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EXECUTIVE SUMMARY

Automobiles have become an indispensable part of our lives, an extension of The human body that
provides us faster, cheaper and more convenient mobility every passing day. Behind this
betterment go the efforts of those in the industry, in the form of improvement through technological
research. The Indian automotive component industry is dominated by around 500 players which
account for more than 85% of the production.
This project is devoted towards the understanding of the advertising techniques
of various automobiles firms i.e. Maruti, Hyundai and Audi motors and also the
impact of advertising of their vehicles on the audience and understanding their
workings. This project additionally includes the study of however made is that
the advertising techniques of those 3 firms and variations of their advertising
techniques.
Objectives
To review the varied advertising techniques of vehicles and also the impact of it
on the mind of audiences and creating variations between the automobile firm
.i.e. maruti ,Hyundai and audi.
Methodologies
So as to attain the on top of objective and end the project, I will be able to use
the first likewise as secondary supply of information assortment. The first supply
includes of non public visits to the showrooms/companies of maruti, Hyundai and
Audi motors. The secondary supply includes of web, newspapers, magazines etc.
Conclusions: throughout this project i will be able to realize the conclusions of the
advertising techniques i.e. their strength, their weaknesses, their shortcomings,
etc and verify the variations between advertising techniques of the automobile
firms i.e. Maruti, Hyundai and Audi motors.
Introduction
The Indian automotive component industry is dominated by around 500 players which account for
more than 85% of the production. The turnover of this industry has been growing at a mammoth
28.05% per annum from 2002-03 onwards as illustrated in Fig which clarifies its emergence
as one of India's fastest growing manufacturing sectors. During 1990s, the auto components market in
India used to be dominated by supplies to the aftermarket with only 35% exports sourced by global
Tier 1 OEMs (Original Equipment Manufacturers). The industry made a sustained shift to the global
Tier 1 market and today, the component manufacturers supply 75% of their exports to global Tier 1
OEMs and the remaining to the aftermarket. This is largely due to the growing capability of The
Indian component suppliers in understanding technical drawings, conversance with global automotive
standards, economically attractive costs (manufacturing costs are 25%-30% lower than its western

counterparts), flexibility in small batch production and growing information technology application
for design, development and simulation.
Besides The burgeoning demand of auto components from global majors, the domestic automobile
industry has been showing a sparkling growth caused by increasing customer base and affordable
loans. Based on this, the turnover of The Indian auto component industry is expected to touch US$
18.7 billion by 2009 and estimated to reach US$ 40 billion by 2014.
Overview of Indian Automobile Industry
The liberalized policies of The Indian Government paved towards steady evolution of India as a stable
and market driven economy with the real Gross Domestic Product growth in excess of 8%, foreign
exchange reserves crossing The $150 billion mark, growing value of Indian Rupee compared to US
dollar and reducing inflation rate. 100% Foreign Direct Investment, absence of local content
regulation, manufacturing and imports free from licensing & approvals in The automobile sector
coupled with customs tarifforauto components reducing to 12.5% resulted in increased number of
multinationals establishing Their bases in India and with export markets looking up, The Indian
automobile industry is poised for a phenomenal growth. The automobile production in the subcontinent has been growing steadily @ 18.53% per annum from 2002-03 onwards with total vehicle
production standing at a mammoth 1,00,31,296 nos. in 2005-06.

Among The automobiles, 2 wheelers account for 75.77%, cars about 11.09%, 3 wheelers to the tune
of 4.33%, tractors about 2.95%, buses & trucks constitute 2.19%, Multi Utility Vehicles (MUVs) to
The tune of 1.96% and Light Commercial Vehicles (LCVs) about 1.71% of The total number of
automobiles produced in the country. Presently, India is the second largest market after China for two
& three wheelers.
In tractors production, India is one of the two largest manufacturers in the world along with China.
The subcontinent stands as the 4th largest producer of trucks in the world. Coming to The passenger
car segment, the country is positioned 11th in car production in the world. The Indian passenger car
market is far from being saturated leaving ample opportunity for volume growth since the per capita

