was launched.
Milestone-400,000th Car Exported
Hyundai Motor India has achieved another significant milestone with theshipment of its 400,000th Atos Prime to its overseas markets in New Delhion august 6, 2007.
In October 2006 it exported its 300,000th car. The milestone achievement ofexporting the next one lakh car in less than a year makes Hyundais400,000th overseas sale the fastest export shipment in the industry.
Currently, Hyundai Motor India is exporting Santro, Getz and the Accentmodel to around 67 countries across Europe, Africa, Latin America andMiddle East.
Export Milestones
Export Roll-Out Year
1,00,000th car October, 2006
2,00,000th car October, 2007
3,00,000th car October, 2008
4,00,000th car August, 2009
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CAR DETAILS
MODEL NET
PRICE
COMPLETE
INSURANCE
PERMANENT
REGIST.
3RD YR
EXT.WTT
Y.
ON
ROAD
PRICE
SantroNon AC
(S)
2,72,290/- 8,468/- 7,800/- 1,975/- 2,90,533/-
Santro
Non AC
(M)
2,75,879/- 8,566/- 7,900/- 1,975/- 2,94,320/-
Santro GL
(S)
3,41,099/- 10,345/- 9,500/- 1,975/- 3,62,919/-
Santro GL
(M)
3,44,691/- 10,443/- 9,600/- 1,975/- 3,66,709/-
Santro
GLS (S)
3,60,176/- 10,866/- 10,000/- 1,975/- 3,82,927/-
Santro
GLS (M)
3,63,764/- 10,963/- 10,100/- 1,975/- 3,86,802/-
Getz GLE 4,02,156/- 12,011/- 11,050/- 3,025/- 4,28,242/-
Getz GVS 4,33,897/- 12,877/- 11,850/- 3,025/- 4,61,649/-
Getz GVS
(175 tyre)
4,41,264/- 13,078/- 12,030/- 3,025/- 4,69,649/-
Getz GVS
(1.3)
4,51,098/- 13,346/- 12,280/- 3,025/- 4,79,749/-
Getz GLS
(1.3)
4,72,098/- 13,919/- 12,800/- 3,025/- 5,01,842/-
Getz GLX
(1.3)
5,06,194/- 14,849/- 13,660/- 3,025/- 5,37,728/-
Getz
CRDI
5,72,350/- 16,654/- 29,620/- -------- 6,18,624/-
COLOURS
Solid: (1) Ebony Black (EB), Noble White( NW)Mettalic: Brite Silver (QO), Real Earth (H2), Passion Red (Or), SpaceSilver (5s), Sky Blue, Blue Onyx (2), Dynastey Red (AE), MidnightGrey(2m), Orange Lango are available only in Santro.
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CAR DETAILS
COLOURS:- Ebony Black (EB), Noble White (NW), Brite Silver (QO),
Space Silver (5S), Real Earth (H2), Midnight Grey (2M), & Sky Blue (onlyin Accent) & Passion Red (OR), Dynasty Red (AE), Kyara (AG) only inVerna.
MODEL NETPRICE
COMPLETEINSURANCE
PERMANENTREGISTRATION
3rd
YrEXTRA
WARRANTY
ONROAD
PRICE
Accent
GLE
5,07,941/- 14,897/- 13,700/- 4,120/- 5,40,658/-
Verna-I 6,56,819/- 19,789/- 17,420/- 4,235/- 6,98,263/-
Verna-
XI
6,75,299/- 20,317/- 17,880/- 4,235/- 7,17,731/-
Verna-
XXI
7,33,414/- 21,976/- 19,340/- 4,235/- 7,78,965/-
Verna-
XXI-ABS
7,53,454/- 22,548/- 19,840/- 4,235/- 8,00,077/-
Verna-
CRDI
7,71,906/- 22,099/- 39,600/- 9,035/- 8,42,640/-
Verna-
CRDI
ABS
7,93,948/- 22,700/- 40,700/- 9,035/- 8,66,383/-
Verna-
CRDI
SX
8,22,130/- 23,469/- 42,100/- 9,035/- 8,96,734/-
Verna-
CRDISX ABS
8,44,175/- 24,071/- 43,200/- 9,035/- 9,20,481/-
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PROFORMA INVOICE
CAR DETAILS
MODEL NET
PRICE
COMPLETE
INSURANCE
PERMANENT
REGIST.
