Rahuman BBA Project

A STUDY ON MARKETING STRATEGY OF HYUNDAI MOTOR COMPANY
INTRODUCTION
The roots of Indian Automobile industry refers to first car which ran Indian road in 1897,
which created the way for imports of automobile through the 1930’s. Hindustan motors
was launched in India in 1942 and a long time competitor Premier in 1944 which gave
the products like Chrysler, dodge and fiat. Mahindra got establish in 1945 with assembly
of Jeep CJ-3A utility vehicle. After independence an effort was organized by government
of India to create an automotive component manufacturing industry for supplies. The
tariff commission appointed by government in 1952 came out with the recommendations
which were implemented in the new policy. Following the implementation General
Motors, Ford and Roots group having assembly plant in Mumbai decided to move out.
During Nationalization and License raj the growth of the sector was relatively slow. It
affected the growth of Indian Private Automobile sector. Marti Suzuki India Ltd. Got
established in 1981, which is the country’s largest passenger car manufacturing
company. After liberalization multinational auto makers viz. Suzuki, Toyota and Hyundai
were allowed to invest in the Indian automobile market. HMIL owned by Hyundai motors
of south Korea and one of the 6th largest of the world got established on 6th May 1996,
which took the Indian automobile industry by storm.
HMIL’s manufacturing plant near Chennai is having advanced production, quality and
testing capabilities in the country. To cater of rising demand, HMIL became developing
its second plant in February 2008, which produces an additional 300,000 units per
annum, raising HMIL’s total production capacity to 600,000 units per annum. Current
Production Capacity by these 2 plants in Kancheepuram increased to 670,000 cars per
year.
HMC has formed a research and development facility (Hyundai Motor India Engineering
- HMIE) in the cyber city of Hyderabad. As HMC’s having global export hub for compact
cars, HMIL is becoming the first automotive company in India to achieve the export of 10
lakh cars in just over a decade. HMIL is now currently exports cars to more than 120
countries across EU, Africa, Middle East, Latin America, Asia and Australia. It is the
number one exporter of passenger cars of the country for the eighth year in a row.
HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 1

AN OVERVIEW OF THE INDUSTRY

1.1 BRIEF HISTORY OF INDUSTRY
The history of the automotive industry, though brief compared with that of many other
industries, has exceptional interest because of its effects on history from the 20th century.
Although the automobile originated in Europe in the late 19th century, the United States
completely dominated the world industry for the first half of the 20th century through
the invention of mass
production techniques. In the second half of the century the situation altered sharply as
western European countries and Japan became major producers and exporters. Although
steam-powered road vehicles were produced earlier, the origins of the automotive
industry are rooted in the development of the gasoline engine in the 1860s and 70s,
principally in France and Germany. By the beginning of the 20th century, German and
French manufacturers had been joined by British, Italian, and American makers. Most
early automobile companies were small shops, hundreds of which each produced a few
handmade cars, and nearly all of which abandoned the business soon after going into it.
The handful that survived into the era of large-scale production had certain
characteristics in common. First, they fell into one of three well-defined categories: they
were makers of bicycles such as Opel in Germany and Morris in Great Britain; builders of
horse-drawn vehicles, such as Durant and Studebaker in the United States; or most
frequently machinery manufacturers. The kinds of machinery included stationary gas
engines (Daimler of Germany Lanchester of Britain, Olds of the United States), marine
engines (Vauxhall of Britain), machine tools (Leland of the United States), sheep-shearing
machinery (Wolseley of Britain), washing machines (Peerless of the United States)
sewing machines (White of the United States), and woodworking and milling machinery
(Pan hard and Leaser of France). One American company, Pierce, made birdcages, and
another, Buick, made plumbing fixtures, including the first enamelled cast-iron bathtub.
Two notable exceptions to the general pattern were Rolls-Royce in Britain and Ford in
the United States, both of which were founded as carmakers by partners who combined
engineering talent and business skill. In the United States almost all of the producers were
assemblers who put together components and parts that were manufactured by separate
firms. The assembly technique also lent itself to an advantageous method of financing. It
was possible to begin building motor vehicles with a minimal investment of capital by
buying parts on credit and selling the finished cars for cash; the cash sale from

