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A Critical analysis
Of
Hyundai Motors Ltd
And
Ford Motors
From Car automobile Industry
Submitted To:
Prof.
A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile
Industry
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EXECUTIVE SUMMARY
This project seeks to critically analyse the Car Automobile industry with main focus on
Hyundai Motors India Ltd and Ford Motors ltd. However, the specific focus of this
research is on Hyundai Verna and Ford Fiesta which are competitors from the same
industry.
A proper study of the Automobile industry is done viz. Indian automobile Industry,
vehicle production in India, Growth of Indian automobile Industry, future of automobile
industry in India.
A proper study of the Global Car Industry is also done viz. Car industry in India, Sales of
cars in year 2007-08, The Nano revolution, future of car industry in India. Further, an
introduction to Mid Size Car segment, to which both Hyundai Verna & Ford Fiesta
belong.
An overview of both the companies is mentioned in this report with their marketing and
general business information. Also, financial analysis of balance sheets and profit and
Loss Accounts of both the companies is done.
General information about Hyundai Verna & Ford Fiesta is also given in this report.
The research adopts a qualitative methodology by conducting in-depth interviews with
Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora,
Manager Sales & Finance, of NCR Ford showroom who provided us with valuable
information such as the sales of their respective showrooms, business models, market
shares of both the cars under study etc.
Recommendations are made in the form of proposed entrant - New Tech Motors India
Ltd in the cars automobile industry.
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ACKNOWLEDGEMENT
This project would have been difficult to complete, but for the invaluable contributions
from some important persons. We would like to take this opportunity to thank them.
We wish to put to record the heartfelt gratitude and immense respect to Prof. Subroto
Ganguly (Faculty). We wish to thank him for the valuable time he gave us and the
immense patience he had, in answering even the seemingly trivial queries we had to ask.
His encouragement and patience helped us instill a great degree of self-confidence to
deliver a good research work.
We are also thankful to Mr. Raman Jha, assistant sales manager, of Fx Hyundai
showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who
provided us with valuable information about their companies which helped us in our
research work.
TABLE OF CONTENTS
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II. INDUSTRY…………………………………………………………………8-26
1. INTRODUCTION TO INDIAN
AUTOMOBILE INDUSTRY…………………………………………………..8
III. COMPANY………………………………………………….…………………27
• COMPANY OVERVIEW………………………………………………….29
• PROFILE OF KEY PERSONNELS………………………………………30
• BUSINESS MODEL………………………………………………………..32
• FORD SERVICES………………………………………………………….34
• COMPANY OVERVIEW………………………………………………….37
• BUSINESS MODEL………………………………………………………..38
• COMPANY R&D……………………………………….…………………..42
• COMPANY ENVIRONMENT…………………………………………….43
IV. PRODUCT……………………………………….…………………………44-66
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13. COMPARISON………………………………………………………………...67
15. COMPETITION……………………………………………………………….70
V. FINANCIAL ANALYSIS…………………………..……………………...73-90
VI. RECOMMENDATIONS…………………………………………………94-109
VII. CONCLUSION…………………………………………………………….….110
VIII. BIBLIOGRAPHY…………………………………………………………..…112
IX. ANNEXURE……………………………………………………………….…..113
• NCR FORD………………………………………………….……..….114
• FX HYUNDAI………………………………………………….…..….115
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METHODOLOGY
We have used various sources for our project work.
• Qualitative Data collection through in-depth interviews with Mr. Raman Jha,
assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager
Sales & Finance, of NCR Ford showroom who provided us with valuable
information about their companies.
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INDIAN
AUTOMOBILE
INDUSTRY
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According to estimation the compound annual growth rate (CAGR) of Indian Automobile
sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for
FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies
along with the global giants have announced huge expansion plans.
Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata
Motors. Hyundai did well but the difference was nearly half of Tata Motors. In 2-
Wheelres segment, Hero Honda is leading putting behind Bajaj Auto Ltd.
OVERVIEW
The ICRA's analysis points on the auto sector that the passenger car market in the country
was inching towards cars with higher displacements. The sports-utility-vehicle (SUV)
that was getting crowded everyday, would witness intense competition as many SUVs
had been competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers had already
launched their premium SUVs in the market to broaden their portfolio and create product
excitement in the segment estimated at about 10,000 units annually.
In the two-wheeler segment, according to the report, the motorcycles would clock 11.5
per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales
would decelerate and mopeds would also see the same. Overseas market would present
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The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy
commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks
would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per
cent.
• The domestic automobile industry sales grew 12.8 per cent at 89,10,224
units as against 78,97,629 units in 2004-05.
• The automotive industry crossed a landmark with total vehicle production
of 10 million units.
• According to the Society of Indian Automobile Manufacturers (SIAM),
car sales was 8,82,094 units against 8,20,179 units in 2004-05.
• The growth of domestic passenger car market was 7.5 per cent
• Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.
• The two-wheeler segment, the market grew by 13.6 per cent with
70,56,317 units against 62,09,765 units in 2004-05.
• Motorcycles had the upward march, 17.1 per cent in domestic market
touching 58,15,417 units against 49,64,753 units in 2004-05.
• Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against
9,22,428 units in 2004-05.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units
against 3,18,430 units in 2004-05.
• Medium and heavy commercial vehicles managed a growth of 4.5 per cent
against 23 per cent growth in the year ended March 31, 2005.
• Light commercial vehicles sales growth was 19.4 per cent at 1,43,237
units against 1,19,924 units in 2004-05.
• Three-wheelers sales rose by 17 per cent at 3,60,187 units against
3,07,862 units in 2004-05.
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Production of 4-Wheelers
2005-06 2005-06
Manufacturers (Apr-Mar) Manufacturers (Apr-Mar)
In Nos. In Nos.
Japanese OEM Korean OEM
Maruti Udyog Ltd. 572,097 Hyundai Motor India Ltd. 260,440
Toyota Kirloskar Motor Pvt. Ltd. 44,975 American OEM
General Motors India Pvt.
Honda Siel Cars India Ltd. 41,361 30,687
Ltd.
Swaraj Mazda Ltd. 11,946 Ford India Pvt. Ltd. 26,946
Total 670,379 Total 57,633
European OEM Indian OEM
Skoda Auto India Pvt. Ltd. 9.767 Tata Motors Ltd. 449,878
Daimler Chrysler India Pvt. Ltd. 1,780 Mahindra & Mahindra Ltd. 128,601
Volvo India Pvt. Ltd. 1,004 Ashok Leyland Ltd. 65,085
Tatra Trucks India Ltd. 125 Force Motors Ltd. 35,728
Fiat India Pvt. Ltd. 671 Eicher Motors Ltd. 24,348
Hindustan Motors Ltd. 15,458
Total 13,347 Total 719,098
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Production of 2-Wheelers
2005-06 2005-06
Manufacturers (Apr-Mar) Manufacturers (Apr-Mar)
In Nos. In Nos.
Japanese Indian
Hero Honda Motors Ltd. 3,006,486 Bajaj Auto Ltd. 2,042,289
Honda Motorcycle & Scooter India TVS Motor Company
603,436 1,366,866
(Pvt.) Ltd. Ltd.
Yamaha Motors India Pvt. Ltd. 248,665 LML Ltd. 107,044
Suzuki Motorcycle India Pvt. Ltd. 2,328 Kinetic Engineering Ltd. 82,392
Majestic Auto Ltd. 56,819
Kinetic Motor Company
53,880
Ltd.
Royal Enfield (Unit of
30,596
Eicher Ltd.)
Total 3,860,915 Total 3,739,886
Source: Automotive Component Manufacturers Association of India
During this decade, it is seen that two-wheelers are the most produced in automobile
industry followed by passenger cars and then three wheelers. The following are the
number of units produced in 2003-04 and 2004-05 (April-Sept. 04) of different segment
of vehicles:
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CURRENT SCENARIO
OVERVIEW
Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi,
envisioned the manufacture of an indigenous, cost-effective, low maintenance compact
car for the Indian middle-class. The cabinet passed a unanimous resolution for the
development and production of a "People's Car." It was christened Maruti Limited.
However, the company as Maruti Udyog Ltd. matured only after the death of Sanjay
Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to 1,96,820 cars.
1991, the liberalisation of the Indian economy opened the market for foreign automobile
makers to venture in India. The license raj ended in 1993 and many foreign players
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entered the Indian market by way of Joint ventures, collaborations or wholly owned
subsidiary.
Segments Companies
Cars/ SUVs • Suzuki • Daimler-Chrysler
• Honda • Skoda
• Toyota • Fiat
• Mitsubishi • Hyundai
• GM • Tata
• Ford • M&M
Two-wheelers • TVS • Yamaha
• Hero Honda • Kinetic
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After seven years of successive growth, the domestic automobile industry has recorded a
degrowth in the financial year ended 2007-08 as high interest rates and availability of
finance weaned consumers away from vehicle purchasing. Production of vehicles in FY
2007-08 plummeted mainly due to declining motorcycle and three-wheeler sales in the
country.