3rd Yr
EXTRAWtty
ON
ROADPRICE
I-10 D-Lite (S) 3,47,747/- 10,527/- 9,700/- 2,500/- 3,70,474/-
I-10 D-Lite
(M)
3,51,361/- 10,625/- 9,800/- 2,500/- 3,74,286/-
I-10 Era (S) 3,84,156/- 11,520/- 10,600/- 2,500/- 4,08,776/-
I-10 Era (M) 3,87,770/- 11,618/- 10,700/- 2,500/- 4,12,588/-
I-10 Magna
(S)
4,08,286/- 12,178/- 11,200/- 2,500/- 4,34,164/-
I-10 Magna
(M)
4,11,900/- 12.277/- 11,300/- 2,500/- 4,37,977/-
I-10 Magna
(option pack)
(S)
4,78,491/- 14,094/- 12,960/- 2,500/- 5,08,045/-
I-10 Magna
(option pack)
(M)
4,82,104/- 14,192/- 13,050/- 2,500/- 5,11,846/-
I-10
Magna(option
pack with sun
roof) (S)
4,93,710/- 14,509/- 13,350/- 2,500/- 5,24,069/-
I-10 Magna
(option pack
with sunroof)
(M)
4,97,321/- 14,607/- 13,430/- 2,500/- 5,27,858/-
COLOURS: -
Solid: Electric Red, Vartual Yellow.Mettalic: Alpine Blue, Oyster Gray, Sleek Silver, Blushing Red,Champaign Gold, Deep Ocean Blue, Crystal White, Stone Black.
SANTRO
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The Santro id Indias largest exported car under the name Atos.
Santro is produced exclusively in India and exported around the worldto over 65 countriesincluding advance markets like North America
and Europe.
Milestones
Santro was launched in 1998.
Euro-II version launched ahead of schedule.
Santro Zip Drive launched in May 2000.
In Jan 2001 Ventilated Disc brakes added on all variants of Santro.
In July 2001 facelift of the Santro launched.
In October 2001 the LP version was launched (Zip Value). In March 2002 Santro Zip Plus with improved 1.1 L Engine launched.
Santro Xing launched in 2003.
eRLX engine and new variants launched in2005.
Santro crosses the 10 lakh mark in sales with over 7 lakh Indiancustomers and 3 lakh units exported.
Santro CNG launched.
New variants launched in September 2007.
Variants
Santro is available in the following variants:-
XK Non-AC
GL
GLSDimensions
Overall Length 3565 mm
Overall Width 1525 mm
Overall Height 1590 mm
Wheelbase 2380 mm
Turning Radius 4.4 mtr
Ground Clearance 164 mm
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i10
Compete in the high volume mid compact segment.
Most awarded car of the year.
Code name PA
Model name i10
Design & Creation Hyundai- Kia R&D centre, Korea
International Debut India
Launch Time November 2007
Body Style 5 Door hatchback
Power Source 1.1 L iRDE engine
Competing Segment Compact
Variants
D- lite
Era
Magna
Magna (option pack)
Magna ( option pack with sunroof)
Dimensions
Overall Length 3565 mm
Overall Width 1595 mm
Overall Height 1550 mm
Wheelbase 2380 mm
Ground Clearance 165 mm
Track- Front 1400 mm
Rear 1385 mm
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Getz Prime
Awarded Car of the Year 2005 by both CNBC Autocar and BS
Motoring.
