DECLARATION

I the undersigned Ms SHIVANI SHARMA hereby declare

that this project work entitled “Financial Analysis of
Automobile Company with reference to (Maruti Suzuki
and Hyundai)” is a result of my own research work and
has not been previously submitted to any other
university for any other examination.
I hereby further declare that all information of this
document has been obtained and presented in
accordance with academic rules and ethical conduct.

ENROLL NO.:15015815
ROLL NO.:1900030671198

DATE: NAME:
PLACE: SIGNATURE:
 ABSTRACT

The Indian auto industry became the fourth largest

in the world with sales increasing 9.5 per cent
year-on-year to 4.02 million units (excluding two
wheelers) in 2019. It was the 7th largest
manufacturer of commercial vehicles in 2019.The
Two Wheelers segment dominates the market in
terms of volume owing to a growing middle class
and a young population. Moreover, the growing
interest of the companies further aided the growth
of the sector. India is also a prominent auto
exporter and has strong export growth
expectations for the near future. Overall
automobile exports from India grew at 6.86 per
cent CAGR between FY13-18. The present paper
measures the financial performance of major
selected automobile companies for the period of 5
years from 2014-2018 by using ratio analysis. The
purpose of the study is to evaluate and compare
the financial performance of selected two
companies to rate their financial performances.
The aim of the study is to analyse by comparing
the risk of different companies, on their strengths
and weaknesses.

CERTIFICATE
(St. JOHN’S COLLEGE, AGRA)

This is to certify that Ms. SHIVANI SHARMA has worked

and completed her project work for the degree of
MASTER IN COMMERCE in the faculty of
COMMERCE in the subject of APPLIED BUSINESS
ECONOMICS on the topic “FINANICIAL ANALYSIS OF
AUTOMOBILE COMPANY WITH REFERENCE TO
(MARUTI SUZUKI AND HYUNDAI)” under my
supervision. It is her own work and facts reported by her
personal findings and investigations.

DR. ANDREW PRAKASH SHIVANI

SHARMA
H.O.D. APPLIED BUSINESS M.COM(F)ABE
ECONOMICS ROLL NO.
1900030671198
St. JOHN’S COLLEGE, AGRA
 CHAPTER-1

INTRODUCTION
 AUTOMOBILE COMPANY

The automobile industry began in the 1860s with

hundreds of manufacturers that pioneered the horseless
carriage. For many decades, the United States led the
world in total automobile production. In 1929, before
the Great Depression, the world had 32,028,500
automobiles in use, and the U.S. automobile industry
produced over 90% of them. At that time the U.S. had
one car per 4.87 persons. After World War II, the U.S.
produced about 75 percent of world's auto production.
From 1970 (140 models) over 1998 (260 m
odels) to 2012 (684 models), the number of automobile
models in the India has grown exponentially.
In 1897, the first car ran on an Indian road. Through the
1930s, cars were imports only, and in small numbers.
An embryonic automotive industry emerged in India in
the 1940s. Hindustan Motors was launched in 1942,
long-time competitor Mahindra & Mahindra was
established by two brothers in 1945, and began
assembly of Jeep CJ-3A utility vehicles.
Following independence in 1947, the Government of
India and the private sector launched efforts to create an
automotive-component manufacturing industry to supply
to the automobile industry. In 1953, an import
substitution programme was launched, and the import of
fully built-up cars began to be restricted.

CONCLUSION
The stringent competition in the automobile industry cannot be
ignored. More the number of players, greater is the competition.
Companies need to be on their toes to devise means by which
they can establish their brand equity in the market. The
dimensions on which this distinction is possible are few and
diminishing because of the augmented level competition
amongst the companies. But still, India still a male dominated
society and so it’s the man who is the bread earner in most of
the houses and hence requires automobiles for the same
purposes maybe. However, mostly youngsters whether married
or unmarried are inclined towards driving the cars with latest
technology.
There was no significant difference that was analysed between
the colour, interior/design/features and after sales service
preference factors for both the passenger cars of
Maruti and Hyundai; whereas there was a significant difference
existing between the price and resale value of both the cars.
This showed that both the companies have been successful in
catering to the needs of their respective customers. Both give
the various
specifications in terms of colour, interior/design, price, after
sales service. Maruti and Hyundai both give cut-throat
competition to each other in the automobile industry and are
well established and trusted by their users. So in order to get
ahead of their competitor they would have to opt for a
marketing strategy that is fresh and innovative enough to lure
more customers from the market since the customers that are
already using their respective services are well satisfied with
each of their performances.

