HYUNDAI MOTOR INDIA LTD

SALES AND DISTRIBUTION CHANNEL ANALYSIS
SUBMITED TO Prof.MONICA GUPTA

SUBMITTED BY: Group No. 06 Group Members (Sec-A) Nagaraja Munazza Nizami Raj Pradeep T.N. Rahul Kumar Siddartha S.Choudhury Roll No. 26 25 38 37 49

CERTIFICATE FROM FACULTY

This is to certify that this project report has been accomplished under the guidance of sales& distribution faculty Prof. Monica Gupta.

Signature: Date: Place:

2

DN Murthy and Prof Monica Gupta for their guidance and useful tips that how we should go on proceeding the project. We would like to thank for giving us the opportunity to be an integral part of this sales and distribution project through the support of Hyundai Dealers.ACKNOWLEDGEMENT We would like to thank DR. 3 . We also would like to thanks Prof Monica Gupta for the helpful comments and suggestions at various stages of our project.

IFIM B-School. Bangalore. Bangalore is an authentic record of our work carried out under the guidance of Prof.DECLARATION We hereby declare that this project report titled “sales and distribution channel analysis. Group Members: DATE : 23-02-2009 PLACE: Bangalore 4 .Hyundai motor India Ltd” submitted towards the completion of Sales and Distribution Project in 3rd trimester of PGDM in Institute of Finance and International Management. Monica Gupta.

CONTENTS COMPANY PROFILE COMPARATIVE STUDY OBJECTIVE RESEARCH METHODOLOGY DISTTIBUTION CHANNEL ANALYSIS PRIMARY DATA INFERENCE SWOT ANALYSIS CONCLUSION 6 9 10 11 17 21 23 26 5 .

000km in just 17 days after which the i10s were showcased at the Paris Motor Show in October.000th export car. Hyundai Motor India Ltd. The drive created automobile history by completing a distance of 10. In continuation of its commitment to provide the Indian customer with global technology. NDTV Profit Car & Bike India and Overdrive magazine. the Accent and the Verna in the C segment. 2007 also saw the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 1. HMIL has invested to expand capacity in line with its positioning as HMC's global export hub for compact cars. an increase of 49.931 units in 2008. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company. CNBC-TV18 AutoCar. the Sonata Embera in the E segment and the Tucson in the SUV segment. with exports accounting for 243. South Korea and is the second largest car manufacturer and the largest passenger car exporter from India. The Santro in the B segment. HMIL also successfully completed 10 glorious years of operations in India and to commemorate its achievements.500.328 vehicles in the calendar year (CY) 2008. Like 2008. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production. Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards from the leading automotive magazines and TV channels like BS Motoring.000 units per annum. In fact it was at the Paris Motor Show that HMIL first unveiled the Hyundai i20 and the car received a phenomenal response from the auto enthusiasts across the world. initiated a unique trans-continental drive from Delhi to Paris in two of its hugely popular i10 Kappa cars. the year 2007 had also been a significant year for Hyundai Motor India. the Getz Prime. it is gearing up to step up its foray into new markets.387 units in 2007 while overseas sales grew by 92. Apart from the expansion of production capacity.COMPANY PROFILE. The i10 was also the 6 . continuing with its tradition of being the fastest growing passenger car manufacturer. i10 and the Premium hatchback i20 in the B+ segment. HMIL commissioned its second plant in February 2008 which produces an additional 300.000 units per annum. Hyundai Motor India also accomplished the landmark of producing the fastest 20th lakh cars in India in 2008.000th car.6 percent over CY 2007. In the domestic market it clocked a growth of 22. quality and testing capabilities in the country. It achieved a significant milestone by rolling out the fastest 400. registered total sales of 489. HMIL presently markets 37 variants of passenger cars across segments. which will be further bolstered in 2009.4 percent as compared to 245.5 percent. Hyundai exported to over 95 countries globally. raising HMIL's total production capacity to 600. In 2008. even as it plans to continue its thrust in existing export markets. HMIL currently has 251 strong dealer networks across India.

