comparision and cometitive advantage of top five car brands in india project report

8/2/2019 Comparision and cometitive advantage of top five car brands in india project report

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Indian Institute of Planning &

Management,

Lucknow

INFORMATION TECHNOLOGY FOR

MANAGERSA Project Report on

Submitted To Submitted ByProf. Tushar Sharma Ajeet Pratap Singh

Amit DubeyAshray AdhikariManoj Kumar VermaNikhil Raj KeshriDated: Rajiv Ranjan Singh

16 September, 2011 (PG/SS/11-13)

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IIPM, 16 Ashok Marg, Hazratganj, Lucknow Group 5

Analysis of various International Car Brands entering

Indian Market & a Comparative Analysis between the

products of Top 5 Automobile Brands available in India


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DECLARATION

We hereby declare that the report entitled Analysis of variousInternational Car Brands entering Indian market & a

comparative analysis between the products of top 5 Automobile

brands available in India submitted to Prof. Tushar Sharma at

Indian Institute of Planning and Management, Lucknow is an

authentic record of our original work.

Amit Dubey

Ashray AdhikariAjeet Pratap SinghManoj Kumar VermaNikhil Raj KeshriRajiv Ranjan Singh(PG/SS/11-13)

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ACKNOWLEDGEM

ENT

We would like to express our gratitude to our IT Prof. Tushar

Sharma who gave us a golden opportunity to present this report.

We are greatly indebted to Prof. Tushar Sharma, who not only

served as a Project Guide and Mentor but also encouraged and

challenged us throughout this project for devoting his valuable

time and efforts towards our project. We thank him for being a

constant source of knowledge, inspiration and help during this

period of making project.

Amit DubeyAshray AdhikariAjeet Pratap SinghManoj Kumar VermaNikhil Raj KeshriRajiv Ranjan Singh(PG/SS/11-13)

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EXECUTIVE SUMMARY

The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new

business and manufacturing practices in the light of liberalization and globa4lization. The sector seems

to be optimistic of posting strong sales in the couple of years in the view of a reasonable surge in

demand. The Indian automobile market is gearing towards international standards to meet the needs of

the global automobile giants and become a global hub.

A detailed analysis of Automobile industry has been covered in respect of both domestic and foreign

car manufacturers in India while taking look at their respective top brands and models. To develop a

better understanding and a much clearer analysis this project has been divided into two parts.

The first half deals with the Analysis of various International Car Brands entering Indian

market. We take a look at established International Car Brands as well as new entrants into the Indian

car market. We look that why these brands are successful car manufacturers in the international market

and how they are fairing in the Indian market.

The second half deals with the comparative analysis between the products of top 5 Automobile

brands available in India. Here we take a look at the top five leading car manufacturers with respect

to their top selling models in the Indian market.

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OBJECTIVE OF THE PROJECT

The objective of this project is deeply analyze the Indian Automobile Industry with respect to current

market leaders and their top selling brands and the new international entrants that are looking to

challenge them.

The main objectives of the Project study are:

1. Analysis of various International Car Brands entering Indian market

2. Analysis between the products of top 5 Automobile brands available in India

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HISTORY OF INDIAN AUTO INDUSTRY

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very

small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra

was established by two brothers as a trading company in 1945, and began assembly ofJeep CJ-3A

utility vehicles underlicense from Willys. The company soon branched out into the manufacture of

light commercial vehicles (LCVs) and agricultural tractors.

Following the independence, in 1947, the Government of India and theprivate sectorlaunched efforts

to create an automotive component manufacturing industry to supply to the automobile industry.

However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license

raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but

the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major

luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of

Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles

and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual

weakening of the license raj, a number of Indian and multi-national car companies launched

operations. Since then, automotive component and automobile manufacturing growth has accelerated

to meet domestic and export demands.

Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated

sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indianautomobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded

their domestic and international operations. On the other hand several foreign car manufactures like

Ford , Hyundai , General Motors has made India an integral part of their global markets.

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http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Jeep_CJhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Willyshttp://en.wikipedia.org/wiki/Light_commercial_vehiclehttp://en.wikipedia.org/wiki/Tractorhttp://en.wikipedia.org/wiki/Independence_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/License_rajhttp://en.wikipedia.org/wiki/License_rajhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Small_carhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Economic_liberalization_in_Indiahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Jeep_CJhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Willyshttp://en.wikipedia.org/wiki/Light_commercial_vehiclehttp://en.wikipedia.org/wiki/Tractorhttp://en.wikipedia.org/wiki/Independence_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/License_rajhttp://en.wikipedia.org/wiki/License_rajhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Small_carhttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/Economic_liberalization_in_Indiahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Mahindra_and_Mahindra


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INTRODUCTION TO INDIAN AUTO INDUSTRY

The Automotive industry in India is one of the largest in the world and one of the fastest growing

globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and

exports about 2.33 million every year. India's passenger car and commercial vehicle manufacturing

industry is the seventh largest in the world, with an annual production of more than 3.7 million units in

2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger

vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of

2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan,

South Korea, and Thailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive

vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest

growing automobile market in the world. According to the Society of Indian Automobile

Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more

than 9 million by 2020.By 2050, the country is expected to top the world in car volumes with

approximately 611 million vehicles on the nation's roads.