In the financial year ended in March, domestic vehicle sales fell by 4.70 per cent. During
the year, motorcycles sales reported a sharp fall of 11.90 per cent to 57,68,341 units from
65,47,195 units. Lack of implementation of control on overloading along with issue of
financing dragged sales of medium and heavy commercial vehicles by 1.66 per cent to
2,70,994 units as compared to the previous year. The decline in sales has been mainly due
to availability of finance, issue of repossessing vehicles and high interest rates which
have led to lower sales.
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In March, among passenger car companies Hyundai Motor India Ltd recorded the highest
growth at 29,396 units, an increase of 52 per cent. Maruti Suzuki, reported almost flat
sales at 55,758 units.
During the month, both scooters and motorcycles reported a decrease in sales volumes.
The scooters segment fell 5.07 per cent to 83, 022 units and the motorcycles to 5,06,884
units, a decrease of 0.04 per cent.
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An industry that was licensed, controlled and restricted in the early years of independent
India and had limited contribution to the economy, currently contributing about 5% of the
GDP and it is targeted to grow five fold by 2016 and account for over 10% of India’s
GDP.
While, the Automobile industry’s evolution dates back to late 1960s (though genesis
could be traced back to 1940s), economic liberalisation of early 1990s gave it a further
boost.
The year 2001 marked the beginning of landmark policy reforms in the sector,
Quantitative restrictions were removed, 100 percent FDI was permitted through
automatic route, no condition of foreign exchange neutralisation, no export obligation,
etc.
As a result, auto industry got an added push, with output doubling. Also, the industry
undertook many technological innovations to ensure that it meet international standards,
for instance, in terms of safety standards and emission norms. Thus came a phase that is
to mark a real paradigm shift in the industry. In a sense the automotive industry in India
is just about 10-15 years old!
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Manufacturers are increasingly adopting an outward looking approach and exploring new
markets/territories, ranging from Middle East, Europe, South Africa, Algeria, Latin
America, Russia, etc. Exports have increased immensely from a mere 38,000 units in
1990-91 to 1.01 million units in 2006-07. Some estimates suggest that by 2010, car
exports, alone would reach 1 million.
This will have a huge impact on the economy. For every additional commercial vehicle
produced in the country 13 new jobs are created, every additional car adds five jobs, two
wheelers about 0.5 and three wheelers around 4 jobs.
The growth momentum is witnessed not just by the industry manufacturing vehicles but
also by a large number of other industries like supply chain companies, infrastructure
companies, oil companies, insurance & finance companies, etc.
The automobile is being recognised for what it actually is, a means to promote
Entrepreneurship, Employment and Economic Development.
Ashok Leyland and Tata Motors in Thailand, Mahindra and Mahindra and Tata Motors in
South Africa. Almost all major companies, including both domestic players and global
automotive groups are investing heavily in new manufacturing and assembly plants in
automotive hubs across India and have announced massive expansion plans.
Much of the foundations for the future importance of the automotive industry in India are
being laid now. Expansion and investment plans of close to $14 billion have been
announced.
Prime Minister Manmohan Singh has recently launched the Ten Year Plan for the Indian
auto industry, the Automotive Mission Plan 2006-2016; it is a comprehensive document
covering all aspects of the industry with 25 key interventions. The Ministry of Heavy
Industries & Public Enterprises, the nodal ministry for the auto sector, has been
instrumental in making this possible.
The Mission Plan has set a target that by 2016, its output in dollar-terms should have
quadrupled, while GDP is expected to have merely doubled. In other words, aim is to
achieve industry output $145 billion and consequently, make the automotive sector’s
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The target is to attract investment worth USD 35-40 billion by 2016. It aims to develop
India as the preferred location in the world for the design and manufacture of automotive
products. The Mission Plan’s identified intervention areas would enable the industry to
attain world class standards and emerge as the vanguard of the Indian economy.
With all these plans, the industry is set to have a major impact on India’s future economic
growth. The industry is entering into a new phase of its development and evolution,
results of which will be visible in over next ten years. Prime Minister, Dr Manmohan
Singh had aptly said that the building of ‘Brand India’ in the world was powered by the
Indian automotive industry meeting global standards.
A key is the collective execution and implementation of the interventions in the AMP and
a joint Government - Industry effort. The consequence as we could all hope would be a
remarkable transformation of India’s entire economic landscape.
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GLOBAL CAR
INDUSTRY
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INTRODUCTION
In early 2000s, the car industry occupied a position of strategic importance in many
countries. However, with increasing maturity, the industry's average profit margins had
declined from 20% or more in the 1920s to around 10% in the 1960s and less than 5% in
2004. The car industry represented just 1.6% of Europe's stockmarket capitalization and
0.6% of USA's . About 20 years back, the corresponding figures had been 3.6% and 4.0%
respectively.
In recent times, the automobile market in America, Europe and Japan, where over 80% of
the world's cars and trucks were sold, had stagnated. Supply had increased vis-à-vis
demand for several reasons. In countries like Germany and France, rigid labour laws had
inhibited the closure of redundant factories. In America, the arrival of European,
Japanese and South Korean makers and their aggressive plans to expand market share
had also created overcapacity. Effective capacity had increased slowly but steadily as
carmakers continued to improve their productivity. The car industry also seemed to be
undergoing a structural transformation in the early 2000s.
Many players were trying to move towards a build-to-order model that could serve niche
segments efficiently. As new electronic control devices emerged and concern for the
environment grew, new players with new competencies were likely to enter and
challenge the incumbents. Under these circumstances, the leading car makers wondered
what they had to do to revitalize themselves and strengthen their competitive position.
BACKGROUND
The car industry was born in Germany more than 100 years ago. Early development of
the industry began in France in the 1900s. It was in America that the industry came of age
thanks to Henry Ford, who introduced the assembly line production system.
The car industry pioneered many innovative business practices. For example, the industry
introduced the concept of "planned obsolescence," i.e. frequent changes in design to
induce customers to switch to a new model every other year. At the same time, by virtue
of its sheer size and ubiquity, the industry attracted wide public attention. In the 1960s,
consumer activist Ralph Nader attacked the safety record of the 'Big Three' Detroit
manufacturers, General Motor, Ford and Chrysler.
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In the 1970s, as oil prices quadrupled, the industry found itself under attack from
environmentalists. The industry also attracted government scrutiny on account of safety
concerns, antitrust worries (in the days when General Motors had 60% share of the US
market) and pollution. But in view of its size and the number of jobs it created, the
industry continued to receive strong government support. When small, fuel efficient and
reliable Japanese cars started to eat into the market share of the Big Three, the American
government resorted to protectionism.
The global car industry had been consolidating almost since its birth. In the late 1920s,
there were 270 car companies in the world, most of which were based in America. From
these, the Big Three - G M, Ford and Chrysler emerged.
In 2004, the global car industry comprised seven big groups and three smaller ones. In
volume terms, six groups - GM, Toyota, Ford, Renault/Nissan, Volkswagen and
DaimlerChrysler and their affiliates accounted for about 70% of global sales.
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Spurred by a huge demand due to increasing purchasing power, new product launches,
coupled with attractive finance schemes and booming exports, cars sales has been
growing at a frenetic pace.
• Maruti Suzuki India, the country’s biggest car maker, recorded its highest ever
annual sales (7,64,842 vehicles), registering a growth of 13.3 per cent in 2007-08
over 2006-07.
• Mahindra & Mahindra Limited (M&M) cumulative sales grew by 30 per cent in
2007-08- 2,31,355 units compared to 1,78,201 units in the corresponding period
last fiscal.
• Hyundai Motors India Limited (HMIL) has shown a robust growth at 16.13 per
cent with 360,934 units during 2007-08, against 310,787 units sold in 2006-07.
• SkodaAuto has sold 14,187 vehicles in 2007-08 against 12,444 in 2006-07, a
growth rate of 14.06 per cent.
• General Motors India (GM), the wholly owned subsidiary of US-based General
Motors Corporation, reported 71 per cent increase in domestic sales in 2007-08 -
at 66,543 units against 38,857units in 2006-07.
• Mercedes-Benz India recorded a 59 per cent sales growth during the first quarter
of 2008.
• Honda sold 62,802 cars in 2007-08, higher than the 61,325 units sold in 2006-07.
The new fiscal year (2007-08) has started on a robust note with domestic sales of
several segments witnessing robust growth rates in April 2008.
Tata Motors has introduced the global auto industry to a whole new consumer segment,
with the 'Nano' also shedding light on how to leverage emerging markets as innovation
hubs. The Nano promises to be a potentially revolutionary innovation, delivering a car to
huge segments of the market hitherto unable to afford one. This Tata small car is a
landmark event in India as well as the world's automobile history. The Tata Motors plant
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in Singur in West Bengal has a maximum capacity of 2,50,00; at full capacity the Nano
has the potential to become the largest selling model in India. The first truly original
automobile product from India, Nano is powered by a 623 cc, four-speed manual
transmission engine. Despite the small size it is a modern car capable of meeting Bharat-
III and Euro-4 emission norms and safety standards.