HS Leem. the brand ambassador for Hyundai Motor India handed over the keys to Irwin Fernandes. 7 . Hyundai Motor India has always been the trend setter right from the day It started its operations in India. On this significant achievement. Shah Rukh Khan. In March 2008 it achieved yet another milestone by rolling out the fastest 500. managing Director-HML said that Hyundai Motor India has always been committed to the Indian customers needs since its inception and has always brought out the best and latest in auto motive technology backed by warranty and the much needed after-sales support . the ‘Best Mid-size Car of the Year’ award from NDTV Profit Car & Bike India.2008' award for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). Hyundai Motor India donated the 20th lakh car to CRY (child right and You). He further added that this new milestone of producing the fastest 20 lakh cars will further inspire HMIL to play a vital role in the growth of the Indian automotive industry and thanked the customers in India and in over 95 countries across the world for choosing to drive a Hyundai.1998. In 2007. As a goodwill gesture.000th export car.s largest passenger car exporter and second largest car manufacturer. Hyundai cars have been a favorite at all awards ceremonies and has won many awards. India’s leading advocate for child rights. Director West and Volunteer A hyundai Motor India Limited country. Not only this. The Sonata Embera won the 'Executive Car of The Year 2006' award from Business Standard Motoring magazine and NDTV Profit Car & Bike India had declared the Tucson as the 'SUV of The Year 2006'. Hyundai motor India achieved yet another milestone by sales landmark but also being the fastest car manufacturer to achieve that figure since it rolled out the fist Santro in September. achieved yet another milestone in its remarkable decade old journey in India by exporting its first batch of shipment of i20. a 5door hatchback car to Europe. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. the Hyundai Verna had also bagged some of the most prestigious awards starting with the Overdrive magazine’s ‘Car of the Year 2007’. The Santro and the Accent also received the 'TNS Voice of the Customer .choice of the discerning automotive media of the country as they conferred the prestigious 'Indian Car of the Year' (ICOTY) award to the i10 as well. From the record of setting up the plant in just 17 months to becoming the 2nd largest car manufacturer in just 6 months to rolling out 150000 cars in about 25 months. the ‘Best Value for Money Car’ from CNBC Autocar and 'Performance Car of the Year' from Business Standard Motoring.

1. Kazakhstan) while consolidating its foothold in the currents markets. New Zealand ). has grown into the Hyundai-Kia Automotive Group which was ranked as the world’s fifth-largest automaker in 2007 and includes over two dozen auto-related subsidiaries and affiliates.000 dealerships and showrooms. Middle East (Saudi Arabia . HMIL reached the first milestone of exporting 100000 cars in four years and ten months in October 2004. and Hungry. Employing over 75. ABOUT HMC: Established in 1967. Singapore. Designed at Hyundai’s European Design Centre in Russelesheim . It is available in 1. is built on allnew platform and is tailored to European tastes both in terms of looks . In October 2005 it exported its 200000th car followed by its 300000th car and 4000000th car in October 2006 and August 2007 respectively.Germany. Croatia. Hyundai Motor Co. is roomier inside and has a more dynamic appearance. Latin America (Martinique) . Spain. while for domestic market i20 is available in 1. Germany.2 litre Kappa engine only. i20 has a longer wheelbase than the existing Getz. The i20 is built at Hyundai’s modern facility at Sriperumbudur in Chennai. While ‘Made in India’ Hyundai cars ply in all five continents Europe has been a popular destination accounting for almost 50 percent of the company’s total exports.4 litre and 1.Greece . Belgium.000 people worldwide.6 litre variants in both petrol and diesel variants for exports market. both for export and domestic sale. Palestine) and Europe (Armenia . In March’08 Hyundai achieved another significant milestone with its cumulative exports crossing the half a million mark and attained the 700000th mark in December 2008. The new markets that Hyundai is aiming to tap are Asia Pacific( Australia . Holland.9 billion in 2007 on a consolidatedbasis and US$32. Africa . Hyundai Motor posted sales of US$74.I20. COMPARITIVE STUDY: LEVEL OF IMPACT OF RECESSION ON HYUNDAI AS COMPARED TO TATA MOTORS IN INDIA 8 .2 litre . Israel. ride and handling The first consignment t of 2820 units of the Hyundai i20 headed for the UK. which was unveiled at the 2008 Paris Motor Show amid much fanfare.8 billion on a non-consolidated basis (using the average currency exchange of 929 won per US dollar). Hyundai vehicles are sold in 193 countries through some 6. Georgia. Austria.

