PREFACE

Project work is one of the most important activities of Professional curriculum

at every level irrespective of degree or diploma. This provides us an opportunity to
apply our knowledge, skills and aptitude in real life. It also provides an opportunity to
work in a group and share responsibilities.
The purpose of practical training for management students is to keep them
understands the management of working organization in all its aspects especially in
the area specialization. It also helps them to broaden their horizon and in efficiency
grasping the intricacies in good stand when they are actually in management position
in an organization . It also intends to integrate the theoretical concept with the
practical working of an organization.
The project should include relative information and details of the market so
that it is easy to draw inference from it about the current market situation . Proper
eecution of plans and projects are responsible for the economic growth of the
country
1
CONTENTS
Sl. No. Titles
I Chapter 1- Introduction
Objective
Research Methodology
Significance of the Topic
Limitation
Conclusion
II Chapter 2 Conceptual Frame Works
Whole Study of the Topic
III Chapter Si!ni"icance # $ele%ance
Whole Study significance & relevance
I& Chapter ' $e%ie( o" )iterature
& Critical *nal+sis o" the Stud+
&I Scope o" the "urther Stud+
&II Conclusion
&III ,i-lio!raph+
2
INTRODUCTION
OVERVIEW OF INDIAN AUTOMOTIVE INDUSTRY
The automobile industry has changed the way people live and work. The
earliest of modern cars was manufactured in the year !"#$. %hortly the first
appearance of the car followed in India. &s the century truned, three cars were
imported in 'umbai (India). *ithin decade there were total of !+,$ cars in the city.
3
The dawn of automobile actually goes back to -+++ years when the first wheel
was used for transportation in India. In the begining of !$th century Portuguese
arrived in .hina and the interaction of the two cultures led to a variety of new
technologies, including the creation of a wheel that turned under its own power. /y
!0++s small steam1powered engine models was developed, but it took another century
before a full1sized engine1powered vehicle was created.
The actual horseless carriage was introduced in the year !"#2 by brothers
.harles and 3rank 4uryea. It was the first internal1combustion motor car of &merica,
and it was followed by 5enry 3ord6s first eperimental car that same year.
7ne of the highest1rated early luury automobiles was the !#+# 8olls18oyce
%ilver 9host that featured a :uiet 01cylinder engine, leather interior, folding
windscreens and hood, and an aluminum body. It was usually driven by chauffeurs
and emphasis was on comfort and style rather than speed.
4uring the !#,+s, the cars ehibited design refinements such as balloon tires,
pressed1steel wheels, and four1wheel brakes. 9raham Paige 4. Phaeton of !#,#
featured an "1cylinder engine and an aluminum body.
The !#2; Pontiac 4e <ue sedan had roomy interior and rear1hinged back
door that suited more to the needs of families. In !#2+s, vehicles were less boy and
more streamlined than their predecessors. The !#-+s saw features like automatic
transmission, sealed1beam headlights, and tubeless tires.
The year !#$; brought powerful high1performance cars such as 'ercedes1
/enz 2++%<. This was the Indian automobile history, and today modern cars are
generally light, aerodynamically shaped, and compact.
CAR MANUFACTURERS IN INDIA
4
The reason behind the immense growth of the India Car Industry can be
attributed to the availability of car loans, affordable rates of interest, smooth
repayment facilities and the deductions offered to the customers by the retailers.
The constant changes in the eisting car models with regard to design,
innovation, technology, and colors, have led to a fiercely competitive market. =ow
that technology and innovation are not alien concepts for Indian car makers, Indian
cars are becoming increasingly sleek, stylish, and luurious.
Ma!r "#ay$rs in t%$ Indian Car Industry&
3ierce competition among the major car players can be witnessed in the Indian
.ar industry. The India car industry is being dominated by the following major
players>
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CAR SE(MENTATION
*ith the epansion of Indian &utomotive market over a period of time the
segmentation of car models came in to eistence based on cars defining characteristics
namely>
%ize
Performance
Price
5owever with continuing growth of market %I&' ( %ociety of Indian
&utomotive 'anufacturers) implemented the segmentation of cars on the basis of
length of the cars.
)
C*AN(ES IN CAR INDUSTRY IN INDIA
T%$ #at$st d$+$#!",$nts in t%$ -ar ,ar.$t in India&
In &gra, a car manufacture plant has been established as a result of a joint
venture of 8enault and 'ahindra D 'ahindra to manufacture a comparatively cheap
cars (at ?%E #,;++), mainly targeting the Indian middle classes, the youth, and the
affluent classes in rural India. Tata 'otors has plans to launch a luury car with an
engine of 22 horsepower. The recent reduction in the ecise duty of the small cars
from ,-F to !0F will definitely prove to be a boon for the India car industry.
T$-%ni-a# ad+an-$,$nts in t%$ Indian Car Industry&
The latest technical advancements in the car market in India include the
following features
Power %teering
8adial Tires
&nti1lock /reaking %ystems
Tip1tronic Transmission
T%$ +ari$d -ar ,ar.$ts in India&
The market for small cars now occupies a substantial share of ;+F out of the
annual production of ! million cars in India. 'aruti ?dyog, with its legendary 'aruti
1"++ is the leader in the small car market. & number of manufacturing plants are
coming up for advancements in the field of small cars. The recent launches in the
small car market in India are>
9etz Prime by 5yundai 'otor .o.
Tata 'agic by Tata 'otors Tata 'agic
/
Palio %tile by3iat India Pvt. <td
'id1sized cars are normally cars ranging from 8s. 21" lakh and generally
meant to be - seaters. The mid1sized car section has recently moved beyond the ! lakh
target. The recent launches in the mid1size car market in India are>
!.- %GI 4urator: by 3ord 'otor .o.
Indigo G< by Tata 'otors
<uury cars and premium cars are :uite epensive and they are purchased for
their design, innovation, and technology. They are usually priced over 8s. ,+ lakh and
have many takers in India. The recent launches in the premium car market in India
and the luury car market in India are>
%onata Ambera 51'atic by 5yundai 'otor .o.
=issan Teana by =issan 'otor .o. <td
%ports ?tility Behicles (%?Bs) have also become very popular in India as they
are considered advantageous due to their ability to accommodate more passengers.
They are ideal for trips with the whole family. The %port ?tility Behicle market in
India is the most booming market in India presently and %?Bs have become the
fastest selling cars of India.
0
O12ECTIVE OF T*E STUDY
To get overview of sales scenario of the automobile industry
To know how much customers are satisfied with the services provided to them
by 5yundai and 'aruti /areilly.
To give suggestions for improvements on the points where they are lacking on
the basis of feedback from the customer.
These objectives were achieved by following a well thought out plan and defining the
problem for each objectives separately.
3
RESEARC* MET*ODO4Y
8esearch methodology is a way to systematically solve the research objective. It may
be understood as a science of studying how research is done scientifically.
In it we study the various steps that are generally adopted by researcher in studying
his research objective along with logic behind it. It is necessary for the researcher to
know not only the research methodsH techni:ues but also the methodology. 8esearcher
not only need to know how to apply particular research techni:ue, but also need to
know which of these methods or techni:ues are relevant and which are not and what
would they mean and indicate and why. &ll this means that it is necessary for the
researcher to design his methodology for his objective under study as the same may
differ objective to objective.
Thus when we talk of research methodology we not only talk of the research method
but also consider the logic behind the methods we use in the contet of a research
study and eplain why we are using a particular method or techni:ues and so that
research results are capable of being evaluated.
15
SOURCES OF DATA CO44ECTION
4ata collection methods are credible with validated surveys andHor other methods are
clearly described such as observational strategies, the data or information is current.
The data collection is focused on a limited sample of population and has minimal
application in terms of generalizing the findings.
Pri,ary Data> It can be collected directly or indirectly. It was done through a
well structured and designed :uestionnaire which contain !0 number of
:uestions which were asked directly to the customers of %achin 5yundai
/areilly showroom and Coral 'otars.
S$-!ndary Data> It refers to data which have been collected and analyzed by
someone else. It consists of internet and books etc. %econdary data has also
been collected through the 5yundai %ales training handout.
Sa,"#$ Si6$> & sample size of -+ respondents was taken to conduct the study
of Iuestionnaire
Statement o" the .ro-lem
Todays customers are an important element in every
business so to retain a customer and ma!e the loyal company is a
great challenge"
This is #hat made me to ta!e up this project on /* ST012
ON S*)ES .$O3OTION OF 3*4IN1$* # 3*4IN1$* *N1
3*$0TI5.
.urpose o" the Stud+
11
The purpose of the study on customer satisfaction regarding
after sales services and to !no# any suggestions to improve the
$tmaram automobiles service centre% $gra"
Scope o" the Stud+
&n this competitive #orld retaining the customers has become
important part and parcel of the business activity% since in these
arena the people #ho adopt to changes and ne# technologies #ill
survive"
This study #ill help to understand customer need% preference
and #hat they re'uire from the service station and this study #ill
not only help me as a student but it #ill also the $tmaram
automobiles to improve its service standard"
)I3IT*TION OF T4E ST012
The educational & a#areness level of the respondents #ith
respect to the 'uestionnaires is lo#" (ence they respond one
'uestion in affirmative% but same interrelated 'uestion has
been responded in negative"
12
The sample ) plan is too small to give the research a #ide
coverage #ith reference to their opinion"
Sample ) plan is $gra specific" (ence it may sho# imbalances
of urban elite perceptions"
The respondent include those people #ho has car *but not a
specifically a + Segments car, and hence% their opinion could
be based #ith the lo#er income group"
The respondents are not interested to reveal their income
level" Causing a hurdle in finding out the price as a buying
decision"
CONC)0SION
$ccording to my survey majority of the customers are not
satisfied #ith overall service provided by $tmaram $utomobiles%
they e-pect management should provide./
Sophisticated tools and techni'ues"
0enuine spare parts"
Reduction in labor charges"
Timely delivery of vehicle"
So Management should concentrate on these aspects to
satisfy their customers"
13
14
INTRODUCTION
MARUTI UDYOG LIMITED
'aruti ?dyog <imited, a subsidiary of %uzuki 'otor .orporation of Japan, has been
the leader of the Indian car market for about two decades. Its manufacturing plant,
located some ,$ km south of =ew 4elhi in 9urgaon, has an installed capacity of
2,$+,+++ units perannum, with a capability to produce about half a million vehicles.
