INTERNSHIP REPORT

(With Reference to Morani Hyndai Pvt. Ltd., Jaipur Rajasthan)

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
2016-18

TO THE DEPARTMENT OF MANAGEMENT,

CENTRAL UNIVERSITY OF RAJASTHAN, BANDARSINDRI (DISTRICT AJMER)

SUBMITTED BY:

KANHAIYA LAL TAILOR

SPECIALISATION: FINANCE

ENROLLMENT: 2016MBA009

Department of Management
CENTRAL UNIVERSITY OF RAJASTHAN,
BANDARSINDRI, DISTRICT AJMER

1
 DECLARATION

I hereby certify that the Summer Training Report on Morani Hyundai Pvt. Ltd. Jaipur,

submitted in partial fulfillment for the award of Master of Business Administration at the

Department of Management, Central University of Rajasthan, Bandarsindri, District Ajmer, is an

authentic record of work carried out by me. The matter embodied in this Summer Training

Report has not been submitted for the award of any other degree or diploma.

Date: Signature of the Student

KANHAIYA LAL TAILOR

2016MBA009

2
3
 ACKNOWLEDGEMENT

I express my deep sense of gratitude to, Manager Finance and Accounts (Training Officer) for
encouraging me to take training at this Organisation, Morani Hyundai Pvt. Ltd. Jaipur. I am
very Thankful to Anil Sharma (Project Coordinator) for Valuable guidance Keen interest and
encouragement at various stages of my training period. I Acknowledge with Thanks the kind of
patronage, loving inspiration and timely guidance.
I express deep and sincere gratitude to Anil Sharma whose guidance, encouragement, and
suggestion and very constructive criticism have contributed immensely to the evolution of my
ideas on the project.

4
 EXECUTIVE SUMMARY

Indian economy has undergone a radical transformation in the last three decade. The discoveries

and invention in various fields of life is perhaps being the reason for this transformation. The

marketing and financial strategy in India which was practiced in the olden days has either been

changed or been refined so as to adjust with this dynamics world .If we considerably the early

year of development and consumption is becoming more and more complex and specialized. The

present emphasis is on matters of providing a complete comfort or status to the customer every

walk of life. In the light of the present marketing scenario, through this project .How HYUNDAI

MOTOR INDIA LTD. can increase its market share in automobile industry emphasis on

marketing Authentic marketing is not the art of selling what you make but knowing what you

knowing .It is the art of identifying and understanding customers needs and creating solution that

deliver satisfaction to the customer, profits to be produces and benefits for the stake holders.

5
 TABLE OF CONTENT

S. No. Chapter Name Page No.

1 Declaration 2
2 Training Certificate 3
3 Acknowledgement 4
4 Executive Summary 5
5 1) Introduction 6
1.1) Introduction
1.2) Profile of the Company 7-33
1.3) Competition Analysis
2) Literature Review & Problem Formulation 34-37
2.1) Marketing Strategy
3) Objective & Methodology 38-41
3.1) Objective of Study
3.2) Methodology
4) Data Analysis 42-46
5) Findings & Recommendations 47-48
5.1) Findings
5.2) Recommendations
5.3) Conclusion
6 Appendices 49-51
7 Reference 52

6
 INTRODUCTION

Hyundai Motor Company was established in the year 1967. The word HYUNDAI means
Modernization. As the name indicates, the company adopts the most recent trends in
manufacturing the latest design of cars used by people all over the world. Within 40 years of its
establishment Hyundai has become the worlds 5th largest car manufacturer. It has the honor of
making to this place within a very short period of time.
The company employs over 68,000 people worldwide. Hyundai vehicles are sold in 193
countries through some 5000 dealerships and showrooms. Its headquarters are in Seoul, South
Korea. Hyundai operates the world's largest integrated automobile manufacturing facility in
Ulsan, South Korea, which is capable of producing 1.6 million units annually. Hyundai has built
manufacturing plants in North America, China, India and Turkey as well as research and
development centers in Europe, North America and Japan. The Hyundai logo is a slanted,
stylized 'H' is symbolic of two people (the company and customer) shaking hands. The
innovative spirit is the secret of success of Hyundai.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMI is situated in Sri Perumbudur in the Kanchipuram district of Tamil Nadu. They have
dynamic leaders in the firm like their MD, Mr. H.S. Lheem and their Chairman, Mr. Mong
Koo Chung. HMILs policy is always to be a stickler for quality. HMIL presently markets 16
variants of passenger cars in six segments. The Santro is in the B segment, Getz is in the B+
segment, the Accent and Verna are in the C segment, the Elantra is in the D segment, the Sonata
Embera is in the E segment and the Tucson is in the SUV segment.
HMIL is expanding its capacity in line with its positioning as HMCs global export hub for
compact cars. Apart from the expansion of production capacity, HMIL also plans to expand its
dealer network from 183 to 250 this year. With the companys greater focus its service network
will be expanded to around 1,000 in 2008.
The production management processes at Hyundai Motor India are overlaid with an organization
wide implementation of best practices in manufacturing like
1. Just-in-time
2. Kaizen

7
 3. TPM & TQM
This helps in making the worlds best cars, right here in India.

OBJECTIVES OF THE COMPANY

To set up a state-of-the-art integrated automobile manufacturing unit.

To attain quality and cost competitiveness through high levels of indigenization.
To ensure development of the Indian auto industry and placing it on the world map.
To launch latest international products those are engineered to meet sophisticated
standards the world over.
To establish a high quality services network across the country.
To be an integral part of the Indian family in all aspects of their automobile experience in
an endeavor to provide comfort, convenience, value and complete peace of mind.

MODELS PRODUCED

As a leading manufacturer in the automobile sector, HYUNDAI MOTORS INDIA LTD

produces various vehicles in different sectors. The company has kept its mark in every class of
the automobile industry. The models which are manufactured in this plant are as follows-

SANTRO XING (XE, XP, XG, XS)

ACCENT (CRDI,TORNADO,VIVA,GLS)
ELANTRA (CRDI,GLS)
SONATA (GOLD,2.7V6,EMBERA)
GETZ
TUCSON
TERRACAN
VERNA
i10

8
SHOPS IN HMIL
HMIL Production flow Process consists of many shops, which can be elucidated as follows
Press Shop
Body Shop
Paint Shop
Assembly Shop
Engine And Transmission

ORGANIZATION STRUCTURE
The structure of the organization is created to combine both Korean and Indian technology.
The shops consist of both Korean and Indian technicians. In every shop the positions from
ordinary supervisors to the deputy manager are held by Indians and top positions like general
manager, shop manager and senior manager are held by Korean professionals. As the mother unit
is present at Seoul, Korea the adaptability to technological changes has to be made in regard to

9
that unit. So advances in any mechanisms are done by R&D engineers from Korea as well as by
engineers from India. This adaptability ensures getting used to the technology introduced by
HMC Korea and the changes in Indian markets like road test and crash test.

CONDUCIVE FACTORS FOR GROWTH & DEVELOPMENT

Geographic
The location of HMIL plant is one of the main factors for its presence in the
sub-continent. Their main aim is to make India a global hub for export of cars. Chennai is
one of the very important destinations as it has a busy port in contact with different parts
of the world especially Africa, which is the main region for their exports.

Work force
Well-equipped and skilled work-force is available from the three surrounding districts
of Chennai, Chengalpattu and Kanchipuram.
Association with mother plant
The presence of professionals from Korea in administration and manufacturing
entities ensure that technological innovations are at par with the mother plant.
Government encouragement
The Indian Government has been very supportive to Hyundai motors. It helped the
company to acquire 1200 hectares of land near Chennai without any conflicts. The
Government has also provided some benefits at the Chennai harbor for their exports.