manufacturer to dealer has been integral in the marketing of motor vehicles in the United
States ever since. European automotive firms of this period tended to be more self-
sufficient.
The pioneer automobile manufacturer not only had to solve the technical and financial
problems of getting into production but also had to make a basic decision about what to
produce. After the first success of the gasoline engine, there was widespread
experimentation with steam and electricity. For a brief period the electric automobile
actually enjoyed the greatest acceptance because it was quiet and easy to operate, but the
limitations imposed by battery capacity proved competitively fatal. Especially popular
with women, electric cars remained in limited production well into the 1920s. One of the
longest-surviving makers, Detroit Electric Car Company, operated on a regular basis
through 1929. Steam power, a more serious rival, was aided by the general adoption, after
1900, of the so-called flash boiler, in which steam could be raised rapidly. The steam car
was easy to operate because it did not require an elaborate transmission. On the other
hand, high steam pressures were needed to make the engine light enough for use in a
road vehicle; suitable engines required expensive construction and were difficult to
maintain. By 1910 most manufacturers of steam vehicles had turned to gasoline power.
The Stanley brothers in the United States, however, continued to manufacture steam
automobiles until the early 1920s. As often happens with a new technology, the
automotive industry experienced patent controversies in its early years. Most notable
were two long, drawn-out court cases in Britain and the United States, in each of which a
promoter sought to gain control of the new industry by filing comprehensive patents. In
Britain the claim was rejected by the courts in 1901, five years after the patent
application. In the United States there was a legal battle between Ford and the Association
of Licensed Automobile Manufacturers over the Selden patent, which the association
claimed as a basic patent on the gasoline-powered car. In 1911 the courts held the patent
“valid but not infringed” by Ford. The main consequence of the decision was the
formation of the predecessor of the Alliance of Automobile Manufacturers to supervise
an agreement for cross-licensing patents, which was ratified in 1915. The outstanding
contribution of the automotive industry to technological advance was the introduction of
full-scale mass production, a process combining precision, standardization,
interchangeability, synchronization, and continuity. Mass production was an American

innovation. The United States, with its large population, high standard of living, and long
distances, was the natural birthplace of the technique, which had been partly explored in
the 19th century. Although Europe had shared in the experimentation, the American role
was emphasized in the popular description of standardization and interchangeability as
“the American system of manufacture.” The fundamental techniques were known, but
they had not previously been applied to the manufacture of a mechanism as complex as
a motor vehicle (see work, history of the organization of). The kind of interchangeability
achieved by the “American system” was dramatically demonstrated in 1908 at the British
Royal Automobile Club in London: three Cadillac cars were disassembled, the parts were
mixed together, 89 parts were removed at random and replaced from dealer’s stock, and
the cars were reassembled and driven 800 km (500 miles) without trouble. Henry M.
Leland, founder of the Cadillac Motor Car Company and the man responsible for this feat
of showmanship, later enlisted the aid of a noted electrical engineer, Charles F. Kettering,
in developing the electric starter, a significant innovation in promoting the acceptability
of the gasoline-powered automobile. The mass-produced automobile is generally and
correctly attributed to Henry Ford, but he was not alone in seeing the possibilities in a
mass market. Ransom E. Olds made the first major bid for the mass market with a famous
curved-dash Oldsmobile buggy in 1901. Although the first Oldsmobile was a popular car,
it was too lightly built to withstand rough usage. The same defect applied to Old’s
imitators. Ford, more successful in realizing his dream of “a car for the great multitude,”
designed his car first and then considered the problem of producing it cheaply. The car
was the so-called Model T, the best-known motor vehicle in history. It was built to be
durable for service on the rough American country roads of that period, economical to
operate, and easy to maintain and repair. It was first put on the market in 1908, and more
than 15 million were built before it was discontinued in 1927. General Motors
Corporation (GM), which ultimately became the world’s largest automotive firm and the
largest privately owned manufacturing enterprise in the world, was founded in 1908 by
William C. Durant, a carriage manufacturer of Flint, Michigan. In 1904 he assumed control
of the ailing Buick Motor Company and made it one of the principal American producers.
Durant developed the idea for a combination that would produce a variety of models.