1 lakh car ready for launch next year which is likely to bring in huge sales for the company. The company's total sales (including exports) for the month of December 2008 were 25.701 vehicles in December 2007. They sold more cars compared to Hyundai India for three months in a row. Tata however would have their Rs. This is the cheaper version of the popular Indica car and sells for around Rs 2. IMPACT OF RECESSION ON BOTH COMPANIES: Tata Motors registered one of the biggest drops in domestic sales for the month of December at 23.325 vehicles in December 2008 compared to 4.267 in December 2007. The company gained from the sales of their recently launched Tata Indica Xeta. This is a decline of 44% compared to 42. Domestic sales of Mahindra and Mahindra too dropped to 10. However. a decline of 47% compared to 47.Tata Motors overtook Hyundai to become the second largest automaker in India in March 2007 Maruti Udyog continues to head the charts in terms of number of cars sold per month. Though. The medium and heavy commercial vehicle segment was most severely hit.252 units in December 2008 from 14. Hyundai on the other hand is struggling due to slow sales of their recently launched Verna. 9 . Hyundai is expected to gain numbers after launching the diesel version of their Santro car in the Indian market.894 units. The commercial vehicle segment of the company was severely hit as sales of commercial vehicles in December 2008 in the domestic market were down 51%. both the companies are struggling to sell sedans in the Indian market. Sales of the segment declined 69% as compared to December 2007. Indian automaker Tata Motors has managed to overtake Hyundai to become the second largest automaker in the Indian market.678 units last December.977 units in December last year.219 vehicles. a longwheelbase version of the Indigo. the Indian market now has a new player at the second spot. Tata Motors' exports also showed a huge decline of 72% at 1.29 lakh after discounts. Tata is hoping to gain advantage in this segment after launching their Indigo XL.

RESEARCH METHODOLOGY: • • • Primary data is collected using questionnaire method. 22. the country's second largest car manufacturer.4%. and some higher officials in Hyundai India Ltd. passenger car sales have been showing a decline for three consecutive months. 10 . Electronics City.8% during the month of December compared to the same period of the previous year.Overall. The company's exports grew 96. We have relied upon the sources collected from internet and from the local dealers. Hyundai Motor India (HMIL). Analysis was done based on the responses given in questionnaire Through interaction with dealers and retailers. bucking the downward trend in auto sales in the country. with November registering the biggest dip of 19.402 units. and the distribution channel of Hyundai and do swat analysis about the company. Bangalore comprising of valuable data from dealers.602 units. HMIL's total sales for December 2008 stood at 38.800 units were exported in the last month of the year. It is limited to Chennai. OBJECTIVE: To make a detailed study on the sales and distribution strategies of Hyundai. SCOPE OF STUDY • • • Our research is aimed at finding out the effective distribution channel and sales of Hyundai motor India Ltd. has registered a 19.3% increase in domestic sales. The domestic market accounted for 15.

the distribution and marketing of the product takes care of itself to some extent. wholesalers. Using these distribution channels. OR The local "banya shop" will keep his shop stocked with the Amul butter packets so that he does not loose business from customer who asks for Amul butter.• Secondary data was collected through internet DISTRIBUTION CHANNEL: Distribution channels are all the sub-marketers or intermediate marketers of the company.Wholesaler . In some cases having distribution channels may prove to be costly as the price of the product rises at every level. For example: the showrooms might try to promote their showroom in the local papers and sell more of the products they hold etc.Retailer -User All of these members of the distribution channels also want to sell the products that they hold so they too try to market the products in their own small way. Using these distribution channels the company can sub-market it's product at various localized levels.Distributor .User Manufacturer . are basically distribution channels. the company can market it's self in all the local neighborhoods and streets of the country. a company may choose to by-pass all distribution channels and directly market the product and deliver it to the consumer itself. retailers. It also gives incentives to them if they sell more products. authorized representatives. The distribution channel for a particular product may be: Manufacturer .Retailer . So. For example: selling agents. The two most important factors when considering physical distribution are: 11 . OR An insurance selling agent may try to use word of mouth marketing to sell more insurance policies.Wholesaler . This way. showrooms etc. The company has to give some commission to the people along the distribution channel.