GROWTH OF THE ORGANIZATION

Hyundai Motor India Limited (HMIL) started its operations in 1996 in Chennai, which
was just 10 months after acquiring the land. It rolled out its first car for export within one year of
its operations. HMIL is now India's second largest car manufacturer and the largest exporter of
passenger cars. It has maintained its leadership by shipping out its 300,000th export car in
Chennai very recently. HMIL achieved this milestone in a time span of less than 7 years, making
it the largest exporter of passenger cars and the fastest ever to get to this landmark.

10
 HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of some
of the most advanced production, quality and testing capabilities in the country. In continuation
to its investment to provide global technology to the Indian customer, HMIL has announced
plans for its second plant, which will produce 300,000 units per annum, raising HMIL's total
production capacity to 600,000 per annum by 2007.
Hyundai motors have also invested in tool maintenance along with Research &
Development. They also have a Tool Development exercise for every process. R&D is
globalised and development of product life cycle draws huge investment.
HMIL has received ISO 14001 certification due to their high quality environmental standards.
They have also installed the Environment Management System (EMS) in their Chennai
manufacturing unit. HIML has won many different awards since its inception. The most recent
award is the "Executive Car of the Year-2006" for Sonata Embera given by Business Standard
Motoring Magazine. The NDTV Profit- Car & bike Awards 2006 have chosen Tucson as the
"SUV of the year". HMIL latest entrant, 'i10', titled as Indias No. 1 Car, has done exceedingly
well and has sold over 50,000 units in its first six months.
The year 2006 was a significant year for HMIL. It achieved a significant milestone by
rolling out the 300,000th export car in the shortest time by any car manufacturing company.
Hyundai exports to over 65 countries and it plans to continue its thrust in existing export
markets. It is also gearing to step up its foray into new markets. The year that just ended also saw
Hyundai Motor India attain other milestones such as the launch of the Verna.

FACTORS THAT HAVE LED TO ITS EXPANSION AND GROWTH

Marketing strategy
Hyundai motors positioned their car in the market as a car for the common man. This
particularly envisaged the fact that Hyundai motor India is not only targeting the higher
strata of the society but the common mass who wants to own a car.
Introducing latest technology
To counter the competition from other automobile manufacturers HMIL has come up
with a newer engine for its entire i10 model called kappa engine which is the result of a
10 year-long research in different engine designs by HMC.

11
 Research and Development work in India
Research and Development Center in Hyderabad has taken a major in R&D and have
invested around U$ 40 million. This fact justifies that Hyundai Motor India has a major
role to play in the R & D of all cars across the globe, which is one of the main reasons for
the prosperity of HMIL.
Export base in India
HMIL is strengthening the export base in India. Hyundai Motor India is already the
base for Santro and from this year Getz will also be exported from India.
Corporate social responsibilities

Hyundai Motor India Foundation (HMIF), the charitable arm of Hyundai Motor
India Limited, is very active in discharging corporate social responsibilities in the area of
community development, health, education, road safety and arts & science. Hyundai
Motor India makes a contribution of Rs.100 towards Hyundai Motor India Foundation for
every car sold in the domestic market to carry out these activities. Every year HMI
contributes around U$ 450,000 to the Foundation and this contribution has risen to more
than U$ 750,000 from 2008. HMIF has made meaningful contributions to the society in
the form of infrastructure development of schools in and around their factory in
Irrungattukottai; Road Safety Program - under the name of Hyundai Traffic Squad - is
making a significant difference to road safety in the cities of its operation - Delhi and
Chennai.

DECLINE OF SALES AND FAILURE OF MODELS

After ten years of success in their operations and about 1 year after starting its 2nd plant,
HMIL is facing crisis for the first time. Hyundai motors domestic sales has declined by 23% in
November. The current economic meltdown is playing a major role in the decline of automobile
industries and HMIL is also a victim of the current condition. The decline of sales was a huge
obstacle in the R&D center, which has resulted in HMIL postponing the launch of its much
talked-about I-Bus. Hyundai I-Bus is a collaborative automobile designed and developed by
HMIL and Copparo to suit the Indian requirement for luxurious heavy vehicles.

12
CONCLUSION AND LEARNING FROM THE PROJECT
HMIL has set an excellent example of how the combinative effort of different technological
skills and productive research can attain a huge victory within a short span of 10 years. HMILs
main objective to produce low cost automobiles to satisfy the needs of people has brilliantly
worked in India and is looking forward to expand its venture by capturing the luxury car segment
(Sedan) in the near future.
After a detailed study of the project, we can relate the growth of HMIL to Greiners model
Phase 5 of Growth through Collaboration which states that the organization is in good sense
since the staff group and re-group flexibly in teams to deliver projects in a matrix structure
supported by sophisticated information systems and team-based financial rewards. In HMIL the
staff appraisals not only include financial bonus but also promotions in the shop floor. The staff
is supported by sophisticated technology and information for performing their job. The Phase
ends by crisis of internal growth; further growth can only be achieved by developing partnerships
with complementary organizations. We can forecast that HMIL will progress only by
collaborating with some companies, like their venture in Australia (Hyundai-KIA Motors).

INDUSTRY ANALYSIS:-

With 11 players in passenger car segment, the total installed capacity is of the order of over a
million vehicles. More than 15% of the total capacity remained unutilized in 2003-04. Two
players, namely, PAL Peugeot and Premier Auto, among the older Indian entities, exited the
industry towards the end of 1999-00. Daewoo plant was closed, General Motors and Tata Motors
are involved in taking over some operations.

The scale of operations of Indian car plants is among the lowest in the world, rendering them
uneconomic. The average capacity of an Indian car plant is 40,000 units a year, as against
250,000 in Japan and the US; 125,000 in Brazil and 175,000 in South Korea. Volumes of
100,000 to 150,000 are considered viable. However, there are units in India with capacities
ranging from 9,000 to 30,000 units a year.
Total investment by the car companies is estimated at around Rs 130 bn with related component
makers chipping in another Rs 40 to 50 bn. At the existing volumes, all car companies, except
Maruti Udyog, will take two to five years to move beyond sustainable break-even volumes.

13
The Indian industry now has the presence of global players like General Motors, Ford, Suzuki,
Toyota, Mitsubishi, Honda, Fiat, Hyundai, Mercedes and Skoda. MNCs are widening their
product portfolio, which will further intensify competition. This also marks the next phase of the
Indian auto industry after the sector was opened up.
New players, such as Skoda and Toyota have lined up the market with Octavia (from Skoda) and
Corolla (from Toyota), Honda and Hyundai have come a long way through City, Accord, Sonata
and so on as their prized offerings. BMW is setting up an assembly plant in Andhra Pradesh.
The car sales in 2003-04 were estimated at over 821,500 vehicles, a 34.3% increase on the
preceding year with car sales at over 611,750 units. The production of passenger cars in 2003-04
increased to 781,764 units realizing a growth of 40% over the preceding year.
It is obvious that the market was overwhelmingly skewed in favour of low-end (priced) cars.
The non-linear segmentation is a reflection of the fewer models in the next price range.
Individual buyers, mostly small entrepreneurs, have outnumbered companies to form a
significant chunk of the car buying population. Most of the car buyers come from backgrounds
such as software and service companies. Individual buyers constitute roughly 70% of the total
demand today, overtaking corporate buyers, who traditionally represented around 60% of total
demand some years back. In the case of cars like Hyundai's Santro, as many as 95% of
its clientele is represented by individual buyers.
Leading brands of cars in India now include: Maruti 800, Esteem, Omni, Zen, Baleno, Alto
Wagon R, Opel Astra, Opel Corsa, Mercedez, City, Accent, Santro, Indica, Fiat Palio, Sienna,
Lancer, Ford Ikon. Lately, while Hyundai entered with Sonata, Honda came up with Accord.
Ford has been contemplating bringing in Mondeo, while GM's Swing made some healthy waves
in its segment. Skoda has introduced its Octavia, and may follow with Superb to strengthen its
presence. Reva Electric Car Co launched the base version of its Reva electric car in Bangalore
and Goa. Lately, GM has created quite a ripple with its Chevrolet based Optra.
Except for Maruti Udyog JV with Suzuki of Japan and Hindustan Motors tie-up with Mitsubishi
also from Japan, all the earlier collaborations have been diluted and converted into fully-owned
subsidiaries of the global players like GM, Ford, Hyundai, Daewoo, Daimler Chrysler. Among
the operational alliances is the one between DCM group and Honda in Honda Siel Motors. The
new entrants' forays like Skoda are again entering as wholly-owned subsidiaries.