Post liberalization, India is on every car manufacturer’s map. The reasons are not hard to
notice. Currently, India is the second largest two-wheeler market and the fourth largest
commercial vehicle market in the world. Not only it is the eleventh largest passenger car
market globally, but it is also expected to be the seventh largest by 2016.
Companies like Ford are planning to make India a regional hub for exports of both small
cars as well as engines. According to Mr. Michael Boneham, President Designate for
Ford India, the company plans to export the small car and the engine for markets abroad.
He indicated that one of the markets would be chiefly Ford Asia Pacific Region while
other markets are under consideration presently.
There are many reasons for the impressive growth of the Indian car industry. Some of
these are comparatively easy availability of vehicle finance, attractive rates of interest,
and convenient instalments.
A niche concept cars segment is also emerging wherein reputed re-modellers like DC
Chhabria cater to individuals who wish to remodel their vehicles to create concept cars
for their use. Contrarily, a segment is also emerging comprising of people who wish to
upgrade to cars from two wheelers. Tata already is in the process of launching the small
car Nano to suit this segment’s needs. Many other car manufacturers such as Bajaj Auto
are also following suit and are in the process of coming up with their specific versions to
cater to this segment.
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Currently, there is high demand for cars across all these segments. With the growing
economy, people left with a lot of disposable income spend it towards meeting their
mobility needs such as cars. Banks and other financial institutions have an assortment of
vehicle loan schemes with attractive rates of interest and convenient instalments.
These schemes encourage people to go in for loans to purchase cars of their choice.
Additionally, a convenient union budget in the current financial year (2008-09) has
worked in favour of the automobile sector, which has seen an uptrend in sales across
various segments.
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The credit of manufacturing of these cars goes to companies like- Fiat India, Ford,
General Motors, Hindustan Motors, Hyundai motors, Maruti Udyog, San Motors and
Tata Motors. While the companies like- Ford, Hyundai, General Motors and Mahindra &
Mahindra are yet to launch their models under this segment. This model basically target
executive class.
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COMPANY
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Industry Automotive
Listings & its codes NYSE: F
Website www.india.ford.com
Global Website www.ford.com
• Endeavour
• Fiesta
• Focus
• Fusion
• Ikon
• Mondeo
COMPANY FLASHBACK
Ford introduced itself in India in 1988 with its Ford Escort model. Later in 2001 it was
replaced by locally produced Ford Ikon. Since then it has added Fusion, Fiesta, Mondeo
and Endeavour to its product line.
The company has invested heavily in India to give the finest in automobiles. Rs. 1700
crore has been invested in integrated manufacturing plant at Maraimalai Nagar, 45 kms
from Chennai. The plant is equipped with state-of-the-art Ford technology in an area of
350 acres. It has a capacity of 100,000 vehicles per annum.
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Lucy is the Vice President of Finance and IT at Ford India. She took up this position in
May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.
Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He
took this position in July 2006. Scott reports to Arvind Mathew, President and Managing
Director, Ford India.
NANCY REISIG – Vice President, Human Resources
Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in
March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford
India.
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Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford
India. He took this position in September 2005. Sandip reports to Arvind Mathew,
President and Managing Director, Ford India.
Steve Bridgman is the Country Manager for Ford Credit, a Division of Ford India that
provides wholesale funding to the Indian Ford dealer network. Steve reports to Arvind
Mathew, President and Managing Director, Ford India.
BUSINESS MODEL
All cars spring to life at Ford's Rs. 1700 crore integrated manufacturing plant at
Maraimalai Nagar, 45 kms. from Chennai. The plant, equipped with advanced
manufacturing technology from Ford, covers 350 acres, provides employment to about
2,000 people directly and many more thousands indirectly and has a capacity to
manufacture upto 100,000 vehicles per annum. Ford is a 6-Sigma company. Every step of
every process is planned to perfection.
Step 1: STAMPING
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• Semi-automatic press line moulds blank sheets into various body parts.
• Thorough checks for perfection in dimensions and surface quality.
Step 4: T C F
• Interiors taken care of, before doors and seats come on in Trim zone.
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• In Chassis area, professionals use high power tools to fit in engine, front
suspension, bumpers etc.
• Once nuts and bolts are tightened to perfection, the car gets its wheels.
• Rolls into final line for remaining parts and filling of fluids.
FORD SERVICE
Thank you for choosing a Ford. It is our endeavour to give you complete satisfaction in
all our services.
As a Ford owner, you have access to a whole range of top-notch services, from product-
related assistance to allied automobile services. Ford’s commitment is to give its
customers all the help and support to get the most from owning a Ford.
A dedicated Customer Relationship centre is at your service in every Ford dealer outlet.
You can call them for any assistance.
However for any further support you can contact Ford India Customer Relationship
Centre (0800 to 1800 hrs – Monday to Saturday)
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FORD SOLUTION
Ford solutions aims to provide quality, peace-of-mind products for the customer and
embodies a brand synonymous with its ability to provide products that can be tailored to
suit one's individual needs. Ford Solutions serve to develop products for Ford and the
Dealer body that enhance customer satisfaction.
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Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the
world. Hyundai Motor India Limited (HMIL) is the second largest and the fastest
growing car manufacturer in India. Santro, Getz, Accent, Elantra, Sonata Embera and
Tuscon are the most successful brands of HMIL. HMIL presently markets 34 variants of
passenger cars in six segments.
The company is an ISO 14001 for its sustainable environment management practices.
• Accent
• Elantra
• Getz
• Hyundai i10
• Santro Xing
• Sonata Embera
• Tucson
AWARDS
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• Hyundai Accent topped the 'JD Power Asia Pacific IQS' for
2002 and the APEAL study for 2001 & 2002.
COMPANY FLASHBACK
In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly
owned subsidiary of Hyundai Motor Company and is the second largest and the fastest
growing car manufacturer in India.
HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over previous year. It is the country's fastest growing car company having rolled-
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out 10,00,000 cars in just 90 months since its inception and is the largest exporter of
passenger cars with exports of over Rs. 1,800 crores. The company has recorded a growth
of 27.2% in exports over the year 2004.
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.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai 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
is setting up its second plant, which will produce an additional 300,000 units per annum,
raising HMIL’s total production capacity to 600,000 units per annum by end of 2007.
HMIL is investing to expand capacity in line with its positioning as HMC’s global export
hub for compact cars. Apart from expansion of production capacity, HMIL plans to
expand its dealer network, which will be increased from 183 to 250 this year. And with
the company’s greater focus on the quality of its after-sales service, HMIL’s service
network will be expanded to around 1,000 in 2007.
The year 2006 has been a significant year for Hyundai Motor India. It achieved a
significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to
over 65 countries globally; even as it plans to continue its thrust in existing export
markets, it is gearing up to step up its foray into new markets. The year just ended also
saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet
another path-breaking record in its young journey by rolling out the fastest 10,00,000th
car.
The company has been awarded the benchmark ISO 14001 certification for its sustainable
environment management practices.
BUSINESS MODEL
COMPANY PRODUCTION:
Modern automobile engineering practices require a holistic approach to production
management, which cannot be accomplished in a non-integrated manufacturing and
assembly setup.
The production management processes at Hyundai Motor India are overlaid with an
organization-wide implementation of manufacturing best practices like Just-in-time
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inventory management, Kaizen, TPM and TQM, that helps in making the world's best
cars, right here in India.
A hi-tech line that builds full body shells from panels. Automated robotic arms
are used for intricate welding operations that ensure superior and consistent build
quality.
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COMPANY R&D
Hyundai and Kia together have R&D centres in the United States, Europe, Japan apart
from the global R&D headquarters at Ulsan, Korea.
The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$
2 Billion, up from US$ 1.2 Billion to enhance its thrust on new product development and
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achieve global quality benchmarks by year 2005. This includes the $30 Mn Hyundai-Kia
Design and Technical Center in Irvive, California.
FOCUS
The R&D team focuses on the development of new products and technologies that
include interior and exterior design changes, development of new generation engines and
alternate fuel systems, concept vehicles and advanced passenger safety and comfort
systems, in line with evolving customer preferences across the globe. Recent successes of
the team include the development of the Hyundai patented Common Rail Direct Injection
(CRDi) engine in association with Detroit Diesel and the award winning Fuel Cell Santa
FE.
EFFORTS
Some of the ongoing projects that the Hyundai R&D team is involved in include the
development of the 'World Engine' in association with Daimler Chrysler and Mitsubishi
and the development of Automotive Telematics in association with IBM.
That the efforts of the Hyundai R&D team has paid great dividends to the company is
evident from the fact that the company's newly engineered products like the Santa Fe and
the Getz have made waves in the global automotive markets and the 'US Consumer
Reports' magazine has ranked Hyundai cars in level with that of Honda in its recent
quality rankings
COMPANY ENVIRONMENT
Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices. Living up to its commitment of
providing global standards of quality and process management in India, Hyundai had put
in place an Environment Management System (EMS)at its manufacturing plant in
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Chennai right from its project stage. The certification process was completed in a record
time of 10 months with 'Zero NCRs'. The assessment was done by TUV
SUDDEUTSCHLAND and covered areas like Awareness Training, Technology
Upgradation, Recycling, Waste Management and fulfilling Government Regulations.
