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The origins of Škoda go back to the early 1890s where, like many long-
established car manufacturers, the company started out manufacturing
bicycles. It was 1894, and 26-year old Václav Klement, who was a bookseller
in Mladá Boleslav, in today's Czech Republic, which was then part
of Austria-Hungary, was unable to obtain spare parts to repair his German
bicycle. Klement returned his bicycle to the manufacturers, Seidel and
Naumann, with a letter, in Czech, asking for them to carry out repairs, only to
receive a reply, in German, stating: "If you would like an answer to your
inquiry, you should try writing in a language we can understand". A disgusted
Klement, despite not having technical experience, decided to start a bicycle
repair shop, which he and Václav Laurin opened in 1895 in Mladá Boleslav.
Before going into business partnership with Klement, Laurin was an already
established bicycle manufacturer from the nearby town of Turnov.
1905 Laurin & Klement at Škoda Auto Museum, Mladá Boleslav, Czech
Republic
In 1898, after moving to their newly-built factory, the pair bought a Werner
"motorcyclette",[nb 1] which was produced by French manufacturer Werner
Brothers. Laurin & Klement's first motorcyclette (which was powered by an
engine mounted on the handlebars driving the front wheels) proved
dangerous and unreliable — an early incident on it cost Laurin a front tooth.
To design a safer machine with its structure around the engine, the pair
wrote to German ignition specialist Robert Bosch for advice on a different
electromagnetic system. The pair's new Slavia motorcycle made its debut in
1899.
In 1900, when the company had a workforce of 32, Slavia exports began,
with 150 machines shipped to London for the Hewtson firm. Shortly
afterwards, the press credited them as makers of the first motorcycle. [2] The
first model, Voiturette A, was a success and the company was established
both within Austria-Hungary and internationally. By 1905, automobiles were
being produced by the firm. During the First World War Škoda was engaged
in war production.
After WWI it began producing trucks, but in 1924, after running into problems
and being hit by a fire, the company sought a partner. As a result, it merged
with Škoda Works, the biggest industrial enterprise in Czechoslovakia. Most
later production was under the Škoda name. After a decline during the
economic depression, Škoda was again successful with models such as
the Popular in the late 1930s.
VEHICLES BY SKODA IN INDIA
183% in sales for the month of November 2009 over 2008 and a
double-digit jump of 93% in sales in the last 3 months (September –
November) over the same period last year. The launch of the all new
Skoda Superb and the new Laura in the Indian markets has been the
main drivers behind SkodaAuto India’s record increase in sales.
The all new Superb, in particular,
continues to outperform expectations.
November 2009
Unit = one
Results NOV 2009 Y-o-Y (%) vehicle
NOV 2008
Domestic Sales
▶ Up 93.2%, due to a base effect from a year earlier when the
consumer sentiment deteriorated rapidly and the credit
screening for customers was tighter.
▶ The best-selling model in Korea last month was again the Sonata, selling
19,202 units.
Of this figure, 17,464 units were the all-new Sonata model,
which was launched in the domestic market in September.
Overseas Sales
▶ Up 22.3%
▶ Exports down -12.4% Y-o-Y, but 11.2% up from last month showing a
sign of slow recovery
▶ Sales of overseas plant increased by 64.5%.
YEAR TO DATE
Unit = one vehicle
JAN~NOV 2009 Y-o-Y (%) JAN~NOV 2008
Passenger Cars 388,887 16.3 334,352
Domestic
SUVs 97,674 35.7 71,963
Sales
1
CVs 140,402 14.1 123,085
Total 626,963 18.4 529,400
Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia
Automotive Group which was ranked as the world’s fifth-largest
automaker since 2007 and includes over two dozen auto-related
subsidiaries and affiliates. Employing over 75,000 people worldwide,
Hyundai Motor sold approximately 2.8 million vehicles globally in 2008,
posting sales of US$25.6 billion on a non-consolidated basis (using the
average currency exchange of 1257.5 won per US dollar). Hyundai
vehicles are sold in 193 countries through some 6,000 dealerships and
showrooms. Further information about Hyundai Motor and its products
are available at www.hyundai.com.