14
Based on the long term optimism, new and established entrants in this sector are introducing new
models. As the number of players multiply, the Indian consumer will have a plenty of variety
and choice in the mid-size and small segment. Although small car category continues to be
dominated by Maruti 800 and Alto, Santro and . Indica, the segment would offer the consumer
the choice of pick and choose.

Maruti Udyog is in talks with various diesel engine manufacturers to set up a diesel engine
manufacturing base in India. Maruti is expected to outsource its entire requirement of diesel
engines from the proposed local unit. Peugeot, which supplies diesel engines to Maruti Udyog
for compact car Zen and mid-size sedan, Esteem, is one of the companies with which Maruti is
negotiating, another being Fiat.

The sudden and simultaneous induction of new cars in the segment exposed the Indian market to
severe competition, especially to the well entrenched Maruti 800 and Zen. Newer technologies
have been displayed by these entrants. These are aimed at improved fuel economies and horse-
power and at the same time overcoming stringent emission norms of Western Europe. Other hi-
tech features include multi-point fuel injection (MPFI) system, collapsible steering, independent
suspensions for the wheels, side impact bars, roof stiffners, child-proof locks, disc type front
brakes and several other features hitherto unknown.

In the changing automobile scenario, the market demand is composed of replacement demand,
new entrants to the market, graduation of two-wheeler owners to the car market and shift of
the small car owners to the medium and premium car segments.

The structure of the market by product variation is also witnessing a total metamorphosis. The
erstwhile models have been of higher engine capacity but are relatively low priced. Presently,
the bulk of the demand is for engine capacity below 1000 cc. The middle segment, which is
more price-oriented, is large in terms of value but the market in quantum is much too small. As
indicated, the mid-priced premium segment is witnessing a significant upsurge.

15
Lead Players

Company Indian Collaborator Foreign Year of Share

Partner Equity Incorporation (%)

Maruti GOI Suzuki Motor Company, Japan 100% 1982 50.4%

Udyog

Hyundai None Hyundai Motor Company, 100% 1996 19.5%

Motor Korea

Telco Tata None Nil 1945 14.5%

Group

Hindustan CK Birla None 100% 1940s 3.4%

Motors Group

Ford India M&M Ltd Ford Motor Company 84.11% 1995 2.5%

Fiat India None Fiat Auto SPA, Italy 100% 1997 0.9%

Honda Siel Honda Motor Company, Japan 99% 1995 5.0%

Sie1 Limited

General None General Motors Corporation, 100% 1995 1.4%

Motors USA

Daimler None Diamler Chrysler AG 100% 1995 0.2%

Chry Star

Skoda None Volkswagen Group 2001 1.0%

India

Toyota Kirloskar Toyota Motor Corporation, 88.86% 1997 1.2%

Kirloskar Group Japan

16
MULTI-UTILITY VEHICLES:-

The MUV segment consists of vehicles that are suited both for urban and rural areas. In rural
areas where the roads are bad, MUVs can be used as goods carriers and for public transportation.
In terms of the overall share of the vehicle market, the importance of MUVs is still low as 2.2%.
Traditionally, more than 70% of the vehicles sold by Mahindra & Mahindra (M&M), the main
player in this segment, went to tour operators and customers who bought it for business
purposes. Even the balance 30% picked up are primarily by buyers from small towns and rural
areas, who wanted a vehicle that could carry goods.

However, during the past couple of years, there has been a qualitative shift in demand profile of
this category. The introduction of the Toyota Qualis changed consumer perceptions about this
category. In urban areas, Qualis has tapped the latent demand for a large family car, thus blurring
the distinction between the passenger cars and MUVs. The changing consumer perception has
been further reinforced by instant success of Scorpio launched by M&M.. In a bid to tap this
growing market, MUL has also launched its first MUV, Versa. With other players such as
Hindustan Motors and Ford planning to launch the products in this segment, competition is
expected to intensify

ENVIRONMENTAL ISSUES: -

Emission control is important when it comes to tackling pollution levels on city roads. In the
recent past, the issue has become very important for the domestic automobile industry. Tracing
back to where it all started, we find that the first emission norms were introduced for petrol
vehicles in 1991 and for diesel vehicles in 1992.

From April 1995, fitting catalytic converters was made mandatory in new petrol driven
passenger cars sold in the four metros of Delhi, Calcutta, Mumbai and Chennai. For this to
happen, petrol pumps supplying unleaded petrol were opened in these cities.

17
 1.2 PROFILE OF THE COMPANY

HYUNDAI MOTOR

Headquarters: Seoul, Republic of Korea (231, Yangjae-Dong, Seocho-Gu)

Industry Sector: Manufacturing, Major Product: Automobiles, Production: 1,677,818 units per
year (CKD Excluded), Sales: 27,472 billion Korean Won*, Assets: 24,700 billion Korean Won

Net Income: 1,804 billion Korean Won, Chairman & CEO: Mong-koo Chung

Date of Establishment: Dec. 29, 1967

* Production: production total from domestic (Ulsan/Asan/Jeonju) and overseas manufacturing

plants

(India/Turkey/China) in 2004

* Sales, Assets and Net income: Hyundai Motors Independent Financial Standard for fiscal year
2004

*1 US $ = 980 Korean Won.

18
Hyundai Motor India Limited (HMIL) *

Wholly owned subsidiary of Hyundai Motor Company, South Korea

Industry Sector: Manufacturing

Major Product: Automobiles

Production Capacity: 280,000 units per annum

Total Sales: 252,851 units in 2005

Domestic Sales: 1,56,291 units in 2005

Export Sales: 96,560 units in 2005

Net Income: 432,282 million Korean Won (414143 thousand US$)

Chairman & CEO: Mong-koo Chung

Year of Establishment: 1996

* Company History is given in Exhibit

(Business Purpose) (Refer for detailed Mission in Exhibit)

Mission of the Parent company "Hyundai Motor Company"

The relevant business purposes of the Company are as follows:

To manufacture and sell all kinds of vehicles and component parts thereof.

To manufacture and sell special purpose vehicles and component parts thereof.

To engage in the export and import business.

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 30 variants of passenger cars in six segments. The Santro in the B
segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the
Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment.

19
Established in 1967, Hyundai Motor Co. has grown into the Hyundai Kia Automotive Group
which includes over two dozen auto-related subsidiaries and affiliates. Employing over 57,000
people worldwide, Hyundai Motor posted US$26.1 billion in sales in 2004 (on a non-
consolidated basis). Hyundai Motor vehicles are sold in 193 countries through some 5000
dealerships and showrooms. Hyundai Motor Co. is a sponsor of the 2006 FIFA Germany World
Cup.

Hyundai Motor India has said it will begin production at its second plant in the country on
October 15, 2007, where it aims to reach a capacity of 300,000 units by 2008.

