Major Project Report on

Growth of Hyundai in India

Submitted in partial fulfillment of the requirements
for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BBA (Gen.)
2013-16

SUBMITTED BY:
PRERNA CHAUHAN (Enrollment No.07521201713)
Under the supervision of

Dr. Vandana Deswal

Assistant Professor,
Department of Business Administration,
Maharaja Surajmal Institute,
C-4, Janakapuri, New Delhi-110058

MAHARAJA SURAJMAL INSTITUTE

RECOGNISED BY UGC, U/S 2 (F)
(AFFILATED TO GURU GOBIND SINGH
INDRAPRASTHA UNIVERSITY) C-4, JANAKPURI, NEW DELHI –
110058
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GROWTH OF HYUNDAI
IN INDIA

2
 Certificate

This is to certify that the project titled “GROWTH OF HYUNDAI IN INDIA” submitted by

PRERNA CHAUHAN to Maharaja Surajmal Institute, Guru Gobind Singh Indraprastha

University, New Delhi in partial fulfillment of requirement for the award of the Bachelor of

Business. The assistance rendered during the study has been duly acknowledged.

Place: New Delhi Faculty Guide:-

Dated: Dr. VANDANA DESWAL

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 DECLARATION

This is to certify that the material embodied in the Project Report

entitled “GROWTH OF HYUNDAI IN INDIA” is based on
original work. It has not been submitted in part or full for any other
degree or diploma of any university.

Date: _________

PRERNA CHAUHAN (07521201713)

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 ACKNOWLEDGEMENT

It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project. First of all let me praise god for all the blessings, which carried me through
all those years.

I am particularly indebted to Director (Dr.) RAJESH KUMAR TYAGI Maharaja Surajmal

Institute, which inculcated in me utmost respect for human values and groomed me up in the
field of software technology to take on the challenges of the competitive world.

I extend my sincere gratitude to all my teachers and guide who made unforgettable contribution.
Due to their sincere efforts I was able to excel in the work entrusted upon me.

Last but not the least; I am grateful to my parents, my sister, my brother, my friends and all well
wishers for their moral support and encouragement during the entire period of time.

Signature of the student

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 Executive Summary

The project basically tells us about the growth of Hyundai in India from the date of its launch in
India till now. It tells us that how Hyundai achieved the second position in India in such a less
time span.

Chapter 1 states all about the project, what the project contains, what is the purpose of the project
and the hurdles and limitations in completing the project. It also tells us that what people think
while buying a new car.

Research Methodology. This chapter tells that how the information is gathered and how the data
is collected and also the limitations of the Study.

Chapter 2 states all about the company Hyundai. It tells us that how the company has achieved
its second position in Indian market. This chapter focuses on the history of the Hyundai Motor
India Limited, who is the founders of the Hyundai, what the company has achieved in its life and
the company’s vision for future. It also tells us about the companies Milestones, about the
models the company has launched in India and has withdrawn from India. This chapter also
includes sales and service network and corporate philosophy.

Chapter 3 states that what are the outcome of analyses of the data that has been collected and
also the interpretation of the data.

Chapter 4 is Findings and conclusion. This states about what we concluded at last that is the
overall growth of Hyundai. The suggestions for Hyundai in order to make itself the best and
give the best out of it. The company should make aware the customers about the product and also
give some offers so that the brand name widens its market.

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 Table Of Contents

Topics Page no.

1. Certificate 3

2. Declaration 4

3. Acknowledgement 5

4. Executive Summary 6

5. Chapters

Chapter-1 9

INTRODUCTION

5.1.1 History of cars

5.1.2 Industry Development
5.1.3 Overview of Indian Automobile Industry
5.1.4 Significance of the Study
5.1.5 Objective of the Study
5.1.6 Growth in the market share of Hyundai Motor India Limited
RESEARCH METHODOLOGY
5.1.7 Research Method
5.1.8 Research Design
5.1.9 Sample Size
5.1.10 Area
5.1.11 Data Collection
5.1.12 Research Instruments
5.1.13 Research Approaches
5.1.14 Limitations of the Study

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 5.2 Chapter-2 24
COMPANY PROFILE
5.2.1 Introduction of Hyundai Motors
5.2.2 Hyundai Finance
5.2.3 Company Founder(s)
5.2.4 Company Millstones
5.2.5 Product
5.2.6 Sales and Service Network
5.2.7 Corporate Philosophy
5.2.8 Company`s Vision

5.3 Chapter-3 40
DATA ANALYSIS AND INTERPRETATION

5.4 Chapter- 4
FINDINGS AND CONCLUSION 56
5.5.1 Findings
5.5.2 Conclusions

SUGGESTIONS AND RECOMMENDATIONS 60

5.5.3 Suggestions
5.5.4 Recommendations

6. Bibliography 62

7. Annexure 65
7.1 Sample Questionnaire

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 CHAPTER 1
INTRODUCTION

9
INTRODUCTION

1.1 HISTORY OF CARS

With the invention of the wheel in 4000 BC, man’s journey on the road of mechanized
trans port had begun. Since then he continually sought to devise an automated, labor
saving machine to replace the horse.
In the early 1760’s after several attempts, French Captain, Nicholas J. Cugnot built the
first steam driven tractor. In 1885, Karl Benz & G. Damlier produced the first vehicle
powered by internal combustion engine. Then the petrol engine was introduced.