1.2 BUSINESS PROCESS OF THE INDUSTRY

The business processes for automotive in focus on production planning, procurement,

and sales. Scheduling agreement processing: Scheduling agreement processing and
invoice processing describes a collaborative scenario about forecast delivery schedule
and delivery and invoice processing between OEM and supplier. Automotive industry has
countersigned a long run of success with its ability to effortlessly adapt to changing
consumer demands in terms of design and technology. This has led to high level of
product development in this industry. High competition in automotive market has
increased the competitive pressure on businesses which as forced them to remove all
delays of decision making process and business process. Business process management
has evolved as a best solution to overcome these delays by combining two different
individual activity. Business process management is a process of transforming business
activity by integrating individual process to create new way or scope of the combined
management capabilities. Business process management provides capabilities &
direction to convert the complex, high lead time & high cost operational process into
simple, less time consuming & low cost operational process. Business process
management contributes in achieving real-time goals of organization by strengthening
its operational process. Stiff competition in automotive industry has urged the
manufacturers into new era of automotive business process management. Automotive
business process management market is expected to increase at a significant pace in
terms of value over the forecast period. Rapidly changing requirements from customers
in terms of design and technology in the automotive industry has increased the necessity
of services that provide solutions to drive the efficiency. Moreover, reducing the
production cost without compromising the quality has also become essential. All this has
driven the need and demand for business process management in automotive industry.
Requirement of connecting & understanding rapid change in choice, life style etc. of end
user in short period of time is also expected to propel the demand for business process
fusion, thus driving the automotive business process management market. Variations in
the content & sequence in activity is also anticipated to drive the automotive business
process management market over the forecast period. High initial cost of business
process fusion technology is expected to be a major restraining factor for the growth of
automotive business process management market over the forecast period. Addition to
this, lack of knowledge about the benefits of business process fusion has led to less
adoption. This factor is anticipated to be a major challenge for key players in the global

Automotive business process management market .Global Automotive Business Process

Management Market: Region-Wise Outlook The global automotive business process
management market is segmented into key regions namely North America, Latin
America, Middle East Africa, Asia-Pacific, Western Europe, Eastern Europe & Japan
region. Europe is expected to grow rapidly in automotive business process management
market because of adoption of new way of business process & need of minimization in
operational time. Apart from Europe, Asia-Pacific is expected to witness high growth in
the global automotive business process management market because of Asia-pacific
emerging as automotive destination. North America is also expected to exhibit growth in
the near future in the global automotive business process management market.
Some of the key players identified in the global automotive business process
management are as follows ;
 SAP SE
 Peoples soft
 Oracle
 International Business Machines Corporation
 Cap Gemini Group
 Infosys ltd.
 Wipro ltd.
 Larsen & Toubro InfoTech
The research report presents a comprehensive assessment of the market and contain
thoughtful insights, facts, historical data, and statistically supported and industry-
validated market data. It also contains projections using a suitable set of assumptions
and methodologies. The research report provides analysis and information
according to categories such as market segments, geographies, types and
applications. At the heart of every business and PLM is a complicated web of
processes that form the foundation for all operations. These business processes are
the lifeblood of the organization and typically include all humans and systems that
exist within the enterprise. Since they play such a central role, business processes
must be efficient to make the business as effective as possible. As a result, finding
ways to automate and improve organizations as they struggle to find ways to become
more agile responsive to changing business climates.

An entire discipline, BPM has grown out of the desire to improve existing business
processes and build new processes and services that will differentiate a business
from its competitors. Resources , both human and system based, to create, manage,
and optimize effective business processes that span the enterprise
Automotive Business Process Management Market

 Detailed overview of parent market
 Changing market dynamics in the industry
 In-depth market segmentation
 Historical, current and projected market size in terms of volume and value
 Recent industry trends and developments
 Competitive landscape
 Strategies of key players and products offered
 Potential and niche segments, geographical regions exhibiting promising
growth
 A neutral perspective on market performance
 Must-have information for market players to sustain and enhance their
market footprint.
1.1 MARKET DEMAND AND SUPPLY-CONTRIBUTION TO GDP-REVENUE