Hyundai India aims to export at least 200,000 cars next year. The carmaker, which exports
Santro and Accent cars made at its factory near Chennai in southern India to regions such as
Europe, exported 115,000 cars in 2006 and plans to export 350,000 cars in 2009.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase
of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a
compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports
of 113,339 units. Last year, HMIL had clocked in 147,636 units from January to June. Compared
to last year (06), the sales grew by 9.3% to 161,296 units for the same period (Jan- June 07).
Out of this 100,925 units are sold in the domestic market while 60,371 units are exported. Last
year the domestic market had accounted for 91,273 units and the exports stood at 56,363 units
The export registered a growth of 7.1 % to while the domestic market volume has increased by
almost 11%.

Commenting on the sales this month Arvind Saxena, VP, Marketing and Sales said In spite of
hike in interest rates, Hyundai has still managed to grow in terms of volumes. We are sure the
next few months will see stronger retail as we overcome our capacity constraints with the new
plant starting operations later this year.

The segment-wise cumulative sales in the month of June 2007 are as follows: A1 Segment
23,558 units; A2 Segment 3,983 units; A3 Segment 24 units; A4 Segment 67 units; and
SUV Segment 21 units. At present HMIL have 167 in January 2007, dealers all over India
at present stage

20
Hyundai today enjoys a market share of around 10% and is looking at the doubling that figure.
Given the Indian market's response to the Santro, the company seems to be well on course....

Best customer service

Best technology

Best quality products

Best value for people.

All over HMIL launched the second nation wide free car care clinic campaign, offering our
loyal customers free check-ups for keeping their vehicles in best of condition. Hyundai involved
about 310 Hyundai dealers workshops across the country.

PRODUCTS PORTFOLIO

Segment Name Variants Price

B Santro XK(Non-ac, 2,82,973 to 3,92,974
AC),XL,AT,XO
B+ Getz GLE, GVS, GLS, GLX 4,21,000 to 5,18,518

C Accent GLE, GLE 1.6L, Viva, Viva 5,29,000 to 7,14,714

CRDi, CRDi

D Elantra GT, GLS, CRDi 8,53,793

to 10,53,800

E Sonata 2.4 M/T, 2.4 A/T(both are in 1,369,000 to

fabric/ leather) 1,459,000

SUV Terracan GL 2,059,151

Tucson Tucson 14,62,999

Santro:-

21
 Modeled on the Hyundai Atos, the Mercedes A140 and Suzuki's Wagon R, and then
customized to Indian tastes, the Santro takes the best of all the cars viz. the driveability of
the Atos, the safety & design of the Mercedes A140, and roominess of the Wagon R.

It claimed to be the leader of its segment since its launch till mid 2004. But in February
2005, WagonR's sales were higher than the Santro's and in March the Alto stole, too, the
Santro's thunder. The fight for market share goes on with the launch of new variants and
models in the B segment. But on an average, Santro stands to be the market leader.

It is a mid-size segment car and the pricing strategy varies over the variants being
offered. The XK (non- ac) starts at 2.82 lakhs and the costliest variant is around 3.92
lakhs. It competes with Marutis Zen and Alto, Tatas Indica and Fiats Palio.

Getz:-

In response to consumers demand for something bigger than B segment cars, yet smaller
than those in the C segment, car manufacturers lined up a new range of variants. This
segment is the B+ segment.

The Getz is one of the most well designed and graceful looking cars from the Korean
Chaebol, especially since the company has tended to conceive cars that have a "streak of
queer beauty" about them.

Its chief competitors are Ford Fusion and Chevrolet Spark. Besides these two models,
Fiats Palio and Petra, Opels Sail & Corsa, Tatas Indigo and Fords Ikon Flair also face
competition from Getz.

As every model of Hyundai, Getz is also priced premium but at a killer price amongst its
strategic group. Its variants cost from 4.2 lakhs to 5.2 lakhs.

Accent:-

In the mid-size segment, the Accent leads with a market share of 27 per cent, pitted
against the likes of Ikon, Honda City, Corsa, Esteem and the Lancer.

Accent GLS has been positioned as the car that provides power and performance, while
Accent CRDi targets those consumers who are conscious about the cost per kilometer.

22
 The CRDi variant has proven to be a deadly weapon in performance and against
competition.

The competitors are Fords Ikon, Hondas Honda City, Marutis Esteem, Opels Corsa,
Mitsubishi Lancer and their variants. Accent stood out as the market leader in its segment
most of the time. The pricing has been hiked at times owing to the rising costs and yet the
price varies over 5.29 to 7.2 lakhs.

Elantra:-

Aggression is writ clearly across the Elantra's face. This is typically the kind of design
that the young car buyer will identify with. If the Hyundai Elantra's design does not
appeal to the stiff upper-lip gentleman, the features-to-value equation surely will.

Hyundai has packed the Elantra with electronic gadgetry and loads of active and passive
safety features that the competition has not thought of offering in their cars. The cars that
are competition for the Elantra like the Toyota Corolla, the Skoda Octavia,, Chevrolet
Optra and the Mitsubishi Lancer.

Positioning and pricing have been the key factors for the success of Hyundai's products.
In the case of the Elantra, too, Hyundai has positioned it squarely in the cusp between the
C and D segments. Pricing wise it is in the higher end of the C segment, at the same time
it is as feature rich as the average D segment sedan.

Priced at Rs 8.5 lakh for the lower trim GT variant and going up to Rs 10.5 lakh for the
CRDi variant, the Elantra is good value for money. The competition will have a tough
time beating this combination of features at this price.

Sonata:-

The country's luxury car market constitutes one per cent of the total passenger car and
MUV market. The section of the population it targets is hence extremely limited. So
Hyundai offers Sonata as a brand by associating the car with royalty and high-class
society. It offers all the features a luxury car can demand and also establishes itself with a
killer low price and decent looks along with large periods of warranty.

23
 Its chief competitors are Ford Mondeo, Toyota Camry, Honda Accord, Skoda Octavia,
Benz c class, Toyota Corolla, Opel Vectra. The variants of Sonata have been placed in
the range of 13.59 to 14.69 lakhs. The huge advantage of the pricing strategy Hyundai
employed is in terms of the warranty period and thus the car has been targeted to cut
through profits of the other models in this segment.

Terracan:-

Hyundais most powerful SUV, The Terracan projects a strong masculine identity that
evokes Hyundais strategic goal to challenge other entrants in the medium-heavy 4WD
market with a vehicle that weds performance with comfort, refinement and fresh styling.
Terracans on-road ride comfort, refinement and ease of driving have been honed as
major Terracan strengths.

The overall look of the SUV is one of a simple, elegantly straight-edged body,
personalized by several highly styled elements.

The chief competitors for it are Mitsubishis Pajero, Hondas CRV, Grand Vitara,
Chevrolet Forrester, Fords Endeavor. Its GL variant costs around 20.5 lakhs.

The pricing strategy targets a premium customer who values style and sports utility as a
lifestyle statement. Though an element of value for money exists, style and aggression
drive the flow. The car will be positioned as a value product targeted at the young,
demanding male.

Tucson:-

We have had many good SUVs, but all of them have been petrol-driven; a diesel-engine,
`right-size' luxury SUV was not available. This led to the genesis of Tucson. The Tucson
boasts of a sedan-like monocoque construction. It holds features fit for a SUV ride and a
better performance with respect to diesel variants in general.

The macho machine comes with a long warranty period. Hyundai made an effort to
provide a lot of premium features without bursting a buyer's budget. It costs around 15
lakhs but though a value for money proposition has been offered, the model fails to cater
true luxury car features. Hence the pricing seems to be of concern.

24
SERVICES OFFERED

Authorized Service centres.

Emergency Road Service.

The companys greater focus on the quality of its after-sales service made Hyundai provide these
services, with servicing available at their own authorized centers and other service points.
Hyundai reflects its image of value for money in the service it offers. In order to deliver the
highest value through their products they have set up more than 70 dealer workshops equipped
with latest technology machinery and international quality press, body and paint shops, across
the country.

There are three company-owned outlets called 'Hyundai Motor Plaza' that will serve as model
dealer showrooms and service workshops for the customer. Customer Care Centres which have
specially equipped Santros that can provide emergency service to all our customers anytime,
anywhere have been provided.

TARGET MARKET STRUCTURE

Market Segmentation by Category

Premium and Luxury 0.5%

Executive Segment 1.7%

Mid-size 15.9%

MUVs 2.2%

Size and compact 79.7%

25
 Market Segmentation by Geography

Segment Share(%)

North 43

East 8

West 26

South 23

Market Segmentation by Price of Car

Over Rs 1.0 mn 0.8

Rs 501,000 to Rs 1.0 mn 3.2

Rs 301,000 to Rs 500,000 49

Under Rs 300,000 47

This table illustrates the geographical and price wise segmentation of the passenger cars market
and the percentage share they account to. Passenger cars are mostly aimed at urban areas, though
a shift to focus on the semi-urban and rural areas is becoming evident. MUVs stand to cater to
the need of semi-urban areas more precisely owing to the space and performance features
MUVs offer.

In general, car has always been a status symbol and a convenient & safe transport utility.
Thus the passenger cars are targeted towards income groups which can afford and mindsets
which demand a statement of style. HMIL is targeting customers in the 25-50 age groups.
Hyundai has leveraged on this by providing value for money products with compact, stylish
designs.

26
 CUSTOMER PROFILE & COMPETITORS

Name Target Customer Profile Competitors

Santro Budget constrained & budget conscious Maruti Zen, Alto, Tata Indica
(B) buyer; parking space conscious; and Fiat Palio.

a small family; middle income groups.

Getz Buyers who needs more Power, an Fiat Palio and Petra, Opel Sail
(B+) affordable price, medium size and & Corsa, Tata Indigo and Ford
trendy look; buyers looking for a good Ikon Flair
value for money proposition.

For those who lead their own life and

create their own benchmarks.

Accent Demands power and performance; is Ford Ikon, Honda Honda City,
(C) conscious about the cost per kilometer. Maruti Esteem, Opel Corsa,
Requires a medium size at reasonable Mitsubishi Lancer
prices with a blend of fuel efficiency,
power and stylish look.

Elantra High income groups who value Toyota Corolla, Skoda

(D) performance and command a luxurious Octavia, Chevrolet Optra and
style of living. Mitsubishi Lancer.

Sonata High income and elegant class. Ford Mondeo, Toyota Camry,
(E) Demand a status symbol of luxury Honda Accord, Skoda Octavia,
which conveys the stylish living the Benz C class, Toyota Corolla,
owners lead. Opel Vectra

Terracan a premium customer who values style Mitsubishi Pajero, Honda

(SUV) and sports utility as a lifestyle CRV, Grand Vitara, Ford
statement. young, demanding male; Endeavour, Chevrolet

27
 high income group. Forrester

Tucson A merge of luxury, comfort, compact

(SUV) proportions and fuel efficiency of
sedans with the handling, build and feel
of a sport utility vehicle (SUV) targets
at a customer who demands such a
crossover with a good amount of inner
space

DISTRIBUTION
HMIL has 4 regional offices in India, at Delhi, Mumbai, Chennai and Kolkata. HMILs fully
integrated state-of-the-art manufacturing plant is located near Chennai which boasts some of the
most advanced production, quality and testing capabilities in the country.

In continuation of its investment in providing the Indian customer global technology, HMIL has
announced plans for its second plant. Hyundai Motor India Ltd (HMIL) has now planned to
increase its production to 600,000 units per year by 2007 from 400,000 units as planned earlier.
The announcement was made on Feb10,2006 by Hyundai Motor Companys (HMC) Chairman
Mr. Chung Mong-Koo during his visit to India.

The existing plant capacity is 280,000 units per annum which will be increased to 300,000 units.
The second plant will add another 300,000 units, which is under construction and expected to be
completed by 2007. The plant will be built on a 2.1 million square meter site adjacent to the
existing facility with an investment of $450-$500 million on its new integrated facility. HMIL
plans to expand its dealer network, which will be increased from 157 to 200 in 2006.And
HMILs service network will be expanded to over 1,000 in 2006.

The details of the locations of the - Regional offices

Dealers

Authorized Service Centres

28
 HSCP (Hyundai Service Center point) are in the exhibits.

1.3 COMPETITION ANALYSIS

Comparison on the market share, export-prospects of Indian Automobile Sector:-

Passengers Vehicles From April- From April- Total Market The Net Total number
(PVS) November 05- November 06- Share (in %) Change of exports in
06 07 between the April 06-07
period

(in %)

Maruti Udyog 2,69360 2,91,182 52.2 8.1 23,043

Hyundai Motors 89,075 1,07, 066 19.2 20.2 68,374

India Ltd.

Tata Motors 95,402 24,348 16.6 -2.7 12,105

Honda Siel Cars 23,186 24,348 4.4 5.1 31

India Ltd.

Ford India Pvt. Ltd 15,026 10,512 1.9 -30% 9,928

MARUTI UDYOG

From its inception Maruti has been in only in one line of business, car manufacturing. The
company manufactures passenger cars at its factory in Gurgaon, Haryana. Maruti enjoyed a
dream run in the pre liberalization era enjoying a market share of over 80%. But with increased
competition in the car market its market share has currently dropped below 60%. Its first
product, Maruti 800 was launched in 1983. The car was launched as a "peoples car" with a price
tag of Rs40, 000. This changed the industry's profile dramatically. Maruti 800 was well accepted
by middle income families in the country and its sales increased from 1,200 units in FY84 to

29
more than 200,000 units in FY99. However in FY2000, this figure came down to 189,184 units,
due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. In 1985,
the all-terrain vehicle Gypsy was launched. The Maruti 1000 was launched in 1990 and the Zen
in 1993. To counter increasing competition the company has launched a series of new models
and plans to launch one new model every year. The present models include the 800cc small car,
Omni, Esteem, Zen, Alto, Wagon R, Gypsy, Baleno and Versa

HONDA

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture
between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture HONDA passenger cars
in India. The company is ISO 9002 & ISO 14001 certified. The plant was set up in 1997 with an
investment of Rs. 450 crores (paid up capital Rs. 360 crore) and in 2005 the investment stood at
Rs. 800 crores. Their product range in India includes the Honda City ZX, Accord and CR-V.
City ZX is today recognized as one of the most successful car brands in the country. It is strongly
associated with durability, reliability, quality and fuel-efficiency. City ZX, the latest version of
the City, including the VTEC version, was introduced on October 5, offering enhanced power
and style.
In addition to the City ZX, Accord and CR-V models made them a premium segment leader in
the Indian passenger car industry.
Honda is operating only in segment D cars i.e. the premium segment.

TATA MOTORS

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 crores
(USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each segment, and
the second largest in the passenger vehicles market with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fifth largest medium and
heavy commercial vehicle manufacturer. Training to the employees is provided by the vendors
only. Showrooms on their part are providing incentives to the car sales executive for promoting

30
accessory. They also deal in only genuine accessory approved by Tata. They provide door-step
facility to the customer when it is required.

TOYOTA

Toyota Genuine Accessories are manufactured to the exact specifications of each individual
Toyota model. This means they fit precisely and conform to every contour of the vehicle. Toyota
Genuine Accessories are designed, tested and manufactured to strict Toyota global standards.
This quality and reliability is supported with up to a 3 year, 100,000km warranty.