car penetration per 1000 is only 7 compared to 500 in Germany. The production of cars in The
country has been growing at a mammoth 27.58% per annum from 2002- 03 onwards. In general, cars
are broadly classified as Mini, Compact, Mid-Size, Executive & Premium varieties. There has been a
steady rise in compact car production from 333,000 in 2002-03 to 715,000 in 2005- 06, mid-size cars
from 122,000 to 204,000 nos., executive cars from 2000 to 23,000 nos. and premium variety cars
from 4000 in 2002-03 to 5000 nos. in 2005-06. The mini car segment production reduced from
150,000 in 2002-03 to 98,000 nos. in 2005-06. These statistics vividly reveal the increasing capacity
of The Indian customer, thus driving The passenger car demand rapidly up The price ladder. Analysts
speculate car production in The sub-continent to touch 1575,000 in 2009 and 2654,000 by 2014. Cars
and MUVs exports rose from 72,000 in 2002-03 to reach 176,000 nos. in 2005-06 with growth @
48.155 per annum from 2002-03 onwards.
Out of The two wheelers produced in India, motorcycles account for 81.59%, scooters about 13.42%
and mopeds to the tune of 4.99% of the total production. The production statistics which shows The
growth of 2wheelers @ 16.58% per annum from 2002-03 onwards. Out of this, motorcycles have
exhibited production growth @ 19.99% per annum, scooters @ 6.74% per annum & mopeds @
2.65% per annum from 2002-03 onwards. Two wheeler production units in India constitute of
Japanese OEMS (Original Equipment Manufacturers) which include Hero Honda Motors, Honda
Motorcycle & scooter India (P) Ltd., Yamaha Motor India (P) Ltd. & Suzuki Motorcycle India (P)
Ltd. and Indian OEMs consisting of Bajaj Auto Ltd. , T V S M o t o r Company Ltd., LML Ltd.,
Kinetic Engineering Ltd., Majestic Auto Ltd., Kinetic Motor Company Ltd. and Royal Enfield of
Eicher Ltd.
Out of the aforementioned, Hero Honda accounts for 39.55%, Bajaj Auto about 26.87%, TVS Motors
17.98%, Honda Motors 7.94%, Yamaha Motors 3.27%, LML 1.41% and The remaining 2.98% of
The total 2 wheelers production in The country. The exports of two wheelers made a significant
growth from a level of 180,000 in 2002-03 to reach 513,000 nos. in 2005-06. The latest estimates put
up production of 2 wheelers to 13.6 million by 2009.
The production of Multi Utility Vehicles (MCVs) has been showing sparkling growth @ 23.84% per
annum, Light Commercial Vehicles (LCVs) @ 35.49% and Medium & Heavy Commercial Vehicles
(M & HCVs) @ 27.33% per annum from 2002-03 onwards in India. Industry analysts put up MUVs
production to reach 207,000 in 2009 and 277,000 in 2014. Commercial vehicle exports made a steady
growth from a level of 11,000 in 2002- 03 to 41,000 in 2005-06. The manufacturing units for four
wheelers in India constitute of Japanese OEMs covering Maruti Udyog Ltd., Hyundai Motor (P) Ltd.,
Honda Siel cars India Ltd. & Swaraj Mazda Ltd., Indian OEMs consisting of Tata Motors Ltd.,
Mahindra & Mahindra Ltd., Ashok Leyland Ltd., Force Motors Ltd., Eicher M o t o r s L t d . &

Hindustan Motors Ltd., Korean OEM Hyundai Motor India Ltd., American OEMs which include
General Motors India (P) Ltd. & Ford India (P) Ltd. and European OEMs consisting of Skoda Auto
India (P) Ltd., Daimler Chrysler India (P) Ltd., Volvo India (P) Ltd., Tatra Trucks India Ltd. & Fiat
India (P) Ltd. Presently, Maruti Udyog accounted for 33.24%, Tata Motors 26.14%, Hyundia
Motors15.13%, Mahindra & Mahindra 7.47%, Ashok Leyland 3.78%, Hyundai 2.61%, Honda Siel
Cars 2.40%, Force Motors 2.08%, General Motors 1.78%, Ford India 1.57%, Eicher Motors 1.41%
and oThe4rs 2.39% of The total production of four wheelers in India.
The tractors production in the country has been making a steady growth @ 25.80% and three wheelers
@ 19% per annum from 2002-03 onwards. The Indian automobile industry is flooded with huge
investments involving green field and brown field projects.
Hyundai plans to set up a LCV plant at Pune, India. Hyundai would be investing US$ 4.2 billion for
starting production of small cars & Suzuki plans to invest US$ 1.6 billion in India.
Isuzu Motor & Nissan Motor belonging to Hitachi Ltd. Of Japan would begin manufacturing cars in
India.
Tata Motors is setting up its novel small car production facility near Kolkata. Hyundai plans to make
India an export base for small cars. Telecon is investing about US$ 54 million for production of earth
moving vehicles/components at Kharagpur in India. Also, Honda Motorcycles & scooters have
ambitious plan for making this sub-continent a hub for two wheelers exports. All These forward
towards further increase in demand for auto components.
Auto Components Production Range In India
India is bestowed with excellent infrastructure for production of auto components. There are various
national and multinational companies in the country that have put up state of art auto component
manufacturing facilities. The production range of auto components in India. For many of the auto
components, steel remains the dominant material due to its versatility providing a wide range of
properties through the choice of appropriate combination of composition and processing.
Along with The above, long term availability of raw materials, good recycling ability, a relatively
favourable price and The large experience based knowledge favour steel as a choice for use in auto
component manufacturing.
The steel requirements in general for engine parts such as fan, pulley, piston pin & oil fan are met by
low carbon steels, medium carbon steels/alloy steels based on requisite mechanical properties are
applied for crankshafts, connecting rods, rocker arm shafts e t c . While low carbon/low carbon alloy