Milestones
International Debut on 3rd May 2002
European launch in 2003
Launched in India in 2004
New Getz Prime launched in April 2007
Getz CRDi launch sept. 2007
Variants
Getz Prime is available in the following variants:
Petrol
1.1 GLE
1.1 GVS
1.1 GVS OPT
1.3 GLS 1.3 GLX
Diesel
1.5 GVS
Dimensions
Overall Length 3825 mmOverall Width 1665 mm
Overall Height 1515 mm
Wheelbase 2455 mm
Turning Radius 5.0 mtr
Ground Clearance 160 mm
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ACCENT
Launched in India October in 1999.
Tried and tested product. Choice of over 1.5 lakh Indian customers.
Milestones
Awarded as number 1 in IQS by JD Power Asia Pacific in India in2001.
Awarded as BSM Jury awarded by Business Standard Motoring in2002.
Awarded as No.1 Mid size diesel car by TNS Automotive in 2005.
Dimensions
Overall Length 4250 mm
Overall Width 1670 mm
Overall Height 1370 mm
Wheelbase 2440 mm
Turning Radius 5.0 mtr
Ground Clearance 172 mm
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VERNA
Over 25,000 Indian customers in just 10 month since launch. Widest choice of colours in segment (l2)
One of the Indias largest service networksMilestone
Awarded as Car of the year 2007- Overdrive
Awarded as Best value for Money Car 2007- CNBC Autocar
Variants
i
Xi
XXi
CRDi VGT SX
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SONATA EMBERA
5th Generation Car- Approx. 150,000 sold in U.S in 2006
One of the widest in segment
One of the Indias largest network
Milesstone
Awarded as Ideal Vehicle Award- Auto Pacific (USA)
Awarded as Most reliable car by Time Magazine
Variants
2.4 M/T
2.4 A/T
2.0 CRDi M/T
2.0 CRDi A/T
Dimensions
Overall Length 4800 mm
Overall Width 1832 mm
Overall Height 1475 mm
Wheelbase 2730 mmTurning Radius 5.46 mtr
Ground Clearance 170 mm
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ELANTRA
Milestones
Award By / Country Year
Best passenger car Automobiliski,Yugoslavia
2000
Top Honours VSS(Vehicle SatisfactionScore)
Auto Pacific Inc, USA 2003
Best Value Small Car-Total Value Index
Strategic Vision, USA 2003,2004
Five star for safety NHTSA, USA 2004
Best Value for MoneyCar
CNBC TV18-AutocarAward, India
2005
Variants
Elantra is available in following variants:
GT
Dimensions
Overall Length 4525 mm
Overall Width 1725 mm
Overall Height 1450 mm
Wheelbase 2610 mm
Turning Radius 5.06 mtr
Ground Clearance 185 mm
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TUCSON
Over 2 lakh cars were sold world wide in2006
Back up: One of Indias largest service network
Milestone SUV of the year 2006: NDTV Profit- Car& Bike (India)
Dimensions
Overall Length 4325 mm
Overall Width 1830 mm
Overall Height 1730 mm
Wheelbase 2630 mm
Turning Radius 5.4 mtr
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Hyundai
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i10
Pros:
1. International car made in India. Meets international safety and qualitystandards and will be sold globally.
2. Fantastic interiors which is comparable to large and expensive cars.3. Gearshift on dash which is a category first. It is smooth too. Tilt
adjustable steering.
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4. Good quality and build. Best in segment. (Especially the doors give athud sound when shut unlike clanky noise by few other cars)
5. Supposed city mileage of around 13-15 Km/L. (On highway, close to20 Km)
6. Its not a Santro upgrade, this is a fresh design, though reminiscent ofthe Santro.
7. Delightful to ride in the city. Best in class.8. Good stability on highway. Good road grip.9. AC is good.10.Decent rear seat space. Feels comfortable.11.Tubeless 80 profile tyres.12.The space between driver and front passenger has a good utility area.13.High end safety features like dual airbags, ABS and frills like sun roof
in Magna O variant (expensive though).
Cons:
1. A new version, but performance is same as Santro.2. The boot looks deep. Will have difficulty in handling luggage.3. Priced around 30-40 K more.