1.2 INDUSTRY DEVELOPMENT

The first motor car on the Indian street was seen in 1898. Mumbai had its 1st taxicabs in
the early 1900. Then for the next fifty years, car was imported to satisfy domestic
demand. In 1946, Premier Automobile Ltd. (PAL) manufactured the 1st car in country. HM
started as a manufacturer of auto components & then started manufacturing cars in 1949.
In 1952, Govt. Of India set up a tariff commission to devise regulation to develop an
indigenous automobile industry in the country. After the commission submitted its
recommendation, the GOI asked assembly plants which did not have plans to setup
manufacturing facilities, to shut down operations. As a result General Motors, Ford &
other assembler closed operations in the country. Up to the early 1982 proved to be the
‘dark age’ for the consumer, as his choice throughout this period was limited to two
models i.e. Ambassador & Padmini. It was only in 1985, after the entry of Maruti Udyog,
that the carmakers were given a free hand to fix the prices of the car.
The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd., the joint
venture with Suzuki Motors Ltd. Of Japan. MUL introduced Maruti 800 in 1983
providing a complete facelift to the Indian car industry. The car was launched as a
“People’s Car” .

10
The de-licensing of auto industry of auto industry in 1983 opened the gates to a virtual
flood of international automakers into country. Many companies have entered the car-
manufacturing sector, to tap middle and premium segment of car industry.

1.3 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 1895. Shortly the first appearance of the car followed in India. As
the century turned, three cars were imported in Mumbai (India). Within decade there were total
of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century Portuguese arrived in China 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. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry
Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that
featured a quiet 6-cylinder 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.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine
and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more
to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their
predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and
tubeless tires.

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The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. This was
the Indian automobile history, and today modern cars are generally light, aerodynamically
shaped, and compact.

Major players in the Indian Car Industry

Fierce competition among the major car players can be witnessed in the Indian Car industry. The
India car industry is being dominated by the following major players:

 Hindustan Motors

 Maruti Udyog

 Reva Electric Car Co.

 Daimler Chrysler India Private Ltd.

 Fiat India Private Ltd.

 Ford India Ltd.

 General Motors India

 Honda Siel Cars India Ltd.

 Hyundai Motors India Ltd.

 Toyota Kirloskar Motor Ltd.

 Skoda Auto India Private Ltd.

 Audi Ag

 BMW

 Chevrolet

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Car Manufacturers in India
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 existing car models with regard to design, innovation, technology,
and colors, have led to a fiercely competitive market. Now that technology and innovation are
not alien concepts for Indian car makers, Indian cars are becoming increasingly sleek, stylish,
and luxurious.

Car Segmentation
With the expansion of Indian Automotive market over a period of time the segmentation of car
models came in to existence based on cars defining characteristics namely:
 Size

 Performance

 Price

However with continuing growth of market SIAM (Society of Indian Automotive

Manufacturers) implemented the segmentation of cars on the basis of length of the cars.
CAR SEGMENTATION AS PER SIAM
MINI (A1) SEGMENT
 A1 ( Mini- Up to 3400mm): Maruti 800

 The segment grew very fast in the initial years of expansion of automotive industry in India

 The segment started shrinking when new segments came into existence and is continuously
on decline.

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COMPACT (A2) SEGMENT
 A2 (compact- 3401 to 4000 mm): Santro, i10, Getz Prime, WagonR, Alto, Palio Stile,
Indica, Zen Estilo, Aveo U-VA, Spark, Ford Fusion Diesel, Swift

 The A2 segment is growing continuously and accounts for 67.8% of the total car market
today

 There are more than 50 lakhs of A1 segments users who can be upgraded to A2 segment.

THE MID-SIZE (A3) SEGMENT

 A3 ( Mid- Size- 4001 to 4500mm): Esteem,SX4,Accent, Siena, Indigo, Ikon, City,
Lancer, Cedia, Fiesta, Aveo, Verna, Logan and Ambassdor.

 A3 segment has started growing now and is expected to spend rapidly in future.

 Within A3 segment upper A3 segment has started growing now.

EXECUTIVE (A4) SEGMENT

 A4 (Executive-4501 to 4700mm): Elantra, Octavia, Laura, Mercedes C-class, Corolla,
Civic, Optra Magnum.

PREMIUM (A5) SEGMENT

 A5 (Premium-4701 to 5000mm): Sonata, Teana, Accord, Camry.

LUXURY (A6) SEGMENT

 A6 (Luxury-5001mm and above): S-class

C (VAN TYPE): Omni, Versa, Eco.

B2 (Passenger Carrier): Tavera, Sumo, Innova, Ertiga.
SUV’s: Tucson, CRV, Endeavour, Grand Vitara, X-Trail, Montero, Safari, Pajero.

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CHANGES IN CAR INDUSTRY IN INDIA
The latest developments in the car market in India:

In Naasik, a car manufacture plant has been established as a result of a joint venture of Renault
and Mahindra & Mahindra to manufacture a comparatively cheap cars (at US$ 9,700), mainly
targeting the Indian middle classes, the youth, and the affluent classes in rural India. Tata Motors
has plans to launch a luxury car with an engine of 33 horsepower. The recent reduction in the
excise duty of the small cars from 24% to 16% will definitely prove to be a boon for the India car
industry.
Technical advancements in the Indian Car Industry:

The latest technical advancements in the car market in India include the following features
 Power Steering

 Radial Tires

 Anti-lock Breaking Systems

 Tip-tronic Transmission

The varied car markets in India:

The market for small cars now occupies a substantial share of 70% out of the annual production
of 1 million cars in India. Maruti Udyog, with its legendary Maruti -800 is the leader in the small
car market. A 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:
 Getz Prime by Hyundai Motor Co.