India's largest car manufacturing industry hub

is based in and around Chennai, also known as

the "Detroit of India" with the India operations

of Ford, Hyundai, Renault and Nissan

headquartered in the city and BMW having an

assembly plant on the outskirts. Chennai

accounts for 60 per cent of the country's

automotive exports.

Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are

manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with

companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes

Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad

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with the Tata Nano plant and planned Ford and Peugeot-Citroen plants, Halol again with General

Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan Motors, Noida with

Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the

country.

Tapping into India's car market has always been a challenge for foreign automakers. Despite India's

blistering economy, manufacturers have discovered a historic preference for cars that are small, fuel-

efficient and cheap. The sensation that is the Nano is well-known; its unveiling two years ago at the

New Delhi Auto Expo by Indian automaker Tata captured the world's imagination and further focused

attention on India's growing role in the global car market. To be successful in India, small-car

manufacturers have had to tailor their product to Indian tastes and conditions. When General Motors

launched a new small car called the Chevy Beat in New Delhi last week, the company "Indianized it,"

says Karl Slym, president and managing director of General Motors India. That meant toughening the

car's suspension to deal with erratic road conditions. It also meant accommodating a slightly different

driving style. "People like to drive away quick [from traffic lights]," says Slym. "They don't like

anyone to get in front of them so your transmission has to allow you to move away from the lights

quickly, but also has to allow you to drive in traffic in second gear.

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PART I:

Analysis of various International Car Brands entering Indian market

Why Indian market is so important for foreign car manufacturers?

India's robust economic growth led to the further expansion of its domestic automobile market which

has attracted significant India-specific investment by multinational automobile manufacturers India is

also the second fastest growing automobile market in the world after China. In February 2009, a

monthly sale of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record

monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed

at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this

figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming

decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor.

Passenger vehicle production during the period April 2010 to August 2010 increased by nearly a third

from a year ago. For the year ending March 2011, passenger vehicle output is expected to exceed 2.5

million. India is emerging as a major production base for small cars, with output expected to reach 3

million units by 2016. The country is building a reputation in designing and manufacturing low cost

cars. The auto parts industry is also scaling up, as global car manufacturers are increasing their

component sourcing from India, due to cost and engineering competencies.

The low penetration of cars combined with a huge population , projected industry growth and

booming economy in short make India one of the if not the most preferred destination for all kinds of

car manufacturers.

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VOLKSWAGEN

Volkswagen offers 5 new car models in Luxury segment, 1 in Midsize segment, 1 in Small segment in

India. Headquarters in Pune, Maharashtra

Volkswagen India Private Limited operates a manufacturing plant in Chakan, Maharashtra which is

capable of producing 110,000 vehicles per annum. The plant is also shared by koda Auto India

Private Limited for assembling the koda Fabia.

Manufactured/Assembled Locally (In India)

Car Snaps Model Name Launched

VolkswagenPassat

2007

Volkswagen Jetta 2008

Volkswagen Polo 2010

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Volkswagen

Vento2010

Imported (In India)

Car Snaps Model Name Launched

Volkswagen

Touareg2009

Volkswagen New

Beetle

2009

Volkswagen

Phaeton2010

Sales Performance

Volkswagen India Private Limited has registered a sales growth of over 1,000%.

Volkswagen India Private Limited currently has more than 70 dealerships in 56 cities across 18 states

and 2 union territoriesof India.

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As of August 2009, the company's global headquarters are located in Nishi-ku Yokohama. In 1999,

Nissan entered a two way alliance with Renault S.A. of France, which owns 44.4% of Nissan while

Nissan holds 15% of Renault shares, as of 2008. The current market share of Nissan, along with Honda

and Toyota, in American auto sales represent the largest of the automotive firms based in Asia that

have been increasingly encroaching on the historically dominant US-based "Big Three" consisting of

GM, Ford and Chrysler. In its home market Nissan is the third largest car manufacturer, with Honda

being second by a small margin and Toyota in a very dominant first. Along with its normal range of

models, the auto major also produces a range of luxury models branded as Infiniti.

In 1999, with Nissan facing severe financial difficulties, it entered an alliance with Renault S.A. of

France. Signed on March 27, 1999, the Renault-Nissan Alliance is the first of its kind involving a

Japanese and French car manufacturer, each with its own distinct corporate culture and brand identity.