LATEST EVENTS DONE BY HMIL

Hyundai Motor to Roll out CNG Santro

Hyundai Motor India (HMIL) plans to introduce a factory-fitted CNG kit version of its
popular passenger car Santro with the option of petrol as a second fuel.
Hyundai will roll out the CNG version of the Santro from it's existing plant in Chennai by
the end of 2007 or early 2008.
Hyundai Motor Co to make 300,000 hybrid cars a year-
Carmaker Hyundai Motor Co plans to make 300,000 gasoline-electric or diesel-electric
powered vehicles by 2015 as demand for more fuel-efficient cars is rising.
Hyundai sales up 14.1 per cent in Sept-
Hyundai Motor India achieved a growth of 14.1 per cent in the domestic market in
September 2006, selling 16,415 vehicles during the month. Hyundai's cumulative sales
during the month were 26,492 units a growth of 11.5 per cent, over September '05.
Overseas sales in September stood at 10,077 units, a growth of 7.5 per cent over the same
month in the previous year. Hyundai Verna, launched in the last week of September
2006, has sold 2,043 units in the first five days. The segment-wise cumulative sales in
September 2006 are: A2 segment: 22,409 units, A3 segment: 3,887 units, A4 segment:
147 units, A5 segment: 22 units, SUV segment: 27 units.
Hyundai Motor betters its brand value

31
 Hyundai Motor Company has reported a 17-per cent appreciation in its brand value,
emerging 75th in the latest survey of world's leading brands, jointly conducted by
branding consultancy firm Interbrand and the Business Week magazine.
The Korean automaker Hyundai Motor raked 84th in its debut appearance on the Best
Global Brands list last year.
The 17-per cent appreciation in brand value of Hyundai makes it the fastest growing
automotive brand and places it among the top five biggest gainers in brand value.
Hyundai, with an estimated brand value of $4.1 billion, has also way ahead of its
competitors. Hyundai has been making continuous improvements in the quality of its
vehicles, which in turn has fueled a steady increase in sales and customer confidence in
the brand. In fact, Hyundai's sales have been built on a balanced management of its brand
value and marketing. The group sold 3.7 million vehicles in 2005 and ranked the sixth
largest automotive manufacturer in the world. Hyundai includes over two dozen auto-
related subsidiaries and affiliates. Hyundai Motor, which employs over 68,000 people
worldwide, posted $27.38 billion sales in 2005. Its vehicles are sold in 193 countries
through some 5,000 dealerships and showrooms.
Hyundai ramping up its dealership network
With Hyundai Motor India Ltd. expecting its second plant expected to go into operation
soon; the company is now looking to speedily ramp up its dealer network to push sales
for the increased production.
HMIL reportedly had 167 dealers in January 2007, and plans to expand its network to
250 by December.
New dealerships are likely to follow the proven format, with sales, services and spares
facilities housed together.
The company has been witnessing rather flat sales over the past few months, though it
has a healthy stable of cars, which include the Getz, the Santro, and the Verna. The
lacklustre sales are reportedly attributed by the company to production capacity
constraints, as a result of which domestic sales suffered, and even export orders saw some
backlogs.
Hyundai October sales up 71 per cent

32
 Hyundai Motor India Ltd (HMIL) announced yesterday that the company's sales grew by
71 per cent at 22,704 units. The company sold 19,007 units in the compact car segment,
3,503 units in mid-size car category, 152 units in the premium mid-size car segment and
23 units in the luxury car segment, a company statement said. HMIL, Indian arm of the
Korean automaker, sold 19 units of sports utility vehicle 'Terracan'.
Hyundai targets export earnings of Rs.2, 700 crore for the fiscal
Hyundai Motor India Ltd expects to export 95,000 cars in the year against 70,000 last
years, according to company officials. With about Rs1, 325 crore in export earnings in
the first six months of this year, the company is confident of ending the year with an
export income of Rs2, 700 crore, up from Rs1, 700 crore last year. Of the 1,35,165 cars
exported from India in 2004, Hyundai Motor India accounted for 85,000, he said and
added that a majority of the company's exports were going to "the most discerning
markets" of Europe and Latin America, including the Nafta (North American Free Trade
Agreement) area of Mexico. This was the best possible comment on the manufacturing
standards of the company and its vendors, he asserted.

33
 LITERATURE REVIEW & PROBLEM FORMULATION

The conceptual discussion brings into front the factors on which early adopter and late adopters
differ. Some these factors are awareness, media habits, loyalty, age , income, education,
occupational status, risk, variety seeking, and attitude towards change.

Chuan-Fong shih & Alladi Venkatesh his research shows the importance of Diffusion of
Innovation. They suggested the extended model of Diffusion of Innovation. The research shows
that though diffusion process cannot be understood without studying the nature of adoption, to
complete the diffusion study use-diffusion process also needs to be examined. This research was
based on two criteria rate of use and variety of use. They came out with four typology: intense,
specialized, non specialized and limited.

Another research carried out to find the factor, which affects the adoption of Internet
banking. The result of the research shows that internet accessibility, awareness, attitude
towards change, computer and internet access costs, trust in ones bank, security concerns,
ease of use and convenience are the major factors affecting the adoption of internet bank
services in Malaysia. The demographic difference between Internet bank users and the
non-users were not very evident in the study, particularly with reference to age and
educational background.

Christophe Van den Bulte did research on The Bass Diffusion Model is not a Mixture of
Innovators and Imitators. This paper has shown that the Bass model is all too often
misinterpreted as representing the diffusion of innovations between two different types of actors,
innovators and imitators. Bass (1969) assumed that innovation acceptance is driven in part by
social contagion, and that the probability that an initial purchase will be made at [time t] given
that no purchase has yet been made is a linear function of the number of previous buyers

MARKETING STRATEGY OF HYUNDAI

In This Section We Identify The General Marketing Strategy Under Which This Plan Is Being
Developed. It Is Very Possible That A Product Will Follow More Than One Strategy, And It Is
Not In The Focus Of This Study Or Plan To Cover The Strategies Other Products Would Sail
Upon Except For The Action Plan We Suggest. It Can Make The Picture Clear If We Take Note
Of The Following Issues:

34
The Mission Statement Says,
To Manufacture And Sell Special Purpose Vehicles And Component Parts
Thereof.
To Manufacture And Sell All Kind Of Vehicels And Components Parts Thereof.
The Vision Of The Organization Is
To Rank Among The Worlds Top Five Automakers.
The Objectives Of The Organization Speak Of
To Increase The Share In Indian Passenger Cars( Includes Suvs And Muvs) Market
To Expand Its Export Volumes To America, Europe And Middle East.
Some Facts:
The Indian Passenger Car Industry (Excluding Muvs) Is Growing At 13.4% (Cagr)
And The Muv Market Is Growing At 13.7% (There Exists Certain Element Of Doubt
On The Projected Cagr, Due To Dependence Of Muv Market On Certain Other
Factors. Cagr Calculated Over 10 Years Data For Passenger Cars And For 4 Years
On Muvs. For Clear Understanding Look In Exhibit ).
The Cars Industry Accounts For 50% Of Automotive Sector Globally, Whereas It
Accounts To 15% In India. Indian Car Market Is The Second Largest In Terms Of
Growth, After China.
Hmil Has Now Planned To Increase Its Production To 600,000 Units Per Year By
2007.
Proposed Action Plan: Launch A Model To Cater To The Muv Segment.
The Elements Of Marketing Strategy Are:
PRODUCT/ MARKET SELECTION:-
Hmil needs to cater to its existing markets from its present product lines. But hmil needs
to focus on the segment of muv market. Though launching a muv definitely needs certain
competencies, they are not much different from what hmil has and its parent company already
serves to this segment, which makes it far more easier. By launching a muv, hmil would serve to
the rural, semi-urban and urban markets and spread its network more into the roots of indian
market. This is purely a market development strategy as the product already exists (hyundai is
being produced in korean domestic market already), but now it is being offered to the indian