The company has a portfolio of !! brands, including 'aruti "++ ,7mni, premium
1'
small car Ken, international brands &lto and *agon8, off1roader 9ypsy, mid size
Asteem, luury car /aleno, the 'PB, Bersa, %wift and <uury %?B 9rand Bitara
G<;.In recent years, 'aruti has made major strides towards its goal of becoming
%uzuki 'otor .orporation6s 8 and 4 hub for &sia. It has introduced upgraded
versions of *agon 8, Ken and Asteem, completely designed and styled in1
house.'aruti6s contribution as the engine of growth of the Indian auto industry,
indeed its impact on the lifestyle and psyche of an entire generation of Indian middle
class, is widely acknowledged. Its emotional connect with the customer continues
'aruti tops customer satisfaction again for sith year in a row according to the J.4.
Power &sia Pacific ,++$ India .ustomer %atisfaction Inde (.%I) %tudy. The
company has also ranked highest in India %ales %atisfaction %tudy. The company6s
:uality systems andLpractices have been rated as a Mbenchmark for the automotive
industry world1wideM by & B /elgium, global auditors for International 7rganisation
forL%tandardisation. In keeping with its leadership position, 'aruti supports safe
driving and traffic management through mass media messages and a state1of1the art
driving training and researchinstitute that it manages for the 4elhi 9overnment. The
company6s service businesses including sale and purchase of preowned cars
(TrueBalue), lease and fleet management service for corporates (=,=), 'aruti
Insurance and 'aruti 3inance are now fully operational. These initiatives, besides
providing total mobility.
*hen it comes to Indian auto industry, the first brand that comes to Indian customer
mind is 'aruthi. In our paper we are attempting to identify the future of 'aruthi
?dyog <td which is currently the market leader. The main :uestions we will be
addressing are,
N .an it sustain its market share
1)
N *ill their be a decline in profits
N *hat can it do to keep its growth rateO
N 5ow can it compete in the highly competitive small car segment
N *hat are its strategic alternatives
*e will analyze the competitors briefly concentrating more on T&T& motors, one of
the fast growing Indian auto manufacturer. 'aruti %uzuki India <imited is a publicly
listed automaker in India. It is a leading four1wheeler automobile manufacturer in
%outh &sia. %uzuki 'otor .orporation of Japan holds a majority stake in the
company. It was the first company in India to mass1produce and sell more than a
million cars. It is largely credited for having brought in an automobile revolution to
India. It is the market leader in India. 7n !; %eptember ,++;, Maruti Udy!7 was
renamed to Maruti Su6u.i India 4i,it$d. The company6s head:uarters remain in
(ur7a!n8 n$ar D$#%i.
*ISTORY OF T*E COMPANY
'aruti ?dyog <imited ('?<) was established in 3ebruary !#"!, though the
actual production commenced in !#"2. Through ,++-, 'aruti has produced over $
'illion vehicles. 'arutis are sold in India and various several other countries,
depending upon eport orders. .ars similar to 'arutis (but not manufactured by
'aruti ?dyog) are sold by %uzuki in Pakistan and other %outh &sian countries.
&round !#;+, %anjay 9andhi, political advisor and younger son to the then
Prime 'inister of India, Indira 9andhi, envisioned the manufacture of an indigenous,
cost1effective, low maintenance compact car for the Indian middle1class. Indira
9andhi6s cabinet passed a unanimous resolution for the development and production
of a MPeople6s .arM. %anjay 9andhi6s company was christened 'aruti <imited. The
name of the car was chosen as M'arutiM, after a 5indu deity named 'arut.
1/
&t that time 5industan 'otors6 &mbassador was the chief car, and the
company had come out with a new entrant, the Premier Padmini which was slowly
gaining a part of the market share dominated by the &mbassador. 3or the net ten
years, the Indian car market had stagnated at a volume of 2+,+++ to -+,+++ cars for
the decade ending !#"2.
%anjay 9andhi was awarded the eclusive contract and licence to design,
develop and manufacture the MPeople6s .arM. This eclusive rights of production
generated some criticism in certain :uarters, which was directly targeted at Indira
9andhi. 7ver the net few years, the company was sidelined due to the /angladesh
<iberation *ar and emergency. In the early days under the powerful patronage of
%anjay 9andhi, the company was provided with free land, ta breaks and funds. Till
the end of !#;+s, the company had not started the production and a prototype test
model was met with criticism and skepticism. The company went into li:uidation in
!#;;. The media perceived it to be another area of growing corruption. P-Q
?nfortunately, 'aruti started to fly only after the death of %anjay 9andhi, when
%uzuki 'otors joined the 9overnment of India as a joint venture partner with $+F
share.P$Q .
&fter his death, Indira 9andhi decided that the project should not be allowed
to die. 'aruti entered into this collaboration with %uzuki 'otors, The collaboration
heralded a revolution in the Indian car industry by producing the 'aruti "++. The car
went on sale on 4ecember !-, !#"2. It created a record by taking !2 months time to
go from design to rolling out cars from a production line. /y the year !##2 the
company had sold up to !,#0,",+ cars, mostly by selling its chief product the 'aruti
"++s. /y 'arch !##-, it produced one million vehicles, becoming the first Indian
10
company to cross this milestone. It reached the two million mark in 7ctober, !##;
and rolled out its - millionth vehicle, an &lto1<G, on &pril !#, ,++2.
%uzuki 'otor .ompany was chosen from seven prospective partners
worldwide. This was due not only to their undisputed leadership in small cars but also
to their commitment to actively bring to '?< contemporary technology and Japanese
management practices(which had catapulted Japan over ?%& to the status of the top
auto manufacturing country in the world). & licence and a Joint Benture agreement
was signed between 9ovt of India and %uzuki 'otor .ompany (now %uzuki 'otor
.orporation of Japan) in 7ct !#",. R'?< launched its first car 'aruti"++ on
4ecember !-,!#"2 at initial price of 8s.-;,$++.
13
1RAND *IERARC*Y OF T*E COMPANY
25
1und#$ !9 -!,"$t$n-i$s
Technology
'aruthi always introduces the best technology into its product line, in addition
to all its features which are almost standard in most cars. They introduced !0S -
5ypertech engines across the entire 'aruti %uzuki range. These are - valve engines
powered by !0 bit chip. This gives an ideal combination of power and performance.
They also introduced electronic power steering system (AP%) which gives better
maneuverability. Their latest introduction %wift has all the technology like surround
protection (%%P). This includes &/%, dual front airbags, collapsible steering column,
crashworthy structure etc. They also has additional features like brake force
distribution, key less entry system. The si microprocessors are connected in a high
speed canbus. This controls engine, A/%, AP%, &uto &., %ecurity and dead lock and
air bag. &utomatic climate control, rally based suspension system and above all the
dynamic design is what the latest entrant offers its customers. 'aruti also uses latest
in IT for its operations. It uses the oracle based packages for .8' and employee feed
back. 'aruti also uses oracles A8P packages for its operations. &T3.&= and 'aruti
are collaborating on .anadian .=9 conversion technology.
D$si7n and d$+$#!",$nt
'aruti %uzuki is outsourcing its design and development activities to India. They are
looking towards India as their design hub. &mong the company6s product
development challenges, the need for shorter cycle times is always at the top.
'anagement wants to be able to launch new models faster and reduce the time
re:uired for minor changes and development of product variants. &nother challenge is
co1development. 'aruti6s goal is to collaborate closely with its global teams and
suppliers on the development of new platforms and product freshening. 7ther
21
challenges include streamlining the process of vehicle localization and enhancing
:uality and reliability.
These challenges pointed directly to a product lifecycle management (P<') solution
with capabilities for information management, process management, knowledge
capture and support for global collaborationT a P<' solution directly addressing
'aruti6s business challenges. 3or eample, P<'6s information management
capabilities address the issue of the many platforms, local variants and eport
destinations. Process management permits concurrent development and faster change
management and provides a platform for other process improvements 1 for faster
vehicle development. Cnowledge capture increases innovation and also reduces costs
by increasing part re1use. P<'6s collaboration capabilities permit global development
by ensuring fast and accurate dissemination of product information. 3or this 'aruti
uses one of the leading P<' software package by ?9%.
&t 'aruti, styling is a cross1discipline function that re:uires designers, engineers and
model makers to pool their resources in a multitude of activities that have to be
performed in order to transform creative ideas into finished products. These styling1
related activities include storyboarding, conceptualizing, rendering, tape drawing,
model making, feasibility analysis, .&4 data generation and .lass1& surfacing. In
addition, 'aruti designs new accessories and adds value to its products interiors and
eteriors
by designingHdeveloping fabrics, colors and graphics. %ome of the most recent
eamples of 'aruti styling are seen in change programs for the Ken, *agon 8 and
Asteem product lines. 7ther 'aruti styling efforts are in various stages of
development. 'aruti used to employ a variety of software for its styling programs,
22
including %.&4 (%uzuki .&4), &lias, ?nigraphics and .atia. 5owever, today
'arutis styling and engineering functions are doing almost all their work in ?9%
=G solutions.
Manu9a-turin7
Mar.$ts
'aruti has a strong domestic market presence in India. It has a market share of -;F
in the domestic market. The current market share of Indian car industry is given
below, 'aruti Aports <imited is the subsidary of 'aruti ?dyog <imited with its
major focus on eports and it does not operate in the domestic Indian market. The first
commercial consignments of -"+ cars were sent to 5ungary. /y sending a
consignment of $;! cars to the same country 'aruti crossed the benchmark of 2,
++,+++ cars. %ince its inception eport was one of the aspects government was keen to
encourage. &ngola, /enin, 4jibouti, Athiopia, Aurope, Cenya, 'orocco, %ri <anka,
?ganda, .hile, .osta 8ica and Al %alvador are some of the markets served by 'aruti
Aports.
46%
14%
17%
23%
MUL
Hyundai
Tata
Others
'aruti also has markets in other countries depending on eport demand. %uzuki is
selling cars similar to 'aruti in Pakistan and %outh &sian countries. They have a
major non Auropean market which grew ;"F in +$1 +0. <oss of sales in Aurope is due
to stoppage of &lto which accounted for "+F of their eports and introduction of
23
%wift. &lgeria has emerged as 'aruti6s largest overseas market with sales growing
from a few hundred in 3@+, to over 0,$++ (3@+0). The company says it may cross
#,"++ this year.
