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A Critical analysis Of Hyundai Motors Ltd And Ford Motors From Car automobile Industry

Submitted To: Prof.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

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EXECUTIVE SUMMARY
This project seeks to critically analyse the Car Automobile industry with main focus on Hyundai Motors India Ltd and Ford Motors ltd. However, the specific focus of this research is on Hyundai Verna and Ford Fiesta which are competitors from the same industry. A proper study of the Automobile industry is done viz. Indian automobile Industry, vehicle production in India, Growth of Indian automobile Industry, future of automobile industry in India. A proper study of the Global Car Industry is also done viz. Car industry in India, Sales of cars in year 2007-08, The Nano revolution, future of car industry in India. Further, an introduction to Mid Size Car segment, to which both Hyundai Verna & Ford Fiesta belong. An overview of both the companies is mentioned in this report with their marketing and general business information. Also, financial analysis of balance sheets and profit and Loss Accounts of both the companies is done. General information about Hyundai Verna & Ford Fiesta is also given in this report. The research adopts a qualitative methodology by conducting in-depth interviews with Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who provided us with valuable information such as the sales of their respective showrooms, business models, market shares of both the cars under study etc. Recommendations are made in the form of proposed entrant - New Tech Motors India Ltd in the cars automobile industry. Finally, this report concludes by making a summary of the findings.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

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ACKNOWLEDGEMENT
This project would have been difficult to complete, but for the invaluable contributions from some important persons. We would like to take this opportunity to thank them. We wish to put to record the heartfelt gratitude and immense respect to Prof. Subroto Ganguly (Faculty). We wish to thank him for the valuable time he gave us and the immense patience he had, in answering even the seemingly trivial queries we had to ask. His encouragement and patience helped us instill a great degree of self-confidence to deliver a good research work. We are also thankful to Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who provided us with valuable information about their companies which helped us in our research work.

TABLE OF CONTENTS
A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

COMPANY…………………………………………………..7 INDUSTRY…………………………………………………………………8-26 AUTOMOBILE INDUSTRY…………………………………………………. CAR INDUSTRY IN INDIA…………………………………………………. PRODUCT………………………………………. INTRODUCTION TO INDIAN 2.26 III..Page |5 I 296 TOPIC I.13 4.42 COMPANY ENVIRONMENT……………………………………………...38 COMPANY R&D………………………………………. METHODOLOGY……………………………………………………………... PAGE NO.…………………27 9. INDIAN AUTOMOBILE COMPANIES…………………………………….35-43 • • • • COMPANY OVERVIEW………………………………………………….…………………………44-66 11...43 IV.……………….11 3.. ABOUT HYUNDAI MOTORS INDIA LTD…………………………….24 8. ABOUT FORD INDIA LTD…………………………………..28-34 • • • • COMPANY OVERVIEW………………………………………………….20 6. FUTURE OF CAR INDUSTRY IN INDIA…………………………………... HYUNDAI VERNA……………………………………………………………45 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .………………….………….. GLOBAL CAR INDUSTRY…………………………………………………...8 1.. II..34 10..37 BUSINESS MODEL………………………………………………………. MID SIZE CAR SEGMENT………………………………. VEHICLE PRODUCTION IN INDIA……………………………………….32 FORD SERVICES………………………………………………………….. FUTURE OF AUTOMOBILE INDUSTRY IN INDIA……………………..29 PROFILE OF KEY PERSONNELS………………………………………30 BUSINESS MODEL……………………………………………………….23 7.17 5.

...67 14.113 16.…. INFORMATION GATHERED FROM THE CONVERSATION WITH SALES MANAGERS • • NCR FORD…………………………………………………. FINANCIAL ANALYSIS………………………….110 BIBLIOGRAPHY…………………………………………………………. COMPETITION………………………………………………………………. CUSTOMER SEGMENT FOR FORD FIESTA &HYUNDAI VERNA………………………………………………………………….…112 ANNEXURE………………………………………………………………. VIII.92 VI. VII..……………………….70 V.….115 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .Page |6 I 296 12.……...…. RECOMMENDATIONS…………………………………………………94-109 CONCLUSION…………………………………………………………….114 FX HYUNDAI…………………………………………………..….74 HYUNDAI MOTORS INDIA LTD………………………………. COMPARISON……………………………………………………………….…68 15.56 13.………83 FINANCIAL COMPARISON BETWEEN FORD MOTORS LTD & HYUNDAI MOTORS LTD…………………………....…………………….….. FORD FIESTA………………………………………..73-90 • • • FORD MOTORS LTD…………………………………………………….…. IX..

assistant sales manager. Anil Arora. of Fx Hyundai showroom and Mr. Raman Jha. Manager Sales & Finance. company websites. Secondary research through various search engines. of NCR Ford showroom who provided us with valuable information about their companies.Page |7 I 296 METHODOLOGY We have used various sources for our project work. • A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . • Qualitative Data collection through in-depth interviews with Mr. car magazines.

Page |8 I 296 INDIAN AUTOMOBILE INDUSTRY A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

To tap this large opportunity. in auto sector. The industry is likely to maintain the growth momentum picked up in 2002-03.008 million by 2010.Page |9 I 296 INDIAN AUTOMOBILE INDUSTRY GROWTH Automobile Industry is the largest industry in India with an impressive growth in the last two decades. Hyundai did well but the difference was nearly half of Tata Motors. Hero Honda is leading putting behind Bajaj Auto Ltd. In the two-wheeler segment. OVERVIEW • • • • • India. In 2Wheelres segment. FACTS AND FIGURES India. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalisation of the sector. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Maruti Udyog Ltd. The sports-utility-vehicle (SUV) that was getting crowded everyday. the motorcycles would clock 11. Overseas market would present A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . would witness intense competition as many SUVs had been competitively priced. the Indian Auto Companies along with the global giants have announced huge expansion plans. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. The figure for FY05 was 8. is turning to be a sourcing base for the global auto majors. Estimated component market size is US$ 6. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. General Motors and Hyundai. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9. the report said. says the ICRA report.5% and will touch a mark of 13. Scooters sales would decelerate and mopeds would also see the same. Suzuki. The two-wheeler segment will clock 11. Honda. Passenger car and motorcycle segment is set to grow by 8-9%. the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10. sourcing base for global auto majors.2 per cent.7 bn.000 units annually.45 million units. Commercial vehicle to grow by 5.5% rise by 2007. according to the report.

7 per cent growth.670 units in 2004-05.60.64.2 per cent. • A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . For the tractors. INDIAN AUTO MARKET GROWTH FOR THE YEAR 2005-06 The domestic automobile industry sales grew 12.765 units in 2004-05.19.09.1 per cent in domestic market touching 58.430 units in 2004-05.187 units against 3.683 units against 3. fall at 9. The commercial vehicles are likely to grow at a CAGR of 5.08.317 units against 62.159 units against 9.629 units in 2004-05.6 per cent with 70. • Three-wheelers sales rose by 17 per cent at 3.P a g e | 10 I 296 huge opportunities for the two-wheeler makers.18.1 per cent with 3.5 per cent and sales of light buses and trucks would achieve 4. 17. 2005. • Motorcycles had the upward march. Heavy commercial vehicles market would rise at 5.10.8 per cent at 89.4 per cent at 1.50.094 units against 8.60.97.924 units in 2004-05. car sales was 8.82.22. the report predicts a growth at 4. • Scooter segment grew by 1.5 per cent • Car exports stood at 1. • The growth of domestic passenger car market was 7. • Commercial vehicles segment grew at 10.15. • Medium and heavy commercial vehicles managed a growth of 4.193 units against 1.224 units as against 78.07.70.237 units against 1.428 units in 2004-05. • The two-wheeler segment.6 per cent. • According to the Society of Indian Automobile Manufacturers (SIAM).43. • Light commercial vehicles sales growth was 19.5 per cent.417 units against 49.179 units in 2004-05. the market grew by 13.56.862 units in 2004-05. • The automotive industry crossed a landmark with total vehicle production of 10 million units.5 per cent against 23 per cent growth in the year ended March 31.20.753 units in 2004-05.

Total 9.085 35.347 Daimler Chrysler India Pvt. Ltd.458 719.097 2005-06 (Apr-Mar) In Nos.687 26. Ltd.361 11. Total Toyota Kirloskar Motor Pvt. Volvo India Pvt.348 15.878 128. 44. Ltd.P a g e | 11 I 296 VEHICLE PRODUCTION IN INDIA India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks.728 24.780 41. Tatra Trucks India Ltd. Swaraj Mazda Ltd. Fiat India Pvt.633 449. General Motors India Pvt. Eicher Motors Ltd. 572.440 Manufacturers Japanese OEM Maruti Udyog Ltd.946 670. 1.601 65. Hindustan Motors Ltd. Production of 4-Wheelers 2005-06 (Apr-Mar) In Nos. Ltd.098 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Total Indian OEM Tata Motors Ltd. 260.946 57. Ashok Leyland Ltd. Force Motors Ltd. Manufacturers Korean OEM Hyundai Motor India Ltd.767 1. Ltd.379 American OEM 30. Ltd.004 125 671 13. Ltd. Ford India Pvt. Mahindra & Mahindra Ltd. Total European OEM Skoda Auto India Pvt.975 Honda Siel Cars India Ltd.

044 56.886 Total 3.436 (Pvt.739. 04) of different segment of vehicles: Name of the Sector No. 04) 156815 465983 114739 3023805 177554 3938896 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .328 2005-06 (Apr-Mar) In Nos. Ltd. Kinetic Engineering Ltd.866 107.P a g e | 12 I 296 Production of 2-Wheelers Manufacturers Japanese Hero Honda Motors Ltd. Majestic Auto Ltd. Yamaha Motors India Pvt.486 Bajaj Auto Ltd. of units 2003-04 Commercial Vehicles Cars Multi-Utility Vehicles 2-wheelers 3-wheelers Total 9 12 5 12 4 42 275224 842437 146103 5624950 340729 7229443 Production 2004-05 (April-Sept. 248.006. Ltd. it is seen that two-wheelers are the most produced in automobile industry followed by passenger cars and then three wheelers.) Ltd. Honda Motorcycle & Scooter India 603. Royal Enfield (Unit of Eicher Ltd.) 30. 82.392 Kinetic Motor Company 53. LML Ltd. 3.819 2005-06 (Apr-Mar) In Nos. TVS Motor Company Ltd.289 1.880 Ltd. Suzuki Motorcycle India Pvt. Manufacturers Indian 2.860.596 3.042.665 2.915 Total Source: Automotive Component Manufacturers Association of India During this decade. The following are the number of units produced in 2003-04 and 2004-05 (April-Sept.366.

son of Indira Gandhi envisioned "People's Car. Premier Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers. but is best known for its own model. Ambassador. The Maruti800 car went on sale in 1983. Sundaram Clayton. In 1993 foreign auto makers entered the Indian market. In 1970s. • Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world. Sanjay Gandhi. FACTS AND FIGURES The onset of automobile industry in India saw companies like Hindustan Motors. the company as Maruti Udyog Ltd. when the industry was opened up from protection. cost-effective." Maruti Udyog Ltd. was set up to manufacture budget cars. • • • OVERVIEW • • • • • In 1980s Hindustan Motors (HM) was leading car manufacturer in India. envisioned the manufacture of an indigenous. General Motors and Land Rover." It was christened Maruti Limited. 1950s . Bharat Forge and Rico Auto supplies components to global majors like Ford. matured only after the death of Sanjay Gandhi. However. The license raj ended in 1993 and many foreign players A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . the liberalisation of the Indian economy opened the market for foreign automobile makers to venture in India. joint venture with Mitsubishi produced Lancer and Pajero. 1991. Around 1970. elder son of the then Prime Minister Indira Gandhi.820 cars. low maintenance compact car for the Indian middle-class.early 1990s was known as 'license raj. HM is popular with its Ambassador model.P a g e | 13 I 296 INDIAN AUTOMOBILE COMPANIES CURRENT SCENARIO Hero Honda is the largest manufacturer of motorcycles. HM.' when India was closed to the world and imports. Sundram Fasteners. Hyundai Motors India is the second largest player in passenger car market. Sanjay Gandhi. By 1993 it sold up to 1.96. The era. The cabinet passed a unanimous resolution for the development and production of a "People's Car. Hindustan Motors (HM) was the leader in car manufacturing and sales until the 1980s.

Global Players in India: Segments Cars/ SUVs • • • • • • Companies Suzuki Honda Toyota Mitsubishi GM Ford TVS Hero Honda Bajaj Auto Tata Ashok Leyland Tatra Eicher-Mitsubishi Escorts M&M L&T Punjab Tractors • • • • • • • • • • • • • Daimler-Chrysler Skoda Fiat Hyundai Tata M&M Yamaha Kinetic LML Two-wheelers • • • CVs • • • Swaraj Mazda Mahindra & Mahindra Volvo New Holland ITL-Renault John-Deere Steyr Tractors • • • • • • • • A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . collaborations or wholly owned subsidiary.P a g e | 14 I 296 entered the Indian market by way of Joint ventures.

issue of repossessing vehicles and high interest rates which have led to lower sales.47. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . the domestic automobile industry has recorded a degrowth in the financial year ended 2007-08 as high interest rates and availability of finance weaned consumers away from vehicle purchasing.P a g e | 15 I 296 Auto industry sees decline in growth after 7 years in FY ended 2007-08 After seven years of successive growth. domestic vehicle sales fell by 4.341 units from 65. Lack of implementation of control on overloading along with issue of financing dragged sales of medium and heavy commercial vehicles by 1. The decline in sales has been mainly due to availability of finance.195 units. Production of vehicles in FY 2007-08 plummeted mainly due to declining motorcycle and three-wheeler sales in the country.68.70 per cent.90 per cent to 57.70.994 units as compared to the previous year. motorcycles sales reported a sharp fall of 11. In the financial year ended in March. During the year.66 per cent to 2.