Title of the study –

Financial analysis of Automobile company with

reference to MARUTI SUZUKI AND HYUNDAI.

Objectives of study –
 To know the various strategies used by MARUTI SUZUKI
and HYUNDAI Company to attract the maximum number
of customers.
 To know which company offers better cars, better after
sales service and by which company cars, customers are
satisfied.
 To know the demand of automobiles.
 Competition from other car manufacturers.
 To know the trend in market.
 To know which car is more demanded by customers.
 Through which strategies maximum customers are
attracted.
 To know recession effect on sale of cars.

Scope of study –
 Company will come to know what attracts customers.
 Company as well as Dealers of Maruti Suzuki and
Hyundai will come to know that which are the criteria
customers look before buying car.
 Company and Dealers will also come to know the future
changes which will be require to satisfy customer needs
and wants.

Methodology of Data
Collection:

Primary Data :
Visiting various dealers and asking them about their
promotional strategies and requirement of
customers.
Asking to users of Maruti and Hyundai about their
preference, criteria while buying car and their
experience with dealers and their expectations from
dealers.

Secondary Data :

Magazines
Internet
Friends & seniors

Period of study :
 The period of study is from November2019 to
December 2019.

MARUTI
SUZUKI
Maruti Suzuki India Limited, formerly known as Maruti
Udyog Limited, is an automobile manufacturer in India.
It is a 56.21% owned subsidiary of the Japanese car and
motorcycle &it’s a MC company Suzuki Motor
Corporation. As of July 2018, it had a market share of
53% of the Indian passenger car market. Maruti Suzuki
manufactures and sells popular cars such as
the Ciaz, Ertiga, WagonR , Alto
K10 , Swift, Celerio, Swift Dzire, Baleno and Baleno
RS, Omni, baleno, Eeco, Ignis, S-Cross, Vitara
Brezza and newly launched S-Presso small SUV. The
company is headquartered at New Delhi. In May 2015,
the company produced its fifteen millionth vehicle in
India, a Swift Dzire.

Affiliation with Suzuki-

In 1982, a license and joint venture agreement (JVA)
was signed between Maruti Udyog Ltd, and Suzuki of
Japan. At first, Maruti Suzuki was mainly an importer of
cars. In India's closed market, Maruti received the right
to import 40,000 fully built-up Suzuki in the first two
years, and even after that the early goal was to use only
33% indigenous parts. This upset the local
manufacturers considerably. There were also some
concerns that the Indian market was too small to absorb
the comparatively large production planned by Maruti
Suzuki, with the government even considering adjusting
the petrol tax and lowering the excise duty in order to
boost sales. Local production commenced in December
1983. In 1984, the Maruti Van with the same three-
cylinder engine as the 800 was released and the
installed capacity of the plant in Gurgaon reached
40,000 units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD
off-road vehicle, was launched. In 1986, the original 800
was replaced by an all-new model of the 796 cc
hatchback Suzuki Alto and the 100,000th vehicle was
produced by the company. In 1987, the company started
exporting to the West, when a lot of 500 cars were sent
to Hungary. By 1988, the capacity of the Gurgaon plant
was increased to 100,000 units per annum.