case hardening steels are u s e d f o r moderately/severely stressed components. Transmission parts


such as input shaft, output shaft, front axle, rear axle, kick down & reverse bands, pinion shafts,
clutch discs & plates, automatic transmission components etc. are made with medium carbon/alloy
steels while The gears are made of low carbon/low carbon alloy case hardening steels. Suspension and
steering parts such as knuckle ball studs, arm sector shafts, arm parts, pitman & idler arms, struts, tie
rod ends, ball joint studs, center link etc. are either made of medium carbon steel or alloy steel
depending upon The conferred properties, spring steels for suspension springs while low carbon case
hardening steels are applied for components that require wear resistance. Various low carbon/low
carbon alloy steels are used for rivets, bolts, nuts & other fastener items. Steel required for chassis
components are met with cold forming & wieldable low carbon/micro alloyed steel sheets/plates
while deep drawing & extra deep drawing varieties of steel sheets are employed for body.
Steels are shaped, formed, heat treated and/or machined into automotive components fulfilling The
specific design criteria requiring critical set of properties like strength & toughness, fatigue & fracture
resistance, wear resistance, corrosion resistance etc. Technology of machining, fabricating or forming
of engineering components has undergone rapid changes with the advent of Computer Aided
Manufacturing systems and robotics. Consequently, the auto component manufacturers require the
highest degree of consistency in the quality of the steels both metallurgical and dimensional. Also, the
changes in customer expectations for lighter, more powerful & fuel efficient vehicles with greater
degrees of reliability & safety will continuously drive The steel industry towards development and
manufacturing of steel with closer band of metallurgical properties, physical properties, leaner alloy
compositions, higher strength to weight ratio etc. at The most competitive prices.
Today, automobile sector accounts for 7% of the total steel consumed in India. The sparkling growth
of the automotive component industry and the automobile industry in India translates into a
tremendous potential and opportunity for domestic steel producers to cater to the needs of these
industries where steel is the most vital input.
India Emerging as Hub for Auto Components Indian auto component industry is fast emerging as an
attractive OEM & Tier 1 supplier. The auto component exports from India rose from a mere US$
0.760 billion in 2002-03 to US$ 1.8 billion in 2005-06 showing growth @ 45.61% per annum from
2002-03 onwards. In 2005-06, about 36% of the component exports headed for Europe, 26% for
America, 16% for Asia, 10% to Africa, 10% to Middle East, 1.5% to Oceania and others account for
0.5% of the total exports.
Based on The sparkling growth in demand for auto components, global auto majors and domestic
giants have been investing heavily in India because of India's competitive advantage. Accordingly, the
total investment in Indian auto component industry has been showing a tremendous growth @ 22.12%