the care manufacturer will loose business to the competitors. This means that. we cannot just reduce the time taken to delver the product and make the delivery as fast as possible. it risks loosing customers. In today’s competitive environment. the more the cost of product delivery will increase. Some of the major aspects of physical distribution are: • Transportation 12 . the distribution system/distribution channels of the company should be designed in such a way that the car can reach the consumer within one day flat. the problem with doing this is that the faster we try to make the product delivery. The cost of delivering the product to the consumer. Today people will not wait a week if they can get something in a day. we do not want the consumer to wait for too much time when he is waiting for the products to reach him. This would mean a very fast but also very costly distribution system. what need to be done is to decide what minimum level of service the customers will be satisfied by. The time taken for the product to reach the consumer. However. But. physical distribution is a whole lot more. The minimum level of service should be at least at par with your competitors. one may tend to think that the physical distribution system is only related to transportation of goods from the company to the consumer. On reading the above paragraphs. Firstly. So. what needs to be done is to choose the "minimum service level" MIMIMUM SERVICE LEVEL: As we saw above. If it is not. 2. we may say that the minimum level of service is set to one day. If a company keeps the minimum level of service too high. if a car manufacturer delivers a car in one week and it's competitors deliver the car in one day. So. So. you better be selling some spectacular product or you are soon going to be out of business. the car has to be delivered within one day to the consumer.1. for example. In case of a car. So we want to use the fastest product delivery system we can. One day is the minimum level of service desired.

Because of this he has less money to run his business and make the next batch of cars. Also. it could prove to be very costly for the company. For this he may choose to insure all the cars in his warehouse but that too will add to the costs of overstocking the inventory or overstocking the warehouse. the car comes from the warehouse instead of the company. This is obviously much faster. This will take a lot of time. in the case of a small product. if the distribution system is not good. there are some problems with this system. The customer will cancel his order and book a car somewhere else. in conclusion. Because of this the concept of warehouses and inventory is introduced. Not only would this be costly. he has lot of money tied up in the cars that are waiting to be sold in the warehouse. The warehouse is stocked with cars. the products will not be available in the local stores and if this happens the consumer will buy something else and that will be the end of that consumer’s loyalty.• • • Warehousing Inventory Management The problem with Inventory and Warehousing Transporting a car from the car manufacturer to the customer every time an individual order is placed would be very costly. The car manufacturer has a warehouse in Delhi or around Delhi. Also since only one car is being delivered at a time. If the warehouses and the number of cars in the warehouses (inventory) is not managed by the company properly. For example: If the warehouse is not stocked properly. the warehouse/stores/retail outlets must never be under stocked. since he has so many cars in the warehouse there are threats like. However. even if they are over stocked there will be a problem. So. 13 . it would take 3 days for the car to be delivered to Delhi. However. He may have to wait for the car to come in from the company. but also it would take too much time and the time of delivery would exceed the desired minimum level of service. If a car manufacturer keeps his warehouse overstocked and full of inventory. the warehouse catching fire and these cars are being destroyed etc. Whenever an order is placed in the Delhi showroom for the car. However. For example: if a car manufacturer is situated in Pune and an order for the car is placed in Delhi. In the case of buying cars this is less likely to happen. then a situation may arise where a customer is waiting for the delivery of a car but there is no car available for delivery. the cost of delivery would be very high.

the export numbers increased every year and by 2006 it was 300000 units and 400000 units by 2007. Hyundai that has models like Getz. HMIL that had 167 dealers in January would be expanding it to 250 by December from 190. Santro. 14 . Hyundai crossed the export target of half million in 2008 which has left a significant mark on the Indian export market. The company plans to export 40 per cent of its total production to Latin America. 2005. warehousing and the amount of inventory in the warehouses is a tricky subject. Hyundai Motor India Limited was chosen for the prestigious ‘Niryat Shree’ award for 2005-2006 for its export performance. Hyundai started its exports in 1999 with a batch of around 25 cars to neighboring Nepal but within the next five years it saw its exports grow to over 100000 cars (2004) which increased to 200000 by October. Verna. HYUNDAI DEALERSHIP NETWORK: With its second plant expected to be operational soon.000 units. Hyundai Motor India which is the largest exporter of passenger cars form India accounts for around 78% of the total exports of passenger cars from India and exports to as many as 95 countries spread across the globe. had been witnessing almost flat or declining sales in the last few months. services and spares facility. This new plant will help Hyundai meet its customer demands adequately. The company said that the new dealerships would be in the same formats with sales. It must be managed effectively or it will prove to be costly for the marketer. In conclusion. Europe and West Asia. New plant End of the year will also see the commissioning of Hyundai’s new plant in Sriperumbudur adjacent to existing facilities which will double the production capacity to 600. The company attributes it to the constraint in its production capacity as a result of which sales in the domestic market suffered while there had also been export order backlogs.So warehouses cannot be overstocked either. Hyundai Motor India Ltd on would ramp up its dealer network in the country to push sales for the increased production. The award function was organized by the Federation of Indian Export Organizations.000 units from the current 300. The company has worked on not only doubling our production but also reaching out to the customers through dealership network which will facilitate sales and service as well.