 Tata Magic by Tata Motors Tata Magic

 Palio Stile by Fiat India Pvt. Ltd

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Mid-sized cars are normally cars ranging from Rs. 3-8 lakh and generally meant to be 4 seaters.
The mid-sized car section has recently moved beyond the 1 lakh target. The recent launches in
the mid-size car market in India are:
 1.4 SXI Duratorq by Ford Motor Co.

 Indigo XL by Tata Motors

Luxury cars and premium cars are quite expensive and they are purchased for their design,
innovation, and technology. They are usually priced over Rs. 20 lakh and have many takers in
India. The recent launches in the premium car market in India and the luxury car market in India
are:
 Sonata Embera H-Matic by Hyundai Motor Co.

 Nissan Teana by Nissan Motor Co. Ltd

Sports Utility Vehicles (SUVs) 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 Sport Utility Vehicle market in India is the most booming market in India
presently and SUVs have become the fastest selling cars of India.

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1.4 SIGNIFICANCE OF THE STUDY
Their main motive is toattract the customers. To attract the customers they providing extra
benefits to the customers i.e. finance , free insurance, free tours, gifts etc. Indian car
industry is trying to bring the dream machine for all type of customers.
Today there is boom in car industry. Many of the car companies are launching new models
within every six month.
 Maruti is market leader with his 12 models & big chain of service station& dealers.

 Tata having 8 models & passenger cars,

 Ford has 4 models,

 GM has 7 models,

 Datsun has 1 model

 Fiat has 2 models,

 Hyundai has 9 models,

 Toyota has 6 models in the market.

Many of researches have been done on the automobile industry as it is the most
dynamic area. Automobile industry is growing very fastly in India. Reasons for this are high
purchasing power or more disposable income, changing life style, govt. policies, easy loan
availability, competition among companies, new entrances through joint ventures, mergers
etc. To understand the consumer’s wants or expectations from any company these
researches have been conducted. Some of these researches are as follows-
 Arora, Rohit.,“ Customer Perception About Small Car”, a study 2000.

 Reeddy, Dr.D.Ragunatha & Babu, Madiconda Kishore ,“A Study on Passenger Car
Industry in India.” Indian Journal of Marketing Oct., 2004

 V. Anuj, “CustomerIntention for the purchase of newly available 1000cc cars.” A

research report 1998-2000

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1.5 OBJECTIVES OF THE STUDY
1. To study the feedback of consumers towards Hyundai motors.

2. To study the factors which played important role at the time of purchase.

3. To study post purchase behavior of consumers.

4. To study the impact of age group, income while purchasing the car

1.6 Growth In The Market Share Of Hyundai Motor India Limited

In 2011-12 market share of Hyundai was 4%

2
2011-12 (%)
12
4
1 2
5

81

Ford Fiat Hyundai Honda HM Toyota Maruti GM Nissan

Fig No. 1 – Market share of Hyundai Motor India Limited in 2011-12

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In 2012-13 market share of Hyundai was 13%

2012-13 (%)

6 13

13

62

Ford Fiat Hyundai Honda HM Toyota Maruti Nissan

Fig No. 2 – Market share of Hyundai Motor India Limited in 2012-2013

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In 2013-14
In 2013-14 Hyundai motor achieved 2nd position with 14% of total market share.

2013-14 (%)

3 2
1
14

58 8

Ford Fiat Hyundai Honda HM Toyota Nissan Maruti GM

Fig No. 3 – Market share of Hyundai Motor India Limited in 2013-2014

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Research Method

Research in common refers to a search for knowledge. One can also define research as a
systematic search for information on a specific topic.Research means search for new
knowledge. In other words research may be defined as a scientific & systematic search for
pertinent information on a specific topic. In fact, research is an art of scientific investigation.

Redman defined research as “ Systematic effort to gain new knowledge.”

Research Design

Meaning of Research design:-

The formidable problem that follows the task of defining the research problem is
the preparation of the design of the research project, popularly known as the research
problem. Decisions regarding what, where, when, how much, by what means concerning an
inquiry or a research study constitute a research design.

SAMPLE SIZE

Sample size is 100 respondents.

AREA

 Delhi

 Noida.

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DATA COLLECTION

I have collected the data from the following methods.

 Interview,

 Questionnaire,

 Internet

METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defined &
research design chalked out. There are two types of data

1. Primary.

2. Secondary.

1. Primary Data:

Primary data are those which are collected afresh & for the first time, & thus
happen to be original in character.

Primary data is collected from the following methods:

Observation Method.

 Interview Method.

 Questionnaire Method.

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 2. Secondary Data:

Secondary data are those which have already been collected by someone else &
which have already passed through the statistical process.

RESEARCH INSTRUMENTS

 Questionnaire

 Articles

RESEARCH APPROACHES

 Functional

 Emotional

 Practical

LIMITATIONS OF THE STUDY

 Limited area.

 Limited time period due to regular classes.

 Some responses to the questions were abacuses.

 Sample was convenience sample.

 Some respondent were not willing to give the answer.

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 CHAPTER 2

COMPANY PROFILE

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2.1 Introduction to Hyundai Motors

Hyundai Motor India Limited, a wholly-owned subsidiary of Hyundai Motor Company

(HMC), South Korea, was established in India in December 1997. The integrated
manufacturing plant set up to an initial investment of US$ 614 million is presently the
largest manufacturing facility of HMC outside Korea.
Located at Irrunattukottia, near Chennai, Hyundai Motor India has emerged as a
significant driver of the region’s economy by helping co-develop one of India’s largest
automotive manufacturing zones supported by over 25 Indo-Korean joint-venture partners
and original equipment vendors, jointly employing over 10,000 people.