'aruti is :uite bullish on markets like, .hile, 'orocco, Agypt and %udan apart from
the neighbouring countries. The auto major epects its eports to .hile and 'orocco
to go above $,#++ and ,,2++, respectively, this year. Its volumes from there have
moved from under ;++ in 3@+, to 2,!!$ (3@+0) and eports to %udan was nil two
years back. MIn Agypt, our numbers are estimated to grow to over ,,+++ and ,,;++ this
year,M according to 'r Chattar. In 3@+; it was under ,++ few years back.
'eanwhile, 'aruti is also reporting a high on current year eports to the neighboring
countries is on a high too. The company epects to eport #,,++ units to %ri <anka
this year, a growth of over $+F, !,,++ units to =epal, over !,!;$ to /hutan and ;++
to /angladesh. 'aruti, which saw eports dip by ,#F last fiscal, also plans to launch
a new eport model during 6+"1+#, which will target the Auropean market. The
company targets to eport !, ++,+++ units of the model annually.
7verall passenger car market registered ,-."0F growth
%ales of compact cars jumped by 2!.,F
'id1size car segment grew slower at !-.;F.
The 9overnment6s small car policy seems to be yielding results, with the share of
compact cars increasing to 0".,$ per cent in the &pril1July ,++0 period compared
with 0-.# per cent in the same period last year.
=ot surprisingly, compact cars emerged as the main driver of passenger car growth in
the period. *hile the overall passenger car market increased by ,-."0 per cent to
2,,-,0;! units, sales of compact cars jumped by 2!., per cent to ,,,!,$#" units in the
&pril1July ,++0 period. In fact, all the three major carmakers ('aruti ?dyog,
24
5yundai 'otor, and Tata 'otors) saw a sizeable jump in their compact car sales in
the period.
Cust!,$r s$7,$ntati!n and +a#u$ "r!"!siti!n
S$7,$ntati!n
Und$r Rs: 3
4a.%s
Maruti 0558 A#t!8 O,ni
8eva
Rs: 3;' 4a.%s
&mbassador
3iat Palio
5yundai %antro, 9etz
.hevrolet 7pel .orsa
Maruti <$n8 Wa7!n R8 V$rsa8 Est$$,8 (y"sy
3ord Icon D 3iesta
Tata Indica, Indigo
'ahindra /olero
2'
COMPANY PROFI4E
*ISTORY OF *YUNDAI

The beginning of 5yundai 'otor .ompany dates to &pril !#-0 when founder, Ju1
@ung .hung established 5yundai &uto %ervice in %eoul, %outh Corea at the age of
2! years. The name 5yundai was chosen for its meaning which in Anglish translates
to Umodern.V The 5yundai logo is symbolic of the company6s desire to epand. The
oval shape represents the company6s global epansion and the stylized M5M is
symbolic of two people (the company and customer) shaking hands.

5yundai 'otor .ompany was founded by Ju1@ung .hung and younger brother %e1
@ung .hung in 4ecember !#0;. In !#0" the company entered into a contract with
3ord motor company to assemble the 3ord .ortina and 9ranada for the %outh Corean
market and continued to produce them until !#;0. 5yundai completed construction
of the ?lsan plant in si months and achieved the shortest groundbreaking to first
commercial production of any of 3ords !!" plants. The eight year journey provided
5yundai with assembly knowledge, blueprints, technical specifications, production
manuals, and trained 5yundai engineers.
2)
The leader of the 5yundai1Cia &utomotive 9roup was changed by founder, Ju1@ung
.hung in !### after the &sian financial crisis and government mandated breakup of
the 5yundai 9roup. Previously the automotive group was being managed by the
founder6s brother. 5is son, 'ong1Coo .hung had performed well managing
5yundai6s after1sale service and dealerships. 'ong1Coo was the catalyst of an
etreme turnaround for the company. 4uring the "+s and #+s, his uncle focused on
5yundai &utomotive6s growth and producing as many cars as possible. Product
:uality and customer satisfaction suffered. 3rom his eperience working with
*yundai 9!und$r8 2u;Yun7 C%un7
2/
dealerships and angry 5yundai customers, 'ong1Coo knew well the damage to the
5yundai reputation and the high cost of warranty repairs.
*hen 'ong1Coo began broadcasting his intention to turn 5yundai into a top1five
automaker, few outside the company took him seriously. 5yundai, like many family1
controlled Corean companies, was ultra1hierarchical and slow to change. 'anagers
rarely cooperated with one another and division chiefs ran their operations as personal
fiefdoms. M*hen a problem occurred, each division would blame other divisions,M
says <ee 5yun %oon, Corean head of 8D4.
'ong1Coo6s first step was to replace members of top management with engineers.
5e formulated a strategy to challenge Toyota for :uality. Atensive work with
consultants, J.4. Powers, and benchmarking of the world6s best automotive companies
followed. 5e also sent teams to &merica to study weather, road conditions, and
driver habits. Iuality control staff increased tenfold to !,+++ and they reported
directly to him. Amployees were encouraged and rewarded to offer suggestions. 7ne
eample that is told is that a worker reported the %onata and G92$+ sedans had
differently shaped spare tire covers. %haring the cover saved 5yundai about E!++,+++
per year.
There are reports that the Corean government re:uested that 'ong1Coo step down as
5yundai &utomotive6s chairman in ,+++ so that it could be led by a non1family
member. 'ong1Coo refused, arguing that he was best :ualified to lead the company.
'ong1Coo .hung has earned a reputation for an obsession with :uality. The new
%onata6s launch in Corea was delayed for two months for $+ items management
wanted fied. Amployees in the &san factory worked feverishly to correct items such
20
as a tiny error in the size of the gap between two pieces of sheet metal near the
headlight. The problem was not visible to the human eye and was narrower than +.!
millimeter. =umerous managers and employees worked on the problem for ,$ days
before it was solved.
The 5yundai 9roup spent most of its history operating as one of %outh Corea6s largest
chaebols, or conglomerates. The group displayed spectacular growth since its
founding in !#-; and its rapid epansion11to a point where its interests included car
manufacturing, construction, shipbuilding, electronics, and financial services11
reflected the achievements attained during %outh Corea6s economic miracle. The
%outh Corean economy took a turn for the worse during the late !##+s, however,
which prompted President Cim 4ae Jung to launch a series of reforms aimed at
dismantled large, often corrupt, chaebols. /y ,++!, much of the 5yundai 9roup had
been dismantled. 8oh 'oo 5yun, elected President in ,++,, continues to reform the
%outh Corean business sector.
5yundai6s growth was linked inetricably to %outh Corea6s reconstruction programs
following *orld *ar II and the Corean *ar as well as to the state1led capitalism that
resulted in a polarization of the country6s corporate structure and the domination of
the economy by a number of conglomerates. *orld *ar II left the country devastated,
and the small recovery Corea had been able to make following this conflict was
reversed during the Corean *ar, which lasted from !#$+ to !#$2. The chaebols,
which are similar to Japan6s zaibatsu, worked with the government in rebuilding the
economy and formed an integral part of Corea6s economic strategy and its drive to
build up its industrial base.
23
7ne man, .hung Ju @ung, stood at the center of 5yundai6s progress from !#$+ until
he died in ,++!. .hung, considered a founding father of the Corean chaebol structure,
left school at an early age and developed what has been described as an autocratic and
unconventional management style. 5e noted those areas of industry that the
government had selected as crucial to economic development and structured the group
accordingly.
*YUNDAI MOTOR COMPANY
3ounded in !#0;
/rand value of ?% E -.-$ billion1 ,++; ( /usiness *eek)
5yundais brand ranking improves by 2 places in best 9lobal /rands %urvey
,++;( ;$ to ;,)
%ale of 2.; million units world wide1 ,++$ (including the Cia brand)
0
th
largest auto manufacturer in the world1 5yundai1 Cia &utomotive 9roup
%old in !#2 countries through a network of over $+++ dealership
,++0 Ideal Behicle /rand1 5yundai1 &uto Pacific ?%&
7fficial sponsor and vehicle supplier1 3I3& *orld .up, 9ermany1 ,++0
C%a##$n7$s 9!r *yundai M!t!r in t%$ 1305s
35
The !#"+s were to prove e:ually eventful for 5yundai 'otor .ompany. &fter the oil
shock of !#;#, the government took steps to protect the industry, which had by then
made large investments in plants and e:uipment. It kept a tight grip on the
development of this sector and in !#"! divided the market, restricting 5yundai to car
and large commercial vehicle manufacture. These regulations were revised in !#"0
following the recovery of the market, and 5yundai was able to resume manufacture of
light commercial vehicles.
/y the middle of the decade, 5yundai had taken .anada by storm. Its Pony
subcompact vehicle became .anada6s top1selling car less than two years after entering
the market. 5yundai6s sales in .anada, where it was also selling the %tellar, shot from
none in 4ecember of !#"2 to $;,$++ units in the first nine months of !#"$, topping
those of 5onda and =issan combined. Total production in !#"$ had risen to -$+,+++.
In !#"$, the company announced plans to build a car assembly plant at /romont, near
'ontreal, and at the same time decided to enter the ?.%. market. The entry into the
?.%. market, begun in !#"0, proved an immediate success. Its low1priced Acel model
was well received, and of the 2+,,+++ cars eported in that year, !0",+++ were sold in
the ?nited %tates, where sales were to increase to ,02,+++ the following year.
5yundai6s initial success in the ?nited %tates, though, faded before the end of the
decade when sales began to flag. Problems in the company6s key overseas market
were attributed to the lack of new models, increasing competition in the weakened
?.%. car market, and the severe strikes that hit the company in the latter part of the
!#"+s and in !##+.
5yundai decided to move up market with the introduction of the %onata, a four1door
sedan, in late !#""T initial sales, though, proved disappointing. & year later, this car
31
was being manufactured at the /romont plant, following the opening of the factory in
!#"#. In the same year, 5yundai signed a deal with .hrysler .orp. to build 2+,+++
midsize, four1door cars for the ?.%. company, starting in !##!. .hrysler was linked to
'itsubishi .orporation, which in turn was affiliated with 5yundai, in which it held a
!$ percent stake.
5yundai planned to increase production at the .anadian plant to !++,+++ by the time
the .hrysler deal came into effect. Aport sales, which were also hit by the
appreciation of the won and the depreciation of the yen, remained sluggish. Increased
wage costs also affected the group but had the advantage of boosting domestic sales
that, for the industry as a whole, increased $+ percent to 2$0,+++ units in !#"#.