GENERATION
The India automotive market demand was pegged at 4,266,062 units in 2019. The market
is expected to expand at a compound annual growth rate (CAGR) of 11.3% from 2020 to
2027. According to statistics published in April 2018 by the European Automobile
Manufacturers Association (ACEA), India is ranked fourth in the top ten global car-
producing countries. The country’s automotive sector is powered by the rising
population, increasing disposable income, and ease of availability of credit and financing.
Additionally, the market is expected to experience elevated demand for commercial
vehicles from the flourishing logistics and passenger transport sector. Government
initiatives and policies are prominent factors influencing market growth. In an attempt
to promote market growth, the Ministry of Finance had announced a cut in the corporate

tax rate in 2019. This revision in corporate taxes is anticipated to attract FDI in the
country’s manufacturing sector, which is expected to help the automotive industry
marginally. Furthermore, Government initiatives like Make in India and Automotive
Mission Plan 2026 have boosted the Indian automotive sector. The Automotive Mission
Plan 2026 is a collective vision of India's automotive industry and the government that
aims to make the Indian automotive industry the driving factor of the Make in India
initiative. In February 2019, the Indian government approved a fund requirement of USD
1.39 Billion for the financial years 2020-22 for the FAME-II scheme.
Apart from growing passenger vehicle demand, Light Commercial Vehicles (LCVs) are
anticipated to record substantial growth in the next seven years. LCVs' growth prospects
look favourable, owing to a positive outlook of the country's overall logistics industry. As
retail e-commerce has witnessed a boom over the last few quarters, the hub-n-spoke
business model's proliferation is anticipated to favour sales of LCVs. Vendors are
increasingly focusing on untapped regional markets, including rural and semi-urban
areas, in the country to improve sales. Better credit and financing options are expected
to elevate growth opportunities in these markets over the forecast period.
The increasing adoption of technology in vehicles, industry supply chain and business
models is projected to change the automotive market outlook over the forecasted period.
The advent of automated, electrified, and connected vehicles are aiding the market
growth by making driving easier, safer, and comfortable. Growing
Awareness of environmental hazards of emissions from ICE vehicles promotes the users
to adopt alternative fuel vehicles.
Government focuses on the shift to electric mobility by providing tax rebates and
subsidies for the adoption of electric vehicles. Thus, the electric mobility trend coupled
with the emergence of technologically advanced vehicles is expected to upkeep the
market growth from 2020 to 2027.
The India automotive market has experienced considerable growth in recent years and
achieved record sales in 2018. However, the market experienced a slump in the year 2019
due to its economic slowdown. Although the market was anticipated to revive in 2020,
the spread of the novel coronavirus has further delayed the revival. Growing preferences
for Sports Utility Vehicles (SUVs), rising demand for commercial vehicles in the logistic
sector, and pent-up demand are certain factors expected to drive the market over the
coming years. Additionally, the electrification of vehicles, especially, three-wheelers, and
small passenger cars, is expected to be a major factor influencing market growth in the
future.
The hatchback segment held the largest market share of 43.9% in 2019. The large market
share is attributed to their smaller size that is suited to the Indian roads. Additionally, the
country's prominent passenger car manufacturers have developed small hatchbacks that
are well suited to the Indian market. With competitive pricing, premium features, small
sizes, ease of financing options, manufacturers have carved a niche for targeting the
country’s middle-class population.
The MPV/MUV/Van segment is projected to expand at a healthy CAGR over the next
seven years. MUVs/MPVs are prominently used in India for passenger transportation as
well as by large families. The segment is dominated by a few major players that account
for more than half of the overall market. The standout feature for MPVs/MUVs is the
ability to accommodate more than five people in a vehicle, making it a preferred choice
for passenger transport. Additionally, the availability of CNG fuel for these vehicles
reduces the operating costs and significantly improves profit margins for passenger
transport companies. Thus, the passenger transport industry is expected to upkeep the
demand for MPVs/MUVs in near future.
Light Commercial Vehicles Insights
Light Commercial Vehicles (LCVs), ranging between 2 to 3.5 tons accounted for 49.8% of
the overall LCV demand in 2019. The immense popularity of pickup trucks such as
Mahindra Bolero Pickup, Ashok Leyland Dost, and Tata Super Ace contributes to the large
share of the segment. Pickup trucks act as a perfect blend of compact size and high load
carrying capacity, making them a preferred choice of freight transport. Additionally,
recreational pickups like Isuzu D-Max and Tata Xenon are expected to drive the 2 to 3.5
tons trucks segment demand from non-commercial applications.
The less than 2 tons truck segment is anticipated to expand at the fastest CAGR of over
7% from 2020 to 2027. The primary factor influencing the growth rate is the use of light
vehicles for last-mile deliveries. Owing to the small size of roads in the country, compact
and small-sized trucks and pickups are preferred for last-mile connectivity. Thus, the
logistics sector is expected to promote a healthy CAGR for these trucks over the coming
years.
Heavy Trucks Insights
More than 25 tons segment held the largest volume share of 56.3% in 2019. Growing
demand for goods and increased construction and infrastructure development are the
major factors driving the heavy trucks market demand. The trucks manufactured are fuel-
efficient, reliable, and effective and possess high load carrying capacities as compared to
other trucks that were early manufactured. The increasing number of vendors for trucks'
components is providing growth opportunities for the truck manufacturing market.
The 7.5 to 12 tons trucks segment is anticipated to expand at the fastest CAGR over the
forecast period. Applications such as intrastate goods transportation do not require a
large load-carrying capacity. However, pickup trucks and LCVs do not serve the purpose
of goods transportation prompting users to adopt medium-duty trucks
With tonnage capacity between 7.5 to 12 tons. Additionally, these trucks' lower purchase
price is also expected to be a key driving factor for the segmental growth in the
forthcoming years.
Three Wheeler Insights
Three wheelers accounted for almost 15% of the total automotive market in 2019. Three-
wheelers are a common mode of transport used by people for short-distance travel. The
fact that Indian customers are extremely price-sensitive helps the three-wheeler market
as it provides short-distance passenger transport at a low price. The demand is expected
to remain steady over the years due to the growing population in that country that
upkeeps transportation demand.
The three wheeler market is expected to experience a shift from conventional vehicles to
electric vehicles sooner than their LCV counterparts owing to their small size and limited
load-carrying capacity. The advent of e-rickshaws has already created a demand for the
vehicle across the country, predominantly from the tier 2 and tier 3 cities. The market for
three-wheelers is highly consolidated, with Bajaj Auto Ltd. contributing to almost half of
the total 2019 sales in the country. Italian automaker DiMaggio & C. Spa contributed close
to 25% market share in 2019; thus, encapsulating almost three quarters of the market. In