the company will have knocked off the role of intermediaries. The same loan will attract an interest of around 12 per cent with lending agencies. for which Hyundai Motor has tied up with leading financial institutions and banks such as ICICI. By doing away with these intermediaries. Standard Chartered Bank and Sundaram Finance. Hyundai Finance does not constitute a lending or deposit taking operation. the company held discussions with financial institutions and banks to introduce the scheme. The scheme will be operated directly through its dealers. but parallel import is for both new and used cars. The officials said that Hyundai Motor had obtained feedback from its customers who felt that there was a lack of clarity and some sudden surprises in the financing schemes available in the market.HYUNDAI FINANCIAL SERVICES: HYUNDAI Motor India Ltd has launched Hyundai Finance. 15 . Hyundai Motor felt the need for launching a branded finance product so that customers benefited from lower borrowing rates. according to the officials.5 lakh for a two year period.26 per cent per annum for a loan amount of Rs 1. As an introductory offer. Following this. IMPORT FLOW: Vehicles are either (1) directly imported from the overseas manufacturers (official import) or (2) imported through overseas dealers (parallel import). Of the whole interest rate component. Customers are also loyal to a brand and not to an intermediary. What the customers will get is the actual bare bone interest rate. the customers will get funds that much cheaper. because of which the intermediaries pushed that particular car model and did not inform the customers of the options available to them. valid till February 26. loans will be available at a rate of 8. Kotak Mahindra. according to company officials. the intermediaries accounted for nearly 2-3 per cent. Through this scheme. According to company officials. according to one of Hyundai Motor's dealers in Chennai. They said that some car manufacturers resorted to giving incentives to the intermediaries. The company is trying to bring in some semblance of transparency in the market. The official import is only for new cars. a branded finance product that seeks to do away with intermediaries and thus bring down the rate of interest for those purchasing its cars.

PARALLEL IMPORT: A parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. eg Top Gear Magazine (UK Edition) is officially sold in UK and Top Gear Magazine (Australia Edition) is officially sold in Australia. The practice of parallel importing mainly occurs for two reasons: 1) Different versions of a product are produced for sale in different markets. But some unofficial distributors in Australia also sell Top Gear Magazine (UK Edition). either the manufacturer or the distributor. set different price points for their products in different markets. Flow of Passenger Car Import and Distribution Channel 16 . import the products into the second country. Parallel importers ordinarily purchase products in one country at a price (P1) which is cheaper than the price at which they are sold in a second country (P2). 2) Companies. and intellectual property. and sell the products in that country at a price which is usually between P1 and P2. DISTRIBUTION CHANNEL: Imported cars are distributed either (A) through importers’ own sales channels or (B) through distributors or dealers with sales networks. Parallel imports are often referred to as grey product. and are implicated in issues of international trade.

repairing and polishing are made in accordance with the check-up results. check out scratches. fit doors and trunks and adjust the protuberant difference between a bonnet and fender. Then a number plate is issued and sealed. which is merchandised through the above process (certified in accordance with the Vehicle Certification System). and between a fender and door. First.    Procedures from Import to Registration Finished vehicles are transported to a port for shipping with special coating to protect the body from dust and salty breeze during transportation. Such adjusting. according to the respective country’s quality standards chart. finish their interior and exterior. they check and repair scratches made in transit. These vehicles are transported to a maintenance workshop after the customs clearance procedures are completed in about a day.) After the vehicles are brought in at the maintenance workshops of importers. After a user buys a vehicle. (In some cases. they remove waxed coating (protection for sea breeze and dust while shipping) from the vehicles with a steam-washer and then. The 17 . after the customs clearance. vehicles are left in a port for an arrangement of transportation or due to a change in the schedule. make minor adjustments. exchange parts and control the quality of the product. the vehicle is inspected at the Transport Branch office according to the Vehicle Inspection System and registered on the license registration file after paying taxes.