Market liberalisation-

In 1989, the Maruti 1000 was introduced and the

970 cc, three-box was India's first contemporary sedan.
By 1991, 65 per cent of the components, for all vehicles
produced, were indigenized. After liberalization of
the Indian economy in 1991, Suzuki increased its stake
in Maruti to 50 per cent, making the company a 50-50
Joint Venture with the Government of India the other
stake holder.
In 1993, the Zen, a 993 cc, hatchback was launched and
in 1994 the 1298 cc Esteem was introduced. Maruti
produced its 1 millionth vehicle since the
commencement of production in 1994. Maruti's second
plant was opened with annual capacity reaching
200,000 units. Maruti launched a 24-hour emergency
on-road vehicle service. In 1998, the new Maruti 800
was released, the first change in design since 1986. Zen
D, a 1527 cc diesel hatchback, and Maruti's first diesel
vehicle, and a redesigned Omni were introduced. In
1999, the 1.6 litre Maruti Baleno three-box saloon
and Wagon R were also launched.
In 2000, Maruti became the first car company in India to
launch a Call Center for internal and customer services.
The new Alto model was release in October of the same
year Esteem Diesel was introduced. Two new
subsidiaries were also started: Maruti Insurance
Distributor Services and Maruti Insurance Brokers
Limited. Suzuki Motor Corporation increased its stake in
Maruti to 54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was
introduced while the Zen and the Wagon R were
upgraded and redesigned. The four millionth Maruti
vehicle was built and they entered into a partnership
with the State Bank of India. Maruti Udyog Ltd was
Listed on BSE and NSE after a public issue, which was
oversubscribed tenfold. In 2004, the Alto became India's
best selling car overtaking the Maruti 800 after nearly
two decades. Maruti Udyog closed the financial year
2003-04 with an annual sale of 472,122 units, the
highest ever since the company began operations and
the fiftieth lakh (5 millionth) car rolled out in April 2005.
In 2006 Suzuki and Maruti set up another joint venture,
"Maruti Suzuki Automobiles India", to build two new
manufacturing plants, one for vehicles and one for
engines. Cleaner cars were also introduced, with several
new models meeting the new "Bharat Stage III"
standards. In February 2012, Maruti Suzuki sold its ten
millionth vehicle in India. In July 2014 it had a market
share of more 45%.
Maruti Suzuki is now looking to shift its current
manufacturing facility located in the downtown Gurgaon
as apparently it is short of space and logistics. On 25
April 2019, Maruti Suzuki announced that it would phase
out production of diesel cars by 1 April 2020, when
the Bharat Stage VI emission standards come into
effect. Chairman R.C. Bhargava stated, "We have taken
this decision so that in 2022 we are able to meet the
Corporate Average Fuel Efficiency norms and higher
share of CNG vehicles will help us comply with the
norms. I hope the union government's policies will help
grow the market for CNG vehicles." Diesel cars
accounted for about 23% of Maruti Suzuki's annual
sales.
 CARS OF MARUTI SUZUKI :-
 4

