INTRODUCTION

 
HYUNDAI MOTORS: COMPANY HISTORY
Hyundai
 (Korean pronunciation is a global conglomeratecompany, part of
the Korean Chaebol,that was founded in South
Korea by one of the most famous businessmen in Korean history: 
Chung Ju-yung . The first Hyundai Company was founded in 1947
as a construction company.Two of the best-known Hyundai
divisions are Hyundai Motor Company, the world's fourthlargest
automobile manufacturer by volume as of January 2011,
and Hyundai Heavy Industries, the world's largest shipbuilder.
Other companies currently or formerly controlled by members
ofChung's extended family may be loosely referred to as a part of
the Hyundai chaebol. In 1998 Hyundai bought Kia Motors, the
oldest South Korean car company which had to file
for bankruptcy due to the 1997 Asian financial crisis. Kia is (as of
2011) somewhat independent ofHyundai motors, as Hyundai no
longer owns an outright majority of Kia shares.Hyundai Group
underwent a massive restructuring following the 1997 East Asian
financialcrisisand Chung Ju-yung's death in 2001. Chung was the
CEO and directly in control of thecompany until the end of his life.
Today many companies bearing the name Hyundai are not partof
or legally connected to the Hyundai Group. These companies
include Hyundai KiaAutomotive
Group, Hyundai Department Store Group, Hyundai Heavy Industri
es Group, and Hyundai DevelopmentGroup. However, all of the
named companies are run by Chung'ssons or their heirs.

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 SCOPE OF THE PROJECT

The study is conducted for developing the mutual relationship with

all private andnationalized banks.
 

 
The study covers the customer’s perceptions
and their most used product.

 
The study covers the customer’s perception for auto finance.
 

 
The study covers the bankers perception, which automotive
company they aresanctioning more.
 
The study was conducted to approach the customer those who are
approaching for carloan.

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Objectives

A market analysis of the HYUNDAI car with the respect to its

COMPETETOR like MARUTISUZUKI, TATA etc.

 

Sub-objectives:
To identify the critical factors, considered by the prospective
customers while purchasing the Hyundai car.

 
To identify the perception of the existing users of the Hyundai
motors.

 
To find the market share (distribution) of the Hyundai motors.

 
To find the market analysis trough SWOT ANALYSIS, PRODUCT
SPECIFICATIONAND MARKET SEGMENTATION

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10 Hyundai In India
Hyundai Motor India Limitedis currently the second largest
carmaker after  Maruti Suzukiandlargest auto exporter in India. It is
making India the global manufacturing base for small cars.Hyundai
sells several models in India, the most popular being the Santro
Xing, i10and the i20. Other models include Getz
Prime, Accent, Terracan, second generation Verna, Tucson, Santa
Feand the Sonata Transform. Hyundai has two manufacturing
plants in India located atSriperumbudur in the Indian state
of  Tamil Nadu. Both plants have a combined annual capacityof
600,000 units.In the year 2007 Hyundai opened its R&D facility in
Hyderabad Andhra pradesh, employing now nearly 450 engineers
from different parts of the country.Basically theHyundai Motor India
Engineering (HMIE) gives technical & engineering support in
Vehicledevelopment and CAD & CAE support to Hyundai's main
R&D center in Namyang Korea. In2010, Hyundai started its design
activities at Hyderabad R&D Center with Styling, DigitalDesign &
Skin CAD Teams.
South Korean car maker Hyundai, which as per reports is also
world’s fastest growing automaker
and fourth largest car manufacturer across the globe, has
launched a new car, Hyundai EON inOctober in India.
[45]
 Eon is an entry-level car but at the same time it is very spacious
with a large boot. The car has 814 cc engine, promising to deliver
the mileage of over 20 km per litre. The
new Hyundai’s small car is sure to stir competition in the under Rs
3 lakh price range. Hyundai
EON price has kept its price around Rs 2.5 lakh

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2) LARGE SEGMENT CARS (SUV’s)
:HYUNDAI
 – 
SANTA FE
LENGTH 4676mmBREATH 1615mmHEIGHT
1725mmWHEEL BASE 2700mmCURB WEIGHT 1676kg