07 per cent to 83.P a g e | 16 I 296 Passenger car sales In March. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . both scooters and motorcycles reported a decrease in sales volumes. Maruti Suzuki.396 units. among passenger car companies Hyundai Motor India Ltd recorded the highest growth at 29.06.758 units. reported almost flat sales at 55.884 units.04 per cent. 022 units and the motorcycles to 5. During the month. The scooters segment fell 5. an increase of 52 per cent. a decrease of 0.

etc. Quantitative restrictions were removed.000 units in 1970-71. in terms of safety standards and emission norms. Thus came a phase that is to mark a real paradigm shift in the industry. the industry currently produces 11 million vehicles. for instance. And from a turnover of $34 billion. In a sense the automotive industry in India is just about 10-15 years old! From a production of 185. While. As a result. Also. auto industry got an added push. the industry undertook many technological innovations to ensure that it meet international standards. with output doubling. no export obligation. economic liberalisation of early 1990s gave it a further boost. 100 percent FDI was permitted through automatic route. controlled and restricted in the early years of independent India and had limited contribution to the economy. The year 2001 marked the beginning of landmark policy reforms in the sector. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . the Automobile industry’s evolution dates back to late 1960s (though genesis could be traced back to 1940s). currently contributing about 5% of the GDP and it is targeted to grow five fold by 2016 and account for over 10% of India’s GDP. the industry is expected to reach a turnover of $150-200 billion in next ten years.P a g e | 17 I 296 FUTURE OF AUTOMOBILE INDUSTRY IN INDIA An industry that was licensed. no condition of foreign exchange neutralisation.

Prime Minister Manmohan Singh has recently launched the Ten Year Plan for the Indian auto industry. Latin America. The Ministry of Heavy Industries & Public Enterprises. For every additional commercial vehicle produced in the country 13 new jobs are created. insurance & finance companies. every additional car adds five jobs.000 units in 1990-91 to 1. The Mission Plan has set a target that by 2016. while GDP is expected to have merely doubled. infrastructure companies. Some estimates suggest that by 2010. Manufacturers are investing overseas and establishing footprints across the world. make the automotive sector’s A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . has been instrumental in making this possible. This will have a huge impact on the economy.5 and three wheelers around 4 jobs. the nodal ministry for the auto sector. oil companies. it is a comprehensive document covering all aspects of the industry with 25 key interventions. alone would reach 1 million. Almost all major companies. The automobile is being recognised for what it actually is. ranging from Middle East. Algeria. increasing production capacities and entering into joint ventures. etc. two wheelers about 0. South Africa. a means to promote Entrepreneurship. Russia. Mahindra and Mahindra and Tata Motors in South Africa. the Automotive Mission Plan 2006-2016. Europe. In other words.01 million units in 2006-07. etc. Employment and Economic Development. Companies in India are setting up green field manufacturing facilities. aim is to achieve industry output $145 billion and consequently. Exports have increased immensely from a mere 38. Ashok Leyland and Tata Motors in Thailand. TVS Motor Company and Bajaj Auto are investing in Indonesia. its output in dollar-terms should have quadrupled. car exports. For instance.P a g e | 18 I 296 Manufacturers are increasingly adopting an outward looking approach and exploring new markets/territories. Much of the foundations for the future importance of the automotive industry in India are being laid now. The growth momentum is witnessed not just by the industry manufacturing vehicles but also by a large number of other industries like supply chain companies. Expansion and investment plans of close to $14 billion have been announced. including both domestic players and global automotive groups are investing heavily in new manufacturing and assembly plants in automotive hubs across India and have announced massive expansion plans.

A key is the collective execution and implementation of the interventions in the AMP and a joint Government .P a g e | 19 I 296 contribution rise to at least 10% of the country’s GDP. the industry is set to have a major impact on India’s future economic growth. The consequence as we could all hope would be a remarkable transformation of India’s entire economic landscape. It aims to develop India as the preferred location in the world for the design and manufacture of automotive products. results of which will be visible in over next ten years. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . The industry is entering into a new phase of its development and evolution. Prime Minister. The target is to attract investment worth USD 35-40 billion by 2016.Industry effort. With all these plans. Dr Manmohan Singh had aptly said that the building of ‘Brand India’ in the world was powered by the Indian automotive industry meeting global standards. The Mission Plan’s identified intervention areas would enable the industry to attain world class standards and emerge as the vanguard of the Indian economy.

P a g e | 20 I 296 GLOBAL CAR INDUSTRY A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

who introduced the assembly line production system. where over 80% of the world's cars and trucks were sold. with increasing maturity. the leading car makers wondered what they had to do to revitalize themselves and strengthen their competitive position." i. Europe and Japan.0% respectively. the industry's average profit margins had declined from 20% or more in the 1920s to around 10% in the 1960s and less than 5% in 2004. the industry introduced the concept of "planned obsolescence. In America. It was in America that the industry came of age thanks to Henry Ford. Effective capacity had increased slowly but steadily as carmakers continued to improve their productivity. by virtue of its sheer size and ubiquity. rigid labour laws had inhibited the closure of redundant factories. General Motor. Under these circumstances. However. the car industry occupied a position of strategic importance in many countries. Supply had increased vis-à-vis demand for several reasons. The car industry pioneered many innovative business practices. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .6% and 4. new players with new competencies were likely to enter and challenge the incumbents. For example.6% of Europe's stockmarket capitalization and 0. Many players were trying to move towards a build-to-order model that could serve niche segments efficiently. consumer activist Ralph Nader attacked the safety record of the 'Big Three' Detroit manufacturers. BACKGROUND The car industry was born in Germany more than 100 years ago. the arrival of European. had stagnated. Early development of the industry began in France in the 1900s. the automobile market in America. The car industry represented just 1.P a g e | 21 I 296 INTRODUCTION In early 2000s. As new electronic control devices emerged and concern for the environment grew. In recent times. the corresponding figures had been 3. frequent changes in design to induce customers to switch to a new model every other year. About 20 years back. In the 1960s. Ford and Chrysler. the industry attracted wide public attention.e. Japanese and South Korean makers and their aggressive plans to expand market share had also created overcapacity. In countries like Germany and France. At the same time.6% of USA's . The car industry also seemed to be undergoing a structural transformation in the early 2000s.

In the late 1920s. Toyota.P a g e | 22 I 296 In the 1970s. most of which were based in America. six groups . A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . as oil prices quadrupled. there were 270 car companies in the world. From these. Renault/Nissan. antitrust worries (in the days when General Motors had 60% share of the US market) and pollution. In 2004. But in view of its size and the number of jobs it created. Ford and Chrysler emerged. The industry also attracted government scrutiny on account of safety concerns. fuel efficient and reliable Japanese cars started to eat into the market share of the Big Three.GM. the industry continued to receive strong government support. When small.G M. The global car industry had been consolidating almost since its birth. the American government resorted to protectionism. the Big Three . Volkswagen and DaimlerChrysler and their affiliates accounted for about 70% of global sales. In volume terms. the industry found itself under attack from environmentalists. Ford. the global car industry comprised seven big groups and three smaller ones.

Honda sold 62. new product launches.78.934 units during 2007-08.13 per cent with 360. Mahindra & Mahindra Limited (M&M) cumulative sales grew by 30 per cent in 2007-08.787 units sold in 2006-07. The Nano promises to be a potentially revolutionary innovation. General Motors India (GM). higher than the 61.842 vehicles).31.543 units against 38. The new fiscal year (2007-08) has started on a robust note with domestic sales of several segments witnessing robust growth rates in April 2008. reported 71 per cent increase in domestic sales in 2007-08 at 66.325 units sold in 2006-07.3 per cent in 2007-08 over 2006-07.355 units compared to 1. registering a growth of 13. Mercedes-Benz India recorded a 59 per cent sales growth during the first quarter of 2008. the country’s biggest car maker. The Tata Motors plant A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . coupled with attractive finance schemes and booming exports.187 vehicles in 2007-08 against 12.2.857units in 2006-07. cars sales has been growing at a frenetic pace. SkodaAuto has sold 14. THE NANO REVOLUTION Tata Motors has introduced the global auto industry to a whole new consumer segment. delivering a car to huge segments of the market hitherto unable to afford one.P a g e | 23 I 296 CAR INDUSTRY IN INDIA SALES FOR FY 2007-08 Spurred by a huge demand due to increasing purchasing power. with the 'Nano' also shedding light on how to leverage emerging markets as innovation hubs. This Tata small car is a landmark event in India as well as the world's automobile history. against 310.201 units in the corresponding period last fiscal. a growth rate of 14. recorded its highest ever annual sales (7. the wholly owned subsidiary of US-based General Motors Corporation. • • • • • • • Maruti Suzuki India.06 per cent. Hyundai Motors India Limited (HMIL) has shown a robust growth at 16.64.444 in 2006-07.802 cars in 2007-08.

Despite the small size it is a modern car capable of meeting BharatIII and Euro-4 emission norms and safety standards. attractive rates of interest. a segment is also emerging comprising of people who wish to upgrade to cars from two wheelers. at full capacity the Nano has the potential to become the largest selling model in India. FUTURE OF CAR INDUSTRY IN INDIA Not very long ago. There are many reasons for the impressive growth of the Indian car industry. Michael Boneham. He indicated that one of the markets would be chiefly Ford Asia Pacific Region while other markets are under consideration presently.00. Companies like Ford are planning to make India a regional hub for exports of both small cars as well as engines. Contrarily. but it is also expected to be the seventh largest by 2016. Now that India is not alien to quality and perfection. four-speed manual transmission engine. A niche concept cars segment is also emerging wherein reputed re-modellers like DC Chhabria cater to individuals who wish to remodel their vehicles to create concept cars for their use. Not only it is the eleventh largest passenger car market globally. customer expectations have soared to higher levels. India is the second largest two-wheeler market and the fourth largest commercial vehicle market in the world. midsize. Nano is powered by a 623 cc. the only cars that were available in India were the Ambassador and the Premier Padmini. The first truly original automobile product from India. Many other car manufacturers such as Bajaj Auto are also following suit and are in the process of coming up with their specific versions to cater to this segment. The reasons are not hard to notice. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 24 I 296 in Singur in West Bengal has a maximum capacity of 2. Competition has forced manufacturers to be innovative and responsive to customer demands and needs. premium and sports utility vehicles currently represent the car market in the country. the company plans to export the small car and the engine for markets abroad. According to Mr. Depending upon customers needs. and convenient instalments. four segments . Tata already is in the process of launching the small car Nano to suit this segment’s needs. which existed before 1991. Some of these are comparatively easy availability of vehicle finance. Post liberalization.50. President Designate for Ford India. Currently. All that was in pre-liberalisation India.small. India is on every car manufacturer’s map.

a convenient union budget in the current financial year (2008-09) has worked in favour of the automobile sector. there is high demand for cars across all these segments. Additionally. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . With the growing economy.P a g e | 25 I 296 Currently. people left with a lot of disposable income spend it towards meeting their mobility needs such as cars. These schemes encourage people to go in for loans to purchase cars of their choice. Banks and other financial institutions have an assortment of vehicle loan schemes with attractive rates of interest and convenient instalments. which has seen an uptrend in sales across various segments.

General Motors and Mahindra & Mahindra are yet to launch their models under this segment. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . The credit of manufacturing of these cars goes to companies like.Ford.2 adults and 2 children. Hyundai. The price range of mid size cars lies between Rs 3 to 8 lakhs.Fiat India. This model basically target executive class. Hindustan Motors. While the companies like. Hyundai motors. Ford. Maruti Udyog. General Motors. San Motors and Tata Motors. The mid size cars have the capacity to carry 4 passengers.P a g e | 26 I 296 MID SIZE CARS SEGMENT A mid size car is referred to as an automobile with a size between that of compact and full size cars.

P a g e | 27 I 296 COMPANY A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

The company added more happening brands to the market. Ford Fiesta. such as Ford Fusion. The 2001 model Ford Ikon was a successful car on Indian roads. Founder Country Year of Establishment Henry Ford USA 1903 (in India 1988) A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 28 I 296 FORD INDIA LIMITED "Make Every Day Exciting" Ford India. Ford Mondeo and Ford Endeavour. originally an American company entered the Indian market with Ford Escort in the year 1988.

P a g e | 29 I 296 Industry Listings & its codes Website Global Website Automotive NYSE: F www. it is the largest family-controlled company in the world.000 cash from twelve invesors. Fiesta.india. Ford introduced itself in India in 1988 with its Ford Escort model. 1700 crore has been invested in integrated manufacturing plant at Maraimalai Nagar. the founder. The company was launched from a converted wagon factory with Rs. Later in 2001 it was replaced by locally produced Ford Ikon. Rs. The company has invested heavily in India to give the finest in automobiles.ford. Since then it has added Fusion. The plant is equipped with state-of-the-art Ford technology in an area of 350 acres. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . 45 kms from Chennai. It has been in continuous family control for over 100 years. manufactures and sells automobiles worldwide.000 vehicles per annum. Henry Ford.com www.ford.com SEGMENTS AND BRANDS OF FORD INDIA • • • • • • Endeavour Fiesta Focus Fusion Ikon Mondeo COMPANY FLASHBACK Ford Motor Company. Today. Mondeo and Endeavour to its product line. 28. It has a capacity of 100. was 40 years old when the company was founded. an American company.