per annum from 2002-03 onwards. The investment is expected to rise further with huge strides.
Among various investments pumping in India, auto parts maker Robert Bosch of Germany will
investment US$ 201.4 million in its Indian subsidiaries over two years with bulk of investment in
Motor Industries Co. Ltd.(MICO). Hitachi Ltd. of Japan is planning to start auto component
manufacturing in India with its O E M s - I s u z u Motor & Nissan Motor to begin manufacturing cars
in India. GKN Driveline, a wing of UK based auto c o m p o n e n t manufacturer GKN plans to open
a new manufacturing facility in India. Dubai based auto ancillary Parts International Company plans
to invest about US$ 3.6 million in India over three years which includes setting up a manufacturing
facility to service exports to CIS & SAARC countries. Fiat India has been taking various measures to
become a global sourcing hub for components by exporting components worth US$ 8.3 million last
year to its operations in South Africa and plans to source components worth US$ 200 million.
Hyundai already invested US$ 197 million to supply transmission system, gear boxes, axles, propeller
shafts and aluminium pressure die casting products to global operations. Delphi is planning to source
components such as piston rods, steering system, drive shafts, catalytic converter, stampings in power
train, sheet metal/stampings for chassis and electrical parts like wiring harnesses & armature motors
worth US$ 250 million by 2007. General Motors which presently is sourcing components worth US$
6 million from Indian suppliers intends to ship parts worth US$ 1 billion for its global production
units by 2010 and The components include crankshaft forgings, radiator caps, gear boxes, leaf springs,
wiring harnesses & cables. Ford Motors plan to source components like steering columns, alloy
wheels, crankshafts, exhaust parts, complete engines for IKON model, radiators, springs, castings,
forgings, leaf springs, body panel, horns, dash board assembly, starters, alternators & door trims from
The present level of US$ 150 million to around US$ 600 million by 2009 from India. Visteon which
had already invested US$ 56 million is sourcing components for exterior, instrument, cluster assembly
& bumpers, AC system, starters, motors, alternators and panel instrument assembly from India.
Along with this, over 20 OEMs have set up International Purchasing Offices (IPOs) in India for
components and the figure is expected to double by 2010.
Considering the above, Indian auto component manufacturers are substantially increasing investments
in production capacities, establishing partnerships in India & abroad and have been investing in or
acquiring companies overseas. In continuation with this, global multi nationals are shifting
automotive design centers into India with India evolving as an excellent automotive R & D base for
prototyping, testing, validating and production of auto components caused by excellent IT skills &
exemplary automotive domain knowledge.
Conclusions

With increased role of outsourcing in an integrated global economy and India being considered as a
low cost automotive component producer possess a greater edge in the global market aspiring to
capture 10% share of the global market which translates into an export target of US$20 billion by
2015. Also, by the current trends in the domestic automotive industry, the indigenous demand for auto
components is estimated to reach US$20 billion in The next 10 years. This is expected to increase the
demand for alloy steels providing a great opportunity for alloy steel producers in the country to
capitulate on it.

ABOUT HYUNDAI MOTORS INDIA LIMITED


Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai
Motor Company (HMC), South Korea and is the largest passenger car exporter and
the second largest car manufacturer in India. HMIL presently markets 6 models of
passenger cars across segments. The A2 segment includes the Santro, i10 and the
i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the
Sonata Transform.
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts of
the most advanced production, quality and testing capabilities in the country. To
cater to rising demand, HMIL commissioned its second plant in February 2008,
which produces an additional 300,000 units per annum, raising HMILs total
production capacity to 600,000 units per annum.
In continuation with its commitment to providing Indian customers with cutting-edge
global technology, HMIL has set up a modern multi-million dollar research and
development facility in the cyber city of Hyderabad. It aims to become a centre of
excellence for automobile engineering and ensure quick turnaround time to changing
consumer needs.
As HMCs global export hub for compact cars, HMIL is the first automotive
company in India to achieve the export of 10 lakh cars in just over a decade. HMIL
currently exports cars to more than 110 countries across EU, Africa, Middle East,
Latin America, Asia and Australia. It has been the number one exporter of passenger
car of the country for the sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 290 strong dealer
network and 580 strong service points across India, which will see further expansion
in 2010.

To support its growth and expansion plans, HMIL currently has a 290 strong dealer
network and 580 strong service points across India.
1.2

COMANYS HISTORY

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung
Chung established Hyundai Auto Service in Seoul, South Korea at The age of 31 years. The
name Hyundai was chosen for its meaning which in English translates to modern. The
Hyundai logo is symbolic of The Company's desire to expand. The oval shape represents The
Company's global expansion and The stylized "H" is symbolic of two people (The Company
and customer) shaking hands.
Hyundai Motor India Limited was formed in 6 May 1996 by The Hyundai Motor
Company of Korea. The first production plant was established in Irrungattukotai
near Chennai, India.
HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was a
runaway success. Within a few months of its inception HMIL became The second largest
automobile manufacturer and The largest automobile exporter in India.
Hyundai sells several models in India, The most popular being The Santro
Xing, i10 and The i20.OTheR models Include Getz Prime, Accent, Verna
TRANSFORM, Tucson, and The Sonata Transform.

