Company

Hyundai Motor India Limited

Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor
Company headquartered in South Korea. It is the second largest automobile
manufacturer with 16.2% market share as of February 2019 and US$5.5 billion
turn-over in India.

Hyundai Motor India Limited was formed on 6 May 1996 by the Hyundai
Motor Company of South Korea. When Hyundai Motor Company entered the
Indian Automobile Market in 1996 the Hyundai brand was almost unknown
throughout India. During the entry of Hyundai in 1996, there were only five major
automobile manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and
Mahindra. Daewoo had entered the Indian automobile market with Cielo just
three years back while Ford, Opel and Honda had entered less than a year back.

For more than a decade till Hyundai arrived, Maruti Suzuki had a near monopoly
over the passenger cars segment because Tata Motors and Mahindra & Mahindra
were solely utility and commercial vehicle manufacturers, while Hindustan and
Premier both built outdated and uncompetitive products. The company is looking
its future business growth in Mobility and has invested $14 million in Delhi based
car rental platform Revv. With this strategic investment in Revv, Hyundai Motor
will work to co-develop the company's new growth engine by developing
innovative mobility services that combine technologies such as autonomous
driving and artificial intelligence with the sharing economy to transform people's
lives.

Company Name Hyundai Motor India Limited

Founded 6, May, 1996
Type Subsidiary
Industry Automotive
Headquarters Chennai, Tamil Nadu, India

CEO Mr. Seon Seob Kim

Requirements to start a Hyundai dealership

Area:
The total area required to start Hyundai Dealership is 4000 square feet. The area
must be located such that it is easily locatable by the customers. It should be
easily accessible. The area must accommodate space for a big display area for the
cars, working area for the people employed, and parking space for the cars to be
sold.

The showroom must have a clean and presentable reception area for the
customers.

A designated office area is also required. The showroom must be located on the
ground floor. The company provides the guidelines to set up the showroom. The
showroom must contain a walk in service location. There must be a designated
workshop area for all the repairs, storage of spare parts and incoming vehicles for
repair. The showroom must be located in a commercial area.

Skills or Experience:
The company is looking for franchise partners who have previous experience in
the automotive workshop business. The company requires the audited financial
records of the franchisee. The franchisee must the standard set by Hyundai all the
time.  

Regions of Operation:
Hyundai India has 449 dealers and more than 1,150 service stations all across
India. Hyundai has its headquarters in Chennai, Tamil Nadu. Hyundai has 2
manufacturing units in Kancheepuram and one near Chennai. Its research and
development facility is located in Hyderabad, Telangana. The company wants to
expand in the states of Jammu and Kashmir, Delhi, Punjab, Haryana, Uttar
Pradesh, Himachal Pradesh and Uttaranchal in the northern parts of the country.

In the south, the company is targeting the states of Kerala, Karnataka, Tamil
Nadu, and Telangana. In east India the company wants to focus on West Bengal,
Bihar, Jharkhand and in the northeast, it wants to expand its network in all the
seven sisters. In the west, the company wants to expand in Maharashtra, Goa,
Gujarat, and Rajasthan. Madhya Pradesh and Chhattisgarh are the targets in
central India. The company also plans on expanding in all the Union Territories.

Training:
The company provides all the interior designing inputs for the showroom to the
dealer. It also provides inputs on the construction. It helps in the site selection.
The company gives its full attention to help the franchise partner with marketing
and advertising. Proper technical knowledge and training is given to all the
employees. Guidelines on administration are set out by the company. Guidance
and assistance are always available to the franchise partner. The company also
gives full IT support.

Staff Requirement:
Manager, Sales Coordinator, sales consultant, technicians, supervisor, workshop
manager, service advisor, salespersons, and store in charge are the manpower
required to run and manage a dealership showroom. In addition, maintenance staff
is also required.