The company’s maiden launch, Santro, made marketing history by becoming one
of India’s bestselling compact cars and catapulted Hyundai to the position of India’s
second largest carmaker in just six months. The winner of the Business Standard
Motoring "Car of the year 1999" and rated the "Best Small Car" in the J D Power Asia
Pacific Initial Quality and Apeal studies for three years in a row Santro continues to be
India’s most preferred and recommended compact car.

Accent launched in 1999, has also stood its ground against some of the best-
known global brands to emerge as a leader in the Indian mid-size cars segment. Offering
one of the most extensive and technologically advanced product line-ups in this segment,
Accent has topped the JD Power APEAL customer satisfaction study and the segment
sales for two years in a row.

Sonata, launched in 2001, showcased Hyundai Motor India’s capability to produce

high-end luxury automobiles. The flagship of the Hyundai stable in India, currently has a
market share of near 26 percent. After the success of all its three brands in India,
Hyundai has recently launched its flagship bearer model, the Terracan,inIndia. Recently
they have launched Getz in India. This is a car covering space between Santro & Accent.

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 HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts
some of the most advanced production, quality and testing capabilities in the country.
HMIL has sold over 500,000 cars in a record time of just over 5 years since
commencement of commercial production in September 1998.

The company is investing an additional US$ 220 Mn to expand capacity at this

plant to 250,000 units a year in line with its recent designation as HMC’s global export
hub for small cars and to cater to its upcoming product launches India.

Environment Friendly

Hyundai Motor India has been awarded the benchmark ISO 14001 certification for
its sustainable environment management practices. Living up to its commitment of
providing global standards of quality and process management in India, Hyundai had put
in place an Environment Management System (EMS) at its manufacturing plant in Chennai
right from its project stage. The certification process was completed in a record time of
10 months.

The assessment was done by TUV SUDDEUTSCHLAND and covered areas like
Awareness Training, Technology Up gradation, Recycling, Waste Management and fulfilling
Government Regulations.

Hyundai Motor Company, S. Korea, the parent of HMI, has been doing
considerable work on sustainable Environment Management . The company has a well-
defined framework in place for developing products that reduce pollutant emissions and
processes for preservation of natural resources and energy along all the stages of the
product lifecycle from production, sales, use to disposal. The company has also been in
the forefront of development of environment friendly technologies like Hybrid Electric

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Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO
14001 certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.

Social Responsibility

Hyundai, as a responsible corporate citizen is committed to sustainable social development

and the preservation of the environment. All the company's key manufacturing units,
including the Indian plant have the ISO 14001 certification for its Environment
management practices. As a part of its social responsibility programs, the company
conducts various campaigns to spread awareness of in-car safety and safe driving
practices, particularly targeted against drunken driving, speeding, etc.

As a part of its community development projects, the company has adopted a few
villages around its factory in Tamil Nadu and has been working towards the social and
economic development of these villages, assisting them in the areas of primary health care,
education, basic amenities and employment opportunities.

2.2 HYUNDAI FINANCE.

1. HDFC Bank

2. Bank Of India

3. ICICI Bank.

4. Citibank.

5. Standard Charted Bank.

6. Kotak Mahindra Primus Ltd.

7. Bank of Punjab.

8. Magma Leasing Ltd.

9. Mahindra & Mahindra Financial Services Ltd.

10. Punjab National Bank

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2.3 Company Founder(s)

Hyundai was founded by Chung Ju-Yung, a South Korean, who was

born in a poor family in 1915 and was the eldest of eight children of
poor tenant farmers in Asan, Tongchon. Ju-Yung had eight sons and a
daughter. Ju-Yung supported himself by peddling rice for a Seoul
vendor and later purchased the rice shop in 1937. His company was
shut down when the Japanese made it illegal for Koreans to own rice shops.

After his rice shop closed, Ju-Yung opened three initiatives: the Hyundai auto service, the
Hyundai construction company and Hyundai heavy industries. Hyundai Auto Service was a car
repair shop that he opened with the help of his brother. Mr. Ju-Yung also secured several
construction projects and by 1960 Hyundai had emerged as Korea’s No. 1 construction company.
Ju-Yung received many business orders as a result of his well-wisher Park Ching who supported
him seeing his hard work, tenacity and perseverance.

Ju-Yung also established a ship building business called Hyundai Heavy Industries.

Ju-Yung built the following companies: Hyundai Engineering (construction), Hyundai Motors
(automobiles), Hyundai Merchant Marine (shipping) and oil interests and Hyundai Electronics
(computer chips). Ju-Yung used the profits he gained in these companies in order to build
hospitals, schools and apartments for Hyundai workers.

Ju-Yung died in 2001 due to a bout of pneumonia.

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2.4 Company Milestones

1. 1996: Hyundai Motor India Limited was established at its first plant near Chennai.

2. 1998: the first Santro was produced.

3. 2000: Hyundai launched its 100,000th car from Chennai. It also launched the Zip drive.
Santro crossed 100,000 cars in sales and exported 760 Accents and Santro cars to
Algeria.

4. 2001: The 200,000th car was rolled out. The new look hatchback Santro and luxury sedan
Sonata were launched.