HMI is also working on a backward integration strategy that will support vendors of the
company in implementing EMS.
Hyundai Motor Company, S.Korea, the parent of HMI, has been doing considerable work
on sustainable Environment Management. The company has a well defined framework in
place for developing products that reduce pollutant emissions and processes for
preservation of natural resources and energy along all the stages of the product lifecycle
from production, sales, use to disposal. The company has also been in the forefront of
development of environment friendly technologies like Hybrid Electric Vehicles (HEVs),
and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001
certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.
PRODUCT
Hyundai Verna & Ford Fiesta
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HYUNDAI VERNA
Big, refined and comfortable, Verna comes across as a good all rounder. Styling may not
excite everyone and neither will the petrol engine which though quiet, is not punchy. The
diesel is the ace in the Verna's pack and delivers a wallop that redefines the meaning of
performance diesel.
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PRICING
Ex-Showroom Prices for DELHI
Ex-Showroom
Model
Prices (Rs.)
Verna i 626519
Verna Xi 645051
Verna Xxi 703168
Verna XXi_ABS 723205
Verna CRDi 755241
Verna CRDi_ABS 777283
Verna CRDiSX 805204
Verna CRDiSX_ABS 827249
STANDARD FEATURES
Verna
i Xi XXi VGT VGT SX
Body ColorOuter Door handles, Rear view
S S S S S
mirror, Waistline Mldg
Rear Defogger with Timer S S S S S
Front & Rear Mud Flaps S S S S S
Exterior Alloy Wheels - - S - -
Chrome Rear Garnish - S S - S
Full wheel Cover - S S - S
Hub Cap S - - S -
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Digital Clock S S S S S
2 speed Variable intermittent wipers S S S S S
Luggage Net - - S - -
Ticket holder S S S S S
Air conditioner with Cabin Heater S S S S S
Automatic Climate Control - - S - S
Electrically Adjustable Rear View Mirror - S S - S
Comfort & Front map lamps with Sun glass holder - - S - S
Convenience
Rear tail gate open indicator Lamp S S S S S
Seat Belt Reminder Lamp S S S S S
Key Not Removed Warning S S S S S
Height Adjustable Front Seat Belts - S S - -
Trip Trip
Digital Odometer with 2 tripmeters S S S
Computer Computer
Power Outlet S S S S S
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S – Standard
O – Optional
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Dealer
Address City STD Phone Fax
Name
25275051 /
13, Bhera Enclave, Paschim
Deep New 25275052 /
Vihar, Outer Ring Road 011 25275053
Hyundai Delhi 26542474 /
PIN - 110041
25275053
69/1A, Najafgarh Road,
Hans New 51010123 /
Moti Nagar 011 51427115
Hyundai Delhi 51427101 / 5
PIN - 110015
B - 99 , Wazirpur Inds Area ,
Himgiri New
011 27376001 - 2 27376001
Hyundai Delhi
PIN - 110052
A-30 Mohan Cooperative
New
HMP Industrial Area Phase-I 011 41599852 / 61 41678333
Delhi
PIN - 110044
1 , Jhandewala , Faiz Road ,
MGF New
ND. 011 25825100 / 200 25823800
Hyundai Delhi
PIN - 110 005
B-35, Lala Lajpat Rai Marg,
Samara New 29818288,
Lajpat Nagar-II 011 29819289
Hyundai Delhi 29818495,
PIN - 110024
S-6 Building No 18-
Suhrit 19,Gulmohar Community New
011 41645666 - 70 41642971
Hyundai Center,Yusuf Sarai. Delhi
PIN - 110016
F - 18 Vikas Marg Preet
Sunrise New
Vihar 011 42421222
Hyundai Delhi
PIN - 110092
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EXTERIOR
Based on the universally accepted design philosophy of safety and compactness, the
Hyundai Verna is essentially inspired by the concept of ‘large on the inside and compact
outside’. This design treatment is simple. Clean exterior lines with well-proportioned
looks. A balanced front end with integrated full width lower intake, moderately flared
wheel arches and optional 14" alloy wheels which lends it a sportier look. The strong
shoulder lines and confident stance at the same time gives it a strong and well defined
character. The overall impression it creates is of a well made car with a dynamic
character which ensures that no matter where you go, the Verna, will be an eye-catcher
and a stare-grabber par excellence. You just can’t miss it on the roads.
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RADIATOR GRILLE
The radiator grille shows the tasteful, restrained
use of bright metal work to full advantage. It adds
a welcoming traditional aspect while blending
perfectly into the hood/bumper configuration.
MICRO ANTENNA
The rear roof-mounted micro antenna is compact
and efficient. It is aerodynamic, stylish and
robustly flexible allowing both improved signal
reception and outstanding look.
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LED HIGH MOUNTED STOP LAMP
P a g e | 52 The highI mounted
296 stop lamp is positioned to be
immediately visible through the rear screen. This
LED type lamp is equipped to provide maximum
safety to the customers of the Verna.
INTERIOR
The well-balanced exterior of the Verna doesn't flatter to deceive. Its world-class interior
design matches up on all fronts and impresses even the most fastidious critics. While the
wraparound driver and passenger environment exudes comfort and style, the optimized
seating and storage options provide practicality.
5.5J X The14”
Verna'sALLOY
two-tone colour scheme
WHEEL
provides an element of class to the entire
The cabin.
5.5J xA14"
dynamic
Alloybalance
Wheel created betweenR14
with 185/65 the
exterior and the interior of this sedantyres.
makes it a masterpiece of design. A car you would
love to flaunt and love to drive at the same time.
5.0J CLUSTER
GAUGE X 14” & TRIP
STEEL
COMPUTERWHEEL
The
The 5.0J cluster
gauge x 14" Steel Wheel
boasts new,with 175/70
easier R14
to read, tyres.
green
LED lit instruments.
SUNGLASSES HOLDER
No more frantic searching for the sunglasses.
TALENTED SUNVISOR
A ticket holder is on the back of the sun visor.
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STORAGE SPACE
The illuminated glove box in the facia has large
capacity.
SEAT POCKETS
There can never be enough storage. Pockets in the
back of the front seat are part of the Verna’s array.
SEAT ARMREST
Driver’s seat has an armrest for convenience.
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COMFORT:
KEYLESS ENTRY
The remote control key effortlessly unlocks and
locks the doors at the touch of a button.
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SAFETY:
ABS
Sure handling and anti-lock brakes help to keep the
Verna on-line.
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PARTNERS
FORD FIESTA
If you need matchless performance from an exhilarating car, the Fiesta is the car for you.
Engineered to excite your senses, the Fiesta, powered by Dura Technology, gives you
unmatched driving experience, exceptional safety and fuel economy.
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PERFORMANCE
Whether you’re driving on city roads or highways the Fiesta’s performance is spirited
and responsive. The way the car hugs curves and takes off at traffic signals will set your
pulse racing.
STYLING
Contemporary automotive design that perfectly combines style and solidarity. That’s the
Ford Fiesta.
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You won't fall in love with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be
within the sophisticated confines of this car built to induce sheer obsession, with its
raring to go spirit and powerful styling. With design, engineering and technology inputs
from around the world and over 700,000 kms of testing in 9 countries, this is a car built to
make you Go Fida.
Key Features:
Engine :
The 1.4 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC
engine with drive-by-wire electronic throttle control for very smooth and most responsive
driving experience imaginable. It also comes with an advanced knock sensing technology
and twin hole injectors that ensure performance and fuel efficiency.
This high value petrol packs in 82 ps power with powerful head-turning Fiesta styling.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Safety
Structurally engineered to withstand severe collisions, the Fiesta's crash worthiness is
verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision. So when you
drive the Ford Fiesta you can be sure things are as safe as can be.
Technology
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Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiesta’s petrol and diesel engines are so refined, they are guaranteed to
leave you speechless.
DuraSave: Thanks to a combination of unmatched economy and exciting performance,
you save on every drop of fuel.
Styling
Contemporary automotive design that perfectly combines style and solidity. That's the
Fiesta for you. With a powerful grille, a muscular bonnet, flared wheel arches, meaty side
panels and ornamental headlamps and tail-lamps, the Fiesta effortlessly mixes brawn with
beauty. Get used to heads turning in your direction.
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engine that puts out over 101 PS, and raring to go with instant response Drive-by-wire
technology, there's simply no argument that when it comes to setting your pulse racing,
nothing can keep up with the Ford Fiesta
Key Features:
Engine :
The 1.6 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC
engine with drive-by-wire electronic throttle control for very smooth and most responsive
driving experience imaginable. It also comes with an advanced knock sensing technology
and twin hole injectors that ensure performance and fuel efficiency.
A high performance petrol that delivers 101 Ps power & 146 Nm torque packing in all the
excitement you'll ever need.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing. Its powerful acceleration (0 – 100 kmph in 11.43 seconds) will leave you
breathless.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Electrically operated rear view mirrors ensures that you have the best view from every
angle. Keyless entry opens up the Fiesta to you at the touch of a button and height
adjustable seats gives you the freedom to decide your seating posture.