LUCY MILLAR – Vice President. Arvind will lead the company’s aggressive growth phase. He took this position in August 2005. With his vast international experience and expertise in new vehicle programs. as the company enters a new decade in the country.P a g e | 30 I 296 PROFILE OF KEY PERSONNEL ARVIND MATHEW – Managing Director and President Arvind Mathew is the Managing Director and President of Ford India. Finance & IT A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

She reports to Arvind Mathew. Human Resources Nancy Reisig is Vice President. Human Resources at Ford India. Sales & Service Scott McCormack is the Vice President. SANDIP SANYAL – Vice President. Scott reports to Arvind Mathew. Marketing. Ford India. Marketing.P a g e | 31 I 296 Lucy is the Vice President of Finance and IT at Ford India. Nancy reports to Arvind Mathew. She took this position in March 2005. Supply and Total Value Management A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Ford India. Ford India. President and Managing Director. President and Managing Director. NANCY REISIG – Vice President. SCOTT McCORMACK – Vice President. President and Managing Director. Sales and Service at Ford India. He took this position in July 2006. She took up this position in May 2005.

Ford Credit Steve Bridgman is the Country Manager for Ford Credit. equipped with advanced manufacturing technology from Ford. 1700 crore integrated manufacturing plant at Maraimalai Nagar.000 people directly and many more thousands indirectly and has a capacity to manufacture upto 100. Ford India. covers 350 acres. Ford India. President and Managing Director. STEVE BRIDGMAN – Country Manager.P a g e | 32 I 296 Sandip Sanyal is the Vice President. President and Managing Director. Sandip reports to Arvind Mathew. a Division of Ford India that provides wholesale funding to the Indian Ford dealer network. BUSINESS MODEL VIRTUAL PLANT TOUR: All cars spring to life at Ford's Rs. Step 1: STAMPING A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .000 vehicles per annum. 45 kms. from Chennai. Steve reports to Arvind Mathew. Ford is a 6-Sigma company. He took this position in September 2005. Every step of every process is planned to perfection. provides employment to about 2. Supply and Total Value Management (TVM) at Ford India. The plant.

Baking done to Ford's global paint specifications. before doors and seats come on in Trim zone. Step 2: BODY SHOP • • Entire shell checked with military precision for dimensions. Thorough checks for perfection in dimensions and surface quality. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Step 4: T C F • Interiors taken care of.P a g e | 33 I 296 • • Semi-automatic press line moulds blank sheets into various body parts. Step 3: PAINT SHOP • • • Cutting-edge technology creates a finish that's unaffected by rain or sunshine. Painting so complete that even underside gets full PVC coating for corrosion protection. Subjected to stresses to check quality of welding.

A dedicated Customer Relationship centre is at your service in every Ford dealer outlet. professionals use high power tools to fit in engine. front suspension. FORD SERVICE Thank you for choosing a Ford. It is our endeavour to give you complete satisfaction in all our services. You can call them for any assistance. bumpers etc. • Rolls into final line for remaining parts and filling of fluids.P a g e | 34 I 296 In Chassis area. As a Ford owner. Ford’s commitment is to give its customers all the help and support to get the most from owning a Ford. notified by the Government of India. the car gets its wheels. • Step 5: QUALITY TESTING • • Stringent testing ensures every car is at its best. even in trying conditions. from productrelated assistance to allied automobile services. • Once nuts and bolts are tightened to perfection. However for any further support you can contact Ford India Customer Relationship Centre (0800 to 1800 hrs – Monday to Saturday) A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . All Ford cars complies with Bharat III emission standards. you have access to a whole range of top-notch services.

peace-of-mind products for the customer and embodies a brand synonymous with its ability to provide products that can be tailored to suit one's individual needs. Email : custmail@ford. S.P a g e | 35 I 296 1800 425 2500 Toll Free (BSNL/MTNL customers) For other subscribers 6000 2500 * Add STD code of your state capital Example: Punjab – use Chandigarh code (0172) 6000 2500 * Call charges apply. HYUNDAI MOTOR INDIA LIMITED "Drive your way" A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Chengalpattu – 603 204. India FORD SOLUTION Ford solutions aims to provide quality. Koil Post.com Mailing address: Ford India Private Limited. Tamilnadu.P. Ford Solutions serve to develop products for Ford and the Dealer body that enhance customer satisfaction.

P a g e | 36 I 296 Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the world. Country Year of Establishment Listings & its codes Retail Finance Partners Contact Details South Korea 1967 KSE: 005380. Santro. Elantra. LSE: HYUD HDFC Bank. Getz. Accent. New Delhi . Punjab National Bank.com www. The company is an ISO 14001 for its sustainable environment management practices. i10 in the B+ segment Accent and Verna in the C segment Elantra in the D segment Sonata Embera in the E segment Tucson in the SUV segment. Mahindra Finance.41678800 Fax: +(91)-(11) . HMIL presently markets 34 variants of passenger cars in six segments. Sonata Embera and Tuscon are the most successful brands of HMIL.41678811 www. A-30.com Website SEGMENT AND BRANDS • • • • • • • Accent Elantra Getz Hyundai i10 Santro Xing Sonata Embera Tucson AWARDS A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car manufacturer in India. Sundaram Finance.110044 Tel: +(91)-(11). Mohan Co-Operative Industrial Estate Mathura Road. • • • • • • Santro in the B segment Getz Prime.hyundai-motor. ICICI Bank.global.hyundai-motor.

HMIL recorded combined sales of 252. 2001 & 2002).' Hyundai Elantra became the 'Best Value for Money Car' by CNBC. Hyundai Accent topped the 'JD Power Asia Pacific IQS' for 2002 and the APEAL study for 2001 & 2002. 2003 2002 • • • • COMPANY FLASHBACK Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is a wholly owned subsidiary of Hyundai Motor Company and is the second largest and the fastest growing car manufacturer in India. HMC is also the world's sixth largest car maker and operates the world's largest integrated automobile manufacturing facility in Ulsan.P a g e | 37 I 296 2005 • • • • • • No 1 Entry Midsize Car' by Accent Petrol. In India the company is known by Hyundai Motor India Limited (HMIL). It is headquartered in Yangjae-Dong Seocho-Gu Seoul. 2001 & 2002). Hyundai Motor India adjudged as the 'Car Maker of the year' at the ICICI Bank Overdrive awards.26% over previous year. Hyundai Getz became the 'Car of the Year' by BS Motoring. Hyundai Motor India Limited became the 'Company of the Year' by BS Motoring. Hyundai Santro topped the 'JD Power Asia Pacific Intial Quality Study (IQS)' that measures the product quality for three consecutive years (2000. No 1 Entry Midsize Car' by Accent CRDi.851 during calendar year 2005 with a growth of 17. Hyundai Getz became the 'CNBC Autocar Car of the Year. South Korea. It is South Korea's largest car maker. It is the country's fastest growing car company having rolledA Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Hyundai Santro topped the 'JD Power Asia Pacific Apeal' study that measures customer satisfaction for three consecutive years (2000.

1 percent a compared to 2005. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production. The year 2006 has been a significant year for Hyundai Motor India.513 vehicles in calendar year (CY) 2006. And with the company’s greater focus on the quality of its after-sales service. which will produce an additional 300. raising HMIL’s total production capacity to 600.00.339 units.00. which will be increased from 183 to 250 this year. continuing its tradition of being the fastest growing passenger car manufacturer.000 units per annum. HMIL’s service network will be expanded to around 1. Apart from expansion of production capacity. The company has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. In continuation of its investment in providing the Indian customer global technology. The production management processes at Hyundai Motor India are overlaid with an organization-wide implementation of manufacturing best practices like Just-in-time A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . which cannot be accomplished in a non-integrated manufacturing and assembly setup.000th car.4 percent.000 cars in just 90 months since its inception and is the largest exporter of passenger cars with exports of over Rs.5 percent over CY 2005.P a g e | 38 I 296 out 10. while overseas sales grew by 17. It achieved a significant milestone by rolling out the fastest 300. 1. HMIL is setting up its second plant.000 units per annum by end of 2007. with 186. HMIL plans to expand its dealer network. The year just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet another path-breaking record in its young journey by rolling out the fastest 10. BUSINESS MODEL COMPANY PRODUCTION: Modern automobile engineering practices require a holistic approach to production management. it is gearing up to step up its foray into new markets. an increase of 18. quality and testing capabilities in the country. The company has recorded a growth of 27. registered total sales of 299. HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. with exports of 113. even as it plans to continue its thrust in existing export markets.2% in exports over the year 2004.000 in 2007. Hyundai Motor India.800 crores.000th export car. In the domestic market it clocked a growth of 19. Hyundai exports to over 65 countries globally.174 units.

• THE PAINT SHOP This is one of the most modern paint shops in the country and uses the environment friendly water based process for superior and lasting exteriors.P a g e | 39 I 296 inventory management. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . right here in India. • THE ALUMUNIUM FONDRY Forges the engine cylinder blocks for cars to exacting design specifications. Automated robotic arms are used for intricate welding operations that ensure superior and consistent build quality. helping customers get their preferred colour anytime. • THE PRESS SHOP A computer controlled line that converts sheet metal to body panels of high dimensional accuracy and consistency. A unique process management system is followed which helps to deliver the most extensive colour range. independent of minimum batch requirements. TPM and TQM. Kaizen. that helps in making the world's best cars. • THE BODY SHOP A hi-tech line that builds full body shells from panels.

• THE PLASTIC EXTRUSION UNIT Moulds the dashes. • THE TEST TRACK With comprehensive performance testing facilities like rattle testing and ABS brake testing. Hyundai's plastic paint shop delivers a high grade finish on exterior plastic components. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . this track is designed to meet predelivery (PDI) certification standards to exacting Euro specifications. • THE PLASTIC PAINT SHOP One of the very few manufacturing units in India to have this facility in-house. bumpers and other plastic components to perfect fit and finish.P a g e | 40 I 296 • THE ENGINE AND TRANSMISSION SHOP One of the biggest engine shops in the country. this unit is equipped with the most modern tooling and testing facilities to make a wide range of engines inhouse.

P a g e | 41 I 296 • OTHER PLANT PICTURES Assembly Line Assembly Line Pre Delivery Inspection Pre Delivery Inspection Wheel Alignment Calibartion Administration Block A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$ 2 Billion.P a g e | 42 I 296 Assembly Shop Office COMPANY R&D Hyundai and Kia together have R&D centres in the United States.2 Billion to enhance its thrust on new product development and A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Korea. Europe. up from US$ 1. Japan apart from the global R&D headquarters at Ulsan.

Recent successes of the team include the development of the Hyundai patented Common Rail Direct Injection (CRDi) engine in association with Detroit Diesel and the award winning Fuel Cell Santa FE. This includes the $30 Mn Hyundai-Kia Design and Technical Center in Irvive. FOCUS The R&D team focuses on the development of new products and technologies that include interior and exterior design changes. Hyundai had put in place an Environment Management System (EMS)at its manufacturing plant in A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Living up to its commitment of providing global standards of quality and process management in India.P a g e | 43 I 296 achieve global quality benchmarks by year 2005. California. concept vehicles and advanced passenger safety and comfort systems. in line with evolving customer preferences across the globe. development of new generation engines and alternate fuel systems. That the efforts of the Hyundai R&D team has paid great dividends to the company is evident from the fact that the company's newly engineered products like the Santa Fe and the Getz have made waves in the global automotive markets and the 'US Consumer Reports' magazine has ranked Hyundai cars in level with that of Honda in its recent quality rankings COMPANY ENVIRONMENT Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. EFFORTS Some of the ongoing projects that the Hyundai R&D team is involved in include the development of the 'World Engine' in association with Daimler Chrysler and Mitsubishi and the development of Automotive Telematics in association with IBM.

Hyundai Motor Company. HMI is also working on a backward integration strategy that will support vendors of the company in implementing EMS. The assessment was done by TUV SUDDEUTSCHLAND and covered areas like Awareness Training. The company has also been in the forefront of development of environment friendly technologies like Hybrid Electric Vehicles (HEVs). and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001 certification for all its three major plants in Ulsan. Waste Management and fulfilling Government Regulations. the parent of HMI.P a g e | 44 I 296 Chennai right from its project stage. S. sales.Korea. Technology Upgradation.Korea. The certification process was completed in a record time of 10 months with 'Zero NCRs'. Recycling. use to disposal. PRODUCT Hyundai Verna & Ford Fiesta A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Asan and Jeonju in S. 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.

Styling may not excite everyone and neither will the petrol engine which though quiet. Verna comes across as a good all rounder. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . is not punchy. The diesel is the ace in the Verna's pack and delivers a wallop that redefines the meaning of performance diesel. refined and comfortable.P a g e | 45 I 296 HYUNDAI VERNA Big.

Passenger Side S S A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Rear view S S mirror.S Verna XXi VGT VGT SX S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S Vanity Mirror with cover .S S S S S .S .S S .) 626519 645051 703168 723205 755241 777283 805204 827249 STANDARD FEATURES i Xi Body ColorOuter Door handles.Driver Side Clutch Foot rest Rear Door Map Pockets w/ bottle holder Seat back pockets S S .S S S . Waistline Mldg Rear Defogger with Timer S S Front & Rear Mud Flaps Exterior Alloy Wheels Chrome Rear Garnish Full wheel Cover Hub Cap Interior Wood grain interiors 2 Tone Interiors Room Lamp with Theater Dimming Illuminated Glove Box Multi box instrument facia Vanity Mirror with cover .P a g e | 46 I 296 PRICING Ex-Showroom Prices for DELHI Model Verna i Verna Xi Verna Xxi Verna XXi_ABS Verna CRDi Verna CRDi_ABS Verna CRDiSX Verna CRDiSX_ABS Ex-Showroom Prices (Rs.S S S S S .