*yundai in t%$ Ear#y 1335s
The group became intent on reducing its dependence on the ?.%. markets. /y !##+,
the domestic market was proving increasingly important to the essentially eport1
oriented group. /oth the car and construction markets were enjoying strong demand
at the end of the decade. This situation helped 5yundai Angineering D .onstruction,
like the vehicle operations, to take up the slack created by declining markets abroad,
particularly in the 'iddle Aast. The group had accumulated eperience in a broad
range of plant construction, including Corea6s first nuclear power plant. 'eanwhile
eports in the shipbuilding sector were showing a marked improvement.
3ollowing the creation in !#"2 of 5yundai Alectronics, 5yundai stepped up its
presence in the electronics field and produced semiconductors, telecommunication
e:uipment, and industrial electronic systems. The company, which focused on
32
industrial markets, sought to increase its presence in consumer electronics, despite
formidable competition from domestic companies such as %amsung and 9oldstar.
The group as a whole had proved itself capable of taking diverse markets by storm
and was determined to maintain and epand its markets by stepping up research1and1
development spending. 5owever, the country6s drive towards democracy brought new
uncertainties. In the changing economic and political environment, the group faced a
labor force seeking higher wages, a less competitive currency, and increasing
competition in the all1important overseas markets.
3aced with this changing political scene and a less favorable international rate of
echange, 5yundai shifted gears in the early !##+s. In automaking, its largest
enterprise, it worked to regain lost ground in the ?nited %tates, where demand for its
low1priced Acel and somewhat higher1priced %onata models slumped in the wake of
widespread consumer complaints and a depressed entry1level market. 5yundai6s new
Alantra sedan, selling for E#,+++, was to be its lead item in the ?.%. market. The
group6s chairman at that time, .hung Ju @ung6s younger brother, .hung %e1yung, was
epecting a new day for the group, as Corea itself matured with new labor and
political freedoms.
&s Corea6s second1largest conglomerate, with !##+ revenues estimated at E2$ billion,
5yundai 9roup was clearly to play an important role in the new Corea. Indeed, the
5yundai founder and chairman, .hung Ju @ung, chose personally to play a new,
political role in that development, founding a new political party early in !##, with a
view to promoting open1market policies. .hung6s ?nification =ational Party (?=P)
promptly won !+ percent of =ational &ssembly seatsT .hung himself then retired
from his 5yundai chairmanship to set his sights on the Corean presidency. The
33
5yundai conglomerate, already forced by the government to pay billions in back
taes, came under even more severe government pressures after .hung formed his
party. 8egulators charged illegal political contributions by one 5yundai company and
accused others of ta evasion. In addition, 5yundai6s ability to finance its operations
was threatened by other government actions. In return, 5yundai, at this time headed
by .hung %e @ung, threatened to withhold huge investments planned for the coming
year. In !##2, having finished third in %outh Corea6s presidential election, .hung Ju
@ung reportedly said that he would resume chairmanship of the 5yundai 9roup and
would reorganize the corporation into many specialized, independently run
companies. In !##$, his second1eldest son, .hung 'ong Coo, was named chairman
of the group while .hung remained honorary chairman.
In auto and personal1computer sales, 5yundai companies moved aggressively. In mid1
!##,, 5yundai6s new 'otor &merica president, 4al 7k .hung, took over in the
3ountain Balley, .alifornia, head:uarters. &mong other marketing devices, 5yundai
offered generous rebates and free two1year service warranties that covered even
windshield wiper blades. /y early !##2, 5yundai was offering the first auto engine it
had designed and made itself, as opposed to the Japanese1made 'itsubishi engines
that were used in its earlier models. 'ore than ever committed to the smaller vehicle,
5yundai was selling autos in more than !++ countries.
In personal computers, 5yundai in mid1!##, took a drastic step when it moved its
entire electronics operation to the ?nited %tates, the world6s largest computer market.
5yundai Information %ystems had already entered the direct personal1computer
market, cutting prices and offering toll1free telephone support and sales. The new
operation, based in %an Jose, .alifornia, had entirely &merican leadership, headed by
34
I/' veteran and former .ompu&dd president Adward Thomas. The .alifornia
advantage was mainly proimity to the market, which meant lessened inventory
re:uirements. These developments showed the 5yundai 9roup to have the same
innovative and energetic approach that had characterized its earlier ventures.
T%$ Dis,ant#in7 !9 *yundai
The latter years of the !##+s brought with them economic turmoil for %outh Corea. In
order to restore the nation6s financial health, President Cim 4ae Jung, who took office
in !##", launched a series of restructuring programs designed to reform the chaebols,
many of which had become heavily debt1burdened. 5is reforms included changing the
ownership, business, and financial structures of the region6s large conglomerates. /y
this time, the 5yundai 9roup was responsible for approimately ,+ percent of Corea6s
94P. &s such, its financial health was directly related to %outh Corea6s overall
economic condition.
&s a result of government pressures, 5yundai and other %outh Corean chaebols,
including the 4aewoo 9roup, set plans in motion to sell off many of their businesses
in order to pay down debt and shore up profits. 5yundai6s concentration remained on
autos, electronics, heavy industry, construction, and finance. Aven as the group
struggled under its debt load, it strengthened its holdings with the purchase of Cia
'otors .o. <td. and <9 %emiconductor.
4espite the government6s involvement, 5yundai was slow to comply with
restructuring demands. Its :uestionable accounting practices often made it the target
of negative publicity. 8ivalries between members of the founder6s family also led to
bad press, leaving many investors anious about the future of the group and its
3'
member companies. Indeed, many 5yundai affiliates, including 5yundai Angineering
D .onstruction and 5yundai Alectronics, were nearing bankruptcy as debt continued
to spiral out of control. /y ,++!, total group debt reached *2$."; trillion (E,$.$#
billion).
5yundai 'otor .o., on the other hand, was prospering as Corea6s largest car maker.
The auto concern officially separated from the 5yundai 9roup in %eptember ,+++,
signaling the start of sweeping changes that led to the eventual dismantling of what
was once %outh Corea6s largest conglomerate. In &ugust ,++!, nine core 5yundai
companies, including 5yundai Angineering D .onstruction and 5yni %emiconductor
Inc. (formerly known as 5yundai Alectronics Industries), left the chaebol. The
separation cut 5yundai 9roup6s assets to just E,+." billion and left it in control of !"
member companies. 5yundai continued to be pared down the following year.
%outh Corea had bounced back from its economic crisis of !##; and !##" to become
a leading global force in the technology sector. /y ,++2, foreign investors owned
over a third of the shares of companies listed on %eoul6s stock echange. 4uring ,++,,
8oh 'oo 5yun was elected president of %outh Corea. 3eeling the pressure from
foreign investors, he maintained that harsh reform would continue within %outh
Corea6s chaebols. & 'ay ,++2 Business Week article supported the efforts of the new
president, who stated that Mslowly and steadily, good governance has been asserting
itself in Corea.M Indeed, it appeared as though the powerful, family1run Corean
chaebols were a thing of the past. *hile this marked an end to the 5yundai 9roup6s
history, it pointed to a fresh start for many companies bearing the 5yundai name.
*YUNDAI MI4ESTONES
3)
2555 5yundai 'otor company founded
2551 <icensing agreement signed with 3ord
2552 UPonyV1 Coreas first independently designed and manufactured model
2553 3irst Pony eported to Acuador
2554 U AcelV launched
255' Antered ?% market with U AcelV
255) U%onataV launched
255/ 4eveloped first proprietary engine -1 cylinder &lpha
2550 .umulative eports surpass - million units, .umulative production
surpass !+ million units.
2553 U9randeur G9V launched, 9rand opening of .hennai plant in India,
&c:uired Cia 'otors .orp.
2515 U %anta 3eV launched
2511 .umulative eports surpass !+ million units
*YUNDAI=s 1RAND COMMUNICATION
4rive your way is corporate slogan which represents our pledge to become a leading
9lobal brand. 7ur foremost priority is to both inspire and satisfy our customers.
3/
Therefore, the customers lives (Uyour wayV) become more confident (U4riveV) and
that we will always stand by the side.
1ENEFITS OF A STRON( *YUNDAI 1RAND
& strong brand leads not only the improvement of corporate image, but is also the
source of long term profit.
30
33
*YUNDAI MOTORS INDIA 4IMITED
T%$ Start; 1333
5'I< (5yundai 'otor India <imited) was established in !##0
%tate of the art plant at Irrungattukottai near .hennai, constructed at a total
cost of E 0!- million.
Installed capacity to make , lakh $+ thousand cars per annum and ! lakh 2+
thousand engine transmission units per annum.
In process to increase capacity to 0 lakh units per annum by ,++;
T%$ Start; 2555
Production commences.
<ocalization of ;+F, which is one of the highest, amongst all car
manufacturers.
N$> *!ri6!n 2551
The %antro was launched.
.reates history by becoming one of the best selling compact cars.
5yundai becomes Indias second largest car manufacturers in si months.
N$> %!ri6!n 2552
45
The accent is launched.
%antro wins /usiness %tandard 'otoring U.ar of the year awardV.
N$> %!ri6!n 2553
!+++++
th
cars roll out.
%antro zip drive launched.
Aport of santro and &ccent started.
%antro and &ccent bag J4 Power &sia Pacific &ward.
N$> *!ri6!n 2554
%onata was launched.
%antro wins /usiness %tandard 'otoring U.ar of the year awardV again.
,+++++
th
cars roll out.
,++! UII%V and U&PA&<V honours from J4 Power.
N$> *!ri6!n255'

2+++++
th
cars rolls out.
&ccent Biva launched.
41
N$> *!ri6!n 255)
5'I< awarded U'anufacturer of the yearV by .=/. &uto .ar India.
5'I< declared car maker of the year at I.I.I overdrive awards.
-+++++
th
cars roll out.
The %antro Ging launched.
The Terracan was launched.
N$> *!ri6!n 255/
!$++ eported to Aurope under model name &tos.
$+++++
th
vehicles roll out.
The 9etz was launched.
The Alantra was launched.
N$> *!ri6!n 2550
The Tucson was launched.
The %onata Ambera was launched.
N$> *!ri6!n 2553
The all new 5yundai Berna was launched.
42
N$> *!ri6!n 2515
The sonata Ambera .84i B9T was launched.
%antro crosses the !+ lakh mark.
9etz Prime was launched.
&utomatic variant of the %onata Ambers .84i B9T launched.
%antro .=9 launched
3astest !$ lakh cars roll out.
5yundai i!+ was launched.