Safety
Structurally engineered to withstand severe collisions, the Fiesta's crash worthiness is
verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision.
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Technology
Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiesta’s petrol and diesel engines are so refined, they are guaranteed to
leave you speechless.
DuraSave: Thanks to a combination of unmatched economy and exciting performance,
you save on every drop of fuel.
Styling
Contemporary automotive design that perfectly combines style and solidity. That's the
Fiesta for you. With a powerful grille, a muscular bonnet, flared wheel arches, meaty side
panels and ornamental headlamps and tail-lamps, the Fiesta effortlessly mixes brawn with
beauty. Get used to heads turning in your direction.
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engine that puts out over 101 PS, and raring to go with instant response Drive-by-wire
technology, there's simply no argument that when it comes to setting your pulse racing,
nothing can keep up with the Ford Fiesta. This version also comes with Anti-lock brake
system (ABS) and Electronic brake distribution (EBD) and Driver Air bag that inflate on
impact. So when you drive the Ford Fiesta, you can be sure things are as safe as they can
be.
Key Features:
Engine :
The 1.6 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC
engine with drive-by-wire electronic throttle control for very smooth and most responsive
driving experience imaginable. It also comes with an advanced knock sensing technology
and twin hole injectors that ensure performance and fuel efficiency.
This high value petrol packs in 101 ps power with powerful head-turning Fiesta styling.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing. Its powerful acceleration (0 – 100 kmph in 11.43 seconds) will leave you
breathless.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Electrically operated rear view mirrors ensures that you have the best view from every
angle. Keyless entry opens up the Fiesta to you at the touch of a button and height
adjustable seats gives you the freedom to decide your seating posture.
Safety
Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and
your Fiesta are forever on track. Structurally engineered to withstand severe collisions,
the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision. So when you
drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love
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with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be within the sophisticated
confines of this car built to induce sheer obsession, with its raring to go spirit and
powerful styling. With design, engineering and technology inputs from around the world
and over 700,000 kms of testing in 9 countries, this is a car built to make you Go Fida.
Luxury
The Fiesta is quite unmatched when it comes to delivering luxury. Apart from best-in-
class front and rear room space, the Fiesta also comes with luxuries that include leather
upholstery, 6 CD changer with speakers, power mirrors, hydrographic finish, silver
accents on AC vents and steering, leather steering, reading lights and climate control with
a variable displacement AC compressor, to name a few. It’s a ride worthy of royalty.
Technology
Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiesta’s engine is so refined, they are guaranteed to leave you
speechless. DuraSave: Thanks to a combination of unmatched economy and exciting
performance, you save on every drop of fuel.
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The Ford Fiesta is a car engineered globally for India. Take a close look at what makes
the Fiesta unmatched in driving dynamics, technology, comfort and styling.
You won't fall in love with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be
within the sophisticated confines of this car built to induce sheer obsession, with its
raring to go spirit and powerful styling. With design, engineering and technology inputs
from around the world and over 700,000 kms of testing in 9 countries, this is a car built to
make you Go Fida.
Key Features:
Engine
The more you drive the 1.4 Duratorq TDCi,the more you will doubt it's a diesel.All
thanks to the drive-by-wire technology,the compact lightweight all aluminium alloy
engine,and the compact lightweight all aluminium alloy engine, and the two-stage fuel
injection sysytem with APC(Accelerometer Pilot Control).Which makes the car
smoother, more responsive and refined.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Electrically operated rear view mirrors ensures that you have the best view from every
angle, keyless entry opens up the Fiesta to you at the touch of a button and height
adjustable seats gives you the freedom to decide your seating posture.
Safety
Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and
your Fiesta are forever on track. Structurally engineered to withstand severe collisions,
the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision. So when you
drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love
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with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be within the sophisticated
confines of this car built to induce sheer obsession, with its raring to go spirit and
powerful styling. With design, engineering and technology inputs from around the world
and over 700,000 kms of testing in 9 countries, this is a car built to make you Go Fida.
Luxury
The Fiesta is quite unmatched when it comes to delivering luxury. Apart from best-in-
class front and rear room space, the Fiesta also comes with luxuries that include leather
upholstery, 6 CD changer with speakers, power mirrors, hydrographic finish, silver
accents on AC vents and steering, leather steering, reading lights and climate control with
a variable displacement AC compressor, to name a few. It’s a ride worthy of royalty.
Technology
Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiesta’s petrol and diesel engines are so refined, they are guaranteed to
leave you speechless.
DuraSave: Thanks to a combination of unmatched economy and exciting performance,
you save on every drop of fuel.
Styling
Contemporary automotive design that perfectly combines style and solidity. That's the
Fiesta for you. With a powerful grille, a muscular bonnet, flared wheel arches, meaty side
panels, turn indicators on outside rear view mirrors and full chrome surround twin jewel
headlamp and tail-lamps, the Fiesta effortlessly mixes brawn with beauty. Get used to
heads turning in your direction.
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Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty"
that covers the car against all electrical and mechanical failures for an additional period.
Air Conditioner
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Power Windows
Power Steering
No of Doors 4 4
Gears 5 5
CUSTOMERS
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The Ford Fiesta and Hyundai Verna are targeted at the passionate driver who seeks
adventure.
The core target audience for the Ford Fiesta and Hyundai Verna is mainly male in the age
group of 25-35-plus years, who is an achiever and someone who loves control, precision,
is very confident, and drives well. Ford Fiesta and Hyundai Verna are targeted at
customers who may be considering fewer luxury features but a bigger brand name.
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The setting is wild and rugged. A young urban male takes his Ford Fiesta out on an
incredible adventure on the outskirts of his city. Setting up a slalom course of torches, the
driver uses his car to light them at high speed, showcasing the maneuver ability and exact
precision of the vehicle, all the while listening to his favourite old Hindi song. No driving
on wide open roads with a girlfriend in tow and zooming at high speed in this new
television commercial.
Indeed, as Scott McCormack, Vice-President (Marketing, Sales and Service), Ford India
Pvt Ltd, says, the whole idea was to move away from traditional stereotypes – that the
Fiesta is not about just speed and acceleration but control and precision as embodied in
the new TVC.
Test drives are an important sales tool, as consumers like to get behind the wheel to make
a more informed decision. Fiesta and Hyundai Verna have strategically used their
advertisements to reiterate and stimulate the buyer to take the patented five-minute test-
drive challenge. This feature of the Fiesta and Hyundai Verna ads helped increase the
curiosity in the minds of the prospective buyer. On tracking dealerships, Ford understood
that this element specifically has helped skyrocket enquiries from future buyers.
According to Ford India, the Fiesta has contributed largely to its sales; since the car’s
launch in 2005, more than 65,000 Fiestas have hit the road. Fiesta has become a
significant player in the C segment. However, cross shopping does not happen often in
the C segment, even though a premium hatchback customer (B segment) could opt for a
sedan for a little bit more. Fiesta launched itself with Abhishek Bachchan as the brand
ambassador for a one-year period, and his style and panache helped the brand establish
itself early.
COMPETITION
GENERIC COMPETITION
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• Small cars
• Premium cars
• Luxury cars
• Sport utility vehicles
Segments Companies
• Ford • M&M
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• Motor cycles
• Scooters
• Scooterettes/Mopeds
Segments Companies
• Buses
• Trucks
• Tractors
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• Ambulance
• Defence vehicles
• Construction equipments
Segment Companies
BRAND COMPETITION
• Maruti Suzuki SX4
• GM
• Honda City
• Threat of new entrants:- Maruti Suzuki Swift Dezire
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FINANCIAL
ANALYSIS
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07 06 05 04 03 01
SOURCES OF FUNDS :
1,097.
Share Capital 00 986.08 850 850 850 850
- - - -
Reserves Total -767.8 788.41 640.85 -628.9 582.37 467.61
197.6 209.1 267.6 382.3
Total Shareholders Funds 329.2 7 5 221.1 3 9
Secured Loans 392.41 408.46 541.62 482.52 575.55 682.43
Unsecured Loans 284.55 186.24 238.09 175.26 108.91 60.37
676.9 779.7 657.7 684.4
Total Debt 6 594.7 1 8 6 742.8
1,006. 792.3 988.8 878.8 952.0 1,125.
Total Liabilities 16 7 6 8 9 19
APPLICATION OF FUNDS :
1,359. 1,344. 1,097. 1,035. 1,024. 1,025.
Gross Block 70 99 27 51 84 34
Less : Accumulated
Depreciation 535.59 433.19 351.02 278.57 220.71 94.02
Net Block 824.11 911.8 746.25 756.94 804.13 931.32
Lease Adjustment 0 0 0 0 0 0
Capital Work in Progress 128.03 104.54 301.72 167.43 144.72 0
Investments 0 0 0 0 0 0
Current Assets, Loans &
Advances
Inventories 192.53 230.04 247.54 98.53 131.48 114.45
Sundry Debtors 201.2 47.51 52 52.83 37.83 44.33
Cash and Bank 53.99 27.36 5.16 18.98 0.42 1.89
Loans and Advances 140.09 93.2 59.69 44.13 47.88 238.78
Total Current Assets 587.81 398.11 364.39 214.47 217.61 399.45
Less : Current Liabilities and
Provisions
Current Liabilities 499.9 601.97 408.35 249.06 176.05 185.34
Provisions 34.28 20.23 15.45 11.52 39.49 23.25
Total Current Liabilities 534.18 622.2 423.8 260.58 215.54 208.59
-
Net Current Assets 53.63 224.09 -59.41 -46.11 2.07 190.86
Miscellaneous Expenses not
written off 0.39 0.12 0.3 0.62 1.17 3.01
Deferred Tax Assets 0 0 0 0 0 0
Deferred Tax Liability 0 0 0 0 0 0
Net Deferred Tax 0 0 0 0 0 0
1,006. 792.3 988.8 878.8 952.0 1,125.