HYUNDAI
 – 
 TUCSON
LENGTH 4400mmBREATH 1820mmHEIGHT
1685mmWHEEL BASE 2640mmCURB WEIGHT 1440kg

SWOT ANALYSIS
A scan of the internal and external environment is an important
part of the strategic planning process. Environmental factors
internal to the firm usually can be classified as strengths (S)
orweaknesses (W), and those external to the firm can be classified
as opportunities (O) or threats(T). Such an analysis of the strategic
environment is referred to as a
SWOT analysis.
The SWOT analysis provides information that is helpful in
matching the firm’s resources and
capabilities to the competitive environment in which it operates. AS
such, it is instrumental instrategy formulation and selection. The
following diagram shows how a SWOT analysis fits intoan
environmental scan:SWOT Analysis FrameworkEnvironmental
Scan

Internal Analysis External Analysis/ \ / \Strengths Weaknesses Op
portunities Threat!SWOT Matrix
 

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MARKET STRATEGY IMPLEMENTATON

Product development with vendors

:
In case product development part a team ofengineers would be
talking to its major vendors for reducing the cost of equipments
supplied by them. These vendors are the major suppliers of
Hyundai components such as DeepHyundai, Hans and Himgiri etc.
 
Advertising:
 The advertising may involve the process of advertisements
on Television,Radio, Newspaper, Auto Magazines and events like
Auto Expoa)
 
T.V. Advertising ;
T.V. advertising may involve the advertisement at peck hours
oftelevision viewing or during the cricket match time in the slog
over which in turn maylead to maximize exposure and thus
maximum impact on final buyers. b)
 
Advertising in news paper (twice in weak 
The concept of advertising on newspapermay increase the sale
since the newspaper would be able to explain the
characteristicsand features of cars, because it is an easy way to
reaching the decision makers and thus inturn may directly
influence their decision.c)
 
Advertising on Radio;
 with FM catching more and more popularity amongst
peopleespecially people love to listen to FM while driving. Thus
this could be another mean ofinfluencing the prospects for services
like True Value at the time of 1hour in the morningand 1 hour in
the evening when the people are actually traveling towards their
office orcoming come back.d)
 
Auto Magazines (monthly) and Auto expo (yearly);
 The Company would advertise onauto magazine like Auto cars,
Motoring etc where entire information on product andnewer
features would be explained. The cover page or back page
advertisement would beused for PRODUCT COMMUNICATIon

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AN OVERVIEW: AUTOMOBILE INDUSTRY IN INDIA

The automobile industry is one of the largest in terms of

employment and value addition. As aleader in product and process
technologies for the manufacturing sector, it has been accepted
asone of the important drivers of economic growth.Global trends
indicated that the auto market has moved from the growth and
development phaseto the consolidation phase. The Japanese
automobile majors, besides technological innovations,implemented
some modern management philosophies, which were gradually
adopted by theautomobile industry of the United States and other
European countries. Currently, almost
fifty percent of the global passenger car production comes from thr
ee countries, viz., the US (20%),Japan (19%) and Germany (12%).
In the commercial vehicle category, the share of the US is 46
 per cent followed by Japan (11%) and China (9%). In both these
categories of vehicles, India’s
share in the total world production is 1 per cent.The first motorcar
on the streets of India was seen in 1898. Then for the next fifty
years, carswere imported to satisfy domestic demand. Between
1910 and 20's the automobile industry madea humble beginning
by setting up assembly plants in Mumbai, Calcutta and Chennai.
Theimport/assembly of vehicles grew consistently after the 1920's,
crossing the 30,000 mark in1930. In 1946, Premier Automobile Ltd
(PAL) earned the distinction of manufacturing the firstcar in the
country by assembling 'Dodge Desoto' and 'Plymouth' cars at its
Kurla plant. HindustanMotors (HM), which started as a
manufacturer of auto components graduated to manufacturecars in
1949.Ambassador Car from Hindustan Motors and the Fiat from
Premier Auto Ltd. ruled Indian roadsfor many of the initial yearsIn
1952 the GOI asked assembly plants, which did not have plans to
set up manufacturingfacilities, to shut operations. As a result
General Motors, Ford and other assemblers closedoperations in
the country. The year was 1954 and this decision of the
government marked aturning point in the history of the Indian car
industry. The GOI also had a say in what type ofvehicle each
manufacturer should make. Therefore, each product was safely
cocooned in its ownsegment with no fears of any impending
competition. Also, no new entrant was allowed even