S - S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S Trip Computer S S S S S S S S S S S . 60: 40 Split folding Rear Seat Seating Rear Center Armrest w/ Cup Holder Front seat Center Armrest Dual height Adjustable Driver Seat Full Cloth Upholstery Digital Clock 2 speed Variable intermittent wipers Luggage Net Ticket holder Air conditioner with Cabin Heater Automatic Climate Control Electrically Adjustable Rear View Mirror Comfort & Convenience Front map lamps with Sun glass holder Rear tail gate open indicator Lamp Seat Belt Reminder Lamp Key Not Removed Warning Height Adjustable Front Seat Belts Digital Odometer with 2 tripmeters Power Outlet 2 DIN Music system with MP3 4 Speakers Front Tweeters Micro Antenna Power Windows with Timelag operation Illuminated P/Window switches with Drv side Auto Down Tilt Steering Battery Saver Remote Tail gate & Fuel filler lid Safety Dual .S S S S S S S S S S S S S S S S S S S S S S S Trip S S Computer S S S S S S S S S S S S S S S S Audio S S S S S S S S S S S S Comfort A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 47 I 296 Seat Back Hook Leather Wrapped Steering Wheel Leather Wrapped Gear Shift Knob Adjustable Rear Headrest .S S S S S .S .3 nos.Member side impact beams .

S S S S S S S - S S S S S S S S O O S S S S S S S O O S S S S S S S S O O COLOUR SHADES OF VERNA DEALER NETWORK IN DELHI A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 48 I 296 Collapsible steering column Central locking system Child Proof Rear Door locks Day & Night mirror Key less entry with theft deterrent system Front Fog Lamps Clutch lock system Impact sensing for auto door unlocking RR Disc brakes ABS S – Standard O – Optional S S S S S S S S .

Lala Lajpat Rai Marg.70 41642971 011 42421222 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .99 . Bhera Enclave. Delhi PIN . Delhi PIN . Outer Ring Road Delhi PIN . 29819289 011 41645666 . New Lajpat Nagar-II Delhi PIN . New Moti Nagar Delhi PIN .110024 S-6 Building No 1819.110016 F . Jhandewala .P a g e | 49 I 296 Dealer Name Deep Hyundai Hans Hyundai Himgiri Hyundai HMP MGF Hyundai Samara Hyundai Suhrit Hyundai Sunrise Hyundai Address City STD Phone 25275051 / 25275052 / 011 26542474 / 25275053 011 51010123 / 51427101 / 5 Fax 25275053 13.110044 1 . 29818495.110041 69/1A.110015 B . Faiz Road .18 Vikas Marg Preet New Vihar Delhi PIN . Wazirpur Inds Area . New Delhi PIN . Paschim New Vihar.110 005 B-35.Gulmohar Community New Center. New ND.2 011 41599852 / 61 41678333 011 25825100 / 200 25823800 011 29818288.110092 51427115 27376001 011 27376001 . Najafgarh Road.110052 A-30 Mohan Cooperative New Industrial Area Phase-I Delhi PIN .Yusuf Sarai.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . You just can’t miss it on the roads. A balanced front end with integrated full width lower intake. The overall impression it creates is of a well made car with a dynamic character which ensures that no matter where you go. the Hyundai Verna is essentially inspired by the concept of ‘large on the inside and compact outside’. This design treatment is simple. will be an eye-catcher and a stare-grabber par excellence. Clean exterior lines with well-proportioned looks. The strong shoulder lines and confident stance at the same time gives it a strong and well defined character. the Verna. moderately flared wheel arches and optional 14" alloy wheels which lends it a sportier look.P a g e | 50 I 296 EXTERIOR Based on the universally accepted design philosophy of safety and compactness.

P a g e | 51 I 296 INTEGRATED WRAP AROUND HEADLIGHTS Clever integration of the side repeaters into the wrap around clear headlight housings has increased the clean aspect of the frontal design. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . It is aerodynamic. The result is an undisturbed bumper profile. RADIATOR GRILLE The radiator grille shows the tasteful. MICRO ANTENNA The rear roof-mounted micro antenna is compact and efficient. ELEGANT FRONT FOG LAMPS The fog lamps are efficiently and elegantly incorporated into the full width lower air intake. ELECTRIC OUTSIDE REAR VIEW MIRROR Aerodynamic exterior mirrors are electrically operated. The ovoid shape of the mirrors perfectly inherit the dynamic headlamp treatment. highlighting the strength of the front look. stylish and robustly flexible allowing both improved signal reception and outstanding look. restrained use of bright metal work to full advantage. GRIP TYPE DOOR HANDLES The door handle summarizes what the Verna brings to its customers-refined yet fascinating car that rises above its class. It adds a welcoming traditional aspect while blending perfectly into the hood/bumper configuration.

Its world-class interior design matches up on all fronts and impresses even the most fastidious critics. green The gauge clusterSteel Wheel with 175/70 R14 tyres. easier to read. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . A14" Alloybalance created185/65 R14 The 5. 5.P a g e | 52 INTERIOR LED HIGH MOUNTED STOP LAMP 296 The highI mounted stop lamp is positioned to be immediately visible through the rear screen. LED lit instruments.5J X 14” provides an element of class to the entire cabin.0J x 14" boasts new.5J x dynamic Wheel with between the exterior and the interior of this sedan makes it a masterpiece of design. SUNGLASSES HOLDER No more frantic searching for the sunglasses. The Verna'sALLOY colour scheme two-tone WHEEL 5. the optimized seating and storage options provide practicality.0J X 14” STEEL WHEEL GAUGE CLUSTER & TRIP COMPUTER The 5. TALENTED SUNVISOR A ticket holder is on the back of the sun visor. This LED type lamp is equipped to provide maximum safety to the customers of the Verna. A car you would tyres. While the wraparound driver and passenger environment exudes comfort and style. love to flaunt and love to drive at the same time. The well-balanced exterior of the Verna doesn't flatter to deceive.

SEAT ARMREST Driver’s seat has an armrest for convenience. This allows uniform style and neatness. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . plus improved interior cleanliness. It is portable yet holds firmly when placed in its original location for the maximum usage.P a g e | 53 I 296 PORTABLE ASH TRAY The ash tray reflects the style of the air vents and upper centre console. SEAT POCKETS There can never be enough storage. REAR CENTER ARMREST Rear cup holder is adjustable for different sized containers. STORAGE SPACE The illuminated glove box in the facia has large capacity. Pockets in the back of the front seat are part of the Verna’s array.

but beverages. ADJUSTABLE POWER STEERING WHEEL The tiltable power steering wheel minimizes your effort to maneuver the car’s direction at your will and the tiltable soft finish steering wheel keeps you firmly in control. snacks etc. THREE NOZZLE WINDSCREEN WASHER Newly introduced three way nozzle along with efficient wipers promises a clear view for the driver.P a g e | 54 I 296 STURDY DOOR MAP POCKET Not only maps. mobile phones and other journey necessities fit snugly and safely in the easy to access and sturdy door pockets. CLEVER STORAGE TRAY The clever idea to bring about maximum use of minimum room for storing maps. right under the steering wheel. COMFORT: KEYLESS ENTRY The remote control key effortlessly unlocks and locks the doors at the touch of a button. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry ..

P a g e | 55 I 296 FULLY AUTOMATIC TEMPERATURE CONTROL (FATC) The fully automatic temperature control system will make you comfortable inside. Cons Petrol motor lacks punch. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . comfort. BIGGER DISC BRAKES Bigger front disc and booster sizes mean safer. Pros Space. SAFETY: ABS Sure handling and anti-lock brakes help to keep the Verna on-line. performance (CRDi). HEIGHT ADJUSTABLE FRONT SEAT BELTS Adjustable seatbelt mountings help to make everyone comfortable. Verdict Another value for money all rounder from Hyundai. faster braking.

exceptional safety and fuel economy. gives you unmatched driving experience. the Fiesta is the car for you.P a g e | 56 I 296 PARTNERS FORD FIESTA If you need matchless performance from an exhilarating car. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Engineered to excite your senses. the Fiesta. powered by Dura Technology.

5.P a g e | 57 I 296 PERFORMANCE Whether you’re driving on city roads or highways the Fiesta’s performance is spirited and responsive.4 Duratec EXI Price Starting from Rs. technology. STYLING Contemporary automotive design that perfectly combines style and solidarity. comfort and styling.66%* Fiesta 1.94 Lakhs Overview: The Ford Fiesta is a car engineered globally for India. The way the car hugs curves and takes off at traffic signals will set your pulse racing. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . That’s the Ford Fiesta. 1999 per Lakh* Low interest rate of 6. 36. OWNING A FIESTA HAS NEVER BEEN EASIER Finance options: • Low down payment of Rs. Fiesta has unmatched driving dynamics.000/-* • • Low EMI of Rs.

Technology A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . You’ll Go Fida over it. Performance Whether you're driving on city roads or highways. this is a car built to make you Go Fida. 16 Valve DOHC engine with drive-by-wire electronic throttle control for very smooth and most responsive driving experience imaginable. So when you drive the Ford Fiesta you can be sure things are as safe as can be. Optimised steel strength in critical areas along with structural reinforcement. Comfortable ride Engineered specifically to adapt to demanding Indian road conditions. This high value petrol packs in 82 ps power with powerful head-turning Fiesta styling. engineering and technology inputs from around the world and over 700. It also comes with an advanced knock sensing technology and twin hole injectors that ensure performance and fuel efficiency. the Fiesta's performance is spirited and responsive. the Fiesta combines its high stability with exceptional driving comfort.P a g e | 58 I 296 You won't fall in love with the Ford Fiesta. The way this car hugs curves and takes off at traffic signals will set your pulse racing. Safety Structurally engineered to withstand severe collisions. the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.4 Duratec petrol engine is an all-aluminum alloy construction.000 kms of testing in 9 countries. The car with a brain The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a computer managing the car’s engine diagnostics and electrical functions. You’ll long to be within the sophisticated confines of this car built to induce sheer obsession. With design. ensures passengers and the driver are unscathed even in a frontal offset collision. The suspension is specially tuned to better absorb road surface disturbances and minimize discomfort to passengers. with its raring to go spirit and powerful styling. It comes with GEM sensors that oversee all critical functions. Key Features: Engine : The 1.

That's the Fiesta for you. 6. meaty side panels and ornamental headlamps and tail-lamps. DuraSave: Thanks to a combination of unmatched economy and exciting performance. at the heart of the Fiesta. they are guaranteed to leave you speechless.6L A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . a muscular bonnet. flared wheel arches. smooth and economical. as we call it. you save on every drop of fuel.6 Duratec ZXI Price Starting from Rs. With a powerful grille.or DuraVrooom. DuraSmooth and DuraSave. ensures every drive is exciting. it will move you faster than anything else has before..20 Lakhs Overview: Nothing fires your need for speed like Petrol. Go Fida without worries Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty" that covers the car against all electrical and mechanical failures for an additional period. Get used to heads turning in your direction. the Fiesta effortlessly mixes brawn with beauty. DuraVrooom: A driving experience that's so exciting. And no other petrol car in its class can match the Ford Fiesta Pace Petrol for that sheer rush.P a g e | 59 I 296 Dura Technology. Powered by the Duratec 1. Fiesta 1. Styling Contemporary automotive design that perfectly combines style and solidity.. DuraSmooth: The Fiesta’s petrol and diesel engines are so refined.

A high performance petrol that delivers 101 Ps power & 146 Nm torque packing in all the excitement you'll ever need. Comfortable ride Engineered specifically to adapt to demanding Indian road conditions. the Fiesta combines its high stability with exceptional driving comfort. there's simply no argument that when it comes to setting your pulse racing.43 seconds) will leave you breathless. ensures passengers and the driver are unscathed even in a frontal offset collision. and raring to go with instant response Drive-by-wire technology. Safety Structurally engineered to withstand severe collisions. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . nothing can keep up with the Ford Fiesta Key Features: Engine : The 1. the Fiesta's crash worthiness is verified with over 400 virtual crash simulations. The way this car hugs curves and takes off at traffic signals will set your pulse racing. 16 Valve DOHC engine with drive-by-wire electronic throttle control for very smooth and most responsive driving experience imaginable. the Fiesta's performance is spirited and responsive. Optimised steel strength in critical areas along with structural reinforcement. Keyless entry opens up the Fiesta to you at the touch of a button and height adjustable seats gives you the freedom to decide your seating posture. Performance Whether you're driving on city roads or highways. Electrically operated rear view mirrors ensures that you have the best view from every angle. The suspension is specially tuned to better absorb road surface disturbances and minimize discomfort to passengers. It also comes with an advanced knock sensing technology and twin hole injectors that ensure performance and fuel efficiency.6 Duratec petrol engine is an all-aluminum alloy construction.P a g e | 60 I 296 engine that puts out over 101 PS. Its powerful acceleration (0 – 100 kmph in 11.

as we call it. it will move you faster than anything else has before. you save on every drop of fuel.6 Duratec SXI Price starting from 6.or DuraVrooom. Technology Dura Technology. That's the Fiesta for you..P a g e | 61 I 296 The car with a brain The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a computer managing the car’s engine diagnostics and electrical functions. at the heart of the Fiesta. flared wheel arches. meaty side panels and ornamental headlamps and tail-lamps. Powered by the Duratec 1. DuraSmooth: The Fiesta’s petrol and diesel engines are so refined. It comes with GEM sensors that oversee all critical functions. ensures every drive is exciting. a muscular bonnet. And no other petrol car in its class can match the Ford Fiesta Pace Petrol for that sheer rush. With a powerful grille. they are guaranteed to leave you speechless.90 lacs Overview: Nothing fires your need for speed like Petrol. the Fiesta effortlessly mixes brawn with beauty. Go Fida without worries Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty" that covers the car against all electrical and mechanical failures for an additional period. Get used to heads turning in your direction. DuraSave: Thanks to a combination of unmatched economy and exciting performance. smooth and economical. Fiesta 1. DuraSmooth and DuraSave.6L A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Styling Contemporary automotive design that perfectly combines style and solidity. DuraVrooom: A driving experience that's so exciting..