5. 2002: the 1.1 litre E-Epsilon engine was launched globally. In 2002, the 300,000th car of
Hyundai was launched with the launch of the Accent Viva. The Santro Automatic
Transmission as well as the Accent CRDi was launched.

6. 2003: Hyundai started exports to Latin America. It rolled out the 400,000th car. It started
exporting the Santro Xing and SUV Terracan in the same year.

7. 2004: Hyundai Motors India Limited crossed sales figure of 100,000 in the export
market.

29
8. 2005: Santro became known as the largest selling car of Hyundai. Hyundai launched the
SUV Tuscon. It also launched the Global Dealer Management System. This was a great
“launch” year for Hyundai as it launched the Santro Xing with eRLX technology, the
Sonata, and the export version of its Getz car – the GLE. It also exported its 200,000th
car overseas.

9. 2006: Hyundai launched its 1, 000,000 car and also launched the HMIL Foundation. It
launched both the Hyundai Verna – in Petrol and Diesel. It exported its 300,000th car.

10. 2007: the company launched the Getz Prime, Verna CRDiSx, the Sonata CRDi
Automatic, and the Santro CNG and exported its 400,000th car.

11. 2008: Hyundai inaugurated its 2nd plant in Chennai, and launched the following cars: i10
with the Kappa engine, Santro Eco and the i20 hatchback.

12. 2009: Hyundai launched many cars- the new Sonata Transform, the new Verna Diesel
Automatic, and the i10.

13. 2010: Hyundai launched the i10 electric car in India. This was the year it had 10 lakh car
exports, launched the Verna transform, had 30 lakh sales, including 20 lakh domestic
sales. It also launched the all new next Generation i10, and the Santa Fe.

14. 2011: Hyundai New Fluidic Verna wins the 'Reader's Choice Mid-size Car of the Year' at
Top Gear Awards 2011 also Celebrated the Hyundai EON launch event.

15. 2012: Elantra has been awarded the prestigious 'Saloon Car of The Year 2012' by BBC
Top Gear Magazine Awards 2012 also the All New Sonata Launched at the New Delhi
Auto Expo 2012 and the launch of i-Gen i20.

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2.5PRODUCTS

Manufactured locally

1. Hyundai Accent Executive…...(Launched 2011)

2. Hyundai Santro Xing…………(Launched 2003)
3. Hyundai Umber Cool i20……….(Launched 2008)
4. Hyundai Next Gen i10………..(Launched 2010)
5. Hyundai Fluidic Verna……….(Launched 2011)
6. Hyundai EON………………...(Launched 2011)
7. Hyundai Neo Fluidic Elantra…(Launched 2012)
8. Hyundai Grand i10 ………….(launched 2013)
9. Hyundai Xcent ……………… (launched 2014)

Imported

1. Hyundai Terracan…………….(2003–2007)
2. Hyundai Elantra………………(2004–2007)
3. Hyundai Tucson………………(2005–2010)
4. Hyundai Sonata Transform…...(2010–2011)
5. Hyundai Santa Fe……………..(Launched 2010)
6. Hyundai Sonata……………….(Launched 2012)

Discontinued

1. Hyundai Santro……………...(1998–2001)
2. Hyundai Accent GTX……….(1999–2002)
3. Hyundai New Look Santro….(2001–2003)
4. Hyundai Sonata Gold………..(2001–2005)
5. Hyundai Accent Viva………..(2002–2004)

31
6. Hyundai Accent CRDi………(2002–2004)
7. Hyundai Atos Prime…………(2003–2008)
8. Hyundai Getz………………..(2004–2007)
9. Hyundai Accent GLS………..(2004–2005)
10. Hyundai Amica………………(2005–2008)
11. Hyundai Sonata Embera……..(2005–2009)
12. Hyundai Accent GLE………..(2006–2011)
13. Hyundai Verna………………(2006–2010)
14. Hyundai Getz Prime…………(2007–2010)
15. Hyundai i10………………….(2007-2010)
16. Hyundai Verna Transform…...(2010-2011)

32
2.6 Sales and service network

HMIL has 451 dealerships and more than 647 Hyundai Authorized Service Centers in 340 cities
across India. HMIL also operates its own dealerships known as Hyundai Motor Plazas in large
metros across India. HMIL has the second largest sales and
service network in India after Maruti Suzuki.

Car sales in the country could see some recovery in the second half of 2012, Arvind Saxena,
director for sales and marketing at Hyundai India told reporters at an industry event. India’s car
sales, which grew 30% in the year that ended in March 2011 are expected to be flat in the current
financial year, an industry body said last month, as high interest rates and rising input costs bite.

Hyundai Sales Trends

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

Domestic Sales Exports Total

Fig. No. 5- Hyundai Sales Trends

33
 Hyundai Motor India Limited Annual Sales

Domestic Sales Exports Total

1999 8,447 0 8,447

2000 17,627 20 17,647

2001 82,896 3,823 86,719

2002 87,175 6,092 93,267

2003 102,806 8,245 111,051

2004 120,325 30,416 150,741

2005 139,759 75,871 215,630

2006 156,291 96,560 252,851

2007 186,174 113,339 299,513

2008 200,411 126,749 327,160

2009 245,397 243,919 489,316

2010 289,863 270,017 559,880

2011 356,717 247,102 603,819

2012 373,709 242,330 616,039

2013 391,276 250,005 641,281

Table No. 1- Hyundai Annual Sales

34
2.7 Corporate Philosophy

Management Philosophy

With the spirit of creative challenge, we will strive to create a more affluent lifestyle
for humanity, and contribute to the harmony and co-prosperity with shareholders, customers,
employees and other stakeholders in the automobile industry.
The spirit of creative challenge has been a driving force in leading HMC to where it is today. It is
the permanent key factor for HMC to actively respond to change in the
managementsystem and seek creative and self-
innovative system. With the spirit of creativechallenge, we create profits, the primary objective
of a private enterprise. Furthermore, we take responsibility for the environment and society
we belong to, and offer sustainable mobility in order to implement our corporate philosophy and
provide benefits to all stakeholders including shareholders, customers, executives, employees,
suppliers, and communities.