000 units during 2009. or about 10 percent above the 320. Russia. we have no plans to reduce production." Gadacz said during an event here. told Automotive News Europe that these countries have the strongest growth potential in the world and would still increase in size. Many automakers are reducing their forecasts in response to the crisis. Hyundai's global spokesman. up from 4. "We are still aiming to increase our sales volumes next year. not including Turkey and Russia. India and China. which has hit consumer confidence and reduced car sales. But Hyundai is targeting global sales of 6 million units by 2010. or reduce 18 . Hyundai is targeting sales of 350. although maybe at a slower rate.   HYUNDAI SELLING STRATERGY: Hyundai still has aggressive growth plans despite the global economic crisis. Oles Gadacz.2 million in 2008. "We are well positioned to weather the storm with that strategy.vehicle is allowed to run on public roads after all those procedures are completed.000 units sold in 2008. The Korean carmaker will focus its medium-term efforts on high growth markets such as Brazil. In Europe.

Hyundai's initiative to sell cars in the rural areas had started yielding results.000 technicians across the country for carrying out car maintenance apart from setting up around 300 service points during the year. which has capacity of 200." Gadacz said. Czech Republic.000 units." Cho said. The company expects its B segment Santro and its diesel Accent CRDi to sell in large numbers in rural areas. This would help car owners to get certain repair jobs done even at remote places. it means the smaller car is more attractive. but we don't. Hyundai expect lot more people in rural areas to start buying because of our initiative. Most manufacturers are changing their production and reducing their sales targets compared to the original plan. The Nošovice plant produces the i30 lower-medium car and could also produce a minivan version of the car. INCREASING PENETRATION INTO RURAL AREAS: IN a major thrust to increase penetration into rural areas and expand its customer care services." said Rae-Su Cho. "We are keeping with our original plan. such as the i20 small car and i10 mini car. "When the economic situation becomes difficult. and will rise to 300.000 units by 2010. Gadacz said 60 percent of Hyundai’s installed production capacity is devoted to cars in the mini. Eastern Europe and Russia. Cho said the crisis is pushing customers toward more economical cars. The company had tied up with Indian Oil Corporation (IOC) for deploying Hyundai certified technicians at their petrol stations across the country. "We will be very aggressive with our sales volumes next year.the sales target." Cho said. marketing director of Hyundai Motor Europe." Hyundai said the additional volume will serve markets in Europe. Hyundai Motor India Ltd plans to deploy 1. Hyundai will maintain output at its new factory in Nošovice. Currently there are around 320 workshops in the country. small and lower-medium segments." Cho told ANE. "We still plan to use our full capacity in the next two years. It has already started road shows comprising a convoy of six to 19 . The company planned to set up 50 more workshops in the country. "That is the ideal product mix for an economic downturn where consumers trade down to smaller cars.

Kerala and Andhra Pradesh. HMIL decided to gift its customers with an anti magnetic sticker which will absorb 95% of the harmful waves. The study said that there were an equal number of `middle-income and above' households in the rural areas as there were in the urban areas and about twice as many `lower middleincome' households. 20 . where there is a sizeable affluent rural population. under body.3 million urban households compared with 1. Haryana. Not only did it incorporate the element of speed so essential for motoring event but also it did not require a special track or a scheduled road. This is in the form of a 99. The campaign also offered customers a chance to win attractive prizes. Uttar Pradesh. The free Car Care clinic offered a comprehensive 80 point check up and through examination of the engine. Maharashtra. The company also offers test drives and options for upgrading cars. Hyundai has also tied up with financial institutions to give on the spot finances for buyers in rural areas.9% Gold plated sticker which can be attached to almost any device which is perceived to emit these waves thus rendering the instrument safe. According to a study conducted by the National Council for Applied Economic Research (NCAER) in 2001. At the highest level. HMIL recently organized a rally but it was a rally with a difference. "This allows them to have easier access to funds without taking the trouble of going to cities". Recently HMIL came up with another idea which might make a big difference. Customers also availed of a free car wash and attractive discounts on all spare parts. AC etc.seven cars in major cities of Punjab. With this in mind MHI has decided to continue with its Free Car Care clinic for the fourth year in a row. To protect its customers from the electro magnetic waves that are emitted by many instruments ranging from cell phones to computers which we use.6 million urban households in rural areas. electrical. there are 2. the number of middle and high-income group households is expected to grow to 111 million by 2009 from 80 million in 2001. HMIL felt that it must play an active role in promoting the cause of fuel efficiency and with this in mind it is regularly organizing the Miles & Smiles rally for its customers. SERVICES OFFERED: Hyundai motors ensure that even when a customer has left the showroom they are taken well care off.