So when you drive the Ford Fiesta. Performance Whether you're driving on city roads or highways. So when you drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 62 I 296 engine that puts out over 101 PS.6 Duratec petrol engine is an all-aluminum alloy construction. This version also comes with Anti-lock brake system (ABS) and Electronic brake distribution (EBD) and Driver Air bag that inflate on impact. the Fiesta's performance is spirited and responsive. Key Features: Engine : The 1. the Fiesta combines its high stability with exceptional driving comfort. Its powerful acceleration (0 – 100 kmph in 11. This high value petrol packs in 101 ps power with powerful head-turning Fiesta styling. Comfortable ride Engineered specifically to adapt to demanding Indian road conditions. Optimised steel strength in critical areas along with structural reinforcement. The way this car hugs curves and takes off at traffic signals will set your pulse racing. nothing can keep up with the Ford Fiesta. you can be sure things are as safe as they can be. Structurally engineered to withstand severe collisions. there's simply no argument that when it comes to setting your pulse racing. Keyless entry opens up the Fiesta to you at the touch of a button and height adjustable seats gives you the freedom to decide your seating posture.43 seconds) will leave you breathless. 16 Valve DOHC engine with drive-by-wire electronic throttle control for very smooth and most responsive driving experience imaginable. and raring to go with instant response Drive-by-wire technology. the Fiesta's crash worthiness is verified with over 400 virtual crash simulations. Safety Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and your Fiesta are forever on track. ensures passengers and the driver are unscathed even in a frontal offset collision. Electrically operated rear view mirrors ensures that you have the best view from every angle. It also comes with an advanced knock sensing technology and twin hole injectors that ensure performance and fuel efficiency. The suspension is specially tuned to better absorb road surface disturbances and minimize discomfort to passengers.

you save on every drop of fuel.. at the heart of the Fiesta. DuraSmooth and DuraSave. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . the Fiesta effortlessly mixes brawn with beauty. power mirrors. It’s a ride worthy of royalty. 6 CD changer with speakers. That's the Fiesta for you.P a g e | 63 I 296 with the Ford Fiesta. a muscular bonnet. Apart from best-inclass front and rear room space. with its raring to go spirit and powerful styling. leather steering.000 kms of testing in 9 countries. flared wheel arches. the Fiesta also comes with luxuries that include leather upholstery. engineering and technology inputs from around the world and over 700. ensures every drive is exciting. It comes with GEM sensors that oversee all critical functions. meaty side panels. turn indicators on outside rear view mirrors and ornamental headlamps and taillamps. Technology Dura Technology. reading lights and climate control with a variable displacement AC compressor. You’ll long to be within the sophisticated confines of this car built to induce sheer obsession. they are guaranteed to leave you speechless. With a powerful grille. Get used to heads turning in your direction. The car with a brain The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a computer managing the car’s engine diagnostics and electrical functions. silver accents on AC vents and steering. With design. it will move you faster than anything else has before. smooth and economical. to name a few. You’ll Go Fida over it. as we call it. DuraSave: Thanks to a combination of unmatched economy and exciting performance.or DuraVrooom. DuraVrooom: A driving experience that's so exciting. Fida Over Styling Contemporary automotive design that perfectly combines style and solidity. hydrographic finish. this is a car built to make you Go Fida. DuraSmooth: The Fiesta’s engine is so refined. Luxury The Fiesta is quite unmatched when it comes to delivering luxury..

Fiesta 1.P a g e | 64 I 296 Go Fida without worries Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty" that covers the car against all electrical and mechanical failures for an additional period. Every time you turn it on. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .10 lakhs Overview: Get turned on.4 Duratorq SXI Price starting from 8.

With design. with its raring to go spirit and powerful styling. and the two-stage fuel injection sysytem with APC(Accelerometer Pilot Control). technology. keyless entry opens up the Fiesta to you at the touch of a button and height adjustable seats gives you the freedom to decide your seating posture. engineering and technology inputs from around the world and over 700.and the compact lightweight all aluminium alloy engine. Performance Whether you're driving on city roads or highways. the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.the more you will doubt it's a diesel. You’ll Go Fida over it. Key Features: Engine The more you drive the 1. So when you drive the Ford Fiesta you can be sure things are as safe as can be. ensures passengers and the driver are unscathed even in a frontal offset collision. You won't fall in love A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . comfort and styling. Safety Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and your Fiesta are forever on track. Optimised steel strength in critical areas along with structural reinforcement.P a g e | 65 I 296 The Ford Fiesta is a car engineered globally for India. this is a car built to make you Go Fida. the Fiesta's performance is spirited and responsive. You won't fall in love with the Ford Fiesta. Electrically operated rear view mirrors ensures that you have the best view from every angle.All thanks to the drive-by-wire technology. The suspension is specially tuned to better absorb road surface disturbances and minimize discomfort to passengers. the Fiesta combines its high stability with exceptional driving comfort.000 kms of testing in 9 countries. The way this car hugs curves and takes off at traffic signals will set your pulse racing. more responsive and refined.the compact lightweight all aluminium alloy engine. You’ll long to be within the sophisticated confines of this car built to induce sheer obsession. Take a close look at what makes the Fiesta unmatched in driving dynamics. Comfortable ride Engineered specifically to adapt to demanding Indian road conditions.4 Duratorq TDCi. Structurally engineered to withstand severe collisions.Which makes the car smoother.

It’s a ride worthy of royalty. leather steering. ensures every drive is exciting. engineering and technology inputs from around the world and over 700. you save on every drop of fuel. That's the Fiesta for you. With design.. a muscular bonnet. Go Fida without worries A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Luxury The Fiesta is quite unmatched when it comes to delivering luxury.or DuraVrooom.P a g e | 66 I 296 with the Ford Fiesta. with its raring to go spirit and powerful styling. turn indicators on outside rear view mirrors and full chrome surround twin jewel headlamp and tail-lamps. Styling Contemporary automotive design that perfectly combines style and solidity. Technology Dura Technology. With a powerful grille. this is a car built to make you Go Fida. 6 CD changer with speakers. flared wheel arches. You’ll Go Fida over it. silver accents on AC vents and steering. the Fiesta effortlessly mixes brawn with beauty. smooth and economical. at the heart of the Fiesta. DuraSave: Thanks to a combination of unmatched economy and exciting performance. as we call it. meaty side panels. it will move you faster than anything else has before. It comes with GEM sensors that oversee all critical functions. power mirrors. to name a few. hydrographic finish. Get used to heads turning in your direction.000 kms of testing in 9 countries. The car with a brain The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a computer managing the car’s engine diagnostics and electrical functions. You’ll long to be within the sophisticated confines of this car built to induce sheer obsession. reading lights and climate control with a variable displacement AC compressor. DuraSmooth and DuraSave. they are guaranteed to leave you speechless. DuraSmooth: The Fiesta’s petrol and diesel engines are so refined. the Fiesta also comes with luxuries that include leather upholstery. Apart from best-inclass front and rear room space.. DuraVrooom: A driving experience that's so exciting.

Comparison between Hyundai Verna VGT CRDi & Ford Fiesta 1.4 ZXi TDCi Air Conditioner A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .91.4 ZXi TDCi Price (Ex-Showroom Mumbai) Features Rs.86.315 Ford Fiesta 1.P a g e | 67 I 296 Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty" that covers the car against all electrical and mechanical failures for an additional period.990 Hyundai Verna VGT CRDi Rs. 7. 7.

8 5 4 1493 110@4000 235@1900 Manual 5 5 Ford Fiesta 1.9 5 4 1399 68@4000 160@2000 Manual 5 4.9 Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) CUSTOMERS A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 68 I 296 Power Windows Power Steering Specs Hyundai Verna VGT CRDi 4310 1695 1490 1173 13.4 ZXi TDCi 4282 1686 1468 1150 14.

P a g e | 69 I 296 What drives Ford Fiesta and Hyundai Verna? The Ford Fiesta and Hyundai Verna are targeted at the passionate driver who seeks adventure. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . The core target audience for the Ford Fiesta and Hyundai Verna is mainly male in the age group of 25-35-plus years. who is an achiever and someone who loves control. Ford Fiesta and Hyundai Verna are targeted at customers who may be considering fewer luxury features but a bigger brand name. precision. and drives well. is very confident.

as Scott McCormack. Ford India Pvt Ltd. Fiesta has become a significant player in the C segment. as consumers like to get behind the wheel to make a more informed decision. since the car’s launch in 2005. Fiesta and Hyundai Verna have strategically used their advertisements to reiterate and stimulate the buyer to take the patented five-minute testdrive challenge. Setting up a slalom course of torches. No driving on wide open roads with a girlfriend in tow and zooming at high speed in this new television commercial. Ford understood that this element specifically has helped skyrocket enquiries from future buyers. On tracking dealerships. all the while listening to his favourite old Hindi song. the driver uses his car to light them at high speed. says. Fiesta launched itself with Abhishek Bachchan as the brand ambassador for a one-year period.P a g e | 70 I 296 The setting is wild and rugged. the Fiesta has contributed largely to its sales. showcasing the maneuver ability and exact precision of the vehicle.000 Fiestas have hit the road. the whole idea was to move away from traditional stereotypes – that the Fiesta is not about just speed and acceleration but control and precision as embodied in the new TVC. Indeed. even though a premium hatchback customer (B segment) could opt for a sedan for a little bit more. cross shopping does not happen often in the C segment. Vice-President (Marketing. This feature of the Fiesta and Hyundai Verna ads helped increase the curiosity in the minds of the prospective buyer. A young urban male takes his Ford Fiesta out on an incredible adventure on the outskirts of his city. However. more than 65. and his style and panache helped the brand establish itself early. Test drives are an important sales tool. COMPETITION  GENERIC COMPETITION A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . According to Ford India. Sales and Service).

P a g e | 71 I 296 • • • • Small cars Premium cars Luxury cars Sport utility vehicles Companies • • • • • • Segments Cars/ SUVs Suzuki Honda Toyota Mitsubishi GM Ford • • • • • • Daimler-Chrysler Skoda Fiat Hyundai Tata M&M A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

P a g e | 72 I 296 • Motor cycles • Scooters • Scooterettes/Mopeds Segments Two-wheelers • • • Companies TVS Hero Honda Bajaj Auto • • • Yamaha Kinetic LML • Buses • Trucks • Tractors A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

Maruti Suzuki Swift Dezire A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 73 I 296 • Ambulance • Defence vehicles • Construction equipments Segment CVs • • • • Companies Tata Ashok Leyland Tatra Eicher-Mitsubishi Escorts M&M L&T Punjab Tractors • • • Swaraj Mazda Mahindra & Mahindra Volvo New Holland ITL-Renault John-Deere Steyr Tractors • • • • • • • •  BRAND COMPETITION • • • • Maruti Suzuki SX4 GM Honda City Threat of new entrants:.

Industry :Automobiles passenger Cars (Rs in Crs) Year Mar 07 Mar 06 Mar 05 Mar Mar 03 Mar 01 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 74 I 296 FINANCIAL ANALYSIS BALANCE SHEET OF FORD INDIA LTD.

37 742.16 59.37 267.8 4 220.2 398.09 0.125.83 0.097.capitaline.43 0 850 -582.07 1.com 1.86 3.7 0 535.7 8 878. 19 0 PROFIT AND LOSS ACCOUNT OF FORD INDIA LTD.55 676.63 575.39 0 0 0 1.39 682.2 7 351.05 39.11 0.88 217. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .11 247.08 -788.3 0 0 0 988.9 221.94 0 167.61 382.41 284.2 -224.7 792.89 238.24 594.37 0 408.09 1.2 392.344.52 260.25 0 301.P a g e | 75 I 296 04 SOURCES OF FUNDS : Share Capital Reserves Total Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Net Block Lease Adjustment Capital Work in Progress Investments Current Assets.85 209.96 1.63 0.41 197. 19 1.3 4 94.86 0 249.12 0 0 0 792.09 779.54 52 5.52 175.48 37.53 201.8 8 1. 16 1.0 0 -767.67 408.035.03 0 986.35 15.06 11.49 215.46 186.01 0 0 0 1.45 499.54 0 850 -640.09 587.097.42 47.43 60.62 238.17 0 0 0 952.59 190.9 9 433.71 804.006.72 0 850 -467.8 1.83 18.86 1.53 52.25 208.04 47.99 140.024.2 53.36 93.59 824.78 399.13 214.81 230.18 53.02 931.34 23.45 423.23 622.39 98.61 114.55 108.11 0 128.69 364.62 0 0 0 878.15 541.8 0 104.57 756.97 20.125.98 44.37 1.8 -59.8 329. Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities http://www.02 746.33 1.025.9 34.1 482.71 988.91 684. 51 278.41 0.006.32 0 0 0 192.54 2.28 534.09 0 185.19 911. 16 0 601.26 657.359.45 44.13 0 144.8 8 0 176.72 0 850 -628.58 -46.47 131.51 27.46 952.