 Maruti Swift
1248 cc
28.4 kmpl
Petrol/Diesel

Maruti Baleno
1197 cc
21.4 kmpl
Petrol/Diesel
 4.1

Maruti Ertiga
1498 cc
24.2 kmpl
Petrol/CNG/Diesel

Maruti Vitara Brezza

 1248 cc
24.3 kmpl
Diesel
 4.1

Maruti Dzire
1197 cc
22 kmpl
Diesel/Petrol

Maruti Alto

796cc
Petrol/CNG
 3.9

Maruti S-Presso

998 cc
21.4kmpl
Petrol
3.8

Maruti Wagon R
998cc
22.5kmpl
Petrol/CNG

Maruti XL6

1462cc
19.01kmpl
Petrol
Maruti Celerio
998 cc
23.1 kmpl
Petrol/CNG

Maruti Alto K10

998cc
23.95 kmpl
Petrol/CNG

Maruti Eeco
1196cc
15.37 kmpl
CNG/Petrol

Maruti Ciaz
1462cc
21.56 kmpl
Diesel/Petrol

Maruti S-Cross
1248cc
25.1kmpl
Diesel
 Maruti Ignis
1197cc
20.89kmpl
Petrol

CARS OF HYUNDAI :-

Hyundai Venue
1396cc
23.7kmpl
Petrol/Diesel

Hyundai Elite i20

1197 cc
18.6 kmpl
Diesel/Petrol

Hyundai Creta
1396 cc
22.1 kmpl
Diesel/Petrol

Hyundai Verna
 1396 cc
24 kmpl
Petrol/Diesel

Hyundai Santro
1086 cc
20.3 kmpl
Petrol/CNG

Hyundai Grand i10

1197 cc
18.9 kmpl
CNG/Petrol

Hyundai Grand i10 Nios

1197 cc
20.7 kmpl
Petrol/Diesel

Hyundai Xcent
1186 cc
25.4 kmpl
Petrol/Diesel
Hyundai Elantra
1999 cc

14.59 kmpl
Petrol

Hyundai i20 Active

1197 cc
17.19 kmpl
Petrol/Diesel

Hyundai Tucson
1995 cc
16.38 kmpl
Diesel/Petrol
 HYUNDAI
The Hyundai Motor Company, commonly known
as Hyundai Motors is a South Korean multinational
automotive manufacturer headquartered in Seoul.
Hyundai Motor Company was founded in 1967 and,
along with its 32.8% owned subsidiary, Kia Motors, and
its 100% owned luxury subsidiary Genesis
Motor, altogether comprise the Hyundai Motor Group. It
is the third largest vehicle manufacturer in the world.
Hyundai operates the world's largest integrated
automobile manufacturing facility in Ulsan, South Korea
which has an annual production capacity of 1.6 million
units. The company employs about 75,000 people
worldwide. Hyundai vehicles are sold in 193 countries
through some 5,000 dealerships and showrooms.

Business

In 1998, after a shake-up in the South Korean auto

industry caused by overambitious expansion and
the Asian financial crisis, Hyundai acquired the majority
of rival Kia Motors. Hyundai owns 33.88% of Kia.
In 2000, the company established a strategic alliance
with DaimlerChrysler and severed its partnership with
the Hyundai Group. In 2001, the Daimler-Hyundai Truck
Corporation was formed. In 2004, however,
DaimlerChrysler divested its interest in the company by
selling its 10.5% stake for $900 million.
Hyundai has invested in manufacturing plants in North
America, India, the Czech Republic, Russia, China and
Turkey as well as research and development centers in
Europe, Asia, North America and the Pacific Rim. In
2004, Hyundai Motor Company had $57.2 billion in sales
in South Korea making it the country's second largest
corporation, or chaebol. Worldwide sales in 2005
reached 2,533,695 units, an 11 percent increase over
the previous year. In 2011, Hyundai sold 4.05 million
cars worldwide and the Hyundai Motor Group was the
world's fourth largest automaker
behind GM, Volkswagen and Toyota. Hyundai vehicles
are sold in 193 countries through some 5,000
dealerships.

1998, after a shake-up in the South Korean auto

industry caused by overambitious expansion and
the Asian financial crisis, Hyundai acquired the majority
of rival Kia Motors. Hyundai owns 33.88% of Kia.[25]
In 2000, the company established a strategic alliance
with DaimlerChrysler and severed its partnership with
the Hyundai Group. In 2001, the Daimler-Hyundai Truck
Corporation was formed. In 2004, however,
DaimlerChrysler divested its interest in the company by
selling its 10.5% stake for $900 million.
Hyundai has invested in manufacturing plants in North
America, India, the Czech Republic, Russia, China and
Turkey as well as research and development centers in
Europe, Asia, North America and the Pacific Rim. In
2004, Hyundai Motor Company had $57.2 billion in sales
in South Korea making it the country's second largest
corporation, or chaebol. Worldwide sales in 2005
reached 2,533,695 units, an 11 percent increase over
the previous year. In 2011, Hyundai sold 4.05 million
cars worldwide and the Hyundai Motor Group was the
world's fourth largest automaker
behind GM, Volkswagen and Toyota. Hyundai vehicles
are sold in 193 countries through some 5,000
dealerships.
Major Manufacturers in
Automobile Industry and their
Cars :-
 Maruti Udyog Ltd. :-
Cars: - Maruti 800, Omni, Zen, Esteem, Wagon R,
Swift, SX4, Alto, Ritz, Grand Vitara.
 Tata Motors :-
Cars: - Indica, Indigo Marina, Safari, Sumo, Nano
Hyundai Motor India Ltd.:-
 Hyundai :-
Cars: - Santro, Accent, Sonata, Verna, Getz, Elantra,
Tuscon, i10, i20
 Honda:-
Cars: - Honda City, Civic
 Accord BMW:-
Cars: - 3 Series, 5 Series, 6 Series, 7 Series, X3,
and X5
Other Automobile Companies are:-