35
market. We would discuss the benefits we can associate and the design specifications of this
product in the next section.
PRICING:-
Hyundai has always been considered to be a quality product provider and is mainly associated
with value for money, premium features at lower prices, stylish & trendy designs and superior
quality. Hyundai has to be priced taking into consideration the perception customers have about
hyundai.
Strategy: value pricing retaining the qualities of being premium brand.
Objective: to offer high quality product at a competitive price; to enable a budget conscious
buyer purchase the product; to enable many people to buy a new car with modern levels of safety
and environmental protection; to win loyal customers and retain the existing customers.
the policy is to hold the price-line at constant levels sans passing on the inflation effect to the
customers.
DISTRIBUTION: -
Hmil is planning to expand its dealer network from the present 157 to 200 this year to reach out
to semi-urban and rural areas and to increase its market share from the present 20 per cent. So
the objective would be to reach the lucrative regions which can create huge number of sales. To
begin with launching hyundai in the following states punjab, haryana, uttar pradesh, maharashtra,
kerala and andhra pradesh, where there is a sizeable affluent rural population seems to be a good
idea to start on with. And also as hyundai would be targeted at being a large family car/ van, we
can head on with launching it at selected urban cities in other regions and the major cities of
india.
COMMUNICATION:-
Positioning campaign: hyundai needs to be positioned as a large spaced, power vehicle; as a
cargo van which can be used both for family use and transportation. It stands to be important to
win the customers hearts by adding the emotional touch of being a large familys car and a very
good mpv.
ADVERTISING:
Pre-launch campaign, tv campaigns, print ads, e-resources and certain areas of wireless/ mobile
advertising.

36
PROMOTION:-
Test rides, finance schemes, after sales service discounts.
PROBLEMS FORMULATION
The company plans its raw material requirement from the sales projection, which was done
by the marketing department of the company. At the end of every month, marketing department
creates its budgeted sales for the existing product and new products. Marketing department
creates its budgeted sales by considering demand of the product, actual sales in the previous
month and the sales in the current month of the previous year.
Production, Planning and Material Control Department (PPMC) is based on the sales
projection and calculates the requirement of the raw material for each department for each
product. PPMC department authenticates raw material issued.
After the PPMC Department calculates the requirement of the raw materials, the purchasing
department places an order to the vendor or supplier for each department. Then the supplier
dispatches the material in the factory premises.
Now the raw material proceeds through the testing process. Here it is checked whether the
raw material is as per the standard quality prescribed by company at the time of placing an order.
At the time of testing they also allocate specific identification number to each material so that it
can be referred at the time of production, if any defect occurs. Then raw materials are issued to
the production department.
Company is following batch production process. They assign the batch number and lot
number so that if any problem occurs while it is consumed they can detect the fault.

37
 OBJECTIVE AND METHODOLOGY

3.1 OBJECTIVE OF THE STUDY

The basic idea of thesis is to gather more knowledge about automobile industry of
India India's entire industry -- local producers and transplants -- collectively
manufacture about 1.4 million vehicles a year.

The main objective is to find out marketing strategy of HMIL where we found
different attribute of marketing strategies such as, road demonstration, brand
loyalty, market segmentation, brand upgardation of different products of company
which increase the market share of the company in particular field.

There is very much needed for the automobile sector because it is very much need
to tell about company profile, its products, there marketing strategy to upgrade
there brand loyalty in the automobile sector which increase there market share.
Hyundai motors is making the tradition of making passenger car fastest growing
car after Maruti Suzuki. Hyundai motors has recorded sale of 299,513 vehicles in
the calender year (cy) 2006, an increase of 18.5 percent over cy 2005.

Sample- during the thesis period we have gone through nearly recorded 100 of
customers where all of them are satisfied with Hyundai performance buying of b
and c segment of cars.

SIGNIFICANCE OF THE STUDY

For any business venture, marketing and sales go hand in hand. Opportunities
come and go but business comes from the ones, which are handled properly in
terms of leads.

Leads for any new opportunity are very important for it to turn out a profitable
venture.

38
 Marketing and sales work hand in hand for leads.

Promotion plays a very important role in both the departments. Promotion helps
us to market a product properly and also helps in increasing the sale of the
product as compared to competitors.

MANAGERIAL USEFULNESS OF THE STUDY

Helps to have sale experience

Helps to deal with different customers
Helps to overcome the objections of the customers
Helps to understand the problems of agents in a broader prospect
It provides a platform where managerial role can be played effectively and
efficiently.

SCOPE OF THE STUDY

Deep insights would give me the clear knowledge of strategies adopted and
which would make me a better marketing professional.
Important from a consultant prospective finding loopholes in marketing strategy of
the company if any.
Contribution to the institute and my fellow colleagues and a unique piece of work.
The basic thing which is needed for thesis of Hyundai motors is to increase market
share, increase brand loyalty by providing:
1. Value for money car
2. To implement best technology
3. To provide better customer service
4. to make quality products.

3.2 METHODOLOGY
The study conducted to achieve the aforesaid objectives will be both exploratory and conclusive
research in nature. It also involves personal interviews based on the questionnaire format.

39
DATA COLLECTION METHODS:-

Primary source
Secondary source
PRIMARY SOURCES
The data required for the study is based on:
1. Personal interviews based on pre-decided format of structured undisguised questionnaire.
2. Personal interview with the Company representatives regarding the various data.
3. Personal interview with the Competitors Companys representatives regarding the
various data.
SECONDARY SOURCES
The secondary data consists of information collected from:
Websites
Published data on AUTOEXPO
Personal Interviews

DATA ANALYSIS TOOLS:-

Use of scales and graphs for analysis.

Questionnaire design formulation:-

We asked questions to different Hyundai customers and potential buyers as well. We just
wanted to geather information about what they feel to be a Hyundai car owner and how
much satisfied are they with their cars performence and after sales services.

We asked both open and close ended questions to the customers. We asked question from
different segment car owners. Our sampling size was about 100 peoples which include
present owners of Hyundai car and potential buyer.

Survey Area: -We collected all information from various Hyundai showrooms and service
centers (DELHI ONLY)

Time frame :- 6 weeks

40
Research design:-

We have used following research design in making our project:-

EXPLORATORY RESEARCH DESIGN

It seeks to discover new relationships between several facts..It discovers ideas and insight.The
major purpose of the exploratory research design is to do the clear identification of the
problems.Bigger problems are broken in smaller segments.Exploratory study is the initial stage
of marketing research as it is in a developing stage.Exploratory research helps in understanding
explanations of various problems of marketing mix.The exploratory study may be used to clarify
concepts and causes of problems It is also useful to test the aplicapility of new policies.It is
dynamic and changes with new ideas and concepts.

CONCLUSIVE RESEARCH DESIGN

It is of two types:-

Descriptive research

Experimental design

It helps the marketing executive to arrive at a suitable decision from the various
alternative decisions. The various alternative conclusions and selecting the most suitable
conclusion may be done by its one of the forms, Descriptive research design. In this research
design ,only a partial situation is clarified but in case of experimental research design a
alternative is selected. Therfore, the experimental research design is considered an important
conclusive research design.

41
 DATA ANALYSIS

1. QUALITY ASSURANCE:

QUALITY ASSURANCE

5%
15% 31% EXCELLENT
VERY GOOD
GOOD
AVERAGE
21%
POOR
28%

GRAPH 4.1

ANALYSIS:- Customer analysis report tells that about 50% says that HYUNDAI driving is
good because of machinery used in the car components. but reaming people says that they dont
find comfortable with HYUNDAI while driving.