06 20.53 0 0 -46.153.473.9 0 0 674.95 0 0 -11.85 0 0 Mar 04(12) 1.0 2 23.8 0 0 848.38 0 1.471.06 -44.45 855.51 31.73 0 857.7 8.2 8 93.75 27.92 32.03 83.1 30.39 12.26 0 1.64 39.41 0 -528.24 -2.18 -45.5 4 59.358.75 -145.6 0 14.6 2 293.84 -30.83 0 1.81 1.78 0 0 -147.9 0 0 -640.99 82.9 6 307.3 3 0 0 2.78 0 -640.16 0 -628.13 0 0 -582.035.95 -0.51 28.66 17.79 -11. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Mar 07(12) 2.1 5 0 2.74 46.09 -11.3 7 180.79 -145.621.18 30.1 5 155.0 2 209 1.61 0 19.56 0 0 19.117.722.19 61.26 21 102.37 0 0 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . 28 Mar 03(12) 1.41 0 0 Mar 05(12) 1.780.63 1.62 104.567.49 62.451.37 62.85 39.4 4 -2.326.19 52.46 -62.3 166.722.57 59.9 9 40.12 0 0 0 0 0 2.327.99 31.3 3 0 2.7 2 28.84 0 0 -788.83 -51.35 0 -582.59 32.65 99.722.095.61 0 -788.9 0 17.67 -46.57 -1.56 124.63 27.69 1.93 70.14 74.P a g e | 76 I 296 (Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst.63 9.14 59.6 13.41 0 0 -768.37 0 0 -628.177.567.2 92.35 928.73 -54.4 27. 79 1.6 20.53 -1.8 1. 87 1.036.24 0 0 -54.474. 33 Mar 06(12) 1.24 1.

79 30.49 ANALYSIS OF PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF FORD MOTORS RETURN ON INVESTMENT • Return on Net Worth (RONW): The ratio measures the net profit earned on the equity shareholder’s funds. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .01 0 0 20.61 0 0 26. It is also known as Return on equity or ROE ratio.7 2005 -5. It is the measure of overall profitability of a company after discharging cost of borrowed capital and income tax payable to the government.1 Interpretation: There was a decline in overall profitability of a company from 2004-06. There is an improvement in 2007.P a g e | 77 I 296 Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr 0 1. RONW (%) = (PAT – Preference dividend)*100 Equity shareholder’s fund or net worth (equity capital + reserve and surplus – miscellaneous expenditure not written off) 2007 RONW (%) 5.96 2006 -74.72 2004 -21.05 0 0 24.01 0 0 31.

Quick ratio = Current assets. Current ratio = Current assets. or current liabilities as and when they fall due. loans & advances + short term investments Current liabilities + provisions + short term debt 2007 Current ratio (times) 0.P a g e | 78 I 296 LIQUIDITY RATIO • Current ratio: This ratio measures the ability of a company to discharge its day-to-day bills.288 Interpretation: The current ratio of Ford Motors Limited for past 4 years is increasing which means that the company is capable to meet the current obligations.38 2005 0.63 2006 0. or current assets net of inventories that it possesses. as and when they fall due. loans & advances – inventories +short term investments Current liabilities +provision +short-term debt net of working capital limits A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . • Quick ratio: This ratio measures as to how quick is the ability of a company to discharge its current liabilities net of working capital limits. out of the cash or near cash or current assets that it possesses. out of cash.377 2004 0.

27 2005 0. Therefore.P a g e | 79 I 296 2007 Quick ratio (times) 0. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . But the company‘s quick ratio of past 4 years is not equal to 1:1.44 Interpretation: The quick ratio of 1:1 is considered good. high current ratio and low quick ratio indicates weak working capital management.27 2004 0.73 2006 0.

i.61 2005 1. it is the efficiency in the resource utilization from the angle of the residual interest. equity shareholders.e.77 2004 1.P a g e | 80 I 296 TURNOVER RATIOS • Fixed assets turnover ratio: This ratio measures the extent of turnover or volume of gross income generated by the fixed assets of a company or in other words the efficiency in their utilization. • Net Worth Turnover Ratio: This ratio measures the extent of turnover or volume of gross income generated by the net worth of the company.47 Interpretation: The fixed assets turnover ratio of ford motors limited of past 4 years indicates that there is a substantially higher growth in the efficiency of fixed assets utilization which further reflected in a higher RONW.30 2006 1. In other words. Fixed assets turnover ratio = Net sales Net block of fixed assets 2007 Fixed assets turnover ratio (times) 3. Net worth turnover ratio = Net sales Net worth (equity capital + reserves & surplus – miscellaneous expenditure not written off) A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

22 2004 22. Therefore. the increase in RONW has improved due to higher resource efficiency as well as higher operating margins. • Stock turnover ratio: This ratio measures to discover the possible trouble in the form of overstocking or over valuation.P a g e | 81 I 296 2007 Net worth turnover ratio (times) 8. As high stock turnover ratio indicates brisk sales.42 Interpretation: The stock turnover ratio of ford motors limited of past 4 years is not efficiently used.98 2006 13. Stock turnover ratio = Cost of sales Average stock 2007 Stock turnover ratio (times) 26.35 2005 10.459 2005 6. it is an ideal situation for a company.27 2006 7. PROFITABILITY RATIOS A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .06 Interpretation: Increase in RONW in 2007 contributed by improvement in net worth turnover of ford motors limited for past 4 years. A low stock turnover ratio results in blocking of funds in inventory which may ultimately result in heavy losses due to inventory becoming obsolete or deteriorating in quality. In other words.358 2004 5.

• Net profit margin: This ratio indicates net margin earned on a sale of Rs. Therefore.20 2005 4.72 2006 -10.57 2006 -4.01 2005 -0. Net profit margin = Net operating profit *100 Net sales 2007 Net profit 0.67 2004 1.89 2004 -4.P a g e | 82 I 296 • Gross profit margin: This ratio measures several intermediate profit margin indicators and finally the PAT.100.16 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .17 Interpretation: The gross profit margin of ford motors limited has been increasing for past 4 years. this indicates that high gross profit margin of ford motors limited reflects the ability to maintain a low cost of production. Gross Profit (%) = GP*100 Net sales 2007 Gross profit margin (%) 4.

Therefore. this indicates that in 2007. BALANCE SHEET HYUNDAI MOTORS INDIA LIMITED A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 83 I 296 margin (%) Interpretation: The net profit margin of ford motors limited has increased in 2007 but there was a decline in net profit margin from 2004-06. company is capable to return dividends and stock price appreciation to shareholder.

9 1.0 1.79 101.55 496. Total Shareholders Funds 2 2 97 93 14 988.8 1.1 1.06 38.71 88.1 1.82 242.84 Sundry Debtors 224.38 449.450.9 1.759.548.759.1 146.670 Total Liabilities 7 1 30 47 96 82 APPLICATION OF FUNDS : 3.88 306.87 595.19 14.590.261.78 238.09 -168.82 682.9 169.079.34 114.2 2.4 1.39 488.680. 1.394.9 Current Assets.33 571.54 1.95 418.74 391.45 163.98 254.49 416.73 11.0 Less : Accumulated Depreciation 2 3 839 662.55 454.91 0 0 Deferred Tax Liability 204.67 0 0 0 0 Investments 0 0 11.709. 1.22 1.0 Total Current Liabilities 9 7 983.858.44 Total Debt 521.25 437.95 418.83 17.32 543.87 2.54 617.39 329.27 19.0 1.9 1.41 126. 1.41 512.82 Provisions 630.54 812.54 812.5 2.736.16 272.1 Net Block 5 4 4 3 1 4 Lease Adjustment 0 0 0 0 0 0 Capital Work in Progress 167.2 1.92 548. 1.2 1.371.33 571.83 65.4 Reserves Total 8 717.71 0 0 Net Deferred Tax -186.92 186.76 54.62 798.54 812.592.09 596.695.19 305.54 812.P a g e | 84 I 296 Industry :Automobiles passenger cars (Rs in Crs) Year Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 Mar 01 SOURCES OF FUNDS : Share Capital 812.242. Loans & Advances Inventories 741.26 172.14 760.142.199.54 634.1 1.9 253.15 466.288.36 85.9 Total Current Assets 3 6 4 942.99 829.321.020.49 Miscellaneous Expenses not written off 0 0 0 0 0 1.09 596.41 2.43 208.63 273.14 2.66 -171.29 Deferred Tax Assets 18.875.8 208.529.78 195.41 Secured Loans 0 0 0 0 0 34.09 164.93 223.8 0 0 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .81 299.33 Less : Current Liabilities and Provisions Current Liabilities 959.21 14.055.6 175.948.7 1.54 617.6 0.71 Cash and Bank 535.64 Loans and Advances 949.8 1.84 Net Current Assets 860.620.3 Gross Block 7 7 4 8 2 6 1.21 788. 1.51 384.4 1.97 Unsecured Loans 521.82 647.107.95 170.63 -228.24 481.576.926.02 1.6 1.07 109.54 812.263.

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Total Assets Contingent Liabilities
http://www.capitaline.com

2,576.9 7 74.07

1,948.0 1 49.96

1,858. 30 115.45

1,592. 47 0

1,759. 96 13.08

1,670 82 0

PROFIT & LOSS ACCOUNT HYUNDAI MOTORS INDIA LIMITED
(Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Mar 06(12) 8,540.1 1 1,123.4 1 7,416.7 0 420.59 62.99 7,900.2 8 5,705.9 8 63.86 161.36 217.43 628.62 19.79 0 6,797.0 4 1,103.2 4 3.35 1,099.8 9 295.01 804.88 Mar 05(12) 7,351.9 0 1,046.0 0 6,305.9 0 349.13 97.77 6,752.8 0 4,931.0 9 56.53 133.26 163.89 562.12 31.58 0 5,878.4 7 874.33 13.21 861.12 250.01 611.11 Mar 04(12) 5,713.7 4 913.26 4,800.4 8 191.87 33.96 5,026.3 1 3,531.8 6 42.2 106.83 92.71 373.96 113.37 0 4,260.9 3 765.38 14.71 750.67 178.55 572.12 Mar 03(12) 3,955.8 6 870.72 3,085.1 4 104.6 -3.6 3,186.1 4 2,191.1 6 36.75 89.18 54.99 317.02 54.99 0 2,744.0 9 442.05 16.82 425.23 168.02 257.21 Mar 02(12) 3,395.2 3 785.26 2,609.9 7 71.19 43.4 2,724.5 6 1,849.5 9 29.24 58.72 51.82 151.52 56 0 2,196.8 9 527.67 32.81 494.86 198.16 296.7 Mar 01(12) 2,994.1 2 791.65 2,202.4 7 53.59 3.47 2,259.5 3 1,582.8 3 26.02 45.29 50.11 109.17 56.52 0 1,869.9 4 389.59 59.38 330.21 142.25 187.96

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

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Tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr

321.24 -41.46 525.1 0.1 525 0 654.98 0 0 1,180.0 8 0 0 0 646.25 2,529.1 3

144.75 59.44 406.92 -0.04 406.96 0 407.43 0 159.37 654.98 121.88 0 15 479.77 1,882.8 9

190.05 3.22 378.85 0.03 378.82 0 0 0 378.85 0 121.88 0 15 446.65 1,553.1 2

84.75 7.71 164.75 0.95 163.8 0 0 0 164.75 0 121.88 0 15 202.76 1,256.4 7

22.09 0 274.61 1.19 273.42 0 0 0 274.61 0 121.88 0 15 337.96 1,405.6 4

16 0 171.96 0.11 171.85 0 0 0 171.96 0 0 0 0 211.63 1,216.4 4

ANALYSIS OF PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF HYUNDAI MOTORS LIMITED
RETURN ON INVESTMENT

Return on Net Worth (RONW): The ratio measures the net profit earned
on the equity shareholder’s funds. It is the measure of overall profitability of a company after discharging cost of borrowed capital and income tax payable to the government. It is also known as Return on equity or ROE ratio.

RONW (%) = (PAT – Preference dividend)*100

Equity shareholder’s fund or net worth (equity capital + reserve and surplus – miscellaneous expenditure not written off)

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

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2006 RONW (%) 25.55

2005 26.59

2004 30.02

2003 16.13

Interpretation: There is decline in overall profitability of a company in past 4 years.

LIQUIDITY RATIO

Current ratio: This ratio measures the ability of a company to discharge its
day-to-day bills, or current liabilities as and when they fall due, out of the cash or near cash or current assets that it possesses.

Current ratio = Current assets, loans & advances + short term investments Current liabilities + provisions + short term debt

2006 Current ratio (times) 1.54

2005 1.34

2004 1.31

2003 2.07

Interpretation: The current ratio of Hyundai Motors Limited for past 4 years is increasing from 20042006 but at a slower pace as compared to 2003.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

as and when they fall due. Quick ratio = Current assets.89 2004 0. high current ratio and low quick ratio indicates weak working capital management. Therefore. or current assets net of inventories that it possesses. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 88 I 296 • Quick ratio: This ratio measures as to how quick is the ability of a company to discharge its current liabilities net of working capital limits.51 Interpretation: The quick ratio of 1:1 is considered good. loans & advances – inventories +short term investments Current liabilities +provision +short-term debt net of working capital limits 2006 Quick ratio (times) 1.07 2005 0. out of cash. But the company‘s quick ratio of past 4 years is not equal to 1:1.83 2003 1.