Hyundai Dealership cost

Investment:
Starting a Hyundai dealership in any big city in India will cost around INR 25
crores. INR 12 crores to INR 15 crores is required the cost of brand fees, rent of
the dealership showroom and the cost of procurement of vehicles. INR 5 crores
will be needed as the cost for interiors, gadgets and any required construction.
INR 5 crores is needed to pay salaries to the staff and for maintenance.

All the payment for the procurement of goods is to be fully paid in advance.

Years of bond and profitability:

The return on investment is estimated between 3 years to 5 years. The exact
percentage cannot be estimated. The number of years on returns depends on
factors like location of the store, city, sale strategies and promotion of the
showroom. The company signs a standard franchise agreement with the
franchisee. The contract can be renewed on expiration. Renewal depends on the
discretion of the company.

Benefits of owning a Hyundai Dealership

Brand Name:
Hyundai is a Korean company. But over the years, due to company’s work and
efforts, Hyundai is assumed to be an Indian company by the people.

Saleable Brand:
Hyundai is India’s second most purchased brand in cars.
Car Exporter:
Hyundai India is Asian market’s largest car exporter. The company has shown a
consistent growth at 10%.

Number of Car Models:

Hyundai India manufactures all the cars locally. The company is currently selling
9 different cars in the country. The cars are Hyundai Santro, Hyundai i10,
Hyundai Grand i10, Hyundai Xcent, Hyundai i20 Active, Hyundai 4S Fluidic
Verna, Hyundai Elantra, Hyundai Creta and Hyundai Tucson.

Technology:
Hyundai India is a subsidiary of Hyundai. Hyundai is a Korean company. The
cars manufactured by Hyundai have latest technology. All the cars made have to
comply with the set international standards.

Global Name:
Hyundai is a globally renowned organization. The company sells its cars in
countries like South Korea, China, USA, Canada, Mexico, Brazil, Turkey and
Japan.

 Target Audience
Hyundai marketing strategy is differentiated marketing. The primary consumer
target is middle to upper income professionals, who need value for their money
and comfortable ride in city conditions. The secondary consumer target is college
students who need style and speed.

 Promotional Activities
Digital Marketing and Paper advertisement are some of the promotional activities
done by the company to promote its company and products.

 Competitors of Hyundai
Ford, Toyota, Maruti Suzuki, Volkswagen, Nissan, Honda.

 Hyundai Pricing
Hyundai cars price starts at Rs. 4.30 lakh for the cheapest car Santro and goes up
to Rs. 26.97 lakh for the top model Hyundai Tucson. Hyundai offers 12 new car
models in India. Venue (Rs. 6.50 lakh), Elite i20 (Rs. 5.53 lakh) and Creta (Rs.
10.00 lakh) are among the popular cars from Hyundai.
Kun united Hyundai Dealer in Hyderabad

Kun United Hyundai offers a wide range of facilities to ensure that our clients
get the best out of their cars.

KUN UNITED HYUNDAI is the elite dealer in Hyderabad & Secunderabad for
Hyundai Motor India Ltd., which is the leading manufacturer of small and mid-
sized cars in India.

KUN which started its operations is 2001 is efficiently run by a highly qualified
and dynamic professionals whose policy is to give excellent and professional
service to its customers. CUSTOMER FIRST is KUN's motto and
EXCELLENCE IN CUSTOMER SERVICE is the pledge.

Human Resources aspect at Hyundai (KUN)

Number of employees:- Three Sales Manager and forty-seven staff members
and sales persons.
Nature of job :- Sales
Recruitment Policy :- Anyone who is 12th pass and interested in sales.

Finance aspect
Capital required to start business (Dealership):- 5 crores to 15 crores
Source of fund:- Dealer’s own investment, Partnership (two or more partners
can contribute to the capital of the business)

Awards
Customer Satisfaction Award - 2014.
Best Selling Partner in South Region – 2017
The Best Seller Award in South Region (Jan-June) - 2018.
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