Total Assets 16 7 6 8 9 19
Contingent Liabilities 0 0 0 0 0 0
http://www.capitaline.com
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(Rs in Crs)
Mar Mar Mar Mar Mar
Year 07(12) 06(12) 05(12) 04(12) 03(12)
INCOME :
2,722.3 1,780.9 1,621.6 1,326.0 1,036.3
Sales Turnover 3 6 2 2 7
Excise Duty 0 307.24 293.63 209 180.45
2,722.3 1,473.7 1,327.9 1,117.0
Net Sales 3 2 9 2 855.92
Other Income 0 28.84 40.99 23.06 32.85
Stock Adjustments 0 -30.69 82.81 -44.8 39.35
2,722. 1,471. 1,451. 1,095.
Total Income 33 87 79 28 928.12
EXPENDITURE :
1,177.9 1,153.6
Raw Materials 0 0 0 848.39 674.63
Power & Fuel Cost 0 17.19 14.64 12.99 9.75
Employee Cost 0 52.63 39.26 31.6 27.66
Other Manufacturing Expenses 0 27.3 21 20.2 17.65
Selling and Administration
Expenses 0 166.59 102.4 92.1 99.51
2,567.1
Miscellaneous Expenses 5 32.83 27.38 30.26 28.73
Less: Pre-operative Expenses
Capitalised 0 0 0 0 0
2,567.1 1,474.4 1,358.2 1,035.5
Total Expenditure 5 4 8 4 857.93
Operating Profit 155.18 -2.57 93.51 59.74 70.19
Interest 30.56 59.46 31.37 46.6 61.7
Gross Profit 124.62 -62.03 62.14 13.14 8.49
Depreciation 104.06 83.75 74.09 59.67 62.73
Profit Before Tax 20.56 -145.78 -11.95 -46.53 -54.24
Tax 0 0 0 0 0
Deferred Tax 0 0 0 0 0
Reported Net Profit 19.61 -147.57 -11.95 -46.53 -54.24
Extraordinary Items 0 -1.79 -0.79 -1.18 -2.83
Adjusted Net Profit 19.61 -145.78 -11.16 -45.35 -51.41
Adjst. below Net Profit 0 0 0 0 0
P & L Balance brought forward -788.41 -640.84 -628.9 -582.37 -528.13
Statutory Appropriations 0 0 0 0 0
Appropriations 0 0 0 0 0
P & L Balance carried down -768.8 -788.41 -640.85 -628.9 -582.37
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Dividend 0 0 0 0 0
Preference Dividend 0 0 0 0 0
Equity Dividend % 0 0 0 0 0
Earnings Per Share-Unit Curr 1.79 0 0 0 0
Book Value-Unit Curr 30.01 20.05 24.61 26.01 31.49
RETURN ON INVESTMENT
• Return on Net Worth (RONW): The ratio measures the net profit earned
on the equity shareholder’s funds. It is the measure of overall profitability of a
company after discharging cost of borrowed capital and income tax payable to the
government. It is also known as Return on equity or ROE ratio.
RONW (%) =
Equity shareholder’s fund or net worth (equity capital + reserve and surplus –
miscellaneous expenditure not written off)
Interpretation:
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LIQUIDITY RATIO
• Current ratio: This ratio measures the ability of a company to discharge its
day-to-day bills, or current liabilities as and when they fall due, out of the cash or
near cash or current assets that it possesses.
Current ratio =
Interpretation:
The current ratio of Ford Motors Limited for past 4 years is increasing which means that
the company is capable to meet the current obligations.
• Quick ratio: This ratio measures as to how quick is the ability of a company to
discharge its current liabilities net of working capital limits, as and when they fall
due, out of cash, or current assets net of inventories that it possesses.
Quick ratio =
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Interpretation:
The quick ratio of 1:1 is considered good. But the company‘s quick ratio of past 4 years
is not equal to 1:1. Therefore, high current ratio and low quick ratio indicates weak
working capital management.
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TURNOVER RATIOS
• Fixed assets turnover ratio: This ratio measures the extent of turnover or
volume of gross income generated by the fixed assets of a company or in other
words the efficiency in their utilization.
Net sales
Interpretation:
The fixed assets turnover ratio of ford motors limited of past 4 years indicates that there
is a substantially higher growth in the efficiency of fixed assets utilization which further
reflected in a higher RONW.
• Net Worth Turnover Ratio: This ratio measures the extent of turnover or
volume of gross income generated by the net worth of the company. In other
words, it is the efficiency in the resource utilization from the angle of the residual
interest, i.e. equity shareholders.
Net sales
Net worth (equity capital + reserves & surplus – miscellaneous expenditure not
written off)
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Interpretation:
• Stock turnover ratio: This ratio measures to discover the possible trouble in
the form of overstocking or over valuation. A low stock turnover ratio results in
blocking of funds in inventory which may ultimately result in heavy losses due to
inventory becoming obsolete or deteriorating in quality.
Average stock
Interpretation:
The stock turnover ratio of ford motors limited of past 4 years is not efficiently used. As
high stock turnover ratio indicates brisk sales.
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PROFITABILITY RATIOS
• Gross profit margin: This ratio measures several intermediate profit margin
indicators and finally the PAT.
GP*100
Net sales
Interpretation:
The gross profit margin of ford motors limited has been increasing for past 4 years.
Therefore, this indicates that high gross profit margin of ford motors limited reflects the
ability to maintain a low cost of production.
• Net profit margin: This ratio indicates net margin earned on a sale of Rs.100.
Net sales
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Interpretation:
The net profit margin of ford motors limited has increased in 2007 but there was a decline
in net profit margin from 2004-06. Therefore, this indicates that in 2007, company is
capable to return dividends and stock price appreciation to shareholder.
BALANCE SHEET
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Industry :Automobiles -
passenger cars
(Rs in Crs)
Mar Mar Mar Mar Mar Mar
Year 06 05 04 03 02 01
SOURCES OF FUNDS :
Share Capital 812.54 812.54 812.54 812.54 812.54 812.54
1,242.
Reserves Total 48 717.38 449.43 208.39 329.6 175.87
2,055. 1,529. 1,261. 1,020. 1,142. 988.4
Total Shareholders Funds 02 92 97 93 14 1
Secured Loans 0 0 0 0 0 34.97
Unsecured Loans 521.95 418.09 596.33 571.54 617.82 647.44
521.9 418.0 596.3 571.5 617.8 682.4
Total Debt 5 9 3 4 2 1
2,576. 1,948. 1,858. 1,592. 1,759. 1,670.
Total Liabilities 97 01 30 47 96 82
APPLICATION OF FUNDS :
3,107. 2,759. 2,548. 1,926. 1,695. 1,620.
Gross Block 57 27 84 18 92 36
1,371. 1,079.
Less : Accumulated Depreciation 42 03 839 662.55 496.81 299.22
1,736. 1,680. 1,709. 1,263. 1,199. 1,321.
Net Block 15 24 84 63 11 14
Lease Adjustment 0 0 0 0 0 0
Capital Work in Progress 167.21 14.67 0 0 0 0
Investments 0 0 11.73 11.9 169.07 109.9
Current Assets, Loans &
Advances
Inventories 741.54 634.15 466.9 253.98 254.78 195.84
Sundry Debtors 224.88 306.34 114.76 54.79 101.27 19.71
Cash and Bank 535.1 146.32 543.92 548.51 384.95 170.64
Loans and Advances 949.21 788.45 163.36 85.71 88.41 126.14
2,450. 1,875. 1,288.
Total Current Assets 73 26 94 942.99 829.41 512.33
Less : Current Liabilities and
Provisions
Current Liabilities 959.62 798.14 760.49 416.16 272.8 208.82
Provisions 630.87 595.93 223.06 38.09 164.83 65.02
1,590. 1,394.
Total Current Liabilities 49 07 983.55 454.25 437.63 273.84
Net Current Assets 860.24 481.19 305.39 488.74 391.78 238.49
Miscellaneous Expenses not
written off 0 0 0 0 0 1.29
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RETURN ON INVESTMENT
• Return on Net Worth (RONW): The ratio measures the net profit earned
on the equity shareholder’s funds. It is the measure of overall profitability of a
company after discharging cost of borrowed capital and income tax payable to the
government. It is also known as Return on equity or ROE ratio.
RONW (%) =
Equity shareholder’s fund or net worth (equity capital + reserve and surplus –
miscellaneous expenditure not written off)
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Interpretation:
LIQUIDITY RATIO
• Current ratio: This ratio measures the ability of a company to discharge its
day-to-day bills, or current liabilities as and when they fall due, out of the cash or
near cash or current assets that it possesses.
Current ratio =
Interpretation:
The current ratio of Hyundai Motors Limited for past 4 years is increasing from 2004-
2006 but at a slower pace as compared to 2003.
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• Quick ratio: This ratio measures as to how quick is the ability of a company to
discharge its current liabilities net of working capital limits, as and when they fall
due, out of cash, or current assets net of inventories that it possesses.
Quick ratio =
Interpretation:
The quick ratio of 1:1 is considered good. But the company‘s quick ratio of past 4 years
is not equal to 1:1. Therefore, high current ratio and low quick ratio indicates weak
working capital management.
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TURNOVER RATIOS
• Fixed assets turnover ratio: This ratio measures the extent of turnover or
volume of gross income generated by the fixed assets of a company or in other
words the efficiency in their utilization.
Net sales
Interpretation:
The fixed assets turnover ratio of Hyundai motors limited of past 4 years indicates that
there is a substantially higher growth in the efficiency of fixed assets utilization which
further reflected in a higher RONW.
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• Net Worth Turnover Ratio: This ratio measures the extent of turnover or
volume of gross income generated by the net worth of the company. In other
words, it is the efficiency in the resource utilization from the angle of the residual
interest, i.e. equity shareholders.
Net sales
Net worth (equity capital + reserves & surplus – miscellaneous expenditure not
written off)
Interpretation:
Decline in RONW resulted in decline in net worth turnover of Hyundai motors limited.
Therefore, it is not an ideal situation for a company.
• Stock turnover ratio: This ratio measures to discover the possible trouble in
the form of overstocking or over valuation. A low stock turnover ratio results in
blocking of funds in inventory which may ultimately result in heavy losses due to
inventory becoming obsolete or deteriorating in quality.
Average stock
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Interpretation:
The stock turnover ratio of Hyundai motors limited of past 4 years is not efficiently used.
As high stock turnover ratio indicates brisk sales.
PROFITABILITY RATIO
• Gross profit margin: This ratio measures several intermediate profit margin
indicators and finally the PAT.
GP*100
Net sales
Interpretation:
The gross profit margin of Hyundai motors limited has been increasing at a slower pace
for a past 4 years. Therefore, this indicates that low gross profit margin of Hyundai
motors limited reflects the less ability to maintain a low cost of production.
• Net profit margin: This ratio indicates net margin earned on a sale of Rs.100.
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Net sales
Interpretation:
The net profit margin of Hyundai motors limited has increased in 2006 as compared to
2005. Therefore, this indicates that company is capable to return dividends and stock
price appreciation to shareholder.
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LIQUIDITY RATIO
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TURNOVER RATIOS
PROFITABILITY RATIO
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RECOMMENDATION
PROPOSED ENTRANT
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Website www.newtechindia.com
Factory Location Faridabad, Haryana
CORPORATE STRUCTURE
New Tech Motors India Ltd was founded by Mr. Tawseef Ahmad as a separate legal
entity. The company is registered under the Companies Act,1956.
BUSINESS GOALS
Our goal is to provide value to our customers. This goal is established in order to
help fulfill our vision -- to become a company that society wants to exist. Our
goal is to establish New Tech as a brand that people trust and identify, by
strengthening New Tech’s spirit of innovation and creativity.
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Come this June and New Tech brings to its Indian customers New Tech Comfy which is
all set to put Indian roads on fire. A car that combines luxury, endurance, operational
excellence and comfort in such a way that it could create a sensation amongst every
generation. Rich in style and swift in movement, Comfy is a symbol of elegance and
luxury.
COMPETITIVE ADVANTAGE
What makes New Tech unique is its ability to provide everything under one roof
that is sale, service & spares.
Also, we are using Chrome plated wheels in our Comfy Cars. For chromium
plating, each individual wheel is polished with superior care and cleaned in
special baths. Prior to chrome plating, all wheels are buffed to bring out luster and
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to obtain mirror finish, this triple chromium process gives superior looks without
sacrificing corrosion protection. Main advantages of using chrome plated wheels
are:
• Better grip
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The New Tech Comfy is an ingenious mix of dynamic styling, advanced technology,
versatility and economy. Look at it from the front, the back or the side - and it will leave
you speechless!
The design elements of Comfy makes it so unbelievably stylish.
Front Styling
o High class V shaped front grille
o New 3D lens headlamp with blue parking light
o Power door mirrors
o Roof mounted antenna
Colors
o Seven sizzling colors will be available in the New Tech Comfy.
Tafeta White
INTERIORS
Crafted for Comfort
Comfy has marvelous interiors – luxurious and relaxing. Whether you are in the driver’s
seat or just along for the ride, your experience in the Comfy can only be unbelievable.
Indulge yourself in the sumptuous interiors, where every detail is crafted with precision
engineering for immaculate perfection.
Style
o Luxurious color tones
o Innovative instrument cluster
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Comfort
o New, improved seating
o Super space
o Powerful air conditioning
o Automatic temperature control
o Footrest in the rear
o Smoother rides
o Improved rear suspension
o NVH Control
Convenience
o Height-adjustable driver’s seat
o Headlamp beam adjustment
o Maximum storage space
o Tilt Steering
o Power door mirror controls
MODELS
We are launching two models of New Tech Comfy initially:
PRICING
As New Tech Comfy is being launched in Mid Size Car segment, it will provide the
customers luxury at a much affordable price. Also keeping in mind our competitors,
Hyundai Verna and Ford Fiesta, we are launching Comfy at a competitive price.
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PLACE
We are planning launch of New Tech Comfy initially in India only, covering all major
cities like Delhi, Mumbai, Bangalore, Kolkata, Chandigarh, Hyderabad, Ahmedabad,
Pune, Chennai, Lucknow etc.
In the next financial year we are planning to cater to international markets also with
Comfy petrol and Comfy diesel and many more new variants of the same.
PROMOTION
We are planning to use various advertising media like television, newspapers, magazines
etc to penetrate into the Indian Car Industry.
SONY
STAR PLUS
ZEE CINEMA
SET MAX
CNN-IBN
ZEE TV
Around 70% of the amount allocated for promotional purpose is to be used for television
advertising.
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• Print Advertisements: Hoardings and billboards will be placed across all major
cities all over India. Also, Prints adds will be there in daily newspapers and
selected magazines.
NEWSPAPERS
• TIMES OF INDIA
• HINDUSTAN TIMES
MAGAZINES
• MOTORING
• OVERDRIVE
• INDIA TODAY
• BUSINESS TODAY
Around 20% of the amount allocated for promotional purpose is to be used for print
advertising.
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In all we have allocated 10% of the promotional amount to campaigns and road
shows.
CREDIT TERMS
PARTNERS:
We will provide our cars at 3, 4 & 5 year credit plans with minimum down payment of
15% & remaining amount at EMI with the interest rate of 6%.
TARGET SEGMENT
New Tech Comfy is having sporty looks so we are mainly targeting male youngsters in
the age group of 20-30 who are passionate drivers and seek adventure.
We are also targeting the age group of 30-35 because of its comfort and luxury.
Sporty looks of New Tech Comfy make it a car for youngsters and its comfort and space
makes it a car for family!!
INVESTMENT PLAN
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New Tech’s initial investment was Rs.1500 Crores for the first financial year. This
investment was made on factory land, machinery, employees hired, constructions,
promotion and 18 showrooms opened in six metros.
In the next financial year 2009-10, New Tech is planning to open up six more showrooms
in states other than metros which will require an investment of around Rs.300 Crores.
PRODUCTION
Production Process of New Tech Motors India:
1. Stamping
2.Welding
3.Paint
4.General Assembly
5.Quality
6.Production Control
Stamping:
In the Stamping Shop, the vehicle begins to take shape. Housed in the shop are large
rolls of steel, each weighing between 20,000 and 40,000 pounds. Cranes are used to lift
the rolls and put them into the blanking machine, where rectangular pieces, thin as a
dime, are cut and stored in racks. The pieces are automatically moved to one of two
large, stamping presses with dies moulded into various shapes. Over 5,400 tons of
pressure transforms the steel blank into a specific body part.
Welding:
The Welding Shop containing robots capable of manoeuvring and welding body parts.
These amazing automated machines position stamped body parts and accurately weld
them together to form the vehicle body, called a “body-in-white.”Team Members attach
hinges, doors, hood and trunk, then check the quality of each car body to confirm the
welding process is perfect.
Paint:
The completed “body-in-white” moves from the Welding Shop, along a trestle into the
Paint Shop for the nine-hour painting process. The vehicle first rotates 360 degrees in a
unique electro coat bath to prepare the entire body for paint. Since the Paint Shop is an
environmentally-controlled area, Team Members must wear special overalls and gloves
to protect themselves and the paint’s finish. A single particle of dust can affect the overall
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quality of a vehicles paint finish. After drying, the freshly-painted vehicle body heads to
General Assembly.
General Assembly:
General Assembly houses approximately 700 Team Members who install a variety of
parts to complete the vehicle. The painted vehicle body moves through the trim area
where wires, brake controls, and other parts are quickly connected inside the vehicle,
under the hood, and in the trunk. The doors are taken off early in the process and sent to
another area where speakers, power windows, door seals and other parts are installed. In
the chassis area, the underside of the vehicle is completed and the engine and drive train
are connected to the body. After the tires, battery, front and rear glass, and seats are
installed, the doors are reattached to the vehicle. Oil, engine coolant, gasoline and other
vital fluids are added, and then the vehicle is started for the first time. A roll booth tests
the braking system and then the vehicle is driven on a two-mile test track to check for
rattles or other issues.
Quality:
Quality checks are built into each step in the production process. Each vehicle has to pass
a series of stringent tests, including satisfactory performance on a two-mile test track.
Production Control:
In the production control department, NMIL manages whole supply chain activities and
the network, beginning with our customer order, moving from suppliers to manufacturers,
then through its own distribution network to its own showrooms, and then to customers.
PROCUREMENT
New Tech Motors India Limited has around 1000 workers working in its factory outlet
which is located in Faridabad, for its current (1st) year of production. The company has
got its own 18 3S-showrooms in different states with around 40 employees working in
each showroom. Company has its own distribution network and does not rely on
dealerships due to which the company maintains a huge control on production & sales as
the cars are made on demand.
RESULTS EXPECTED
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We are expecting total profit of Rs.2278.8 Crores in five financial years. Our planned
total investment for these 5 years is Rs.2000 Crores. Out of this, we are expecting that
Rs.1764 Crores will be recovered in financial year 2011-12. Remaining Rs.236 Crores
will be recovered in year 2012-13.
Thus we will be able to achieve our break even point in 4 & ½ years.
With the mid size car segment growing at such a fast pace, we are expecting a growth of
30% in our market share in next 5 years, that is, by 2013.
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MACRO ENVIRONMENT
Politically:
• The excise and customs duties on cars and auto-components have been
continuously declining over the past five years. These factors have
contributed in providing the impetus to the auto sector.
Economically:
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Socio-demographically:
• Generally, preferences head towards smaller and mid size cars for
environmental, economical and convenience reasons.
Technologically:
• Huge Financial resources are required to keep up with the fast pace of
changes.
Environmentally:
Legislative situation:
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MICRO ENVIRONMENT
1. HORIZONTAL COMPETITION
• Rivalry is high since the high growth rate of the mid size car segment
naturally attracts many existing competitors aiming to cover it.
Additionally, low differentiation of products (image and brand-identity
main differentiators), heterogeneity of competitors (BMW vs.
DaimlerChrysler, Toyota vs. Honda), similarly high financial backing by
parent companies and high exit barriers (manufacturers forced to carry on,
hence competition does not cease) intensify rivalry.
2. VERTICAL COMPEITION
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• Switching costs are moderate, since cars are usually kept for at least three
years. Internet price comparisons increase the bargaining power, but this
mainly affects dealers.
CONCLUSION
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Automobile Industry is the largest industry in India which is currently contributing about
5% of the India’s GDP and it is targeted to grow five fold by 2016.
The onset of automobile industry in India saw companies like Hindustan Motors, Premier
Automobiles and Standard Motors catering to the manufacture of automobiles for Indian
customers. Hindustan Motors (HM) was the leader in car manufacturing and sales until
the 1980s. The policy reforms in 1991 opened up the sector for many foreign auto makers
who entered the Indian markets and the competition levels in the Automobile Industry
intensified.
India, in auto sector, is turning to be a sourcing base for the global auto majors. It is
expected that automobile industry will touch a mark of 13,008 million by 2010. Even the
commercial vehicles are likely to grow at 5.2 per cent. To tap this large opportunity, the
Indian Auto Companies along with the global giants have announced huge expansion
plans.
India is the 11th largest Passenger Cars producing countries in the world. Hyundai
Motors India is the second largest player in passenger car market. The passenger car and
the motorcycle segment is set to grow by 8-9 per cent in coming couple of years.
Although the Indian automobile industry recorded a de growth in the financial year ended
2007-08, Hyundai Motor India Ltd recorded the highest growth with an increase of 52
per cent.
Automobile industry has a huge potential to grow and prosper in future as manufacturers
are investing heavily in new manufacturing and assembly plants in automotive hubs
across India and have announced massive expansion plans. Manufacturers are investing
overseas and establishing footprints across the world.
The industry is set to have a major impact on India’s future economic growth. The
industry is entering into a new phase of its development and evolution, results of which
will be visible in over next ten years
Car industry occupies a strategic position in many countries. Currently, there is high
demand for cars across all the segments. With the growing economy, people left with a
lot of disposable income spend it towards meeting their mobility needs such as cars.
Additionally, a convenient union budget in the current financial year (2008-09) has
worked in favour of the automobile sector, which has seen an uptrend in sales across
various segments. Indian car industry is about to take a new shape altogether with the
launch of TATA NANO. Nano is expected to bring about a revolutionary change in the
Indian Car Industry.
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Ford motors Ltd, which introduced itself in India in 1988, has invested heavily in India to
give the finest in automobiles. Ford is having the world class manufacturing capabilities
and is always there to provide services and solutions to its customers.
Hyundai Motor is the sixth largest car maker in the world. Hyundai Motor India Limited
(HMIL) is the second largest and the fastest growing car manufacturer in India with its
presence in almost all the segments. The company is investing heavily in R&D in order to
develop new products and technologies. Hyundai Motor India is following management
practices and focusing on developing products that are environment friendly .The
company has been awarded various times and achieved another milestone with the launch
of Hyundai Verna.
As far as our research is concerned, HMIL is far ahead of Ford India. This difference is
on the basis of market share, number of cars sold per year & number of showrooms.
HMIL is highly penetrated into the B, B+ segment with huge sale of cars like Santro &
now i10. Another reason for HMIL being ahead of Ford India is that Hyundai has been
able to better understand the tastes & preferences of Indian customers.
As far as the comparison of Hyundai Verna & Ford Fiesta is concerned, Hyundai Verna
is better in Style & Comfort whereas Ford Fiesta is better in Mileage & its prices are less
as compared to Hyundai Verna.
Now another car, New Tech Comfy, being launched by NMIL this month is going to
make the competition more intense & it will try its best to make the life hard for cars like
Hyundai Verna & Ford Fiesta.
The positive demographic factors, pro-reform policies of the government and fast pace of
growth of the automobile industry made almost all major global auto players making
their way into India. The intense competition has compelled the manufacturers to launch
the latest global offering in India as early as possible. It has also enabled to keep the
prices of the vehicles under check. The consumers, in turn, have benefited from wide
choice of models, technologically advanced cars and better service from the car
manufacturers.
BIBLIOGRAPHY
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www.india.ford.com
www.hyundai.co.in
www.hondacarindia.com
http://auto.indiamart.com/cars/mid-size-cars.html
http://auto.indiamart.com/cars/hyundai-verna/
http://auto.indiamart.com/cars/ford-fiesta/
www.thehindubusinessline.com
http://readers-choice.org
http://www.fadaweb.com/indian_auto_scenario.htm
www.economictimes.indiatimes.com
www.thehindubusinessline.com
www.icmrindia.org
www.ibef.org
www.capitaline.com
http://www.jagsharma.com/files/Coursework%20Strategy.pdf
http://www.surfindia.com/automobile/industry-growth.html
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http://www.surfindia.com/automobile/vehicle-production.html
http://www.surfindia.com/automobile/auto-companies.html
http://www.surfindia.com/automobile/ford-india-limited.html
http://www.surfindia.com/automobile/hyundai-motor.html
ANNEXURES
Visit to
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ANNEXURE 1
NCR FORD
Information gathered from the conversation with Mr. Anil
Arora, Manager Sales & Finance
• Ford is having six showrooms in NCR region.
• Ford sells around 300 cars per month from all the 6 showrooms out of which 50-
60% are Ford Fiesta.
• Customer segment for Ford Fiesta: C – segment
• Generic Competition for Ford Fiesta: -
Honda City and Maruti Suzuki SX4 in petrol
Hyundai Verna and Swift Dezire in diesel
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• Business Model:-
Road shows
Free check up camps
Corporate visits
Telecalling
Walk in Customers
• Competitive Advantage:- Mileage, luxury, interior. Ford is the only car in its
segment which gets 0-100 kms in 11.43 seconds.
ANNEXURE 2
Fx Hyundai
Information gathered from the conversation with Mr. Raman
Jha, assistant sales manager.
• This showroom sells around 100 to 125 cars per month.
• Verna launched for the segment which is above the A2 segment, also called as C-
segment.
• Hyundai does most of its business with brand loyal customers so New Verna is
for those who have already used Hyundai Santro & Getz.
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• Hyundai is the only car manufacturer in Indian market who launches same
designs in all the 65 countries, not even a single feature is changed.
• Hyundai is the 6th largest in World & 2nd largest in India, credit goes to cars like
Santro.
• Distribution channel:-
A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile
Industry