Mi#$st!n$;4558555
t%
Car E?"!rt$d
5yundai 'otor India has achieved another significant milestone with the shipment of
its -++,+++
th
&tos Prime to its overseas markets in =ew 4elhi on august 0, ,++;.
In 7ctober ,++0 it eported its 2++,+++
th
car. The milestone achievement of eporting
the net one lakh car in less than a year makes 5yundais -++,+++
th
overseas sale the
fastest eport shipment in the industry.
.urrently, 5yundai 'otor India is eporting %antro, 9etz and the &ccent model to
around 0; countries across Aurope, &frica, <atin &merica and 'iddle Aast.
E?"!rt Mi#$st!n$s
43
E?"!rt R!##;Out Y$ar
!,++,+++th car 7ctober, ,++"
,,++,+++
th
car 7ctober, ,++#
2,++,+++
th
car 7ctober, ,+!+
-,++,+++
th
car &ugust, ,+!!
CAR DETAI4S
MODE4 NET
PRICE
COMP4ETE
INSURANCE
PERMANENT
RE(IST:
3
RD
YR
E@T:WTTY:
ON ROAD
PRICE
Santr! N!n AC ASB ,,;,,,#+H1 ",-0"H1 ;,"++H1 !,#;$H1 ,,#+,$22H1
Santr! N!n AC AMB ,,;$,";#H1 ",$00H1 ;,#++H1 !,#;$H1 ,,#-,2,+H1
Santr! (4 ASB 2,-!,+##H1 !+,2-$H1 #,$++H1 !,#;$H1 2,0,,#!#H1
Santr! (4 AMB 2,--,0#!H1 !+,--2H1 #,0++H1 !,#;$H1 2,00,;+#H1
Santr! (4S ASB 2,0+,!;0H1 !+,"00H1 !+,+++H1 !,#;$H1 2,",,#,;H1
Santr! (4S AMB 2,02,;0-H1 !+,#02H1 !+,!++H1 !,#;$H1 2,"0,"+,H1
($t6 (4E -,+,,!$0H1 !,,+!!H1 !!,+$+H1 2,+,$H1 -,,",,-,H1
($t6 (VS -,22,"#;H1 !,,";;H1 !!,"$+H1 2,+,$H1 -,0!,0-#H1
($t6 (VS A1/' tyr$B -,-!,,0-H1 !2,+;"H1 !,,+2+H1 2,+,$H1 -,0#,0-#H1
($t6 (VS A1:3B -,$!,+#"H1 !2,2-0H1 !,,,"+H1 2,+,$H1 -,;#,;-#H1
($t6 (4S A1:3B -,;,,+#"H1 !2,#!#H1 !,,"++H1 2,+,$H1 $,+!,"-,H1
($t6 (4@ A1:3B $,+0,!#-H1 !-,"-#H1 !2,00+H1 2,+,$H1 $,2;,;,"H1
($t6 CRDI $,;,,2$+H1 !0,0$-H1 ,#,0,+H1 11111111 0,!",0,-H1
CO4OURS
S!#id> (!) Abony /lack (A/), =oble *hite( =*)
M$tta#i-> /rite %ilver (I7), 8eal Aarth (5,), Passion 8ed (7r), %pace %ilver ($s),
%ky /lue, /lue 7ny (,), 4ynastey 8ed (&A), 'idnight 9rey(,m), 7range <ango are
available only in %antro.
44
CAR DETAI4S
CO4OURS&; Abony /lack (A/), =oble *hite (=*), /rite %ilver (I7), %pace %ilver
($%), 8eal Aarth (5,), 'idnight 9rey (,'), D %ky /lue (only in &ccent) D Passion
8ed (78), 4ynasty 8ed (&A), Cyara (&9) only in Berna.
PROFORMA INVOICE
CAR DETAI4S
MODE4 NET
PRICE
COMP4ETE
INSURANCE
PERMANENT
RE(IST:
3
rd
Yr
E@TRA
ON
ROAD
MODE4 NET
PRICE
COMP4ETE
INSURANCE
PERMANENT
RE(ISTRATION
3
rd
Yr
E@TRA
WARRANTY
ON
ROAD
PRICE
A--$nt (4E $,+;,#-!H1 !-,"#;H1 !2,;++H1 -,!,+H1 $,-+,0$"H1
V$rna;I 0,$0,"!#H1 !#,;"#H1 !;,-,+H1 -,,2$H1 0,#",,02H1
V$rna;@I 0,;$,,##H1 ,+,2!;H1 !;,""+H1 -,,2$H1 ;,!;,;2!H1
V$rna;@@I ;,22,-!-H1 ,!,#;0H1 !#,2-+H1 -,,2$H1 ;,;",#0$H1
V$rna;@@I;
A1S
;,$2,-$-H1 ,,,$-"H1 !#,"-+H1 -,,2$H1 ",++,+;;H1
V$rna;CRDI ;,;!,#+0H1 ,,,+##H1 2#,0++H1 #,+2$H1 ",-,,0-+H1
V$rna;CRDI
A1S
;,#2,#-"H1 ,,,;++H1 -+,;++H1 #,+2$H1 ",00,2"2H1
V$rna;CRDI
S@
",,,,!2+H1 ,2,-0#H1 -,,!++H1 #,+2$H1 ",#0,;2-H1
V$rna;CRDI
S@ A1S
",--,!;$H1 ,-,+;!H1 -2,,++H1 #,+2$H1 #,,+,-"!H1
4'
Wtty PRICE
I;15 D;4it$ ASB 2,-;,;-;H1 !+,$,;H1 #,;++H1 ,,$++H1 2,;+,-;-H1
I;15 D;4it$ AMB 2,$!,20!H1 !+,0,$H1 #,"++H1 ,,$++H1 2,;-,,"0H1
I;15 Era ASB 2,"-,!$0H1 !!,$,+H1 !+,0++H1 ,,$++H1 -,+",;;0H1
I;15 Era AMB 2,";,;;+H1 !!,0!"H1 !+,;++H1 ,,$++H1 -,!,,$""H1
I;15 Ma7na ASB -,+",,"0H1 !,,!;"H1 !!,,++H1 ,,$++H1 -,2-,!0-H1
I;15 Ma7na AMB -,!!,#++H1 !,.,;;H1 !!,2++H1 ,,$++H1 -,2;,#;;H1
I;15 Ma7na A!"ti!n
"a-.BASB
-,;",-#!H1 !-,+#-H1 !,,#0+H1 ,,$++H1 $,+",+-$H1
I;15 Ma7na A!"ti!n
"a-.BAMB
-,",,!+-H1 !-,!#,H1 !2,+$+H1 ,,$++H1 $,!!,"-0H1
I;15 Ma7naA!"ti!n
"a-. >it% sun r!!9B ASB
-,#2,;!+H1 !-,$+#H1 !2,2$+H1 ,,$++H1 $,,-,+0#H1
I;15 Ma7na A!"ti!n
"a-. >it% sunr!!9B AMB
-,#;,2,!H1 !-,0+;H1 !2,-2+H1 ,,$++H1 $,,;,"$"H1
CO4OURS& ;
S!#id& Alectric 8ed, Bartual @ellow.
M$tta#i-& &lpine /lue, 7yster 9ray, %leek %ilver, /lushing 8ed, .hampaign 9old,
4eep 7cean /lue, .rystal *hite, %tone /lack.
SANTRO
The %antro id Indias largest eported car under the name &tos.
%antro is produced eclusively in India and eported around the world to over
0$ countriesincluding advance markets like =orth &merica and Aurope.
Mi#$st!n$s
%antro was launched in !##".
Auro1II version launched ahead of schedule.
%antro Kip 4rive launched in 'ay ,+++.
4)
In Jan ,++! Bentilated 4isc brakes added on all variants of %antro.
In July ,++! facelift of the %antro launched.
In 7ctober ,++! the <P version was launched (Kip Balue).
In 'arch ,++, %antro Kip Plus with improved !.! < Angine launched.
%antro Ging launched in ,++2.
e8<G engine and new variants launched in,++$.
%antro crosses the !+ lakh mark in sales with over ; lakh Indian customers and
2 lakh units eported.
%antro .=9 launched.
=ew variants launched in %eptember ,++;.
Variants
%antro is available in the following variants>1
GC =on1&.
9<
9<%
Di,$nsi!ns
7verall <ength 2$0$ mm
7verall *idth !$,$ mm
7verall 5eight !$#+ mm
*heelbase ,2"+ mm
Turning 8adius -.- mtr
9round .learance !0- mm
i15
.ompete in the high volume mid compact segment.
'ost awarded car of the year.
4/
.ode name P&
'odel name i!+
4esign D .reation 5yundai1 Cia 8D4 centre, Corea
International 4ebut India
<aunch Time =ovember ,++;
/ody %tyle $ 4oor hatchback
Power %ource !.! < i84A engine
.ompeting %egment .ompact
Variants
41 lite
Ara
'agna
'agna (option pack)
'agna ( option pack with sunroof)
Di,$nsi!ns
7verall <ength 2$0$ mm
7verall *idth !$#$ mm
7verall 5eight !$$+ mm
*heelbase ,2"+ mm
9round .learance !0$ mm
Track1 3ront !-++ mm
8ear !2"$ mm
($t6 Pri,$
&warded U .ar of the @ear ,++$V by both .=/. &utocar and /% 'otoring.
Mi#$st!n$s
International 4ebut on 2
rd
'ay ,++,
Auropean launch in ,++2
<aunched in India in ,++-
=ew 9etz Prime launched in &pril ,++;
40
9etz .84i launch sept. ,++;
Variants
9etz Prime is available in the following variants>
P$tr!#
!.! 9<A
!.! 9B%
!.! 9B% 7PT
!.2 9<%
!.2 9<G
Di$s$#
!.$ 9B%
Di,$nsi!ns
7verall <ength 2",$ mm
7verall *idth !00$ mm
7verall 5eight !$!$ mm
*heelbase ,-$$ mm
Turning 8adius $.+ mtr
9round .learance !0+ mm
ACCENT
<aunched in India 7ctober in !###.
Tried and tested product.
.hoice of over !.$ lakh Indian customers.
Mi#$st!n$s
&warded as number ! in II% by J4 Power &sia Pacific in India in ,++!.
&warded as /%' Jury awarded by /usiness %tandard 'otoring in ,++,.
&warded as =o.! 'id size diesel car by T=% &utomotive in ,++$.
