hyundai india motors ltd

8/8/2019 Hyundai India Motors Ltd

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Introduction

The beginning of Hyundai Motor Company dates to April1946 when founder, Ju-Yung Chung established

Hyundai Auto Service in Seoul, South Korea at the ageof 31 years. The name Hyundai was chosen for itsmeaning which in English translates to modern. TheHyundai logo is symbolic of the company's desire toexpand. The oval shape represents the company's

global expansion and the stylized "H" is symbolic of twopeople (the company and customer) shaking hands.


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Hyundai Motor Company was founded by Ju-YungChung and younger brother Se-Yung Chung inDecember 1967. In 1968 the company entered into acontract with Ford motor company to assemble the Ford

Cortina and Granada for the South Korean market andcontinued to produce them until 1976. Hyundaicompleted construction of the Ulsan plant in six monthsand achieved the shortest groundbreaking to firstcommercial production of any of Fords 118 plants. Theeight year journey provided Hyundai with assemblyknowledge, blueprints, technical specifications,production manuals, and trained Hyundai engineers.


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Hyundai History & Development

Established in 1967, Hyundai is presently South Koreas#1 carmaker, manufacturing dozens of models of cars,vans, and minivans

Throughout the past two decades, Hyundai introducedvarious models: Pony, Excel, Scoupe, Sonata, andAccent.

In 1990, Hyundai introduced its own engine design, theAlpha. Two years later, it introduced its second-

generation engine, the Beta. Acquired a 51% stake in Kia Motors in 1998

In 2001, Hyundai sold a 9% stake to DaimlerChrysler tostrengthen its global market position and to boost sales

abroad


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In 2003, according to Consumer Reports, Hyundais

reliability rankings tied Hondas. In 2005, Hyundai authorized Ed Voyles' Hyundai

dealership in Smyrna, Georgia to become the first "deaffriendly" dealership in the entire world. The staff in thisdealership are able to accommodate deaf customerswith the use of American Sign Language and videoconferencing phones.

In 2006, J.D. Power and Associates' quality ranking,overall the Hyundai brand ranked 3rd, just behind

Porsche and Lexus, and beating long time rival Toyota


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Global Presence

Europe

Albania

Armenia

Austria

Azerbaijan

Belarus

Belgium

Bosnia

Bulgaria

Croatia

Cyprus


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Kazakhstan

Kyrgyzstan

Latvia

Lithuania

Macedonia

Malta Moldova

Norway

Poland

Portugal Romania

Russia

Serbia


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Slovenia

Spain

Sweden

Switzerland

Turkey

Turkmenistan U.K.

Ukraine

Uzbekistan


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Middle East

Afghanistan

Bahrain

Iran

Iraq Israel

Jordan

Kuwait

Lebanon

Oman

Palestine


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Qatar

Saudi Arabia

Syria

U.A.E.

Yemen


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Africa

Algeria

Angola

Benin

Brukina Faso

Cameroon

Canary Islands

Central Africa

Ceuta

Congo

D.R.Congo


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Djibouti

Egypt

Ethiopia

Gabon

Gambia

Ghana

Ivory Coast

Kenya

Liberia

Libya Madagascar

Malawi

Mali


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North America

Canada

USA

Central & South America

Antigua Argentina

Aruba

Bahamas

Barbados Bermuda

Bolivia

Brazil


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Cayman

Chile Colombia

Costa Rica

Cuba

Curacao Dominica

Dominican Republic

Ecuador

El Salvador Fr.Guyana

Grenada


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Guadeloupe

Guatemala

Haiti

Honduras

Jamaica

Martinique Mexico

Nicaragua

Panama

Paraguay Puerto Rico

St. Kitts


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Asia & Pacific

American Samoa Australia

Bangladesh

Bhutan

Brunei Cambodia

China

Fiji

French Polynesia Guam

Hongkong

India


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Indonesia

Japan

Korea

Laos

Macau

Malaysia Mongolia

Nepal

New Caledonia

NewZealand P.N..