INTRODUCTION OF THE COMPANY


MARUTI UDYOG LIMITED
Maruti is India's largest automobile company. The company, a joint venture with
Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile
industry.
Today, Maruti is India's largest automobile company. This feat was achieved by the
missionary zeal of our employees across the line and the far-sighted vision of our
management.

The Company Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the
need of different customers, both in domestic and export markets.

The Company Vision:

We must be an internationally competitive company in terms of our products and services.


We must retain our leadership in India and should also aspire to be among the global players.

NATIONAL ROAD SAFETY MISSION

Maruti Suzuki considers road safety to be an integral part of its social


initiatives. Taking forward its commitment to road safety, Maruti Suzuki has
adopted a National Road Safety Mission launched in Dec 2008 under which
500000 people will be trained in road safety in the next three years. This will be
done through the two channels - Institute of Driving Training and Research
(IDTR) and the Maruti Driving Schools spread across the country. Of the
500,000 people to be trained, at least 100,000 will be people from
underprivileged section of society, who are keen to take driving as a profession.

Environment
Maruti Suzuki recognizes global warming and climate changes as global issues, the effects of
which are of concern both for the environment and human life.

The challenge faced by the society is how to meet the needs of the present, without
compromising the ability of future generations to meet their own needs. Maruti Suzuki
strongly believes that an investment in environment friendly products and manufacturing
facilities is in the best interest of the society as well as the business. The last 25 years of our
journey has reinforced the belief that environment friendly initiatives make products more
acceptable to customers and help Maruti Suzuki grow profitably in every sphere.
Since Maruti Suzuki started operations, conserving environment and natural resources has
been an integral part of our systems and processes. The concept of "Reduce, Reuse, Recycle"

(3R's) has been our driving principle. This three pronged strategy or the 3 R's has been
promoted in all our manufacturing facilities, supply chain and logistics operations.
Maruti Suzuki also follows the Philosophy of "Smaller, Fewer, Lighter, Shorter and Neater".
This Philosophy has helped Maruti Suzuki in optimal utilization of resources and cost
savings.

History
MUL was a joint venture created in February 1981 between Japans Suzuki Motor
Company and the Indian Government when the latter decided to produce small,
economical cars for the masses. The intention from the beginning was to produce a
peoples car.
On December 14, 1983, MUL launched the first Maruti vehicle the Maruti 800.
The first model was the SS80, a 796cc hatchback car priced at Rs. 47,500. Available in
vibrant colours when Indias passenger car population comprised mainly Ambassadors and
Fiats in black and white, M800 gave Indians the first taste of global quality and reliability.
In the years that followed, MUL consolidated its position with a line of Indian
classics, such as the eight-seat Omni, the rough-terrain Gypsy, and, in October 1990, a 3box Maruti 1000. MUL took the lead in the green drive by launching its CNG-run Omni
and Maruti 800 in 1999.
MUL redefined the premium compact segment with the launch of the Zen in October 1993.
It was the companys first world car, selling across multiple markets. A year later, the Zen
had won several awards, including No. 1 car in Europe (Auto Week, 1994), No.1 import
in Europe (1997) and most fuel-efficient car (ADAC). Since its launch, the Zen has sold
over 624,979 units. This true Indian globetrotter was followed by 1300cc Esteem, which
was an exact replica of the Maruti 1000 since discontinued with more power and a new
exterior. In 1999, MUL launched Baleno and WagonR. Baleno targeted the premium midsegment while WagonR was positioned as a multi-activity vehicle. In 2000, MUL
announced that it would launch a new model every six to twelve months. Accordingly, in
2000, Maruti Suzuki introduced Alto a premium small car targeting the export market
and in October 2001, Versa, amultipurpose vehicle.

As competition intensified, MUL launched various initiatives to improve customer service.


In 1999, it established a chain of model workshops and soon after, set up customer call
centres in the metros. Traffic on Maruti Suzukis interactive website, which provided
information and practical help to customers, increased three-fold by March 2002.

In April 2003, MUL rolled out its latest offering, the Grand Vitara XL-7, a luxury SUV
imported from Suzuki Motor Corporation. The Grand Vitara was a concept that was

radically different from the models that comprised the bulk of MULs sales. Since its
launch, Suzuki Grand Vitara has sold over 157 units.