43
Di,$nsi!ns
7verall <ength -,$+ mm
7verall *idth !0;+ mm
7verall 5eight !2;+ mm
*heelbase ,--+ mm
Turning 8adius $.+ mtr
9round .learance !;, mm
VERNA
7ver ,$,+++ Indian customers in just !+ month since launch.
*idest choice of colours in segment (l,)
7ne of the Indias largest service networks

Mi#$st!n$
&warded as U.ar of the year ,++;V1 7verdrive
&warded as U /est value for 'oney .ar ,++;V1 .=/. &utocar
Variants
i
Gi
GGi
.84i B9T %G
'5
SONATA EM1ERA
$
th
9eneration .ar1 &ppro. !$+,+++ sold in ?.% in ,++0
7ne of the widest in segment
7ne of the Indias largest network
Mi#$sst!n$
&warded as UIdeal Behicle &wardV1 &uto Pacific (?%&)
&warded as U'ost reliable carV by Time 'agazine
Variants
,.- 'HT
,.- &HT
,.+ .84i 'HT
,.+ .84i &HT
Di,$nsi!ns
7verall <ength -"++ mm
7verall *idth !"2, mm
7verall 5eight !-;$ mm
*heelbase ,;2+ mm
Turning 8adius $.-0 mtr
9round .learance !;+ mm
'1
E4ANTRA
Mi#$st!n$s
&ward /y H .ountry @ear
/est passenger car &utomobiliski, @ugoslavia ,+++
Top 5onours B%% (Behicle
%atisfaction %core)
&uto Pacific Inc, ?%& ,++2
/est Balue %mall .ar1 Total
Balue Inde
%trategic Bision, ?%& ,++2,,++-
3ive star for safety =5T%&, ?%& ,++-
/est Balue for 'oney .ar .=/. TB!"1&utocar &ward, India ,++$
Variants
Alantra is available in following variants>
9T
Di,$nsi!ns
7verall <ength -$,$ mm
7verall *idth !;,$ mm
7verall 5eight !-$+ mm
*heelbase ,0!+ mm
Turning 8adius $.+0 mtr
9round .learance !"$ mm
TUCSON
7ver , lakh cars were sold world wide in,++0
/ack up> 7ne of Indias largest service network
Mi#$st!n$
U%?B of the year ,++0V> =4TB Profit1 .arD /ike (India)
'2
Di,$nsi!ns
7verall <ength -2,$ mm
7verall *idth !"2+ mm
7verall 5eight !;2+ mm
*heelbase ,02+ mm
Turning 8adius $.- mtr

'3
'4
*yundai
i15
Pr!s&
!. International car made in India. 'eets international safety and :uality
standards and will be sold globally.
,. 3antastic interiors which is comparable to large and epensive cars.
2. 9earshift on dash which is a category first. It is smooth too. Tilt adjustable
steering.
-. 9ood :uality and build. /est in segment. (Aspecially the doors give a thud
sound when shut unlike clanky noise by few other cars)
$. %upposed city mileage of around !21!$ CmH<. (7n highway, close to ,+ Cm)
0. Its not a %antro upgrade, this is a fresh design, though reminiscent of the
%antro.
''
;. 4elightful to ride in the city. /est in class.
". 9ood stability on highway. 9ood road grip.
#. &. is good.
!+. 4ecent rear seat space. 3eels comfortable.
!!. Tubeless "+ profile tyres.
!,. The space between driver and front passenger has a good utility area.
!2. 5igh end safety features like dual airbags, &/% and frills like sun roof in
'agna 7 variant (epensive though).
C!ns&
!. & new version, but performance is same as %antro.
,. The boot looks deep. *ill have difficulty in handling luggage.
2. Priced around 2+1-+ C more.
')
Maruti Su6u.i
Esti#!
Pr!s&
!. 'aruti after sales service.
,. 4ecent boot space.
2. 'aintenance is less.
-. <arge service network.
C!ns&
!. 9ets nervous at high speeds.
'/
,. =ot for the highway.
2. 4ash looks a decade old.
-. The old Ken was a better car.
Maruti Su6u.i
Wa7!n R
Pr!s&
!. %pacious.
,. <arge boot space.
2. 5igh seat positioning.
-. 3actory fitted <P9 in the 4uo version.
'0
$. 'aruti after sales service.
0. 'aintenance is less.
;. Tall boy design good for elders to enter in.
". <arge service network.
C!ns&
!. /o typed design.
,. 9ets nervous at high speeds.
2. Plans to phase out petrol version.
-. =ot for the highway.
'3
Stru-tur$
O>n$rs%i"
'?< India6s leading automobile manufacturers and the market leader in the car
segment, both in terms of volume of vehicles sold and revenue earned is a public
sector initiative. !".,"F of the company is owned by the Indian government, and
$-.,F by %uzuki of Japan. The Indian government held an Initial Public 7ffering of
,$F of the company in June of ,++2.
)5
Ownership
Government
Suzui
!"O
others
Govern
ment
Suzui
!"O
others
Main di+isi!nsACrand $DuityB
The major services offered are,
Sa#$s !9 Aut!,!Ci#$s
Aut%!ri6$d S$r+i-$ Stati!ns
'aruti is one of the companies in India which has unparalleled service
network. To ensure the vehicles sold by them are serviced properly 'aruti had
!$-$ listed &uthorized service stations and 2+ Apress %ervice %tations on 2+
highways across India. %ervice is a major revenue generator of the company.
'ost of the service stations are managed on franchise basis, where 'aruti
trains the local staff. 7ther automobile companies have not been able to match
this benchmark set by 'aruti. The Apress %ervice stations help many
stranded vehicles on the highways by sending across their repair man to the
vehicle.
Maruti Insuran-$
<aunched in ,++, 'aruti provides vehicle insurance to its customers with the
help of the =ational Insurance .ompany, /ajaj &llianz, =ew India &ssurance
and 8oyal %undaram. The service was set up the company with the inception
of two subsidiaries 'aruti Insurance 4istributors %ervices Pvt. <td and 'aruti
)1
Insurance /rokers Pvt. <imited. This service started as a benefit or value
addition to customers and was able to ramp up easily. /y 4ecember ,++$ they
were able to sell more than two million insurance policies since its inception.
Maruti Finan-$
To promote its bottom line growth, 'aruti launched 'aruti 3inance in
January ,++,. Prior to the start of this service 'aruti had started two joint
ventures .iticorp 'aruti and 'aruti .ountrywide with .iti 9roup and 9A
.ountrywide respectively to assist its client in securing loan. 'aruti tied up
with &/= &mro /ank, 543. /ank, I.I.I <imited, Cotak 'ahindra,
%tandard .hartered /ank, and %undaram to start this venture including its
strategic parnters in car finance. &gain the company entered into a strategic
partnership with %/I in 'arch ,++2. %ince 'arch ,++2, 'aruti has sold over
!,,+++ vehicles through %/I1'aruti 3inance. %/I1'aruti 3inance is currently
available in !00 cities across
Maruti Tru$Va#u$
'aruti True Balue is a service offered by 'aruti ?dyog to its customers. It is
a market place for used 'aruti Behicles. one can /uy, %ell or Achange used
'aruti Behicles with the help of this service in India.
N2N F#$$t Mana7$,$nt
=,= is the short form of And to And 3leet 'anagement and provides lease
and fleet management solution to corporates. Its impressive list of clients who
have signed up of this service include 9as &uthority of India <td, 4uPont,
)2
8eckitt /enckiser, %ona %teering, 4oordarshan, %inger India, =ational %tock
Achange and Transworld. This fleet management service include end1to1end
solutions across the vehicle6s life, which includes <easing, 'aintenance,
.onvenience services and 8emarketing.
Maruti Dri+in7 S-%!!#
&s part of its corporate social responsibility 'aruti ?dyog launched the
'aruti 4riving %chool in 4elhi. <ater the services were etended to other
citites of India as well. These schools are modelled on international standards,
where learners go through classroom and practical sessions. 'any
international practices like road behaviour and attitudes are also taught in
these schools. /efore driving actual vehicles participants are trained on
simulators.
E$y "$rs!nn$#
Initially 8.../hargava, was the managing director of the company since the inception
of the joint venture. Till today he is regarded as instrumental for the success of 'aruti
?dyog. Joining in !#", he held several key positions in the company before heading
the company as 'anaging 4irector. .urrently he is on the /oard of 4irectors. &fter
completing his five year tenure, 'r. /hargava later assumed the office of Part1Time
.hairman. The 9overnment nominated 'r. %.%.<.=. /haskarudu as the 'anging
4irector on &ugust ,;, !##;. 'r. /haskarudu had joined 'aruti in !#"2 after
spending ,! years in the Public sector undertaking /harat 5eavy Alectricals <imited
as 9eneral 'anager. <ater in !#"; he was promoted as .hief 9eneral 'anager, !##"
as 4irector, Productions and Projects, !#"# 4irector, 'aterials and in !##2 as Joint
'anaging 4irector.
Pr!du-ti!n Mi#$st!n$s
)3
1st +$%i-#$ "r!du-$d8 D$-$,C$r 1303
18558555 +$%i-#$s "r!du-$d Cy Au7ust8 130)
'8558555 +$%i-#$s "r!du-$d Cy 2un$8 1335
158558555 +$%i-#$s "r!du-$d Cy Mar-%8 1334
1'8558555 +$%i-#$s "r!du-$d Cy A"ri#8 133)
258558555 +$%i-#$s "r!du-$d Cy O-t!C$r8 133/
2'8558555 +$%i-#$s "r!du-$d Cy Mar-%8 1333
358558555 +$%i-#$s "r!du-$d Cy 2un$8 2555
3'8558555 +$%i-#$s "r!du-$d Cy D$-$,C$r 2550
458558555 +$%i-#$s "r!du-$d Cy A"ri#8 2553
4'8558555 +$%i-#$s "r!du-$d Cy A"ri#8 2515;11
OT*ER PRODUCTS OF MARUTI SU<UEI
Maruti
W'aruti "++ %T4 /% III
WWWW'aruti "++ &. /% III
)4
O,ni
WWW$ seater 'aruti 7mni
WWW" seater 'aruti 7mni
WWW<P9 'aruti 7mni
Maruti A#t!
W&lto
W&lto <
W&lto <i
Maruti <$n
WW'aruti Ken <
WW'aruti Ken <i
WW'aruti Ken Bi
Wa7!n R
W*agon8 <
W*agon8 <i
W*agon8 Bi
W*agon8 &
V$rsa
WW$ seater
WW" seater ( 4G D 4G,)
)'
Maruti Est$$,
W'aruti Asteem <
W'aruti Asteem <i
W'aruti Asteem Bi
1a#$n!