P a g e | 89 I 296 TURNOVER RATIOS • Fixed assets turnover ratio: This ratio measures the extent of turnover or volume of gross income generated by the fixed assets of a company or in other words the efficiency in their utilization.27 2005 3.44 Interpretation: The fixed assets turnover ratio of Hyundai motors limited of past 4 years indicates that there is a substantially higher growth in the efficiency of fixed assets utilization which further reflected in a higher RONW.75 2004 2. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .80 2003 2. Fixed assets turnover ratio = Net sales Net block of fixed assets 2006 Fixed assets turnover ratio (times) 4.

94 A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .02 Interpretation: Decline in RONW resulted in decline in net worth turnover of Hyundai motors limited.17 2004 17. • Stock turnover ratio: This ratio measures to discover the possible trouble in the form of overstocking or over valuation.P a g e | 90 I 296 • Net Worth Turnover Ratio: This ratio measures the extent of turnover or volume of gross income generated by the net worth of the company.e.34 2003 20. equity shareholders. In other words. i. it is not an ideal situation for a company. it is the efficiency in the resource utilization from the angle of the residual interest.609 2005 4.80 2003 3.037 2005 17. A low stock turnover ratio results in blocking of funds in inventory which may ultimately result in heavy losses due to inventory becoming obsolete or deteriorating in quality. Therefore. Stock turnover ratio = Cost of sales Average stock 2006 Stock turnover ratio (times) 17. Net worth turnover ratio = Net sales Net worth (equity capital + reserves & surplus – miscellaneous expenditure not written off) 2006 Net worth turnover ratio (times) 3.12 2004 3.

P a g e | 91 I 296 Interpretation: The stock turnover ratio of Hyundai motors limited of past 4 years is not efficiently used.6 2003 13. • Net profit margin: This ratio indicates net margin earned on a sale of Rs.6 2004 15. this indicates that low gross profit margin of Hyundai motors limited reflects the less ability to maintain a low cost of production. As high stock turnover ratio indicates brisk sales. PROFITABILITY RATIO • Gross profit margin: This ratio measures several intermediate profit margin indicators and finally the PAT. Gross Profit (%) = GP*100 Net sales 2006 Gross profit margin (%) 14.100.8 2005 13.7 Interpretation: The gross profit margin of Hyundai motors limited has been increasing at a slower pace for a past 4 years. Net profit margin = A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Therefore.

this indicates that company is capable to return dividends and stock price appreciation to shareholder. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 92 I 296 Net operating profit *100 Net sales 2006 Net profit margin (%) 7.89 2003 5. Therefore.45 2004 7.079 2005 6.30 Interpretation: The net profit margin of Hyundai motors limited has increased in 2006 as compared to 2005.

HYUNDAI MOTORS Company’s overall profitability has also declined from 2003-06. which is considered to be Hyundai Motors have better working capital management as compared to Ford Motors.07 times equal to 1:1. The company‘s The company’s quick ratio for past quick ratio for 4 years is not 2006 is 1. HYUNDAI MOTORS CONCLUSION The ford Motors is more capable to meet its short term liabilities as compared to Hyundai Motors. LIQUIDITY RATIO RATIOS Current ratio FORD MOTORS The company’s current ratio has been increasing consistently from 2003-06. CONCLUSION Both the company shows a decline in overall profitability for past 4 years but the efficiency of Hyundai Motors is better as compared to the Ford Motors. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Quick ratio The company’s current ratio has been increasing but at a slower pace from 200306.P a g e | 93 I 296 FINANCIAL COMPARISON BETWEEN THE FORD MOTORS LTD & HYUNDAI MOTORS LTD RETURN ON INVESTMENT (ROI) RATIOS Return on Net Worth (RONW) FORD MOTORS The overall profitability of a company has declined from 2003-06.

TURNOVER RATIOS RATIOS Fixed assets turnover ratio FORD MOTORS The efficiency of fixed asset utilization of company has been substantially growing from 200306. the gross profit margin of a company has HYUNDAI MOTORS The gross profit margin of a company has been increasing at a CONCLUSION The gross profit margin of Hyundai Motors is better than the ford motors.P a g e | 94 I 296 good but the quick ratio for past 4 years has been declining. The net worth turnover ratio of a company is declining for past 4 years. This indicates that the ability to A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . The company’s stock turnover for past 4 years has not been efficiently used. Ford Motors is in an ideal situation as compared to Hyundai Motors Both the companies has a decline in stock turnover ratio which means that none of the company has efficiently used its inventories. The stock turnover ratio of a company has declined for past 4 years. CONCLUSION The fixed assets are more efficiently used by Hyundai Motors than Ford Motors. PROFITABILITY RATIO RATIOS Gross Profit Margin FORD MOTORS Due to low sales. HYUNDAI MOTORS The fixed assets turnover ratio of a company of past 4 years has also been growing to a large extent. Net worth turnover ratio Stock turnover ratio Due to an increase in RONW. There is an increase in net worth turnover ratio for past 4 years.

Haryana. maintain a low cost of production is more with the Hyundai motors. RECOMMENDATION PROPOSED ENTRANT MOTORS INDIA LTD. Founder Country Year of Establishment Industry Tawseef Ahmad INDIA 2008 Automotive A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . slower pace for a past 4 years. Net profit Margin There was a decline in net profit margin from 2003-06. Its New Tech Comfy will cater the Mid Size car segment (CSEGMENT). has entered the Indian Market in May 2008 with its first car New Tech Comfy being launched in June. The net profit margin of company has increased for past 4 years. The net profit margin of Hyundai motors is better as compared to Ford Motors. New Tech Motors India Ltd.P a g e | 95 I 296 declined in 2006. New Tech has its first factory outlet in Faridabad.

This goal is established in order to help fulfill our vision -.newtechindia.1956. The company is registered under the Companies Act. BUSINESS GOALS Our goal is to provide value to our customers. Tawseef Ahmad as a separate legal entity. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . by strengthening New Tech’s spirit of innovation and creativity.to become a company that society wants to exist.com Faridabad.P a g e | 96 I 296 Website Factory Location www. Our goal is to establish New Tech as a brand that people trust and identify. Haryana CORPORATE STRUCTURE New Tech Motors India Ltd was founded by Mr.

each individual wheel is polished with superior care and cleaned in special baths. operational excellence and comfort in such a way that it could create a sensation amongst every generation. Rich in style and swift in movement. COMPETITIVE ADVANTAGE  What makes New Tech unique is its ability to provide everything under one roof that is sale.P a g e | 97 I 296 New Tech Comfy Performance at its best Come this June and New Tech brings to its Indian customers New Tech Comfy which is all set to put Indian roads on fire. Prior to chrome plating. A car that combines luxury. For chromium plating. Comfy is a symbol of elegance and luxury.  Also. all wheels are buffed to bring out luster and A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . we are using Chrome plated wheels in our Comfy Cars. service & spares. endurance.

EPS Spacious Interiors o o o o o o o o o o o o Leather Upholstery Luxurious dual tone interiors Interior space offers numerous storage features Attractive Styling Premium interior design Innovative.P a g e | 98 I 296 to obtain mirror finish. Main advantages of using chrome plated wheels are: • • • • • Increased fuel efficiency Better brake cooling Rust free and corrosion resistant Better grip Compatible with tubeless tyres DETAILS OF THE PRODUCT ABOUT NEW TECH COMFY FEATURES High Fuel Economy Continuously Variable Transmission .CVT Electric Power Steering . this triple chromium process gives superior looks without sacrificing corrosion protection. novel and futuristic exterior design Driving Enjoyment High efficiency NVH controls Improved H-type torsion beam rear suspension Safety Environment All direction energy absorbing impact structure Neck shock mitigation seat EXTERIORS Flamboyant Exterior A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

your experience in the Comfy can only be unbelievable. Indulge yourself in the sumptuous interiors. Front Styling o o o o High class V shaped front grille New 3D lens headlamp with blue parking light Power door mirrors Roof mounted antenna Colors o Seven sizzling colors will be available in the New Tech Comfy. Style o o Luxurious color tones Innovative instrument cluster A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Look at it from the front. advanced technology. versatility and economy.and it will leave you speechless! The design elements of Comfy makes it so unbelievably stylish. Nighthawk Black Carbon Bronze Pearl Heather Mist Royal Ruby Red Bluish Silver Alabaster Silver Tafeta White INTERIORS Crafted for Comfort Comfy has marvelous interiors – luxurious and relaxing. the back or the side . Whether you are in the driver’s seat or just along for the ride.P a g e | 99 I 296 The New Tech Comfy is an ingenious mix of dynamic styling. where every detail is crafted with precision engineering for immaculate perfection.

Hyundai Verna and Ford Fiesta. we are launching Comfy at a competitive price. Also keeping in mind our competitors. improved seating Super space Powerful air conditioning Automatic temperature control Footrest in the rear Smoother rides Improved rear suspension NVH Control Convenience o o o o o Height-adjustable driver’s seat Headlamp beam adjustment Maximum storage space Tilt Steering Power door mirror controls MODELS We are launching two models of New Tech Comfy initially: • Comfy OL (This model runs on petrol) • Comfy EL (This model runs on diesel) PRICING As New Tech Comfy is being launched in Mid Size Car segment.P a g e | 100 I 296 o o o New high grade stereo with CD/MP3 player Chrome inner door handles Front storage space with retractable glass holder partition Comfort o o o o o o o o New. it will provide the customers luxury at a much affordable price. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .

Hyderabad. magazines etc to penetrate into the Indian Car Industry.P a g e | 101 I 296 • • Comfy OL Comfy EL Rs. Lucknow etc. Bangalore. We’ll be putting ads during prime time on almost all popular channels like:-  SONY  STAR PLUS  ZEE CINEMA  SET MAX  CNN-IBN  ZEE TV Around 70% of the amount allocated for promotional purpose is to be used for television advertising. Ahmedabad. covering all major cities like Delhi. Chennai. Mumbai. We have hired Abhishek Bachhan as our brand ambassador. 810000 (Showroom price) (Showroom price) PLACE We are planning launch of New Tech Comfy initially in India only. • Television Advertising: We will be promoting our product by TV Advertisements. Kolkata. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Chandigarh. 720000 Rs. PROMOTION We are planning to use various advertising media like television. In the next financial year we are planning to cater to international markets also with Comfy petrol and Comfy diesel and many more new variants of the same. newspapers. Pune.

This will help us in creating immediate awareness about our product and will help us to demonstrate our product in a better way. We have planned campaigns in various B-Schools. Auto exhibitions.P a g e | 102 I 296 • Print Advertisements: Hoardings and billboards will be placed across all major cities all over India. and last but not the least. Prints adds will be there in daily newspapers and selected magazines. Also. corporate offices. NEWSPAPERS • • TIMES OF INDIA HINDUSTAN TIMES MAGAZINES • • • • • MOTORING OVERDRIVE INDIA TODAY BUSINESS TODAY BUSINESS & ECONOMY Around 20% of the amount allocated for promotional purpose is to be used for print advertising. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . • Campaigning: Besides print Advertising and television advertising. college Campuses. we are also planning to promote our Comfy car through Campaigns and road shows.

CREDIT TERMS PARTNERS: We will provide our cars at 3. We are also targeting the age group of 30-35 because of its comfort and luxury. Sporty looks of New Tech Comfy make it a car for youngsters and its comfort and space makes it a car for family!! INVESTMENT PLAN A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . 4 & 5 year credit plans with minimum down payment of 15% & remaining amount at EMI with the interest rate of 6%.P a g e | 103 I 296 In all we have allocated 10% of the promotional amount to campaigns and road shows. TARGET SEGMENT New Tech Comfy is having sporty looks so we are mainly targeting male youngsters in the age group of 20-30 who are passionate drivers and seek adventure.

These amazing automated machines position stamped body parts and accurately weld them together to form the vehicle body. machinery. hood and trunk. The vehicle first rotates 360 degrees in a unique electro coat bath to prepare the entire body for paint. constructions. Since the Paint Shop is an environmentally-controlled area.Welding 3. New Tech is planning to open up six more showrooms in states other than metros which will require an investment of around Rs.1500 Crores for the first financial year. Furthermore in year 2010-11.400 tons of pressure transforms the steel blank into a specific body part.000 pounds. PRODUCTION Production Process of New Tech Motors India: 1.General Assembly 5. Paint: The completed “body-in-white” moves from the Welding Shop. Cranes are used to lift the rolls and put them into the blanking machine. where rectangular pieces. thin as a dime. Stamping 2. then check the quality of each car body to confirm the welding process is perfect. are cut and stored in racks. Welding: The Welding Shop containing robots capable of manoeuvring and welding body parts.Paint 4.300 Crores. doors.000 and 40. promotion and 18 showrooms opened in six metros. A single particle of dust can affect the overall A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Housed in the shop are large rolls of steel.P a g e | 104 I 296 New Tech’s initial investment was Rs. Over 5.Quality 6. New Tech is planning to increase number of showrooms which would require an investment of around Rs. the vehicle begins to take shape.Production Control Stamping: In the Stamping Shop.”Team Members attach hinges. employees hired. Team Members must wear special overalls and gloves to protect themselves and the paint’s finish. called a “body-in-white. The pieces are automatically moved to one of two large. along a trestle into the Paint Shop for the nine-hour painting process.200 Crores. each weighing between 20. This investment was made on factory land. In the next financial year 2009-10. stamping presses with dies moulded into various shapes.