Tucson might well be replaced by IX35; Not even a single unit was sold in
Jan
India’s second largest car manufacturer Hyundai, posted a massive
increase in sales in Jan 2010. Beginning the new year on a bright note,
Hyundai sold as many as 52,635 units in Jan 2010 compared to the 37,171
sold in the same period last year. Domestic sales recorded a 40.8% growth
while exports soared by 42.6% resulting in a net growth of 41.6%.
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Domestic sales only accounted for 29,601 units while exports stood at
23,034. Commenting on HMIL’s performance Arvind Saxena, Director –
Marketing and Sales, HMIL commented, “We have started the year on a
right note and we hope the momentum will continue with the help of the
stimulus package offered by the government.”
The segment-wise cumulative sales for the month of January, 2010 are as
follows:
A2 Segment (Santro, i10, Getz & i20) 47,104 units
A3 Segment (Accent & Verna) 5,502 units
A5 Segment (Sonata Transform) 29 units
SUV Segment (Tucson) 0 unit
Hyundai In India
Hyundai Motor India Limited is currently the second largest carmaker
after Maruti Suzuki and largest auto exporter in India.[41] It is making India
the global manufacturing base for small cars. Hyundai sells several models
in India, the most popular being the Santro Xing, i10 and the i20. Other
models include Getz Prime, Accent, second generation Verna, Tucson, and
the Sonata Transform. Hyundai has two manufacturing plants in India
located at Sriperumbudur in the Indian state of Tamil Nadu. Both plants
have a combined annual capacity of 600,000 units.In the year 2007
Hyundai opened its R&D facilty in Hyderabad Andhra pradesh , employing
now nearly 450 engineers from different parts of the country.Basically the
Hyundai Motors India Engineering (HMIE) gives technical support in CAD
and CAE to Hyundai's main R&D center in Namyang Korea.
SAIPL is aiming to become the strategic hub in South and Eastern Asian
markets for the Škoda Auto marque, by exporting its locally produced
products to Nepal,Sri Lanka and Thailand.[3] As of April 2009, it has sold
over 61,000 units since operations began in November 2001. [1]
7,69,000, ONLY
3. FABIA SAFETY-
Strengths
To identify its strengths, Škoda UK carried out research. It asked customers
directly for their
opinions about its cars. It also used reliable independent surveys that tested
customers’
feelings. For example, the annual JD Power customer satisfaction survey asks
owners what
they feel about cars they have owned for at least six months. JD Power surveys
almost 20,000
car owners using detailed questionnaires. Škoda has been in the top five
manufacturers in this
survey for the past 13 years. In Top Gear’s 2007 customer satisfaction survey,
56,000 viewers
gave their opinions on 152 models and voted Škoda the ‘number 1 car maker’.
Škoda’s
Octavia model has also won the 2008 Auto Express Driver Power ‘Best Car’.
133
Weaknesses
A SWOT analysis identifies areas of weakness inside the business. Škoda
UK’s analysis
showed that in order to grow it needed to address key questions about the brand
position.
Škoda has only 1.7% market share. This made it a very small player in the market
for cars.
The main issue it needed to address was: how did Škoda fit into this highly
competitive,
fragmented market?
This weakness was partly due to out-dated perceptions of the brand. These related
to Škoda’s
eastern European origins. In the past the cars had an image of poor vehicle quality,
design,
assembly, and materials. Crucially, this poor perception also affected Škoda
owners. For
many people, car ownership is all about image. If you are a Škoda driver, what do
other
people think?
From 1999 onwards, under Volkswagen AG ownership, Škoda changed this
negative image.
Škoda cars were no longer seen as low-budget or low quality. However, a brand
‘health check’
in 2006 showed that Škoda still had a weak and neutral image in the mid-market
range it
occupies, compared to other players in this area, for example, Ford, Peugeot and
Renault. This
meant that whilst the brand no longer had a poor image, it did not have a strong
appeal either.
This understanding showed Škoda in which direction it needed to go. It needed to
stop being
defensive in promotional campaigns. The company had sought to correct old
perceptions
and demonstrate what Škoda cars were not. It realised it was now time to say what
the brand
does stand for. The marketing message for the change was simple. Škoda owners
were
known to be happy and contented with their cars. The car-buying public and the
car industry
as a whole needed convincing that Škoda cars were great to own and drive
Opportunities
Opportunities occur in the external environment of a business. These include for
example,
gaps in the market for new products or services. In analysing the external market,
Škoda
noted that its competitors’ marketing approaches focused on the product itself.
GLOSSARY
Brand image: how a particular
brand name is perceived within the
market by potential buyers.
Fragmented market: a market
containing many sellers and many
products.
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Page 3
Audi emphasises the technology through its strapline, ‘Vorsprung Durch Technik’
(‘advantage
through technology’). BMW promotes ‘the ultimate driving machine’. Many
brands place
emphasis on the machine and the driving experience. Škoda UK discovered that its
customers
loved their cars more than owners of competitor brands, such as Renault or Ford.
Information from the SWOT analysis helped Škoda to differentiate its product
range. Having a
complete understanding of the brand’s weaknesses allowed it to develop a strategy
to strengthen
Threats
Threats come from outside of a business. These involve, for example, a competitor
launching
cheaper products. A careful analysis of the nature, source and likelihood of these
threats is a
key part of the SWOT process.
The UK car market includes 50 different car makers selling 200 models. Within
these there
are over 2,000 model derivatives. Škoda UK needed to ensure that its messages
were
powerful enough for customers to hear within such a crowded and competitive
environment.
If not, potential buyers would overlook Škoda. This posed the threat of a further
loss of
market share.
Škoda needed a strong product range to compete in the UK and globally. In the UK
the
Škoda brand is represented by seven different cars. Each one is designed to appeal
to
different market segments. For example:
• the Škoda Fabia is sold as a basic but quality ‘city car’
• the Škoda Superb offers a more luxurious, ‘up-market’ appeal
• the Škoda Octavia Estate provides a family with a fun drive but also a great big
boot.
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Pricing reflects the competitive nature of Škoda’s market. Each model range is
priced to
appeal to different groups within the mainstream car market.
3.2 Weaknesses
Commodity Price Risks
Hyundai commodity price risks to higher costs due to changes in
prices of inputs such as steel, aluminum, plastics and rubber,
which go into the production of automobiles.In order to mitigate
these risks, the company continues to attempts to enter into long
term contracts based on its projections of prices. In a volatile
commodity market, where your company gives top priority to
ensuring smooth availability of inputs, long term contracts are
helpful. They also help minimize the impact of growing input
prices. Conversely, long term contracts dilute the benefits, if any
of a decline in input prices.
Exchange Rate Risk
The company is exposed to the risks associated with fluctuations
in foreign exchange rates mainly of import of components & raw
materials and export of vehicles. The company has a well
structured exchange risk management policy. The company
manages the exchange risk by using appropriate hedge
instruments depending on the prevailing market conditions and
the view on the currency.
3.3 Opportunities
Leading Growth
As the market leader, company led the growth in the passenger
car sector last year. Hyundai sales went up 30% to 4,72,000
units. This, as I said earlier, is the highest annual sale since
company began operations 20 years ago. Hyundai also gained
market share, mainly on account of its performance in the
competitive A2 segment where it increased its share from 40.3%
in 2005-06 to 47.7% in 2006-07. The record sales performance
was reflected in the financials. Net Sales (excluding excise) grew
by 31% to Rs 93,456 million. Operating Profit Margin increased
from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax
jumped 270% to Rs 5421 million.
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SkodaAuto India
3.4 Threats
Risk Factors
In the course of its business, Hyundai is exposed to a variety of
market and other risks including the effects of demand dynamics,
commodity prices, currency exchange rates, interest rates, as
well as risk associated with financial issues, hazard events and
specific assets risk. Whenever possible, we use the instrument of
insurance to mitigate the risk.