WW/aleno %edan BGi
WW/aleno %edan <i
/rands and models
Till recently whenever we think of 'aruthi we think of it as "++ due to the huge sales
it achieved. It was like a symbol of luury for the middle class. =owsituations are
changing and people are looking at 'aruthi stable for the wide range of products they
are offering. The various models and brands that are sold by 'aruthi in the order of
their launch are,
'aruti "++> <aunched !#"2. Indias largest selling car till ,++-.
'aruti 7mni> <aunched !#"-.
'aruti 9ypsy> <aunched !#"$.
'aruti !+++> <aunched !##+
'aruti Ken> <aunched !##2.'odified ,++2.Production to be halted
,++0=ew generation Ken (3irst generation '8 *agon in Japan) to be
introduced ,++0
'aruti Asteem> <aunched !##-
))
'aruti *agon1 8> <aunched !### 'odified ,++0
'aruti /aleno > <aunched !###
'aruti &lto> <aunched ,+++. .urrently the largest selling car in India
'aruti 9rand Bitara> <aunched ,++2
'aruti 9rand Bitara G<1;
'aruti Bersa> <aunched ,++-
'aruti %wift> <aunched ,++$
1RAND PORTFO4IO OF T*E COMPANY
C4ASS 1RAND NAME
YEAR
INTRODUCED
S4O(AN
City Car
Maruti 055 1303
C%an7$ y!ur #i9$
Maruti A#t! 2555
4$tFs 7!
Maruti <$n Esti#! 255'
S%a"$ y!ur >!r#d
Su6u.i A#t! AA;starB 2550
St!" G n!t%in7
Su6u.i S"#as%
U"-!,in7 ,!d$#
in 2553
Su"$r ,ini
Car
Maruti Wa7!n;R 1333 F!r t%$ s,art$r ra-$
Maruti Su6u.i S>i9t 255' Y!uFr$ t%$ 9u$#
C!,"a-t
Car
Maruti Su6u.i S@4 255/ M$n ar$ Ca-.
Maruti D<iRE 2550 T%$ %$art -ar
S"!rts
Uti#ity
V$%i-#$
Su6u.i (rand Vitara 255/
P#ay it y!ur >ay
Maruti (y"sy 130'
Ein7
)/
Mi-r!+an
Maruti O,ni 1304 Fits a##
Maruti V$rsa 2553
T%$ !y !9 tra+$##in7
t!7$t%$r
)0
CHAPTER 4 REVIEW OF LITERATURE
Study o Auto!oti"e Industry # E$ono!i$s Rese%r$h P%per The
automotive industry is one o# the ey industries in the United States and is a
$ar%e se%ment o# the overa$$ U&S e'onomy& The automotive industry has
(itnessed tremendous transnationa$ %ro(th durin% the $ast de'ade )e'ause o#
'han%es in 'onsumer *re#eren'es+ *o$iti'a$ and )usiness *o$i'ies and
'han%in% e'onomi' 'onditions& Hi%h %ro(th has 'ontinued into the ne(
mi$$ennium (ith the se'ond hi%hest tota$ sa$es on re'ord )ein% a'hieved in
2,,1 as indi'ated )y the -'onomist !nte$$i%en'e
vive sin%h .2,,/0 1 The !ndian 'ar industry 'an )e '$assi#ied on the
)asis o# *ri'e+ into $o(er end sma$$ 'ar or e'onomy se%ment+ hi%her end o#
the e'onomy se%ment .2s,&231,&43mn0 mid1size se%ment .2s,&431,&/mn0+
$u4ury5*remium 'ar se%ment .a)ove 2s,&/mn0& The $o(er end o# the e'onomy
se%ment in'$udes 'ars $ie Maruti /,,+ Maruti Omni and "remier "admini&
The hi%her end (i$$ in'$ude mode$s $ie Maruti 6en+ Matiz+ Hyundai Santro and
Te$'o !ndi'a& The mid1sized se%ment 'urrent$y in'$udes mode$s $ie 7ord !on+
Hyundai 8''ent+ Maruti -steem+ 9ie$o and Honda 9ity& The $u4ury se%ment o#
the 'ar maret in'$udes su'h mode$s as Mitsu)ishi Lan'er and Mer'edes
-22,&
:On the #inan'ia$ #ront+ 7ord Motors has entered into a de#initive
a%reement to se$$ its ;a%uar and Land 2over o*erations to Tata Motors& The
!ndian auto %iant has a%reed to *ay a**ro4imate$y <2&3 )i$$ion #or #u$$
o(nershi* o# the #$a%shi* $u4ury )rands& 8s *art o# the transa'tion+ 7ord (i$$
'ontinue to *rovide en%ineerin% su**ort+ in'$udin% resear'h and deve$o*ment+
)3
*$us in#ormation te'hno$o%y and a''ountin%& The 'om*any (i$$ 'ertain$y #ee$
the #inan'ia$ )ene#its o# the dea$+ as in the (ae o# the e'onomi' do(nturn
7ord has e4*erien'ed 'om)ined $osses o# over <13 )i$$ion durin% the *ast t(o
years& .M= 20 This is an attem*t at 7ord at 'a*ita$izin% u*on the %$o)a$ization
o# the industry&:
The res*onse o# Tata Motors !ndia to re'ession and ma'roe'onomi'
#a'tors are dis'ussed in this *a*er+ (hi'h 'om*rises #our resear'h tass>
identi#i'ation o# the ma'roe'onomi' #a'tors a##e'tin% sa$es+ an e4amination o#
the im*a't o# #ore'astin% )y the =or$d ?an and !M7+ ho( ma'roe'onomi'
deve$o*ments (i$$ a##e't *er#orman'e+ and (hat ste*s shou$d )e taen to
%uard a%ainst adverse 'onditions& The *ressures o# in#$ation+ $eve$s o#
unem*$oyment and interest rates+ the e4*ansion or retra'tion o# the e'onomy+
#avoura)$e *ri'es #or oi$ and ra( materia$s @ the #undamenta$ #a'tors
in#$uen'in% Tata manu#a'turin% are '$ear$y set out )y the ana$yst& GA" %ro(th
in !ndia and the 7ar1-ast .)ut sta%nation in =estern marets0 are a$so
'onsidered+ as is the issue o# aversion to ris&
8utomo)i$e !ndustry There is no industry more *resent in the (or$d1
(ide 'ommunity than the automo)i$e industry& The automo)i$e has 'han%ed
the $ives+ 'u$ture+ and e'onomy o# the *eo*$e and nations that manu#a'ture
and demand them& -ver sin'e the $ate 1/,,s (hen the #irst :modern: 'ar
(as invented )y ?enz and Aaim$er in Germany+ the industry has %ro(n into
a )i$$ion do$$ar industry a##e'tin% so many as*e'ts o# our $ives& There are
more than 4,, mi$$ion *assen%er 'ars a$one on the roads today& Aurin% the
ear$y *art o# the t(entieth 'entury+ the United States (as home to more
/5
than B, *er'ent o# the (or$ds automotive industry+ )ut has shrun to a)out
2, *er'ent in todays (or$d&
This drasti' 'han%e has o''urred )y the )oomin% e'onomies in su'h
nations as ;a*an+ Germany+ 9anada+ 7ran'e+ !ta$y+ and other nations& The
US auto industry :sa$es tota$ed <2,3 )i$$ion+ or 3&3 *er'ent o# the tota$
Gross Aomesti' "rodu't&: .Tardi## 3B40 ?y the end o# 1Bth 'entury+ there
(ere a)out 3,, auto manu#a'turers+ )ut that num)er dro**ed shar*$y to 23
)y 1B17+ and today the ?i% Three dominate the maret& 7ord+ Genera$
Motors+ and 9hrys$er mae u* the ?i% Three (hi'h a''ount #or 23 *er'ent
o# the (or$ds motor vehi'$e *rodu'tion in 1BB7+ (ith the ;a*anese
industries 'omin% in se'ond+ *rodu'in% 21 *er'ent& Germany *rodu'es B
*er'ent+ S*ain+ 7ran'e+ South Corea+ and 9anada ea'h *rodu'e 3 *er'ent
o# the internationa$ maret in 1BB7& !n the US a$one+ the auto industry+
(hi'h in'$udes its 3,,+,,, 'ar1re$ated )usinesses+ 'reate 12 mi$$ion Do)s&
The automo)i$e is '$ear$y an o$i%o*o$y+ )ut ea'h 'om*anys 'ontro$ o# the
maret has %radua$$y diminished )e'ause o# risin% #orei%n 'om*etition& The
US has three main auto manu#a'turers+ ;a*an has #ive maDor *rodu'ers as
does Germany& -a'h o# these 'om*anies *rodu'e di##erentiated versions o#
the same *rodu't+ have 'ontro$ over their *rodu'ts *ri'es+ and re$y heavi$y
on non1*ri'e 'om*etition& -a'h 'om*any *rodu'es a ne( $ine o# 'ars #or
ea'h mode$ annua$$y& There are many di##erent ty*es o# 'ars+ $ie sedans+
station (a%ons+ S*ort Uti$ity Eehi'$es .SUE0+ t(o1doors+ and #our1doors+ )ut
)y 'om*arin% mode$s )et(een t(o 'om*etin% 'om*anies+ you 'an see ho(
%reat the simi$arities are&
/1
The auto industry 'an sti$$ thrive even thou%h its *rodu'ts are so
simi$ar )e'ause the demand #or 'ars is immense and 'ontinuous& "eo*$e
re$y on 'ars #or so many thin%s that $i#e (ithout one seems im*ossi)$e+
es*e'ia$$y in the US (hi'h re%istered 141 mi$$ion 'ars in 1B//+ (hereas
;a*an+ the se'ond hi%hest+ on$y re%istered 3, mi$$ion& The 'reation and
*rodu'tion o# a ne( 'ar starts a)out three to #our years )e#ore it is re$eased
to the *u)$i'& The initia$ *$annin% sta%e )e%ins in the 'om*anys 'or*orate
headFuarters (ith ideas #or the 'ar #rom *rodu't *$anners and 'om*any
o##i'ia$s& 8utomotive desi%ners dra( *ros*e'tive set'hes o# the ne( 'ar+
and on'e a**roved+ mode$ maers 'reate sma$$ s'a$e mode$s o# the 'ar in
#i)er%$ass or '$ay+ then #or%e $i#e size mode$s a$so in '$ay or #i)er%$ass&
8utomotive en%ineers then deve$o* ea'h *art o# the 'ar+ and mo'1
u* )ui$ders 'reate those indi%enous *arts o# the ne( 'ar& Test drivers 'he'
over the entire system+ ana$yzin% ho( it runs+ and then %ives su%%estions
on im*rovin% the vehi'$e& 8utomotive en%ineers test a$$ the ne(+ s*e'ia$ized
*arts o# the 'ar+ and a#ter a$$ the *arts are tested+ *$ant en%ineers *$an ho(
to )est mass1*rodu'e the ne( 'ar& O# a$$ the *eo*$e (orin% in the
automo)i$e industry+ most (i$$ )e #ound in this ne4t industry (hi'h is the