So the total number of employees working at NMIL is approximately equal to 1700. General Assembly: General Assembly houses approximately 700 Team Members who install a variety of parts to complete the vehicle. After the tires. After drying. battery. The painted vehicle body moves through the trim area where wires. power windows. Quality: Quality checks are built into each step in the production process. and then to customers. the doors are reattached to the vehicle. The doors are taken off early in the process and sent to another area where speakers. In the chassis area. engine coolant. Oil. front and rear glass. and then the vehicle is started for the first time. beginning with our customer order. Production Control: In the production control department. RESULTS EXPECTED A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . and other parts are quickly connected inside the vehicle. including satisfactory performance on a two-mile test track. and seats are installed. brake controls. then through its own distribution network to its own showrooms. under the hood. Company has its own distribution network and does not rely on dealerships due to which the company maintains a huge control on production & sales as the cars are made on demand. the freshly-painted vehicle body heads to General Assembly. gasoline and other vital fluids are added. and in the trunk. moving from suppliers to manufacturers. for its current (1st) year of production. A roll booth tests the braking system and then the vehicle is driven on a two-mile test track to check for rattles or other issues. The company has got its own 18 3S-showrooms in different states with around 40 employees working in each showroom. Each vehicle has to pass a series of stringent tests. the underside of the vehicle is completed and the engine and drive train are connected to the body. PROCUREMENT New Tech Motors India Limited has around 1000 workers working in its factory outlet which is located in Faridabad.P a g e | 105 I 296 quality of a vehicles paint finish. door seals and other parts are installed. NMIL manages whole supply chain activities and the network.

600 1.0 Crores 561.236 Crores ÷ Rs514.8 Crores Rs.2 Crores 403.2278. OF CARS SOLD PER YEAR PROFIT PER CAR TOTAL PROFIT 2008-09 2009-10 2010-11 2011-12 2012-13 TOTAL 18 24 30 30 30 60 80 100 120 110 470 12. Thus.000 259.50. Out of this.75.8 Crores) × 365 days} = 4 years and 167 days (approx) Thus we will be able to achieve our break even point in 4 & ½ years. we are expecting a growth of 30% in our market share in next 5 years. OF CARS SOLD/MONTH/ SHOWROOM TOTAL NO.we expect to capture around 3% market share in diesel & 7% market share in petrol in mid size car segment.000 cars in a year. Therefore.6 Crores 514.000 1. MARKET SHARE EXPECTED We are expecting average sales of approximately 30.54.2 Crores 540.P a g e | 106 I 296 SALES FORECAST AND TOTAL ESTIMATED PROFIT YEAR NO. the fastest growing car segment in India.30. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .30.800 2. that is.2000 Crores.00.8 Crores We are expecting total profit of Rs.2278. Our planned total investment for these 5 years is Rs.200 39. by 2013.000 43.960 23.040 36.1764 Crores will be recovered in financial year 2011-12.236 Crores will be recovered in year 2012-13. by next financial year 2009-2010.000 1.000 1. OF SHOWROOMS AVERAGE NO. Remaining Rs.8 Crores in five financial years. we are expecting that Rs. With the mid size car segment growing at such a fast pace.000 1. pay back period will be Pay back period = 4 years +{ ( Rs.

The excise and customs duties on cars and auto-components have been continuously declining over the past five years. which spread across the globe. In some metropolises congestion-charges also negatively impact on carusage rates. had been given special importance by the government.P a g e | 107 I 296 MACRO & MICRO ENVIRONMENT ANALYSIS The car industry environment is very complex due to the large number of product markets. • A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . it has often been described as "the industry of all industries". As such. Regulations regarding car-safety demand high R&D and upgraded basic configurations. MACRO ENVIRONMENT  Politically: • Added and increasing taxes on petrol for environmental protection discourage driving or purchasing cars with high petrol-consumption. in particular. suppliers and customers. maintenance and taxes. Prospering developing countries like India provide new markets for manufacturers. There are various forces that influence this environment. These factors have contributed in providing the impetus to the auto sector. • • • •  Economically: • Driving a car is becoming increasingly expensive due to adverse changes in petrol prices. The road infrastructure. buyers.

g. crash-absorbing materials. IT assists drivers). more durable. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . transferring an image and families owning two or more cars are no rarity. Generally. economical and convenience reasons.  Legislative situation: • It includes a lot of treaties and regulations by which automobile manufacturers have to abide. Documents like the Kyoto protocol have worldwide impacts. • •  Environmentally: • Decreasing oil reserves and increasing pollution may cause severe repercussions on the automobile industry. on new engine-developments. lighter. preferences head towards smaller and mid size cars for environmental.P a g e | 108 I 296  Socio-demographically: • • Automobiles have developed into lifestyle-products. e. the number of active drivers is likely to decrease. Huge Financial resources are required to keep up with the fast pace of changes. Shorter model-lifecycles and more launches.g. From the ageing populations. •  Technologically: • The pace of change and advancements is continuously high leading to new beneficial developments (e.

and high regarding existing companies. increasing congestions and running costs impact adversely on the consideration to buy a larger vehicle. Honda). DaimlerChrysler.  The threat of substitutes: • • Substitutes such as motorcycles or public transport can be a major road block in the growth of mid size car segment. VERTICAL COMPEITION A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Toyota vs. Existing companies benefit from brand loyalty (maintain old customers). brand identity/awareness (attract new customers) and their absolute cost advantage (existing expertise. facilities. supplier-networks). similarly high financial backing by parent companies and high exit barriers (manufacturers forced to carry on. distribution-channels. Additionally. not established companies. hence competition does not cease) intensify rivalry. however. 2. Switching from mid size cars to large/luxury cars bears instead a greater substitute threat. • Rivalry is high since the high growth rate of the mid size car segment naturally attracts many existing competitors aiming to cover it.P a g e | 109 I 296 MICRO ENVIRONMENT 1. heterogeneity of competitors (BMW vs. resources. HORIZONTAL COMPETITION • Threat of new entrants: Threat of new entrants is low regarding new. low differentiation of products (image and brand-identity main differentiators).

the high concentration of suppliers offering substitutes limits this advantage to those. have significantly higher bargaining power than individuals. new IT technology or material development).g.g. Commercial (bulk) buyers (e. tires). offering (temporarily) unique products (e. • Switching costs are moderate. but this mainly affects dealers. since cars are usually kept for at least three years. since manufacturers narrow margins depend on those discounts.  The bargaining power of buyers: • The bargaining power of buyers depends on the group and location. steel. Nevertheless.g. DEALING WITH RISK A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 110 I 296  Bargaining power of suppliers: • The bargaining power of suppliers is low. that supplied parts are not unique and many alternative providers exist (e. companies. • Granting bulk discounts is one area. national authorities). Internet price comparisons increase the bargaining power. where suppliers have slight bargaining power. makes switching easier. based on the facts.

New Tech is adopting the strategy of CRM. then who will think of switching. in order to create a brand image in the minds of the customers. New Tech Comfy is one such example and we have many more to come in future. Our company is committed to the development of various new technologies that minimize energy losses and maximize energy efficiency. New Tech is planning to invest heavily in R&D in order to bring out innovative and absolutely unique products. However. One of the most effective environmental protection efforts we can pursue at this moment is to improve the efficiency of internal combustion engines -. In order to deal with such risk of switching. CONCLUSION A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Also. threat of switching from mid size cars to large/luxury cars can be dealt with to some extent. If customers can get the benefits of large cars in mid size cars. This will help us to acquire new customers in no time. To deal with such intense competition and to be ahead of the crowd the only way left is product differentiation and customer relationship management. New Tech will try to reduce CO2 emissions as an effort against global warming.P a g e | 111 I 296 Environmental issues: From the viewpoint of environmental protection. comfort and an ultimate driving experience. Substitutes: Every automobile manufacturer has to deal with generic competition which cannot be avoided directly.which are the primary means to enable people to enjoy the freedom of mobility – in the effort to minimize CO2 emissions in the atmosphere. we are providing our customers cars that provide them luxury. Competition: Automobile industry is one of the fastest growing industries in India which has intensified the competition in this sector.

The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years. A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . in auto sector. It is expected that automobile industry will touch a mark of 13. India is the 11th largest Passenger Cars producing countries in the world. the Indian Auto Companies along with the global giants have announced huge expansion plans. which has seen an uptrend in sales across various segments. India. Even the commercial vehicles are likely to grow at 5. Premier Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers. Indian car industry is about to take a new shape altogether with the launch of TATA NANO. results of which will be visible in over next ten years Car industry occupies a strategic position in many countries.008 million by 2010. The industry is set to have a major impact on India’s future economic growth. is turning to be a sourcing base for the global auto majors. Although the Indian automobile industry recorded a de growth in the financial year ended 2007-08. a convenient union budget in the current financial year (2008-09) has worked in favour of the automobile sector. Automobile industry has a huge potential to grow and prosper in future as manufacturers are investing heavily in new manufacturing and assembly plants in automotive hubs across India and have announced massive expansion plans. To tap this large opportunity. Hyundai Motors India is the second largest player in passenger car market.2 per cent. The industry is entering into a new phase of its development and evolution. Currently. The onset of automobile industry in India saw companies like Hindustan Motors. Additionally. Hyundai Motor India Ltd recorded the highest growth with an increase of 52 per cent. there is high demand for cars across all the segments. The policy reforms in 1991 opened up the sector for many foreign auto makers who entered the Indian markets and the competition levels in the Automobile Industry intensified. Manufacturers are investing overseas and establishing footprints across the world. With the growing economy.P a g e | 112 I 296 Automobile Industry is the largest industry in India which is currently contributing about 5% of the India’s GDP and it is targeted to grow five fold by 2016. Nano is expected to bring about a revolutionary change in the Indian Car Industry. Hindustan Motors (HM) was the leader in car manufacturing and sales until the 1980s. people left with a lot of disposable income spend it towards meeting their mobility needs such as cars.

Now another car. HMIL is highly penetrated into the B. B+ segment with huge sale of cars like Santro & now i10. The company is investing heavily in R&D in order to develop new products and technologies. Ford is having the world class manufacturing capabilities and is always there to provide services and solutions to its customers. The consumers. number of cars sold per year & number of showrooms. BIBLIOGRAPHY A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry . Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car manufacturer in India with its presence in almost all the segments. Another reason for HMIL being ahead of Ford India is that Hyundai has been able to better understand the tastes & preferences of Indian customers.The company has been awarded various times and achieved another milestone with the launch of Hyundai Verna. which introduced itself in India in 1988. pro-reform policies of the government and fast pace of growth of the automobile industry made almost all major global auto players making their way into India. Hyundai Verna is better in Style & Comfort whereas Ford Fiesta is better in Mileage & its prices are less as compared to Hyundai Verna. have benefited from wide choice of models. HMIL is far ahead of Ford India.P a g e | 113 I 296 Ford motors Ltd. in turn. New Tech Comfy. The intense competition has compelled the manufacturers to launch the latest global offering in India as early as possible. technologically advanced cars and better service from the car manufacturers. Hyundai Motor is the sixth largest car maker in the world. Hyundai Motor India is following management practices and focusing on developing products that are environment friendly . This difference is on the basis of market share. As far as the comparison of Hyundai Verna & Ford Fiesta is concerned. being launched by NMIL this month is going to make the competition more intense & it will try its best to make the life hard for cars like Hyundai Verna & Ford Fiesta. It has also enabled to keep the prices of the vehicles under check. The positive demographic factors. has invested heavily in India to give the finest in automobiles. As far as our research is concerned.

jagsharma.indiatimes.ibef.ford.pdf http://www.com/automobile/industry-growth.indiamart.com http://www.icmrindia.com/cars/hyundai-verna/ http://auto.com/indian_auto_scenario.com/cars/ford-fiesta/ www.thehindubusinessline.fadaweb.india.org www.com www.com www.thehindubusinessline.com www.com/files/Coursework%20Strategy.hyundai.com http://readers-choice.html A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .P a g e | 114 I 296 www.html http://auto.surfindia.com/cars/mid-size-cars.indiamart.in www.economictimes.htm www.capitaline.com http://auto.co.org http://www.hondacarindia.indiamart.org www.

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http://www.surfindia.com/automobile/vehicle-production.html http://www.surfindia.com/automobile/auto-companies.html http://www.surfindia.com/automobile/ford-india-limited.html http://www.surfindia.com/automobile/hyundai-motor.html

ANNEXURES
Visit to
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Ford and Hyundai Showrooms of NCR

ANNEXURE 1 NCR FORD
Information gathered from the conversation with Mr. Anil Arora, Manager Sales & Finance
• Ford is having six showrooms in NCR region. • Ford sells around 300 cars per month from all the 6 showrooms out of which 5060% are Ford Fiesta. • Customer segment for Ford Fiesta: C – segment • Generic Competition for Ford Fiesta:  Honda City and Maruti Suzuki SX4 in petrol  Hyundai Verna and Swift Dezire in diesel

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Brand Competition:- Maruti Suzuki, Hyundai, GM and Honda Threat of new entrants:- Maruti Suzuki Swift Dezire Distribution Channel:Factory Outlet(Chennai) • transportation Showroom customers

Business Model: Road shows  Free check up camps  Corporate visits  Telecalling  Walk in Customers Competitive Advantage:- Mileage, luxury, interior. Ford is the only car in its segment which gets 0-100 kms in 11.43 seconds.

ANNEXURE 2 Fx Hyundai
Information gathered from the conversation with Mr. Raman Jha, assistant sales manager.
• • • This showroom sells around 100 to 125 cars per month. Verna launched for the segment which is above the A2 segment, also called as Csegment. Hyundai does most of its business with brand loyal customers so New Verna is for those who have already used Hyundai Santro & Getz.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

credit goes to cars like Santro. Hyundai is the 6th largest in World & 2nd largest in India. not even a single feature is changed.P a g e | 118 I 296 • • Hyundai is the only car manufacturer in Indian market who launches same designs in all the 65 countries. Distribution channel:Transportation Showrooms • Factory outlet (Chennai) customers A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry .