Swot ,pest analysis and porters

five forces of automobile

industry and Hyundai motor
India Ltd
DESCRIPTION OF COMPANY
 SWOT ANALYSYS

Strengths in the SWOT analysis of Hyundai

Hyundai India has such a brand equity that it is almost assumed to be an Indian brand, with lot of good accolades for being India’s second most selling brand next to MUL in market share
Hyundai Motor India limited is the largest car exporter from Asian Market which showed a 10% growth compared to last FY
The domestic sales is increasing at an average rate of 19.1%
HMIL is known for its quality products which has better performance and it has constantly been ahead in the race with Maruti Udyog limited in many parameters
The product length includes around 8 cars, starting from new Eon in small car segment to SUV segment Santa Fe
Among the automobile players only HMIL is known for its CSR activities
Hyundai products never fail to win laurels in each segment from various automobile ratings ever since its operations in India
Hyundai , has the largest network of showrooms and service station next to Maruti in India
An article in Economic times quoted that “Hyundai Eon launched , treads on Alto territory” indicated that Eon will act as a threat to reduction in Alto’s market share
Weaknesses in the SWOT analysis of Hyundai
HMIL took a long time to gain the market share as its not the first mover in India
In terms of most reliable and trusted brand; Maruti is more strong in Indian subcontinent
Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not have PAN India presence
In SUV segment both Tucson and its next model Santa Fe didnt make a major impact
Increase in commodity prices such as steel, aluminium and ancillary parts has affected margins
Since HMIL concentrates on both domestic and International sales there are higher risks of exchange rate fluctuations
As Hyundai majorly concentrates on quality, most of its product are in premium category in each segment. Hyundai  is still struggling to make a better impact in small car segment in terms of cost efficiency like other manufactures
Hyundai doesn’t have any product match to compete in Corporate orders like Tata Indica V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most preferred in both cab segment and government booking for bulk
orders
Opportunities in the SWOT analysis of Hyundai
SIAM – Society of Indian automobile Manufacturers, have stated that there is steady increase in Car sales both Domestic and Indian contributing a valuable share in India’s Gdp
The export markets growth rate is 22.30% compared to last fiscal year
The saving consumption pattern of India is an added advantage for any segment doing business in India. This was one of the major reason for Indian market to survive amidst global recession
There is more scope of HMIL to enter into small car segment as its has dedicated R&D plant in Hyderabad, India. Hyundai is one of the very few companies that has widest R&D network across the world located in Korea, Europe, India, US,
Japan
Hyundai has very good opportunity in entering into commercial vehicles and Recreational vehicles as they are already doing well outside India. Currently HMIL has its focus only on Passenger car segment
Threats in the SWOT analysis of Hyundai
Though Hyundai claims itself to have no direct competitors other than MUL, there are Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to expand its product category
Foreign Direct Investments flowing in Indian automobile space are not good signs for already existing Giants like MUL and Hyundai.
Almost all major automobile players have started invading India to open up their market and their manufacturing plant in India.”Chennai” is referred to as the Detroit of Asia!
Hyundai faced a slight decline in market share due to tough competition from Ford’s Figo and Volkswagen- Polo
Many manufacturers have started to concentrate on small car segment as an alternative to Nano. These will slowdown the expected sales of Eon.
PEST ANALYSYS

PESTLE Analysis of Hyundai analyses the brand on its business tactics. Hyundai PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The
PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Hyundai, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
Let us start the Hyundai PESTLE Analysis:
Political Factors:
The political factors in the Hyundai PESTLE Analysis can be explained as follows:
Hyundai is an international car brand having its business spread across geographies. The Political Stability Index data shows a constant increase in the political stability in the Asian – Pacific market which is a good indicator for Hyundai. The political relations
between the two nations can also become an important factor in deciding which country to invest. Unfriendly relations with a nation can lead to higher taxes and regular and strict checks. Change in governments and their policies can impact the business of
Hyundai as a brand.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Hyundai:
The world keeps on witnessing a growth & slowdown in the market. The economic slowdown has took a toll in one of the prominent markets of Hyundai i.e. India. More than 3.5 lakh jobs have been lost. Various automobile giants are trying to nullify this slowdown
by offering hefty discounts and other schemes to get their sales back on track. Although, the other variants of Hyundai seem to get affected by the present economic situation, but Hyundai cars are doing considerably well. Due to its amazing design and new
features, it gives an exceptional experience. That is why even though it is a late entrant is the Compact SUV space; it has successfully been able to capture a significant market share. With the unemployment rates as high as 6% i.e. 30 million unemployed
people, cheap labor will be easily available and hence cutting the costs for Hyundai.
 
Social Factors:
Following are the social factors impacting Hyundai PESTLE Analysis:
Since both the males and female share a significant ratio of number of drivers, i.e. 60:40, Hyundai should definitely cater to the wants of both the sexes and customize its products accordingly. Hyundai targets people from the middle class and upper class as
well. For example: In Hyundai has more than 15 variants with the price ranging from $6000 to $35000.
 
Technological Factors:
The technological factors in the PESTLE Analysis of Hyundai are mentioned below:
Gasoline Direct Injection (GDI) – Hyundai uses GDI technology which improves fuel efficiency and reduces carbon emissions. But Hyundai’s vehicles provide less mileage as compared to Maruti Suzuki’s vehicles which fall under the same category. Also, many
companies have started working on this Artificial Intelligence. Hyundai should also invest in this space to have a cutting edge over its competitors
 
Legal Factors:
Following are the legal factors in the Hyundai PESTLE Analysis:
Countries have strict laws to protect the Intellectual Property Rights. The data available from Department of Industrial Policy and Promotion (DIPP) shows a significant increase in the filing of patents, trademarks and copyrights in India. This will attract foreign
investments since the investors won’t find India to be a risky market to invest into. Protection of Intellectual Property Rights plays an important role in deciding which country to invest into. Discrimination Laws –Most of the nations where Hyundai currently works
in; they have several bodies which keep a check on the discriminatory practices which take place at the workplace. For example: Article 15 of the Indian constitution prohibits any kind of discrimination on the basis of caste, creed, gender, religion etc. This
ensures a better working environment for the people.
 
Environmental Factors:
In the Hyundai PESTLE Analysis, the environmental elements affecting its business are as below:
For Hyundai, like all car companies, environmental responsibility is of prime importance. Since most cars run on fuel, emission control becomes critical for Hyundai. United States has fined $47 million to Hyundai for illegally importing and selling of dirty diesel
engines which did not meet US emission standards. Hyundai should not be indulged in any unethical behaviors as this can have a huge global impact. News like this can tarnish its brand image and hence affect its revenues.
To conclude, the above Hyundai PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
Browse analysis of more brands and companies similar to Hyundai PESTLE Analysis. This section covers many brands and companies.
PORTER FIVE FORCES

 Porter’s five forces model on Automobile Industry

 1. Barriers to Entry – It’s true that the average person can’t come along and start
manufacturing automobiles. The emergence of foreign competitors with the capital,
required technologies and management skills began to undermine the market share of
many automobile companies. Globalization the tendency of world investment and
businesses to move from national and domestic markets to a worldwide environment, is a
huge factor affecting the auto market. More than ever, itis becoming easier for foreign
automakers to enter the Domestic market .Automobiles depend heavily on consumer trends
and tastes. While car companies do sell a large proportion of vehicles to businesses and car
rental companies (fleet sales), consumer sales is the largest source of revenue. For this
reason, taking consumer and business confidence into account should be a higher priority
than considering the regular factors like earnings growth and debt load .
 2. Threat of Substitutes – Rather than looking at the threat of someone buying a different
car, there is also need to also look at the likelihood of people taking the bus, train or air
plane to their destination. The higher the cost of operating a vehicle, the more likely people
will seek alternative transportation options. The price of gasoline has a large effect on
consumers’ decisions to buy vehicles. Trucks and sport utility vehicles have higher profit
margins, but they also guzzle gas compared to smaller sedans and light trucks. When
PORTERS FIVE FORCES MODEL FOR
HYUNDAI MOTOR

 Hyundai Five Forces Analysis

 Hyundai is one of the most well known and innovative automotive brands of the
world. Despite several uncertainties and challenges in 2017, Hyundai continued
to perform well. The brand has remained dedicated to faster growth and is
investing in technological innovation and marketing to remain one of the most
liked brands. Apart from a global presence and high sales, Hyundai is also great
in terms of manufacturing capabilities. It owns a few of the smartest and biggest
manufacturing facilities in the automotive industry.  Apart from these things due
to increased competition in the automotive industry, the brand is also focusing
heavily on marketing.
 It has remained an official sponsor of several international soccer competitions
and continues to invest in sponsorships for the purpose of marketing. Marketing
as well as research and development have continued to remain important areas
of focus for the automotive giants. Hyundai invests heavily in CSR and
sustainability as well.  This is a five forces analysis of  Hyundai Motors that
analyses the competitive strength of the brand in the current market
Market Share

 At present major Indian, European, Korean, Japanese automobile companies are holding
significant market shares. In commercial vehicle, Tata Motors dominates over 60% of the
Indian commercial vehicle market. Tata Motors is the largest medium and heavy commercial
vehicle manufacturer.Car manufacturers in India dominate the passenger vehicle market by
79%. Maruti Suzuki is the largest car producer in India and has 52% share in passenger cars
and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds
42% share. Hyundai and Tata Motors is the second and third car producer in India
 The automobile Industry in India is now working in terms of the dynamics of an open
market. Many joint ventures have been set up in India with foreign collaboration, both
technical and financial with leading global manufacturers. Also a very large number of joint
ventures have been set up in the auto-components sector and the pace is expected to pick
up even further. The Government of India is keen to provide a suitable economic, and
business environment conducive to the success of the established and prospective foreign
partnership ventures. $5.7 billion is the investment envisaged in the new vehicles projects.
COMPETITION WITH OTHER
COMPANY

 Automobile Industry
 The auto manufacturing industry is considered to be highly capital and labor
intensive. The major costs for producing and selling automobiles include:
 Labor – While machines and robots are playing a greater role in manufacturing
vehicles, there are still substantial labor costs in designing and engineering
automobiles.
 Advertising Each year automakers spend billions on print and broadcast
advertising, furthermore, they spent large amounts of money on market research
to anticipate consumer trends and preferences.
 The auto market is thought to be made primarily of automakers, but auto parts
makes up another lucrative sector of the market. The major areas of auto parts
manufacturing are:
 Original Equipment Manufacturers (OEMs) – The big auto manufacturers do
produce some of their own parts, but they can’t produce every part and