assem)$y *$ant& !n the United States+ the maDority o# these assem)$y *$ants
'an )e #ound in the Mi'hi%an+ Great Laes area+ and it+ on avera%e+ taes
a)out ninety minutes on the assem)$y $ine #or an entire 'ar to )e *rodu'ed&
=hen *$annin% a ne( 'ar mode$+ the 'om*any tries to 'reate (hat the
'onsumer (ants&
/2
This is very di##i'u$t )e'ause as stated ear$ier it tae )et(een three
and #our years to deve$o* a 'ar& =hen Genera$ Motors )e%ins deve$o*in% a
ne( *rodu't+ it starts )y assem)$in% a ne( team to 'oordinate the
*rodu'tion& 8#ter this team is assem)$ed+ mi$$ions o# do$$ars are s*ent on
dis*ensin% and ana$yzin% *u)$i' surveys+ *rivate #irms o(n resear'h+
%overnment resear'h+ and *ast 'ar sa$es to determine (hat the 'onsumer
(ants& These s*e'i#i'ations in'$ude *hysi'a$ dimensions+ 'ost+ #ue$
e##i'ien'y+ 'om#ort+ maret *ri'e+ a**earan'e+ and *er#orman'e& GM then
(ou$d %o on to )e%in *rodu'in% the 'ar& The most time 'onsumin% ste*
(hen 'reatin% a ne( mode$ is su**$yin% the s*e'ia$ized *ie'es o# the ne(
mode$& Some o# the *arts 'an )e 'arried over #rom *revious mode$s or
other 'ars+ )ut many times the 'om*any has to either 'reate the ne(
*ie'es themse$ves or )uy them #rom a $ar%e s'a$e su**$ier+ $ie !TT
8utomotive& The 'om*any then $oos #or the su**$ier that (i$$ su**$y the
*arts the 'hea*est&
8#ter the mode$ 'ar has )een 'reated and a**roved+ the *$ans are
made #or it to )e made on the assem)$y $ine& The 'ar is then ready to )e
so$d to the *u)$i' throu%h *rivate dea$ershi*s (hi'h+ in the US+ are not
$ined (ith any maDor automo)i$e manu#a'turer& GM (ou$d then se$$ its 'ars
to (hi'hever dea$ershi* is (i$$in% to )uy #rom them& !n many ;a*anese
#irms+ $ie Toyota+ a ne( system has )een 'reated and has )een 'oined
$ean *rodu'tion& The )asi' manu#a'turin% ideas are the same+ )ut it
em*hasizes deve$o*in% re$ationshi*s )et(een the 'om*any and those it
dea$s (ith&
/3
=hen Toyota )e%ins deve$o*in% a ne( 'ar mode$+ it a$ready has a
team assem)$ed (hi'h has (ored on *revious mode$s& The Toyota team
then 'o$$e'ts the same in#ormation a)out (hat the *u)$i' (ants Dust $ie the
GM team )ut has a mu'h 'hea*er (ay o# %oin% a)out it& Un$ie the GM
#irm+ Toyota has #ormed )usiness ties (ith 'ar dea$ershi*s+ and in some
'ases even o(ns them& These dea$ershi*s use a ne( set o# te'hniFues to
se$$ their 'ars+ 'a$$ed :a%%ressive se$$in%+: in (hi'h a very *ermanent+
*ersona$+ and ho*e#u$$y $i#e1$on% re$ationshi* is 'reated )et(een the
'om*any+ the dea$er+ and the )uyer& Sin'e the 'om*any ee*s ties to its
'onsumers+ it a$ready no(s (hat the 'onsumer (ants+ and the 'onsumer
is more (i$$in% to )uy #rom the 'om*any& Toyota 'ontinues deve$o*in% and
*rodu'in% its 'ar+ and it 'omes a'ross the same *ro)$em as the GM team
o# not havin% a$$ the s*e'ia$ized *arts it needs& Lie (ith the dea$ershi*s+
Toyota has #ormed many sym)ioti' re$ationshi*s (ith 'ar *art su**$iers&
These su**$iers (or hand in hand+ (ith the Toyota team and deve$o* any
*rodu'ts that Toyota needs #or its ne( mode$&
The *ast de'ade has seen many interestin% #$u'tuations (ithin the
automo)i$e industry& Overa$$ the auto industry #$u'tuates (ith the norma$
)usiness 'y'$e+ #or motor vehi'$es are an e$asti' demand to 'onsumers&
The more the *ri'e #or 'ars %oes u*+ the $ess *eo*$e )uy 'ars& 7or many
years+ the automo)i$e industry has seen very $ar%e *ro#its )e'ause the
demand and ne'essity #or 'ars has in'reased si%ni#i'ant$y& 2e'ent$y+ $ar%e
#orei%n 'om*etitors and steadi$y in'reasin% *ri'es in motor vehi'$es have
redu'ed these sur*$us *ro#its (ithin the &&&
/4
/'
Criti-a# Ana#ysis !9 Study
1: W%i-% .ind !r s$7,$nt !9 Car d! y!u %a+$H
3,
43
23
"remium Uti$ity -ntry
/)
2: W%i-% -!,"any=s Car d! y!u %a+$H
33
3,
1,
23
Matuti Hyundai Honda Other
//
3: W%at is y!ur ,ain "ur"!s$ !9 usin7 a CarH
23
4,
2,
13
"ersona$ ?usiness Status Leisure
/0
4: W%i-% 9a-t!r >!u#d y!u -!nsid$r t%$ ,!st >%i#$ Cuyin7 a CarH
33
23
2,
13
3
3
7ue$ -## &
!m%& G ?rd
2esa$e E&
Loo G St$&
Mnt&
8v& o# *rodu't
/3
': W%at ar$ y!ur ,ain "r$9$r$n-$s >%i#$ Cuyin7 a CarH
2,
23
1,
2,
1,
13
?rand
"ri'e
Aea$erHs 8dv&
7eatures
Servi'e
"rom& S'hemes
05
): W%i-% 9a-i#iti$s >!u#d y!u $?"$-t >%i#$ Cuyin7H
23
33
1,
1,
Lo( "ri'e
8#t& Sa$e
Srv&
!n'entives
Other
01
/: W%i-% ,!d$ !9 "ay,$nt >!u#d y!u "r$9$r >%i#$ Cuyin7 a CarH
3,
7,
Lum*1sum
!nsta$$ment
02
0: Ar$ y!u satis9y >it% t%$ a9t$r sa#$s s$r+i-$ Cy d$a#$rH
/3
13
Ies
Jo
03
S-!"$ !9 t%$ Furt%$r Study
&t %achin 5yundai customers are highly satisfied with the range of product
and sufficient colour choice availability.
.ustomers are highly satisfied with the way products are displayed to them.
.ustomers are satisfied with the kind of information provided to them about
different cars by the sales eecutives.
.ustomers are satisfied with the kind of attention they get at 'aruti
%howroom.
.ustomers are satisfied with the type of test drive facility provided to them.
.ustomers are satisfied by the way all the documents and services are
eplained to them.
.ommitment of delivery of vehicle to its customers is appreciated by them.
.ustomers are satisfied with the delivery process at %achin 5yundai.
04
SU((ESTIONS
8eception is the first point where customer will get the first impression about
%achin 5yundai showroom and there need to be some improvements at
reception as customers are not properly attended over there.
'aruti showroom at /areilly should arrange more space for display
.ustomers are not satisfied with the after sales services so there should be
some improvements in order to engage more customers.
/y improving their rest of the services they can convert their unsatisfied
customers into satisfied customers.
0'
CONC4USION
.ar makers are making greater inroads into rural markets with industry majors
reporting $+1!++ per cent rise in sales in such regions in the current fiscal.
'arket leader 'aruti %uzuki6s rural sales more than doubled to !.!0 lakh cars
in &pril14ecember. 7thers such as 5yundai, 9' and 'ahindra D 'ahindra have
also seen higher growth.
3or 'aruti the share of rural sales this year increased to !0 per cent from # per
cent last year.
5yundai, the second major player, noticed that the shares of its tier1, and tier1
2 markets6 sales X largely rural and semi1urban X grew to ,# per cent from ,2 per cent.
/oth manufactures together hold ;+ per cent of the Indian car market.
U*e did better than the car industry in general, largely because of our rural
focus. The contribution of rural India in our overall sales is growing year by year,V
said 'r 'ayank Pareek, Aecutive 7fficer, 'aruti %uzuki.
'aruti has loosely classified areas beyond the top1"+ cities as rural market and
has been carrying out sales promotion activities in tie1up with schools, panchayats and
local clubs.
5olding on to its rural focus, the company recently launched the multi purpose
vehicle Aeco at an attractive 8s ,.012 lakh price range.
0)
U7ur sales in the top1!+ markets have declined from $2 per cent to -0 per cent.
5owever, in tier1, and tier12, we are growing,V said 'r &rvind %aena, %enior Bice1
President, %ales D 'arketing, 5yundai 'otor India <td.
The easy ride of car makers, whose combined sales this fiscal is ,$ per cent up
at !0 lakh units, has got a strong push from rural India and this bears testimony to the
rising income in villages.
UThe Indian car makers have identified a Yprosperous rural customer
segment6,V said 'r Capil &rora, Partner, &utomotive Practice, Arnst and @oung India.
UIn relation to its size, rural India still remains largely under1penetrated, and clearly
demand is growing there. &spirations are growing along with rising prosperity. The
macro1economic factors such as easy credit and improving road connectivity in
interiors also contribute to the sales growth,V he said.
0/
1I14IO(RAP*Y
5yundai %ales Training 5andout
www. 9oogle.com
www. Indianautomobileindustry.com
www. 5yundai.co.in
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