Fig. No. 6- Management Philosophy

35
We announced "Innovation for Customers" as our mid–to long–term vision with five core
strategies: global orientation, respect for human values, customer satisfaction, technology
innovation, and cultural creation. We desire to create an automobile culture of putting customer
first via developing human– centered and environment–friendly technological innovation.

Fig. No. 7- Innovation for Humanity

36
Management Policy

Based on a respect for human dignity, we make efforts to meet the expectations of
allstakeholders including customers and business partners by building a constructiverelationship
amongst management, labor, executives and employees. Also, we focus on communicating our
corporate values both internally and externally, and gaining confidence from all stakeholders.
Mid and Long-term Strategies. We developed five mid and long–term strategies: global
management, higher brand values, business innovation, environmental management, and
strengthening product competitiveness. Especially, we selected environmental management as
one of our strategies to meet the needs of our stakeholders and the society we belong to. We also
intend to promote sustainability development and preservation of the environment.

Fig. No. 8- Management Policy

37
2.8 Company’s Vision

The company’s motto is “Innovation for Customers”.

The company’s vision is five core strategies: global
orientation, respect for human values, customer
satisfaction, technology innovation, and cultural creation.
They have a desire to create an automobile culture
of putting customer first via developing human–centered
and environment–friendly technological innovation. The company’s strive’s to create a more
affluent lifestyle for humanity, and contribute to the harmony and co
prosperity with shareholders, customers, employees and other stakeholders in the automobile
industry. The spirit of creative challenge of the company has been a driving force in leading
HMIL to where it is today. It is the permanent key factor for HMIL to actively respond to change
in the company’s the management system and seek creative and self–innovative system. The
spirit of creative challenge creates profits, the primary objective of a private enterprise.
Furthermore, the company’s takes responsibility for the environment and society and provide
benefits to all stakeholders including shareholders, customers, executives, employees, suppliers,
and communities
Automotive Vision
“To become a trusted lifetime partner of our customers, we will bring a new perspective to
automobiles through innovative mobility solutions based on human-centric, eco-friendly
technologies and services.”

Steel Vision
“As an eco-friendly, resource-circulating company, we will lead a new era in the steel industry
by providing high value-added products and services and realizing world's best competitiveness
based on cooperative relations with our stakeholders.”

38
Construction Vision
“As a global leading provider of high-value engineering
solutions, we will create the foundation for a better life
through cross-business synergy and convergence with future
technologies.”

Hyundai focuses on five main values: Customer, Challenge,

Collaboration, People and Globality. Providing customers top
service will be at the top of their agenda. The company will venture into new areas and not
remain traditional. The company will have a spirit of collaboration. People will be respected and
valued. The company is not limited to country-centric areas but will be known in the global
arena.

39
 CHAPTER 3

DATA ANALYSIS AND

INTERPRETATION

40
Q1: Is it your 1st car?

Desire Response

First Car 40%

Other Brands Car 60%

Table No. -2 Response Table

Other Brand’s Car First Car

40%

60%

Interpretations

1. 60% respondents said that this is their First Car.

2. 40% respondents said that they already have used the Other Brand’s Car.

41
Q2 People having other brands than Hyundai’s car previously.

Desire Response

Maruti 70%

Tata 10%

Other Brand Car 20%

Table No. -3 Response Table

Maruti Tata Other Brand

20%

10%

70%

Fig. No. 10- Pie Diagram

Interpretations

1. 70% of customers were having Maruti previously.

2. 10% of customers were having Tata’s vehicle previously.
3. 20% of customers were having other brand’s vehicle.

42
Q 3: Who played an imp.Role as an influencer in purchase ofcar?

Choices Response

Friends 25%

Family 50%

Relatives 10%

Sales Executives 15%

Table No. -4 Response Table

Friends Family Relatives Sales Executive

15% 25%
10%

50%

Fig. No. 11- Pie Diagram

Interpretations

1. 25% of respondents said they were influenced by friends.

2. 50% of respondents said they were influenced by their family.

3. 10% of respondents said they were influenced by their relatives

4. 15% of respondents said they were influenced by the sales exe.

43
Q 4 : Why did you purchase this car ?

Choices Response

Comfort 75%
and style

Power of 25%
Vehicle

Table No. -5 Response Table

comfort & style power of the vehicle

25%

75%

Fig. No. 12- Pie Diagram

Interpretations

1. 75% of respondents purchased Hyundai’s car due to comfort & style.

2. 25% of respondents purchased Hyundai’s car due to power of the vehicle.

44
Q. 5 What was the mode of payment ?

Choices Response

Down 96%
payment

Full 4%
Payment

Table No. -6 Response Table

Down Payment Full Payment

4%

96%

Fig. No. 13- Pie Diagram

Interpretations

1. 96% of customers have purchased the car on down payment.