2. INCOME GROUP OF PEOPLE WHO BUYS HYUNDAI:

INCOME GROUP

23%
25000-30000
47%
30000-35000
35000-40000
30%

GRAPH 4.2

42
ANALYSIS:- The above chart shows that more than 50% of income group of 25,000-30,000
prefer HYUNDAI car to be there first car in the family. Which proves their brand loyalty and
product differentiation from the other cars.

3. PRICE RANGE:

PRICE RANGE

37%

YES
NO

63%

GRAPH 4.3

ANALYSIS:- Majority of the people are satisfied with price range of HYUNDAI where they
cant afford the car they finance the car.

4. HYUNDAI AS PERSONALITY CAR:

30%
YES
70% NO

GRAPH 4.4

43
ANALYSIS: While buying HYUNDAI car more than 50% of people think that it suits to there
personality which upgrade there social symbol in the society especially in women.

5. COLOUR CHOICE

COLOUR RANGE

10%
26%
WHITE
21%
SILVER
RED WHINE
BLACK
BEIGE
12% 31%

GRAPH 4.5

ANALYSIS:- Mainly people make choice for colours which suits their personality.

6. DEALERS PRICE :

PRICE RANGE

38%

YES
NO
62%

GRAPH 4.6

44
ANALYSIS:- While purchasing most of the people think that yes their cars match with their
personality while other who didt agreed ,majority were because of price range.

7. DEALER ATTENDING PROPERLY:

DEALERS ATTENDING

10%
29% EXCELLENT
16%
VERY GOOD
GOOD
AVERAGE
21% POOR
24%

GRAPH 4.7

ANALYSIS:-- It is said by the customers that more than 50% of dealers are attaining customers
properly and remaining of them have mixed thought for dealers attending them. many of the
customers are happy with dealers attending to them.

8. HYUNDAIS COMPARISON WITH OTHER CARS

SATRO COMAPRISON

12%
28% EXCELLENT
16%
VERY GOOD
GOOD
AVERAGE
POOR
20% 24%

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 GRAPH 4.8

ANALYSIS:- About 30% of people says that HYUNDAI cars the excellent car. If so it is better
for HYUNDAI to capture the big margin of market share in India, which shows the
compatibility of HYUNDAI as comparison to other cars.

9. FAMILY PREFRENCE:

FAMILY PREFERNCE

14%
28% EXCELLENT
17% VERY GOOD
GOOD
AVERAGE
POOR
20% 21%

GRAPH 4.9

ANALYSIS:- It has seen that most of the Indian family prefer Santro car from the products of
HYUNDAI which shows the Santros demand and it strengthen its market share.

10. MILEAGE:-

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 MILEAGE

14%
27% EXCELLENT
16% VERY GOOD
GOOD
AVERAGE
POOR
19% 24%

GRAPH 4.10

ANALYSIS:- The analysis shows that HYUNDAIS mileage is much better than any other car.
this is mainly because they run very much fuel saving not in highways but also in cities, which
how its better machinery used in car.

FINDINGS AND RECOMMENDATIONS

FINDINGS
India has been the scene of some of the most frenetic deal- making, big expansion
announcements, and new car launches in the global auto industry
India's entire industry -- local producers and transplants -- collectively manufacture
about 1.4 million vehicles a year
Consider that in the last 18 months alone General Motors, Fiat, Honda, Nissan, and
Hyundai have announced Indian investments valued at roughly $1.5 billion.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger
car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY)
2006, an increase of 18.5 percent over CY 2005. .
In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with
186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339
units. Last year, HMIL had clocked in 147,636 units from January to June.
the objective of the thesis of increasing the market share and studying various criteria
important to customers has been fulfilled from the primary and secondary data
collected from various sources Hyundai motors can improve market share, by
increasing brand loyalty, giving more ads and promotions, increasing R&D etc
47
 RECOMMENDATIONS
It is essential for every company to make their image perfect and desire to achieve customer
satisfaction by selling products. i suggest the following recommendations:
Hynduai motors should take appropriate measures for promotional offers through
road shows, auto expos and promotion through dealers so that there product should
reach customers and increase brand loyalty.
Secondly they should increase brand loyalty among potential customers
They should increase printads, T.V promotions like commercial advertisement and
through game shows etc
Many of the families always look for the price range, which Hyundai motors has to
improve to attract more customers and retain the potential customers.
Also the mileage of Hyundai cars should be improved not only at highways but also
at cities.
Also Hyundai motors must attract family more so that it can increase sale and profit
margin.
The dealers all over India should attained customers properly and make follow ups
regularly to prevents customer loss and increase sales
The colour choices should be made according to customers choices and convenience
at showrooms.

CONCLUSION

There is a more preference of small cars observed in metro.

More than 85% are satisfied with the performance of Hyundai cars.
The major reason for dissatisfaction among the least number of dissatisfied owners is the
maintenance cost which they bear.
Majority of the customers want to have some incentives with the purchase of car.
Hyundai is very successful in India but I think their marketing department could do a
little better.
Hyundai should focus on lower segment cars as there are few cars for that customer
group which is the biggest weekness for Hyundai.

48
 Hyundai car are comparatively costlier than its competitors thus they should look for
some price cuts.
Hyundai should concentrate over some promotional activities to attract potential
customers.

APPENDIX

QUESTIONNAIRE

Personal Details

Name (Mr/Ms)_______________________

Designation__________________________

OfficeAddress______________________________________

__________________________________________________

PhoneNo_______________________

Email____________________________

(Please give your honest opinions in making this survey a great success)
Note: Please tick in the appropriate boxes

Q.1 Are you satisfied with the quality assurance of HYUNDAI

1. Excellent

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 2. Very good

3. Good

4. Average

5. Poor

Q.2 Which income groups prefer to buy HYUNDAI CARS more?

1. 25, 000-30,000

2. 30, 000-35,000

3. 35, 000-40,000

Q.3 Are you satisfied with price range of HYUNDAI

1. YES 2. NO

Q.4 Are HYUNDAI CARS Looks Match Your Personality?

1. YES 2. NO

Q.5 What Colour You Like offered by HYUNDAI?

1. WHITE

2. SILVER

3. RED WHINE

4. BLACK

5. BEIGE

Q.6 Is dealer is offering you right price for HYUNDAI?

1. YES 2. NO

Q.7 Is dealer attending you properly?

1. Excellent

2. Very good

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 3. Good

4. Average

5. Poor

Q.8 How do you compare YOUR CAR with other cars?

1. Excellent

2. Very good

3. Good

4. Average

5. Poor
(PLESE MENTION YOUR CAR) -------------------

Q.9 Are your family member prefers HYUNDAI CAR for driving?
1. Excellent

2. Very good

3. Good

4. Average

5. Poor

Q.10 Is YOUR CAR giving you right mileage according your expectation?

1. Yes 2. No

Q.11 What do you find about company marketing strategy while purchasing YOUR
CAR?

1. Excellent

2. Very good

3. Good

4. Average

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 5. Poor

Q.12 Is your family finds YOUR CAR as a right choice?

1. Yes 2. No

Q.13 How do you find HYUNDAI steering working?

1. Excellent

2. Very good

3. Good

4. Average

REFERENCES
Books:

Kotler Philip, "Marketing Management", Pearson Education 2nd ed.

G.Schiffman Leon, Consumer Behavior, Prentice-Hall India 8th ed.
Jain, khandelwal , pareek, Financial Management.
D. Perreault William, Jr.& E. McCarth Jerome , Basic Marketing A Global
Managerial Approach.

Websites:

www.hyundai.com
www.autoworld.com
www.mahindra.com
www.mahindrascorpio.com

http://search.indopia.in/begin.php
www.indiamart.com/company/

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www.automobileindia.com/cars/hyundai-motors /
www.hyundai.co.in

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