Skoda, Toyota, Hindustan Motors, Ford,

Toyota, Mahindra and Mahindra, General
Motors, Mercedes

COMMON MARKETING STRATEGIES

OF AUTOMOBILE COMPANIES

 Advertising in News papers and Magazines:-

In this companies advertise about the car in various
local newspapers like Economic times and they give
detail explanation about the feature of the cars, keeping
customer’s requirement. They also provide various
dealers addresses and contact numbers for reference.
Company also tries to advertise through various
magazines like Auto Cars, Overdrive, etc.

 Grand Launch:-

Recently Tata Nano car was grandly launched and

created a buzz in market. After the launch, media
aggressively took interest in providing the minute details
about the car to the customer by showing test drives,
etc. Once the car is launched, they give adds in every
possible newspaper, car magazines, put hoardings,
display car models in the malls.

 Company provides exchange offers to customers:-

This is one of the most effective ways adopted by the

companies and very successful marketing strategy,
which has helped company increase their sales. In this
method, companies provide option to buy a new car of
your choice in exchange of their old cars, but the price of
old car is decided by the dealer by looking at it condition.
It helps customers, as they don’t need to go anywhere
else to sell their old car. This also helps companies to
increase their sale of new cars.

 Adding Star Value to product- Brand Ambassador:-

Companies choose brand ambassadors for their cars to

reach wide masses. For e.g. Shahrukh Khan promotes
Hyundai, Abhishek \ Bacchan promoted Ford Fiesta,
Saif Ali Khan and Rani Mukherjee promoted Chevrolet
Aveo and Amir Khan promoted Toyota Innova.
Ambassadors give a special identity to the products.

 Companies have started sponsoring reality shows

for better visibility:-

As we all know reality shows are making all time big in

television and entertainment industry. This is really a
smart move by automobile companies to gain visibility
through reality shows. The reality shows are aired all
over the world and huge number of people watches
it. So, companies sponsor such shows and get noticed
E.g. Maruti sponsored India’s Got Talent show on Colors
channel and gifted Ritz to the winner. Indian Idol winner
was also gifted with Maruti SX4.

 Mall Displays :-

Various companies display their cars in Malls so as to

get prime attention. People go in Malls for shopping and
hangouts with their friends and family. They conduct
small contests and give gift hampers as prize. Thus,
they try to attract crowd towards them.
 Companies enter market with help of Film:-

In terms of marketing strategies Chevrolet Aveo found a

unique way of advertising by way of a Yash Raj Film
production, Tara Rum Pum. The main motive behind this
was to popularize and promote the product in youth.

 Companies Sponsor Go- Karting events:-

Go-karting events are really booming up among young

crowd. And that’s the reason we see craze for
participating in go-karting events is on high. People have
started taking interest in the sport and huge crowds turn
up for such events. But for sure car companies would to
not like to miss chance of visibility they get in
such competitions. Few years before Maruti Suzuki
sponsored Autocross rally. Similarly, Tata Engineering
has sponsored Narayan Karthikeyan as India’s Entry in
to the World Series motorcar racing.

 Personal selling:-
Personal Selling largely takes place at the Dealers’ End.
The way customer is attended depends mainly on the
dealer as he acts as an interface between the company
and the consumer. The various cases in which Personal
Selling takes place is Individual Sales, Corporate Sales,
Sales Presentations, Fair and trade Shows. There he is
attended to by the Sales Personnel of the Dealership.
Sometimes the Senior Sales Executive has to make
Sales Presentation to Corporate Buyers. Personal
Selling is also practiced at Trade Fairs and Auto Shows.