2. Only 4% of customers have purchased the car on full payment.

45
Q. 6 Was there any effect on car purchasing decision due to mode of payment ?

Choices Response

Down 96%
payment

Full 4%
Payment

Table No. -7 Response Table

Down Payment Full Payment

4%

96%

Fig. No. 14- Pie Diagram

Interpretations

1. 96% respondents said that down payment scheme make it easy to purchase their
dream car.

2. 4% respondents said that there no effect on purchase due to mode of payment.

46
Q.7 Do you think you got value for money ?

Choices Response

Yes 80%

No 20%

Table No. -8 Response Table

Yes No

20%

80%

Fig. No. 15- Pie Diagram

Interpretations

1. 80% of respondents said that they got the value for money.

2. 20% of respondents were not fully satisfied from their car.

47
Q.8 From where you purchased this car?

Choices Response

Local Place 70%

From Delhi 30%

Table No. -9 Response Table

Local Place From Delhi

30%

70%

Fig. No. 16- Pie Diagram

Interpretations

1. 70% of respondents have purchased the car from their local place.

2. 30% of respondents have purchased the car from Delhi as the have their

Business or job,relatives in Delhi. They have the craze to get Delhi’s Reg. No.

48
Q.9 Did dealers provide any extra benefit to you on purchase of the car ?

Choices Response

Yes 85%

No 15%

Table No. -10 Response Table

Yes No

15%

85%

Fig. No. 17- Pie Diagram

Interpretations

1. 85% respondents said that dealer provided them one year extended warranty,
Insurance etc.

2. The not fully satisfied15%respondent gave their answer as no.

49
Q.10 Do you think promotional efforts like free insurance, extended warranty, free
gifts plays an important role in sale ?

Choices Response

Yes 70%

No 30%

Table No. -11 Response Table

Yes No

30%

70%

Fig. No. 18- Pie Diagram

Interpretations

1. 70% of respondents said yes, it will increase the sale, satisfaction among the
customers, grap new customers & will increase the goodwill of the company.

2. 30% of respondent said that it does not affect so much. The customer will invest
in that thing to whom he thinks is beneficial for him or will give value for
money.

50
Q.11 Are you satisfied with your car ?

Choices Response

Yes 80%

No 20%

Table No. -12 Response Table

Yes No

20%

80%

Fig. No. 19- Pie Diagram

Interpretations

1. 80% of respondents were satisfied with their car .They said It is an amazing pair of

wheels with huge comfort zone, making you realize that u are driving in heaven with the
performance, mileage, style, space, features etc.

51
2. 20% of customers were not satisfied with their car.

Q.12 Were you having full information about this brand car or you acquired
while purchasing the car ?

Choices Response

Yes 78%

No 22%

Table No. -13 Response Table

Yes No

22%

78%

Fig. No. 20- Pie Diagram

Interpretations

1. 78% respondents said that they had full information about the vehicle which they
have purchased.

52
2. 22% of respondents were not having the information about the vehicle but they
acquired it from different sources like magazines, dealers, friends etc.

Q.13 If no, then from where you acquired information?

Choices Response

Friends 50%

Relatives 25%

TV adds, 20%
Newspapers,
Internet

Auto Magazines 5%

Table No. -14 Response Table

Friends Relatives TV adds, news papers, internet Auto Magazines

5%
20%

50%

25%

Fig. No. 21- Pie Diagram

53
Interpretations

1. 50% of respondents got information by discussing their friends, who already have
the same car. We test dived that car.

2. 25% of respondents got information from their relatives about the car.

3. 20% of respondents got information from TV adds, newspapers, internet.

4. 5% of respondents got information from auto magazines like auto India,

Overdrive, etc.

54
Q.14 Are the features projected by the company are the actual features of the
company ?

Choices Response

Yes 76%

No 24%

Table No. -15 Response Table

Yes No

24%

76%

Fig. No. 22- Pie Diagram

Interpretations

1. 76%of respondents said that the feature projected by company are the actual
feature. Vehicle is up to mark on that projected features.

2. 24% of respondents said that the feature projected by company are not the actual
features, vehicle differs from the actual projections made by the company.

55
 CHAPTER 4

FINDINGS

AND
CONCLUSIONS

56
FINDINGS

1. Experience user less prefer Hyundai cars.

2. People want less price cars.

3. Hyundai makes family cars.

4. Youth generation prefers Hyundai cars.

5. Hyundai cars are preferred for comfort & looks.

6. Hyundai cars are mainly sold in urban areas.

7. Hyundai cars are promoted by dealers more.

8. Hyundai cars are not fuel efficient.

9. Prices are not satisfactory.

10. People are not satisfied with the performance like hare gear shifting, noise AC.

11. Customers are very much aware about the product and brands.

12. Maruti is the major competitor of HMIL.

57
Conclusion

From the findings and analysis it is clear that Hyundai Car is highly preferred when compared to
the other brands of car in the same segment. Balance Sheet clearly shows that the company has
really grown itself. Also the market share is expanding. Placing it at the second place is really a
great job done by the Hyundai.

Concluding the performance of the company related to four wheeler sector in India, getting their
market share and growth and what are services they are providing after sales. Hyundai Motors
has managed to put in spectacular performance going from strength despite increase in
competition; the company's sales have witnessed an uptrend.