Pakistan

Philippines


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Saipan

Singapore

Solomon Islands

Sri Lanka

Taiwan

Thailand Vanuatu

Vietnam

Western Samoa


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HYUNDAI GLOBAL SEGMENT

CARSModel lineup

Excel

Accent

Atos/Santro

Azera

Dynasty

Elantra

Equus/Centennial (joint project of Hyundai andMitsubishi)

Genesis

Genesis Coupe


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Click/Getz

Grandeur (joint project of Hyundai and Mitsubishi) Grandeur XG/XG300/XG350

Grandeur/Azera

Matrix/Lavita

Santamo(Rebadged Mitsubishi Chariot) (Originallyproduced by Hyundai Precision Industry)

Sonata/i40

Tiburon/Coup/Tuscani

i30

i20

i10


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SUVs and Vans

Entourage (Similar to the Kia Sedona) Galloper (Rebadged Mitsubishi Pajero) (Originally

produced by Hyundai Precision Industry)

Grace (1st generation was a rebadged Mitsubishi Delica)

H-1/Satellite/Starex/Libero/H-200 Hyundai H-1/iMax/i800

Hyundai H-100 Grace / Porter

HD1000 (Minibus/Porter)

Porter (1st generation was a rebadged Mitsubishi Delica) Santa Fe


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Commercial vehicles

Ford D Series Ford DK Series

Ford R Series

O303 Benz Bus

HM 1620 urban bus HM 1630 suburban bus

Hyundai 4.5 to 5-ton truck (Rebadged Mitsubishi FusoFighter)

Hyundai 8 to 25-ton truck (Rebadged Mitsubishi FusoSuper Great)

Aero (Rebadged Mitsubishi Fuso Aero Bus)


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Hyundai FB

HD160 HD170

Mega Truck

New Power Truck

Mighty (Rebadged Mitsubishi Fuso Canter) Mighty II

Hyundai RB

Super Truck Medium

Super Truck Trago

Universe


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Hyundai Car Segment In India

Santro


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Getz


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i 10


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i 20


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Accent


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Verna


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Elantra


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Sonata


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Tucson


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The Indian CarMarket

For a long time after India became independent in 1947,the car market had just two models to offer - the sturdy'Ambassador' from Hindustan Motors (HM) and the sleek'Fiat' from Premier Automobiles (PA). This was the resultof Government of India's (GOI) decision to keep the carindustry tightly protected.

For HM and PA, the GOI dictated as to what type of

vehicle the two companies should manufacture. No otherdomestic or foreign car manufacturer was allowed toenter the Indian car industry.


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The restriction on foreign collaboration led to poor

technological improvements in Indian cars. As a result,car prices remained high while quality was inferior.

This affected the growth of the industry. The demand forcars in 1960 was 15,714 units and in the next twodecades, this rose to 30,989 units, which meant that theCompound Annual Growth Rate (AGR) was just 3.5 per

cent.


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In the 1980s, the GOI felt the need to introduce an

affordable small car, targeting the Indian middle class.As manufacturing a small and affordable car requiredbetter technology than was available indigenously, thegovernment tied up with the noted Japanese company,Suzuki. The government formed a joint venture with

Suzuki and founded Maruti Udyog Limited (MUL). It held74% and Suzuki got 26% equity stake in MUL. In 1983,MUL launched the Maruti 800', priced at Rs 40,000...


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Hyundai's Entry in India

One of the major players that entered the Indian carmarket was HMC through its subsidiary HMIL. Beforemaking its move, the company closely studied theindustry for a year. The company's officials talked tovendors, dealers and customers to get a thoroughknowledge of the industry


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Hyundai is currently the second largest carmaker andlargest auto exporter in India.It is making India the global

manufacturing base for small cars. Hyundai sells severalmodels in India as of the 2009 model year, one of themost popular being the Hyundai i10 and the Hyundai i20.Other models include Hyundai Santro, Hyundai Getz,Hyundai Accent, second generation Hyundai Verna,Hyundai Tucson, Hyundai Elantra, and the HyundaiSonata.


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Studying the Indian

Consumer Psyche In the late 1990s, car manufacturers like Ford, General

Motors, and Fiat were faring miserably in the Indianmarket. Maruti had a market share of a whopping 79percent in the passenger car segment. Daewoo andTelco were creating hype over the impending launchesof their cars Matiz and Indica, respectively. In such ascenario, the top management of Hyundai Motor India

Ltd, which has South Korean origins, had a toughdecision to make. It was a big gamble to go ahead withthe launch of the small car Santro.