Dealer’s performance where we have contacted: TRIDENT HYUNDAI & ADVAITH HYUNDAI: On an average TRIDENT HYUNDAI sells 180200 cars per month & ADVAITH HYUNDAI sells 280-300 cars per month. and performance of Dealers. Delivery to customers: Once the customers place orders to the Dealer. the cars will be reached to the customers. Geographical location (Distance between manufacturing plant and Dealers’ showroom). Determining the Distribution: The distribution of cars mainly depends upon the Demand in the market. Suppose dealers sell the cars after 60 days. Once the cars have reached the Dealers’ showroom. Again it depends upon the availability of cars for which the orders have been received. suppose the dealers could not sell the cars within 60 days. The Cars will be sent by HYUNDAI Manufacturing Plant to Dealers directly by a Truck. Dealers have to pay Full amount for the cars along with the orders. Generally it takes 2-3 days for the car to reach from the manufacturing unit to the Dealer after the order has been placed. they have to forego some interest on the amount paid by the dealers for the cars. Targets to Dealers: In case of Hyundai. Normally one truck carries six cars. 21 .PRIMARY DATA Intermediaries: There are no intermediaries between HYUNDAI Manufacturing plant and HYUNDAI dealer. they will get the commission on the amount paid by them for the cars less interest forgone. After checking or test drive and registration process. Again it depends upon the availability of cars in the manufacturing plant and number of orders placed. it takes 2-4 days to reach the customers.

In other words. Hyundai’s Exports: HYUNDAI is also exporting the cars to other countries. Each dealer has 3 branches. Normally it takes 5 to 15 days for the cars to reach importers depends on the distance or Geographical location. there are two main Hyundai dealers and six branches in Bangalore. Dealers in Bangalore: There are two main Hyundai dealers in Bangalore. Recently HYUNDAI exported 97000 HYUNDAI i10 cars to 98 countries. SWOT ANALYSIS 22 .Mediums used by Hyundai Dealers to advertise HYUNDAI are: • • • • News papers & Magazines Televisions Events Internet USP OF HYUNDAI: • • • Better quality Low maintenance cost More choices Dealers’ commission: Dealers’ commission depends on the sales target fixed by the HYUNDAI and it varies from segment to segment.

D. plastics and rubber. highest service quality. where your company gives top priority to ensuring smooth availability of inputs. Power CSI study also reveals that 97% of Hyundai owners would probably recommend the same make of vehicle. Power IQS Study). The J. Quality Service across 1036 Cities In the J. A Buying Experience like No Other Hyundai has a sales network of 250 state-of-the-art showrooms across 189 cities. content. best in-service experience. aluminum. Power SSI Study. Weaknesses Commodity Price Risks Hyundai commodity price risks to higher costs due to changes in prices of inputs such as steel.Strengths The Quality Advantage Hyundai owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. layout and performance of vehicles across several parameters. Our high sales and customer care standards led us to achieve higher nameplate in the J. This study measures owner in terms of design. with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. best service delivery. while 90% owners would probably repurchase the same make of vehicle. most user-friendly service and best service initiation experience. best service advisor experience.D.D. the company continues to attempts to enter into long term contracts based on its projections of prices. The Santro was chosen the best in the premium compact car segment and the Getz in the entry level mid . which go into the production of automobiles. Power CSI Study Hyundai scored the highest across all 7 parameters: least problems experienced with vehicle serviced. In a volatile commodity market. In order to mitigate these risks. The 92% of Hyundai owners feel that work gets done right the first time during service.size car segment across several parameters. long 23 .