Hyundai Motors has managed to achieve this because its strong brand image and proven product
quality underpinned the performance growth in recent years. Apart from the strong brand
“Santro” the company's performance across the spectrum of the passenger car market helped it
exploit the growing demand for 5-s

58
Suggestions

Since each customer is like an asset for an organization the company should try to improve in the
area of dissatisfaction. We know that getting new customer is double the cost of retaining the old
customer so the company should focus on retaining the old customers whom a in the future
purchase the product or recommend others to purchase the product. Thus they help directly
or indirectly for the product sale.
Change is the only think to retain and attract the customers so the company should identify the
needs and dry to fulfill them.
Hyundai should adopt defensive marketing strategy because as being one of the largest car dealer
in Indian market. Hyundai must adapt new technology and train their employees.
India is 11th largest passenger car market in the world. India is the second-biggest market for
small cars after Japan. It accounts for 60 percent of the domestic market. Hyundai must bank
upon this aspect.

Aggressive Ad Campaign:
Hyundai should put a few hoardings in different areas and also advertise effectively in local
cable channel.

Educating the customers:

Hyundai should educate the customers about the maintenance of the vehicle. They should also
aware people about their new technology and latest launches.

Attractive schemes:
Give few attractive schemes at the time of after sales services like giving quick service and
charging them reasonably.

Personal touch with the customers:

Asking the customers to come regularly for servicing even after the warranty period.

59
60
Recommendations

After analyzing the respondents views I found that no doubt the company has a
very good image in market. The have positioned the product in the mind of the
customers. People buy their vehicle due to comfort, style, performance. But some customers
are not satisfied due to some reasons. I have some suggestions for the company.

1. They should go for enlargement of service station chins Were ever the customer goes
with his he should feel some one is there to care his car.

2. Problems should be sorted out quickly so that the customer may not feel
inconvenient.

3. After sale of the product the company should take feed back i.e. their vehicle is
performing well or not. It will help in maintaining good customer relations.

4. Sales executives should be trained & they should have the knowledge about the
specification & parts of the vehicle.

5. HMIL should concentrate on mileage of the vehicle because the price of fuel are
very high..

6. HMIL should launch other models than Santro and Getz to attract the middle class family as
Maruti has 5 small cars in market.

7. HMIL should establish a large services network.

8. They should show the feature in the ads rather than using celebrities.

9. HMIL should launch low price vehicles like Maruti’s 800,

Alto.

61
Bibliography

62
Books

Kothari C.R., “Research Methodology”, New Age International Publication, New Delhi,
Edition (2009).

Kotler Philip, “Marketing Management”, Prentice Hall of India Pvt. Ltd., New Delhi, 11th Ed
(2011).

Saxena & Rajan, “Marketing Management”, Tata Mc Graw Hill Publication Co. Ltd., New
Delhi, 2012 Edition.

Schiffman Leon G.,”Consumer Behavior” Prentice Hall of India Pvt. Ltd., New Delhi.

Solemon Michael R.,” Consumer Behavior” Prentice Hall of India Pvt. Ltd., New Delhi.

Journals / Magazines

Sharma V. V Subrahamanya (May 2009) An Application of Attribution in consumer decision

&defense against post purchase dissonance” a case study of consumer behavior, Indian Journal
of marketing.

Reddy Dr. D Raghunatha, (Oct.2010) A Study of Passenger car industry in India”, Indian Journal
of marketing.

Business Standard Motoring Dec-2013.

Auto India vol. 12. Issue no: 9, Feb. 2012.

Overdrive Magazine, Feb.2014.

63
Websites Links

http://en.wikipedia.org/wiki/Hyundai_Motor_Company

http://www.hyundai.com/in/en/Main/index.html

http://overdrive.in/car

http://www.carwale.com/hyundai-cars/elite-i20/

64
Annexure

65
Sample Questionnaire

1) What is your name?

________________________________________________________________
2) Are you –
a) Male
b) Female
3) What is Your Age?
a) 18-20
b) 20-30
c) 30-40
d) 40-50
e) 50 and above
4) Do you own a car?
a) Yes
b) No
(if no, questionnaire ended, Thank You)
5) Since when you own a car?
a) Less than a year
b) 1 year – 3 year
c) 3 year – 6 year
d) 6 year – 9 year
e) 9 year or more
6) Have you ever own a Hyundai Car?
a) Yes
b) No
(if no, questionnaire ended, Thank You)
7) Is Hyundai your 1stcar?
a) Yes
b) No

8) Which car do you own previously before Hyundai?

66
 a) Maruti
b) Tata
c) Other brands
9) Who played an important role as an influence in purchase of Hyundai Car?
a) Friends
b) Family
c) Relatives
d) Sales Executives
10) Why did you purchase Hyundai Car?
a) Comfort and Style
b) Power of Vehicle
11) What was the mode of Payment?
a) Down payment
b) Full Payment
12) Was there any effect on car purchasing decision due to mode of payment?
a) Down Payment
b) Full Payment
13) Do you think you got value for money?
a) Yes
b) No
14) From where you purchased this car?
a) Local Place
b) From Delhi
15) Did dealer provide any extra benefit to you on purchase of this car?
a) Yes
b) No
16) Do you think promotional efforts like free insurance, extended warranty or free gifts
play an important role in sale?
a) Yes
b) No
17) Are you satisfied with your car?

67
 a) Yes
b) No
18) Were you having full information about this brand car or you acquired while
purchasing this car?
a) Yes
b) No
19) If (no in ques. 18) then from where you acquired information?
a) Friends
b) Relatives
c) TV. adds, newspaper, internet
d) Auto Magazines
20) Are the features projected by the company are the actual features of the company?
a) Yes
b) No
21) Any other suggestions or feedback.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
____________________

THANK YOU

68