Suggestions and
Recommendations:
To Dealers:-

As dealers directly interact with customers, they should

maintain proper Customer Relationship Strategy. They
should differ service benefits and offerings according to
the various customers segments. Which may include
classification on the basis of-income group-Age group
Dealers should help customers in taking right decision
for buying car and should give complete information
about car before customer purchase any car. The
customers purchasing car on instalment basis,
should also be provided with additional accessories as
there is in case of cash purchase. Dealers should
provide good after sales service and should maintain
good relations with customers so that reference can be
get and goodwill is create.

To Company:-
Maruti should more frequently come with mid-size
models like sx4 and swift as this sedan model is doing
very good in market. Maruti and Hyundai should come
up with diesel model of mid-size cars as market survey
says that the use of diesel cars will increase by 50% by
2010.Hyundai should try to increase their number of
dealers and service stations so that customers can get
better service.

Both companies should try to build trust in customers as

competition is increasing day by day. Company should
try to give some good schemes and offers and discounts
for old and new customers. Maruti should try to expand
its range of cars from small car and hatchbacks to more
mid-size cars like sx4 and swift mid- size version.
 Conclusion
Maruti Suzuki is good in its marketing strategy and
shows good results. And as Maruti has its vast network
of dealers and service centres they are able to provide
good after sales services and are able to maintain good
relationship with customers which are their strongest
point. Maruti is also benefited with its goodwill and
Brand name which is already there in market. So Maruti
can use these as an opportunity to bring new and
innovative car models in market and try to attract more
and more customers. It can be seen that Maruti is trying
to attract customers from all segments by launching cars
like sx4, Swift, Ritz but their main preference is “A”
segment cars, only Hyundai strategies of endorsing their
products with celebrities has got a very good response
but Hyundai should advertise better to create a good
picture of its products by transferring the key good
things about its cars.

Whereas, Hyundai has a good track record of having

successful diesel mid-size cars in its portfolio and
it should encash the same opportunity to launch the
diesel versions of small car before Maruti too have
competitive advantage. And Hyundai should also try to
increase their service centres so that customers can find
it convenient.

Bibliograp
hy
Books:-
1. Marketing
2. Marketing Management

Magazines:-
1. Auto Drive
2. Indian Auto
3. Over Drive
Websites:-

1. www.marutisuzuki.com
2. www.hyundai.com
3. www.google.com
4. www.autoindia.com
5. www.overdrive.com

BOARD OF DIRECTORS OF
MARUTI SUZUKI:
NAME DESIGNATION

MR. R C BHARGAVA CHAIRMAN

MR. HIROSHI DIRECTOR
MR. HISASHI TAKEUCHI DIRECTOR
MR. O SUZUKI DIRECTOR
MR. K SAITO DIRECTOR
MR. T SUZUKI DIRECTOR
MR. TAKAHIKO HASHIMOTO DIRECTOR- SALES &
MARKETING
MS. PALLAVI SHROFF INDEPENDENT
DIRECTOR
MR. P SINGH INDEPENDENT
DIRECTOR
MS. P SHROFF INDEPENDENT
DIRECTOR
MR. D S BRAR INDEPENDENT
DIRECTOR
MS. R S KARNAD INDEPENDENT
DIRECTOR
MR. AYUKAWA MANAGING DIRECTOR
AND CEO

Director & CEO Key Executives:

NAME DESIGNATION

MR. AJAY SETH Chief Financial Officer

MR. S GROVER Chief General Manager & Co.
Secretary
MR. V KHAZANCHI Executive Officer
MR. P K ROY Executive Officer
MR. M NISHIO Executive Officer
MR. K SUZUKI Executive Officer
MR. D K SETHI Executive Officer
MR. P BANERJEE Executive Officer
MR. R S KALSI Sr. Executive Officer
MR. R UPPAL Sr. Executive Officer
MR. C V RAMAN Sr. Executive Officer
MR. A SETH Sr. Executive Officer

International Journal of
Management Studies
ISSN(Print) 2249-0302 ISSN
(Online)2231-2528
http://www.researchersworld.co
m/ijms/
Vol.–V, Issue –3(6), July
2018 [87]