The same year, Renault appointed its own Chief Operating Officer, Carlos Ghosn, as Chief Operating

Officer of Nissan and took a 22.5% stake in Nissan Diesel. Later that year, the automaker fired its top

Japanese executives.

The Renault-Nissan Alliance has evolved over years to Renault holding 44.3% of Nissan shares, while

Nissan holds 15% of Renault shares which does not give Nissan a voting or board representation due to

legal restriction in France.

Under CEO Ghosn's "Nissan Revival Plan" (NRP), the company has rebounded in what many leading

economists consider to be one of the most spectacular corporate turnarounds in history, catapulting

Nissan to record profits and a dramatic revitalization of both its Nissan and Infiniti model line-ups.

Despite the turnaround, Infiniti sales have been a disappointment. In 2001, the company initiated

Nissan 180, capitalizing on the success of the NRP. The targets set with 180 were an additional sale of

1 million cars, achieving operating margins of 8%, and to have zero automotive debts. Ghosn has been

recognized in Japan for the company's turnaround in the midst of an ailing Japanese economy. Ghosn

and the Nissan turnaround were featured in Japanese Manga and popular culture. His achievements in

revitalizing the company were noted by Japanese Government, which awarded him the Japan Medal

with Blue Ribbon in 2004.

The first product of the Nissan-Renault alliance was the Primera, launched in 2001 and shared chassis

with Renault Laguna that had been launched in 2000. Subsequently, Nissan's Micra, Note and Versa

models have shared the same mechanical design as the Renault Clio.

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Nissan Car Models (Launched in India)

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Nissan

37

0Z

It comes with goodperformance, cutting-edge technology andstylish flowing

design. Standardfeatures includespush button start,power windows withone-touch autoup/down, etc.

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Nissan

Micr

a

It has been developed onthe new V (versatile)Nissan platform keeping

the Indian consumersneeds in mind and is yeta global car. The enginecomes with a 5-speedmanual transmission thatmakes the car easy todrive and control.

Nissan

Tea

na

It is Nissans 2nd

offering to the Indianmarket. Notable comfortand conveniencefeatures include drivecomputer, comfy leatherupholstery, intelligentkey system, and apremium 6-speaker 6-disc CD changer audio

system.

Nissan X-

Trail

A stunning SUV withamazing off-roadcapability and awesomepower suited for Indianroads. Executive sedan-sized seats with plenty ofcabin space and a two-

desk luggagecompartment make theride comfortable andconvenient.

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Renault

French automaker Renault has slated an aggressive outlook since its break up of ties with homegrown

SUV maker Mahindra in India. On May 23, 2011, it launched the flagship sedan Renault Fluence in

India and has slated to launch four more cars until 2012 end. The Renault Koleos, an SUV is the

second offering by the carmaker in India.

Koleos, a seemingly full-grown SUV is a blend of power delivery, driving pleasure and style. Its

relentless 4x4 capabilities are able to take on any terrain. Stunning exteriors and inspiringly

comfortable and exceptionally silent interiors is what Renault Koleos promises.

French carmaker Renault SA aims to make India the exclusive manufacturing and export hub of its

right-hand sport utility vehicle (SUV) Duster, according to people close to the development.

Renault plans to launch the low-cost SUV in India, Asia's third-biggest automobile market, by the

middle of next year.

"India will be the exclusive manufacturing hub for all the right hand drive markets for Duster,

including UK," one of the people involved in the project said on condition of anonymity.

This will make Renault the first foreign carmaker to use India as an export base for SUVs. Automakers

such as Suzuki Motor and Hyundai use their Indian plants for export of small cars.

Renault plans to export Duster to the UK under the Dacia badge by the end of 2012, people involved in

the project said, adding, that South Africa could be the next export destination, although the plan was

not yet final.

Conceptualized essentially for the Indian market, Duster is likely to be introduced in a price band of 8-

10 lakh to take on market leader Mahindra & Mahindra's Scorpio

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Renault Laguna

Renault Sandero

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PART II:

Analysis between the products of top 5 Automobile brands available in India

Like most other markets, much of the excitement in India is in the passenger vehicle segment. Robust

growth in middle class income levels and easier credit availability has sustained demand growth for

passenger cars. Most major global manufacturers are already present in the country, while some of the

domestic manufacturers are entering overseas markets. Despite increased competition, Maruti Suzuki,

which is now majority owned by Suzuki Motor Corp, remains the market leader in India with a share

of over 45%. Its strength lies in its wide range of small car models, which form the bulk of the Indian

car market. Maruti Suzuki also has the largest dealer network and its annual manufacturing capacity is

now over 1 million vehicles.

Korean firm Hyundai and domestic major

Tata Motors have been in a tight race for

the second and third places for a while

now. Hyundai is now marginally ahead

with a market share of 14% as compared

to over 12% for Tata Motors.

Small hatchbacks dominate Hyundais model line-up and the firm has built up a strong brand

reputation over the last several years. Tata Motors has a wider product range, from SUVs to the

worlds cheapest car, the Nano. Tata products are positioned as value-for-money and run

predominantly on diesel, which is nearly a third less expensive than gasoline in India because of

government subsidies. The firm also jointly owns an assembly line with European carmaker Fiat andmarkets Fiat cars in India.

Mahindra & Mahindra, another large local manufacturer, derives the bulk of its sales from the

SUV segment where it is the market leader. The firm recently bought out European manufacturer

Renault in a passenger car joint venture, which has not performed well.

Several global manufacturers have struggled in India, though they have been present in the

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market for more than a decade. General Motors has seen a revival over the last year, after the

firm launched low-priced hatchbacks under the Chevrolet brand. GM also sells small sedans and

SUVs, but volumes remain very low. The firm sold half of its Indian operations to Chinese

Automaker SAIC Group last year, and the joint venture is planning to introduce utility vehicles,

besides passenger cars. Ford has been more successful in the small sedan segment in India. The

company has gained make share recently after the launch of a competitively priced small

hatchback from its assembly line and engine plant near Chennai, in south India.

Though their product offerings in the Indian market are limited, Japanese manufacturers Toyota

and Honda enjoy leadership in their segments. Honda is a clear leader in the mid-sized sedan

category, while Toyota sells the most minivans. In a bid to expand their market share, both firms

are expected to launch small hatchbacks and sedans shortly.

Among European manufacturers, Skoda Auto, the Czech subsidiary of Volkswagen, has built a

relatively good position in the mid-sized sedan market. Volkswagen itself has been a recent

entrant in the Indian market and has expanded its product range by launching a small hatchback

and a mid-sized sedan. Fiats record in India has been patchy and it now relies on the Tata

Motors dealer network to sell its products. While its venture with Mahindra has not been

successful, French automaker Renault has opened a large assembly line, jointly owned by its

Japanese associate Nissan. The Renault-Nissan alliance is expected to launch several models in

the near future, with Nissan focusing more on the small car segment.

Luxury passenger cars have seen excellent demand growth, especially in recent years. However,

the luxury segment now accounts for only about a percent of the total passenger vehicle market.

Mercedes Benz and BMW have almost identical market shares while Audi has made rapid gains

over the last year. All three manufacturers assemble cars in India from imported kits, which

attract high import taxes, and hence product prices are higher than other markets. Jaguar and

Land Rover, now owned by Tata Motors, are gradually expanding their dealerships in the

country.

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MARUTI UDYOG: The Undisputed Market Leader

Type Public

Traded as BSE: 532500

NSE: MARUTI Industry Automotive Founded 1981 (as Maruti Udyog Limited)

Headquarters New Delhi, India

Mr. Shinzo Nakanishi, Managing Director and CEO Products

Automobiles Revenue 37,522.4 crore (US$8.37 billion) (2010-2011)

Net income 2,288.6 crore (US$510.36 million) (2010-2011)

Employees 6,903 Parent Suzuki Motor Corporation Website MarutiSuzuki.com

Profile

The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it

'To Munsiyari on a Maruti 800', Uttarakhand Himalayas

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http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crore


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Maruti Suzuki plant in Manesar

Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader

in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,

18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The

BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May

2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no

longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production

commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the

only modern car available in India, its only competitors- the Hindustan Ambassador and Premier

Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has

produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries,

depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti

Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian

countries.

The company annually exports more than 50,000 cars and has an extremely large domestic market in

India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact

car ever since it was launched in 1983. More than a million units of this car have been sold worldwide

so far. Currently, Maruti Suzuki Alto tops the sales charts.

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Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used

to refer to this compact car model ("Maruti" is another name of the Hindu god, Hanuman).

Maruti Suzuki has been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti

Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities,

launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year

and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and

Gurgaon facilities have a combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki

Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public

and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in

India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six

million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983.

Maruti Suzuki offers 14 models,

1. Alto

2. WagonR

3. Estilo

4. A-star

5. Ritz

6. Swift

7. Swift DZire8. SX4

9. Omni

10. Grand Vitara

11. Kizashi

Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are

imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti

Suzuki's Gurgaon Plant.

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HYUNDAI: The Korean Giants

Hyundai is a group of companies, part of the Korean chaebolthat was founded in South Korea by one

of the most famous businessmen in Korean history: Chung Ju-yung. The first Hyundai Company was

founded in 1947 as a construction company.

Two of the best-known Hyundai divisions are Hyundai Motor Company, the world's fourth largest

automobile manufacturer by volume as of January 2011, and Hyundai Heavy Industries, the world's

largest shipbuilder. Other companies currently or formerly controlled by members of Chung's extendedfamily may be loosely referred to as a part of the Hyundai chaebol.

In 1998 Hyundai bought Kia Motors, the oldest South Korean car company which had to file for

bankruptcy due to the 1997 Asian financial crisis. Kia is (as of 2011) somewhat independent of

Hyundai motors, as Hyundai no longer owns an outright majority of Kia shares.

Hyundai Group underwent a massive restructuring following the 1997 East Asian financial crisis and

Chung Ju-yung's death in 2001. Chung was the CEO and directly in control of the company until the

end of his life. Today many companies bearing the name Hyundai are not part of or legally connected

to the Hyundai Group. These companies include Hyundai Kia Automotive Group, Hyundai

Department Store Group, Hyundai Heavy Industries Group, and Hyundai Development Group.

However, all of the named companies are run by Chung's sons or their heirs.

Following the break-up, Hyundai Group's business was reduced to manufacturing of elevators,

container shipping services, and tourism.

If Hyundai is considered as a family business, then it remains the single largest company in South

Korea and it appears to wield enormous economic and political power in the country. The current

president of South Korea, Lee Myung-bak, was a former CEO of Hyundai Construction.

Hyundai Automobiles

Hyundai branded vehicles are manufactured by Hyundai Motor Company, which along

with Kia comprises the Hyundai KIA Automotive Group. Headquartered in Seoul, South Korea,

Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, which is

capable of producing 1.6 million units annually. Hyundai vehicles are sold in 193 countries through

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some 6,000 dealerships and showrooms worldwide. In 2010, Hyundai sold over 1.7 million vehicles

worldwide.

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TATA MOTORS: The Indian Thoroughbred

Tata Motors Limited is a multinational automotive corporation headquartered in Mumbai, India. Part

of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive

Company).

Tata Motors is Indias largest automobile company, with consolidated net profit of

9,274 crore (US$2.07 billion) in 201011. It is the leader in commercial vehicles and among the top

three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle

segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus

manufacturer, and employs 50,000 workers. Since first rolled out in 1954, Tata Motors has producedand sold over 4 million vehicles in India.

Established in 1945, when the company began manufacturing locomotives, the company manufactured

its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in

1969. Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as well as on

the New York Stock Exchange. Tata Motors in 2005, was ranked among the top 10 corporations in

India with an annual revenue exceeding INR320 billion. In 2010, Tata Motors surpassed Reliance to

win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance

and The Economic Times.

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India, as well

as in Argentina, South Africa and Thailand.

History

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company

was established in 1950 as a locomotive manufacturing unit and later expanded its operations to

commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany.

Despite the success of its commercial vehicles, Tata realized his company had to diversify and he

began to look at other products. Based on consumer demand, he decided that building a small car

would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully

indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica

became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy.

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MAHINDRA AND MAHINDRA : The SUV King

History

Mahindra & Mahindra was set up as a steel trading company in 1945. It soon expanded into manufacturing

general-purpose utility vehicles, starting with assembly under license of the iconic Willys Jeep in India. Soon

established as the Jeep manufacturers of India, M&M later branched out into the manufacture oflight

commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in the utility vehicle

segment in India with its flagship UV Scorpio and enjoys a growing global market presence in both the

automotive and tractor businesses.

Over the past few years, M&M has expanded into new industries and geographies. They entered into the two-

wheeler segment by taking over Kinetic Motors in India. M&M also has controlling stake in REVA Electric

Car Company and acquired South Korea's Ssang Yong Motor Company in 2011.

The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global

200: The World's Best Corporate Reputations' list.

Automotive

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Mahindra Scorpio


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Mahindra & Mahindra is a major automobile manufacturer of utility vehicles, passenger cars, pickups,

commercial vehicles, and two wheelers. Its tractors are sold on six continents It has acquired plants in

China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships

with international companies like Renault SA, France and International Truck and Engine Corporation,

USA.

M&M has a global presence and its products are exported to several countries. Its global subsidiaries

include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and

Mahindra (China) Tractor Co. Ltd.

M&M made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra

Renault joint venture. M&M will make its maiden entry into the heavy trucks segment with Mahindra

Navistar, the joint venture with International Truck, USA.

M&M's automotive division makes a wide range of vehicles including MUVs, LCVs and threewheelers. It offers over 20 models including new generation multi-utility vehicles like the Scorpio and

the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build

passenger cars.

At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive

product expansion program that would see the launch of several new platforms and vehicles over the

next three years, including an entry-level SUV designed to seat five passengers and powered by a small

turbo diesel engine. True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January

2009, and as of June 2009, the Xylo has sold over 15000 units.

Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the

Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon followed by

assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio

Pick Ups in single and double cab pick-up body styles as well as SUVs.

Mahindra & Mahindra has controlling stakes in Reva electric and has submitted letter of Intent for

South Korea's Ssangyong

Mahindra plans to sell the diesel SUVs and pickup trucks starting in late 2010 in NorthAmerica through an independent distributor, Global Vehicles USA, based in Alpharetta,

Georgia. Mahindra announced it will import pickup trucks from India in knockdown kit (CKD) form to

circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the U.S. from kits

of parts shipped in crates. On 18 October 2010, however, it was reported that Mahindra had

indefinitely delayed the launch of vehicles into the North American market, citing legal issues between

it and Global Vehicles after Mahindra retracted its contract with Global Vehicles earlier in 2010, due to

a decision to sell the vehicles directly to consumers instead of through Global Vehicles. However, a

November 2010 report quoted John Perez, the CEO ofGlobal Vehicles USA, as estimating that heexpects Mahindras small diesel pickups to go on sale in the U.S. by spring 2011, although legal

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complications remain, and Perez, while hopeful, admits that arbitration could take more than a

year. Later reports suggest that the delays may be due to a Mahindra scrapping the original model of

the truck and replacing it with an upgraded one before selling them to Americans .

In 2010, India's Mahindra & Mahindra Limited was named as the preferred bidder to acquire thebankruptcy-protected Ssang Yong Motor Company. Mahindra is expected to gain a controlling stake in

the company by March 2011 and the planned acquisition has been approved by South Korea's Free

Trade Commission.

Farm Equipment

M&M is one of the leading tractor brands in the world by volume. It is also the largest manufacturer of

tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures,and markets tractors as well as farm implements. Mahindra Tractors China Co. Ltd. manufactures

tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations.

M&M has a 100% subsidiary, Mahindra USA, which assembles products for the American market.

Models

Mahindra MM540DP

Mahindra MM550DP

Mahindra Armada

Mahindra Commander

Mahindra Marshal

Mahindra Major

Mahindra Legend

Mahindra Thar

Mahindra Invader

Mahindra Bolero

Mahindra Xylo

Mahindra Scorpio

Mahindra Verito

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Volkswagen

Vento

VsHonda

City

VsMaruti

SX4

VsHyundai

Verna

Fluidic

Volkswagen Vento Honda City

Maruti SX4 Hyundai Verna Fluidic

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Engine Comparison Of Honda City Vs Volkswagen Vento Vs Hyundai

Verna Fluidic Vs Maruti SX4

On the engine front, Maruti SX4 comes with a Petrol, Petrol + CNG, and a Diesel Engine option. The

Honda City comes with a petrol engine only. Volkswagen Vento comes with one Diesel and one Petrol

Engine options, whereas the Hyundais latest offering Verna Fluidic features two Petrol and two Diesel

engine options.

Honda City Engine Option

Honda City 1.5 Litre Petrol Engine

Engine Type- 1.5 Litre 4 Cylinder SOHC Petrol Engine with I-VTEC (VVTI) Technology

Max Power- 116.3 BHP @ 6600 RPM

Max Torque 146 Nm @ 4800 RPM

Transmission Options 5 Speed Manual Transmission Or 5 Speed Automatic Transmission Option

Maruti SX4 Engine Options

Maruti SX4 1.6 Litre Petrol Engine

Engine Type- 1.6 Litre 4 Cylinder DOHC Petrol Engine VVTI Technology




Maruti SX4 1.3 Diesel Petrol Engine

Engine Type- 1.3 Litre 4 Cylinder DOHC DDiS Multi-jet Diesel Engine



Transmission Options 5 Speed Manual Transmissions Only

Volkswagen Vento Engine Options

Volkswagen Vento 1.6 Litre Petrol Engine

Engine Type- 1.6 Litre 4 Cylinder DOHC Petrol Engine



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Transmission Options 5 Speed Manual Transmission Or 6 Speed Triptronic Automatic Transmission

Option

Volkswagen Vento 1.6 Litre Diesel Engine

Engine Type- 1.6 Litre 4 Cylinder DOHC CRDI Diesel Engine


Max Torque 250 Nm @ 1500-2000 RPM

Transmission Options 5 Speed Manual Transmission Only

Hyundai Verna Fluidic 2011 Engine Options

Hyundai Verna Fluidic 1.4 Litre Petrol Engine

Engine Type- 1.4 Litre 4 Cylinder MPFI Petrol Engine with VVTI


Max Torque 135.4 Nm @ 5000 RPM


Hyundai Verna Fluidic 1.6 Litre Petrol Engine

Engine Type- 1.6 Litre 4 Cylinder MPFI Petrol Engine with VVTI




Hyundai Verna Fluidic 1.4 Litre Diesel Engine

Engine Type- 1.4 Litre 4 Cylinder CRDI Diesel Engine




Hyundai Verna Fluidic 1.6 Litre Diesel Engine

Engine Type- 1.6 Litre 4 Cylinder CRDI Diesel Engine with Variable Geometry Turbocharger




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Best Petrol Engine among Honda City Vs Volkswagen Vento Vs Hyundai Verna

Fluidic Vs Maruti SX4

Comparing the petrol engine cars, the most power engine in this category is the Hyundai Verna Fluidic

1.6 Litre Petrol option with 121.4 BHP of max power while the Honda City with a smaller 1.5 Litreengine produces 116.3 BHP of power. But the point worth noting is that Maruti SX4 and Volkswagen

Vento Petrol engines provide peak power at lower RPMs compared to the City and Verna, this means

at lower RPMs, the power delivery will not be strikingly different, but once you push the accelerator

pedal hard, Verna will take the lead. Verna also leads in torque marginally than the Vento Petrol

followed by Honda City and SX4 with nearly same torque ratings.

So if you want a peppy and powerful petrol engine which is fun to drive, our first choice will be Verna

1.6 Litre petrol followed by Vento because of its balanced power and torque ratings. City comes very

close to Vento as it churns out more power but lesser torque.

Best Petrol Engine among Honda City Vs Volkswagen Vento Vs Hyundai Verna


Comparing diesel engines, Honda city moves out of the league as there is no diesel options available in

India as yet, however a Honda City Diesel version will be available by 2013, but thats too far away

from now in 2011. The best diesel options come out to be Hyundai Verna Fluidic 1.6 with a max

power and torque rating of 125.3 BHP and 260 Nm respectively. The next best options is Vento 1.6

Diesel with 103.6 BHP Power and 250 Nm torque. The specifications of these two engines make themhighly competent with the petrol counterparts as diesel engines have always been believed to be

powered lower than comparable petrol variants, however the Verna 1.6 diesel with the VGT provides

even more power than the Verna 1.6 Petrol, which is a really commendable output. Also mated with a

6 speed manual transmission, it gives a wide choice of gear selection for optimum performance.

So if I have to pick a diesel sedan based on performance, I would go for Verna Fluidic 1.6 Diesel.

Mileage Comparison Of Honda City Vs Volkswagen Vento Vs Hyundai Verna


ARAI Certified mileage of these cars with various engines is as follows:

Honda City with 1.5 Petrol Engine with manual transmission mileage is 16.7 KMPL

Honda City with 1.5 Petrol Engine with automatic transmission mileage is 15.5 KMPL

Maruti SX4 with 1.6 Petrol Engine with manual transmission mileage is 15.6 KMPL

Maruti SX4 with 1.6 Petrol Engine with automatic transmission mileage is 15.5 KMPL

Maruti SX4 with 1.3 Diesel Engine with manual transmission mileage is 21.5 KMPL

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Volkswagen Vento 1.6 Litre Petrol with manual transmission mileage is 15.8 KMPL

Volkswagen Vento 1.6 Litre Petrol with automatic transmission mileage is 14.4 KMPL

Volkswagen Vento 1.6 Litre Diesel with manual transmission mileage is 20.5 KMPL

Hyundai Verna Fluidic 1.4 Litre Petrol with manual transmission mileage is 17.43 KMPL

Hyundai Verna Fluidic 1.6 Litre Petrol with manual transmission mileage is17.01 KMPL

Hyundai Verna Fluidic 1.6 Litre Petrol with automatic transmission mileage is- Data Not

Available (expected to be around 16 KMPL)

Hyundai Verna Fluidic 1.4 Litre diesel with manual transmission mileage is 23.5 KMPL

Hyundai Verna Fluidic 1.6 Litre diesel with manual transmission mileage is 22.32 KMPL

Hyundai Verna Fluidic 1.6 Litre diesel with automatic transmission mileage is Data NotAvailable (expected to be around 21 KMPL)

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Price Comparison of Honda City Vs Volkswagen Vento Vs Hyundai Verna


Price of Honda City Petrol 1.5 manual transmission is between Rs. 8.15 Lakhs to Rs. 9.6 Lakhs

Ex-showroom Delhi

Price of Honda City Petrol 1.5 automatic transmission is between Rs. 9.82 Lakhs to Rs. 10.33

Lakhs Ex-showroom Delhi

Price Of Maruti SX4 Petrol 1.6 manual transmission is between Rs. 7 Lakhs to Rs. 8.09 Lakhs Ex-

showroom Delhi

Price Of Maruti SX4 Petrol 1.6 automatic transmission is between Rs. 8.41 Lakhs to Rs. 8.75

Lakhs Ex-showroom Delhi

Price Of Maruti SX4 Diesel 1.3 manual transmission is between Rs. 7.79 Lakhs to Rs. 9.01 LakhsEx-showroom Delhi

Price Of Volkswagen Vento 1.6 Petrol with manual transmission is between Rs. 6.99 Lakhs to Rs.

8.23 Lakhs Ex-showroom Delhi

Price Of Volkswagen Vento 1.6 Petrol with automatic transmission is Rs. 9.22 Lakhs Ex-

showroom Delhi

Price Of Volkswagen Vento 1.6 Diesel with manual transmission is between Rs. 7.99 Lakhs to Rs.

9.23 Lakhs Ex-showroom Delhi

Price of Hyundai Verna Fluidic 1.4 Petrol with manual transmission is Rs. 6.99 Lakhs Ex-

showroom Delhi

Price of Hyundai Verna Fluidic 1.6 Petrol with manual transmission is between Rs. 7.64 Lakhs to

Rs. 9.65 Lakhs Ex-showroom Delhi

Price of Hyundai Verna Fluidic 1.6 Petrol with automatic transmission is Rs. 9.65 Lakhs Ex-

showroom Delhi

Price of Hyundai Verna Fluidic 1.4 Diesel with manual transmission is Rs. 8.09 Lakhs Ex-showroom Delhi

Price of Hyundai Verna Fluidic 1.6 Diesel with manual transmission is between Rs. 8.74 Lakhs to

Rs. 10.04 Lakhs Ex-showroom Delhi

Price of Hyundai Verna Fluidic 1.6 Diesel with automatic transmission is Rs. 10.74 Lakhs Ex-

showroom Delhi

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Features Comparison Of Honda City Vs Volkswagen Vento Vs

Hyundai Verna Fluidic Vs Maruti SX4

All these cars come with basic comfort features like power steering and airconditioning, so in this section we will focus on comparing the important or uniquecomfort and safety features offered by these cars.

Comfort Features comparison among Honda City Vs Volkswagen

Vento Vs Hyundai Verna Fluidic Vs Maruti SX4

Automatic Climate Control

Maruti SX4 provides climate control in the high end ZXi and Zdi variants. Volkswagen Vento also has

climate control in the Highline high end variants. Honda City does not have Climate Control even on

the top end variant of the City. Hyundai Verna Fluidic offers Automatic climate control in all of 1.6

Litre engine options in both petrol as well as diesel. Along with it, the Verna has first in segment

Cluster ionizer for purifying air of any odour.

There are some features offered by Hyundai Verna Fluidic which are first in segment and are

not offered by other three cars. From convenience perspective, these features are:

Smart Key with engine start stop button

Rear parking sensors

Bluetooth connectivity with phone with controls on steering

Integrated display of in the rear view camera in inside rear view mirror

Electrically foldable outside mirrors

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Best Choice Among Honda City Vs Volkswagen Vento Vs Hyundai

Verna Fluidic Vs Maruti SX4

Considering various factors like engine performance, safety features, price, andconvenience features of these cars, we can come out with the following choices:

Best Performance Car

If you are looking for performance, features and style and not worried about spending some extra

bucks, you can go for the Hyundai Verna 1.6 Diesel automatic. Along with the performance, it comes

with 6 airbags for safety, rear disk brakes and comes at a price of 10.74 Lakhs ex-showroom Delhi.

Our second choice will be Honda City with manual or auto transmission depending on your needs for a

manual or auto.

Best Value For Money Car

If you want best value for your money, you can get either a Hyundai Verna 1.4 Petrol with a price tag

of Rs. 6.99 lakhs and mileage of 17.43 KMPL. You can also go for Maruti SX4 1.6 Petrol with manual

transmission which also comes at Rs. 7 Lakhs and offers a decent mileage of 15.6 KMPL along with

high riding position and ground clearance. I would recommend you to go for Maruti if you want to sell

it in less than 5 years as the re-sale value of Maruti cars is better compared to other brands.

Safest Car

As far as safety is concerned, the Hyundai Verna top end variants come loaded with 6 airbags and allfour disk brakes, which is our first choice on safety. The second place will be a tie between the City

and Vento as City features G-Con design elements to distribute the crash impact in a safe manner as

well as comes with ABS dual airbags as standard on all variants, which is really appreciable, but at the

same time comes at a price premium compared to the price of base variant of all the competing cars we

are comparing here.

Best Fuel Economy Car

If we talk of the fuel economy, the 1.4 Litre Diesel engine of Hyundai Verna with 6 speed manual

transmission delivers a jaw-dropping 23.5 KMPL of mileage as per ARAI test data. It cines at 8.09

Lakhs ex-showroom price, is one of the most frugal sedans in this segment. But from safety

perspective, I would suggest you to spend extra (Rs. 8.87 lakhs for 1.6 Diesel) bucks to get a 1.6 Litre

diesel with slightly lower mileage but added safety like ABS, airbags, rear disk brakes etc., because

money is not more precious than life. Second best options will be Maruti SX4 Diesel with an amazing

21.5 KMPL mileage.

comparision and cometitive advantage of top five car brands in india project report

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