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The Hyundai management stuck to a simple strategy

launch a quality product in the most promising segmentwith the latest technology and price it aggressively. Inthe pre-launch period in late 1997, the companycommissioned market research project to understand theIndian consumer psyche and specify a benchmark forthe pricing policy.


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Marketing Santro

Santro received an encouraging feedback fromcustomers who appreciated its unique design that gavemore headroom and facilitated easy entry and exit...


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MARKETING STRATEGIES

Hyundai tied up with the advertising agency Saatchi

Shah Rukh Khan as Brand ambassador

Three-pronged Strategy was desinged to attract theconsumer:

Educate Indian Consumers about Hyundai

Create hype and expectations about the Santro

Explain the virtues of the Santro


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The success story

September 23, 1998 saw the launch of the Santro. Therewas an unprecedented rush for bookings in spite of thefact that Hyundai was accepting bookings only againstfull payment for the car and booking was opened only fora few days. Hyundai closed the calendar year 1998 withsales of 8,447. The next year (October 1998-August1999) saw Hyundai consolidating its market share, as

these figures of monthly sales show:


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Thus, the cumulative sales during October 1998-August1999 were 42,283 units. This accounted for 30 per cent

of the market share in the small car segment and 10 percent of the overall auto industry. Within a year of itslaunch, the Santro had dislodged the Maruti Zen as theno.1 car in its category and slipped in behind Maruti

Suzuki as the no.2 car manufacturer in India. The launchof the Daewoo Matiz and the TATA Indica failed todampen the demand for the Santro.

Ever since the historic launch of the Santro, Hyundaihasconsistently taken the no.1 spot in all the segments of

the passenger car industry in which it had launched aproduct. Santro stands tall undisputedly market leader inthe compact car segment.


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Launch of Accent

By mid 1999, the major players realized that the 'B'segment would be the fastest growing in the car industry.To cash in, Telco re-launched its 'Indica' by introducingseveral new features and solving the glitches in theoriginal model...


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Repositioning Santro

By late 2002, the competition in the B segment hadincreased significantly. MUL's Alto which was launchedin October 2000 had received a good response.Although HMIL's Santro remained the largest selling carin the B segment, MUL commanded the largest marketshare in this segment due to the combined sale of its

three cars Zen, Wagon R and Alto...


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Status in 2004

The financial year 2003-04 ended on a positive note forHMIL. The company achieved revenues of Rs 50 bn andprofit after tax (PAT) of Rs. 1.90 bn in the financial year2003-04 compared to Rs 43 bn revenues and PAT of Rs1.65 bn in the fiscal 2002-03...


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The Challenges Ahead

During the period January to June 2004, Santro lost itsleadership status in the B segment...


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Recent Happening

Domestic sales surge by 92.8%

Cumulative growth up 28.5%

Hyundai Motor India Ltd, the countrys second largest

car manufacturer and the largest passenger car exporterregistered record cumulative sales for the month endingNovember 30, 2009. The cumulative sales accounted for55,265 units which reflect a 28.5% growth as comparedto last November. The domestic market was the biggestgainer as it almost doubled its sales to 28,162 units thismonth registering a growth of 92.8% over the samemonth last year.


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The exports however showed a slight decline as it fell by

4.6% as compared to the same period last year. InSeptember, 2009 HMIL had clocked cumulative sales of53,802 units which had been the highest till now.

HMILs total sales for November, 2009 stood at an alltime high of 55,265 units against 43,020 units in

November, 2008 registering 28.5% cumulative growth.The domestic sales grew at a whopping 92.8% andaccounted for 28,162 units as against 14,605 units inNovember, 2008 while the exports dipped marginally to27,103 units as compared to 28,414 units last November a fall of 4.6%


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Commenting on November, 2009 sales Arvind Saxena,Sr. Vice President - Marketing and Sales, HMIL said,

The overall economic scenario has been positive andthis has translated in to more footfalls in the showroomand higher automobile sales as indicated by this monthsfigures. We hope the economy will continue on a growth

trajectory as it will help the Indian automotive industry tomaintain a double digit growth figure.

The segment-wise cumulative sales in the month ofNovember, 2009 are as follows: A2 Segment (Santro,i10, Getz & i20) 50,501 units; A3 Segment (Accent &

Verna) 4,748 units; A5 Segment (Sonata Transform) 15units; and SUV Segment (Tucson) 1 unit.

hyundai india motors ltd

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