Net Sales (excluding excise) grew by 31% to Rs 93. Conversely. Profit after Tax jumped 270% to Rs 5421 million. Hyundai also gained market share. we use the instrument of insurance to mitigate the risk. Such investments require a certain scale of operation to generate viable returns. mainly on account of its performance in the competitive A2 segment where it increased its share from 40. Opportunities Leading Growth As the market leader. commodity prices. currency exchange rates. interest rates. hazard events and specific assets risk.8 % in 2005-06 to 4. 24 . The record sales performance was reflected in the financials.456 million. long term contracts dilute the benefits. Threats Risk Factors In the course of its business. if any of a decline in input prices. Operating Profit Margin increased from 0.term contracts are helpful.3% in 2005-06 to 47. This.7 % in 2006-07. The company manages the exchange risk by using appropriate hedge instruments depending on the prevailing market conditions and the view on the currency. as well as risk associated with financial issues. is the highest annual sale since company began operations 20 years ago. whether this growth momentum will continue has to be seen.72. Hyundai sales went up 30% to 4. The company has a well structured exchange risk management policy. Hyundai is exposed to a variety of market and other risks including the effects of demand dynamics. They also help minimize the impact of growing input prices.000 units. These scales depend on demand. Although 2005-06 was year of continued growth for the Indian economy. Business Risks The automotive industry is very capital intensive. as I said earlier. 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.7% in 2006-07. company led the growth in the passenger car sector last year. Whenever possible.

Recently Hyundai has exported 97000 i10 cars to 98 countries.Threats from competitors: Maruti Udyog Limited For the fiscal year ended December 2006. Tata Motors generated revenues of $3. 935. The company reported a net income of $2. Hyundai is also the largest exporter of pass angers cars of from India. Quality and low maintenance cost being its uniqueness it is growing day by day. down 26.517 million. It caters to all the three segments of consumers mainly its car SANTRO which is mostly talked about in the minds of middle class customers.542. Tata Motors Limited In the 2006 fiscal year.4 million) in the 2006 fiscal year.805 million for fiscal 2005. Maruti generated revenues of $193.3% from the previous year. Recently it also going to launch i30.2 million (INR154. The company made a net profit of $185 million (INR8.6% from the previous year. an increase of 4. 103.2 million). The newly launched i20 named UBERCOOL focuses mainly on the youth. CONCLUSION: We found out that Hyundai is a car company which focuses on the varied segment keeping in mind its different customers needs as it is the second biggest manufacturer in India. 25 .

com www.hyundai.com www.com www.in www.santroxing.advaithhyundai.com 26 .tridenthyundai.WEBLIOGRAPHY: www.co.pacificohyundai.

Address of the showroom: 3. On what factors the Distribution depends upon? o Demand by Dealer o Geographical location o Capacity of showroom o Equal Distribution 27 . Name of the HYUNDAI Dealer: ………………………. 2. How many intermediaries are there between HYUNDAI Manufacturing plant & the HYUNDAI Dealer? 4..ANNEXURE: QUESTIONNAIRE RESEARCH ON MARKETING STRATEGIES OF HYUNDAI 1.

What is the Distribution channels used for the export of HYUNDAI Cars? 11. 0-5 5-10 10-15 15-20 If others please specify………. Are you sure you are getting the share from all the profitable distribution channel available? o YES 28 . 12. How many Days it takes to reach Importer? a. How many Days it takes for the car to reach from the manufacturing unit to the Dealer after the order has been placed? o 0-2 o 2-4 o 4-6 o 6-10 o Others Specify……… 6. How unique are the Selling strategies of Hyundai? 9. How much Commission would you get from selling a car? Depends on what? (Number of cars sold or Profit?) 10.. d.5. b. 7. How many Days it takes for the car to be delivered to Customers? o 0-2 o 2-4 o 4-6 o 6-10 o Others……. e. What are the mediums used for the Advertising of HYUNDAI? o Newspaper o Television o Internet o Brochures o Hoardings 8. c.

How unique are the Distribution Strategies of HYUNDAI? 29 .o . NO 13.

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