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Maruti Suzuki
Estilo
Pros:
1. Maruti after sales service.2. Decent boot space.3. Maintenance is less.
4. Large service network.
Cons:
1. Gets nervous at high speeds.2. Not for the highway.3. Dash looks a decade old.4. The old Zen was a better car.
Maruti Suzuki
Wagon R
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Pros:
1. Spacious.2. Large boot space.3. High seat positioning.4. Factory fitted LPG in the Duo version.5. Maruti after sales service.6. Maintenance is less.7. Tall boy design good for elders to enter in.8. Large service network.
Cons:
1. Box typed design.2. Gets nervous at high speeds.3. Plans to phase out petrol version.4. Not for the highway.
OBJECTIVE OF THE STUDY
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To get overview of sales scenario of the automobile industry
To know how much customers are satisfied with the services providedto them by Hyundai and Maruti Bareilly.
To give suggestions for improvements on the points where they arelacking on the basis of feedback from the customer.
These objectives were achieved by following a well thought out plan anddefining the problem for each objectives separately.
RESEARCH METHODOLY
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Research methodology is a way to systematically solve the researchobjective. It may be understood as a science of studying how research isdone scientifically.
In it we study the various steps that are generally adopted by researcher instudying his research objective along with logic behind it. It is necessary forthe researcher to know not only the research methods/ techniques but alsothe methodology. Researcher not only need to know how to apply particularresearch technique, but also need to know which of these methods ortechniques are relevant and which are not and what would they mean andindicate and why. All this means that it is necessary for the researcher to
design his methodology for his objective under study as the same may differobjective to objective.
Thus when we talk of research methodology we not only talk of the researchmethod but also consider the logic behind the methods we use in the contextof a research study and explain why we are using a particular method ortechniques and so that research results are capable of being evaluated.
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SOURCES OF DATA COLLECTION
Data collection methods are credible with validated surveys and/or
other methods are clearly described such as observational strategies,
the data or information is current. The data collection is focused on a
limited sample of population and has minimal application in terms of
generalizing the findings.
Primary Data: It can be collected directly or indirectly. It was
done through a well structured and designed questionnaire
which contain 16 number of questions which were asked directlyto the customers of Sachin Hyundai Bareilly showroom and Koral
Motars.
Secondary Data: It refers to data which have been collected
and analyzed by someone else. It consists of internet and books
etc. Secondary data has also been collected through the Hyundai
Sales training handout.
Sample Size: A sample size of 40 respondents was taken to
conduct the study of Questionnaire
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NAME :
VEH. AT PRESENT :
PURCHASED DATE :
DEALERSHIP FACILITYQ1. Were all the products available at the showroom and whether there wassufficient colour choice?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
Q2. Whether the vehicles were easy to look i.e. well organized?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
LAYOUT INVITING AND FRIENDLY
Q3. Were you attended properly at the reception?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied Highly Unsatisfied
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YOUR DEAL
Q4. Whether the price quoted was as per your expectations?
Highly Satisfied Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
SALES PERSON
Q5. Whether sales executives was able to give you complete productinformation?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
Q6. Were you given the adequate attention by the sales person?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
TEST DRIVE
Q7. Was there any facility for test drive?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
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Q8. Were you satisfied with the type of test drive provided to you?
Highly Satisfied
Satisfied Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
PAPERWORK
Q9. Were all documents clearly explained?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
Q10. Was it easy to complete all the loan/ finance/ lease/ purchaseapplication?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
DELIVERY TIME
Q11. Were you able to get the vehicle on the promised date?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
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Q12. Were all the services like after sales services, warranty explained toyou by the sales person at the time of purchase and enquiry?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
VEHICLE DELIVERY PROCESS
Q13. Did delivery person focus his/ her attention on you during delivery?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
Q14. Were the conditions at the time of delivery satisfactory i.e. free fromscratches?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
Q15. Was delivery person friendly to you?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
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Highly Unsatisfied
AFTER SALES SERVICES
Q16.Are you satisfied with the after sales services provided to you?
Highly Satisfied
Satisfied
Neither Satisfied Nor Dissatisfied
Unsatisfied
Highly Unsatisfied
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FINDINGS & ANALYSIS
At Sachin Hyundai customers are highly satisfied with the range ofproduct and sufficient colour choice availability.
Customers are highly satisfied with the way products are displayed tothem.
Customers are satisfied with the kind of information provided to themabout different cars by the sales executives.
Customers are satisfied with the kind of attention they get at MarutiShowroom.
Customers are satisfied with the type of test drive facility provided tothem.
Customers are satisfied by the way all the documents and services areexplained to them.
Commitment of delivery of vehicle to its customers is appreciated bythem.
Customers are satisfied with the delivery process at Sachin Hyundai.
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RECOMMENDATIONS
Reception is the first point where customer will get the firstimpression about Sachin Hyundai showroom and there need to besome improvements at reception as customers are not properlyattended over there.
Maruti showroom at Bareilly should arrange more space for display
Customers are not satisfied with the after sales services so thereshould be some improvements in order to engage more customers.
By improving their rest of the services they can convert theirunsatisfied customers into satisfied customers.
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ANALYSIS AND FINDINGS
1. Which kind or segment of Car do you have?
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30
45
25
Premium Utility Entry
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2. Which companys Car do you have?
35
30
10
25
Matuti Hyundai Honda Other
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3. What is your main purpose of using a Car?
25
40
20
15
Personal Business Status Leisure
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4. Which factor would you consider the most
while buying a Car?
35
25
20
15
55
Fuel Eff.
Img. & Brd
Resale V.
Look & Stl.
Mnt.
Av. of product
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5. What are your main preferences while buying
a Car?
20
25
10
20
10
15
Brand
Price
Dealer's Adv.
Features
Service
Prom. Schemes
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6. Which facilities would you expect while
buying?
25
55
10
10Low Price
Aft. Sale
Srv.
Incentives
Other
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7. Which mode of payment would you prefer
while buying a Car?
30
70
Lump-sum
Installment
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8. Are you satisfy with the after sales service by
dealer?
85
15
YesNo
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BIBLIOGRAPHY
Hyundai Sales Training Handout
www. Google.com
www. Indianautomobileindustry.com
www. Hyundai.co.in
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QUESTIONNAIRE
Please fill out the following survey, answering the questions as accurately as
possible.
PERSONAL DETAILS:-
Name:------------------------------------------------------------------------
Occupation:-------------------------------------------------------------
Contact No. :-----------------------------------------------------------
1. What age group are you in?18-25 36-4526-35 Above 45
2. What category of income do you fit into?
Below Rs.50,000 Rs.1,00,000-Rs.2,50,000Rs.50,000-Rs.1,00,000 Above Rs.2,50,000.
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3. Which kind or segment of Car do you have?
Premium / Performance SegmentUtility / Medium SegmentEntry / Economy Segment
4. Which companys Car do you have?MarutiHyundaiHondaOthers
5. What is your main purpose of using a Car?
Personal StatusBusiness Leisure
6. Which factor would you consider the most while buying a Car?
Fuel Efficiency Look & StyleImage & Brand MaintenanceResale Value Availability of the product
7. What are your main preferences while buying a Car?
Brand FeaturesPrice ServiceDealers Advice Promotional Schemes
8. Which facilities would you expect while buying?
Low Price After Sales ServiceIncentives Others _______________
9. Which mode of payment would you prefer while buying a Car?
Lump-sum Installment
10. Do you get the spare-parts of your Car easily from the market?
Yes No
11. Are you Brand Loyal?
Yes No
12. Would you like to buy more premium Car in future?
Yes No
13. Does Celebrity Endorsement of a Car gives it more appeal?
1 2 3 4 5
Strongly Agree Agree Dont Know Disagree Strongly Disagree
14. Are you satisfy with the after sales service by dealer?
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Yes No
Thank you for your time.