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32though they had plans of a full-fledged manufacturing program.
The restrictive set of policieswas chiefly aimed at building an
indigenous auto industry. However, the restrictions on
foreigncollaborations led to limitations on import of technology
through technical agreements. In theabsence of adequate
technology and purchasing power, the car industry grew at a
snail's pace in
the 60’s.
 The demand for cars in 1960 was to the tune of 15,714. In the
next two decades thenumber increased to 30,989 i.e. a CAGR of
only 3.5 per cent.In the early 80's, The GOI entered the car
business, with a 74% Stake in Maruti Udyog Ltd(MUL), the joint
venture with Suzuki Motors Ltd of Japan. The very face of the
industry waschanged for ever in 1983 with the entry of public
sector Maruti Udyog in a joint venture with theSuzuki Corporation
of Japan. Car sales grew by 42 per cent in 1985 after Maruti 800
waslaunched. Thanks to MUL car sales registered a CAGR of 18.6
per cent i.e. from 1981 to 1990.In 1985, the GOI announced its
famous broad banding policy which gave new licenses to
broadgroups of automotive products like two and four-wheeled
vehicles. Though a liberal move, thelicensing system was still very
much intact. MUL introduced 'Maruti 800' in 1983 providing
acomplete facelift to the Indian car industry. The car was launched
as a "peoples car" with a pricetag 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 inc
reased from 1,200 units in FY84 tomore 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'.MUL extended its product
range to include vans, multi-utility vehicles (MUVs) and mid-
sizedcars. The company has single handedly driven the sales of
cars in the country from 45,000 inFY84 to 409,951 cars by
FY2000, cornering around 79.6% market share. With
increasingcompetition from new entrants, this market share has
plummeted to almost 62% in FY2000.A brief 3-year downturn till
1993 and car sales bounced back to register a 17 per cent growth
ratein 1997.Since then, the economy slumped into recession and
sales of cars remained quitestagnant FY97 and FY99. The
Financial year 2000 has, however, been the turnaround year forthe
Auto industry with the economy looking up. The industry achieved
volume sales of 638,815units as against 409,951 units in 1999,

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thus, crossing the half million mark for the first time.Therefore, at
present, the CAGR between FY96 and FY2000 stands at 16.6 per
cent. (Formerfinance minister, Man Mohan Singh's liberalization
policy was major driver which led to
 
33industry undergoing this complete transformation.)
Overwhelmed by newer models from newand existing players had
to an impressive shift from a constrained supply situation to a
surplusone. Within the past decade, about 30 models have
entered the Indian market with a number ofmodels still awaiting
launch. The de-licensing of auto industry in 1993 opened the gates
to avirtual flood of international automakers into the country with
an idea to tap the large population base of 950mn people. Also the
lifting of quantitative restrictions on imports by the recent policyis
expected to add up to the flurry of foreign cars in to
the country.Many companies have entered the car manufacturing
sector, to tap the middle and premium endof car industry. The new
entrants are Daewoo (Matiz), Telco (Indica) and Hyundai (Santro)
inupper end of economy car market. GM, Ford, Peugeot,
Mitsubishi, Honda and Fiat have enteredthe mid-sized car
segment and Mercedes-Benz is in the premium end of market.
Carmanufacturers like Malaysia based Proton are also in line to hit
the Indian ramp.The Indian passenger car industry is relatively
recent in origins. Except the ubiquitousAmbassador and the
Premier Pad minis there was not much moving around with an
Indian tag.The restrictive policies of the Indian government did not
allow foreign players to set shop inIndia and in the absence of
adequate technology and purchasing power it resulted in the
slowgrowth of the industry even after a long time since
independence. The demand for cars increasedfrom 15,714 in
FY60 to 30,989 in FY80 at a CAGR of only 3.5%. The entry of
Maruti UdyogLtd, a GoI JV with Suzuki of Japan, in 1983 with a so-
called "peoples" car and a more favorable policy framework
resulted in a CAGR of 18.6% in car sales from FY81-FY90.After
witnessing a downturn from FY90 to FY93, car sales bounced
back to register 17% growthrate till FY97. Since then, the economy
slumped into recession and this affected the growth
ofthe automobile industry as a whole. As a result car sales
remained almost stagnant in the period between FY97 and
FY99. However, with the revival in the economy, FY2000 turned
out to be asignificant year for the industry in which it recorded
volume sales of 638,815 units as against409,951 units in the

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previous year. Thus, the CAGR for the period FY96 - FY2000
stands at16.6%.On the basis of price, the Indian car industry can
be classified into economy or the 'small' car (upto Rs0.3mn), mid-
size (Rs0.3-0.5mn), luxury car (Rs0.5-1mn) and super luxury car
segments

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