an attempt to retain market share, Bajaj Auto Ltd. has announced the launch of its Bajaj
RE electric auto rickshaw in April 2021, whereas DiMaggio & C. Spa launched its electric
rickshaw in December 2019.
Buses and Coaches Insights
Buses with tonnage capacity ranging between 3.5 to 7.5 tons accounted for over 50% of
the total market demand in 2019. The segment primarily includes intra-city buses along
with special-purpose buses that are used for school, local tours, ambulance, hospitality,
and other services. The increasing population is contributing to the increasing demand
for buses in school and hospitality service applications. Further, light-duty buses for
transportation of employees of companies in the metro cities are expected to upkeep the
segment dominance over the forecast period.
The market is characterized by the presence of dominant players capturing a large

market share of individual segments.
Marti Suzuki India Limited and Hyundai Motor India account for more than half of the
country's passenger vehicles market. Marti Suzuki India Limited has been the market
leader for a long time and continues to dominate the market by offering multiple vehicles
in each passenger vehicle sub-segment at competitive prices. Other prominent players in
the passenger vehicle segment include Mahindra & Mahindra Ltd., Tata Motors, Honda
India, and Ford Motor Company.
The three wheelers market is dominated by two companies, Bajaj Auto Ltd. and DiMaggio
& C. Spa, accounting for almost three-quarters of the market demand in 2019. However,
with the advent of electric rickshaws, companies such as Mahindra Electric Mobility are
expected to intensify the country's market competition. Apart from the three-wheelers
market, the electrification trend is expected to change the competitive scenario of the
Country’s overall automotive industry. Companies have launched or announced the

launch of electric cars, busses, and trucks to sustain the growing competition. Some
prominent players in the India automotive market include:
 Ashok Leyland

 Bajaj Auto Ltd.

 Daimler AG
 Either Motors Limited
 Honda Motor Co., Ltd.
 Hyundai Motor India
 Mahindra and Mahindra Ltd.
 Marti Suzuki India Limited
The automotive industry in India has been on a growth trajectory with impressive spikes
in sales, production, and exports over the last two years. With an average production of
around 24 million vehicles annually and employer of over 29 million people (direct and
indirect employment), the automotive sector in India is one of the largest in the world.
India is the largest tractor manufacturer, 2nd largest two- wheeler manufacturer, 2nd
largest bus manufacturer, 5th largest heavy truck manufacturer, 6th largest car
manufacturer and 8th largest commercial vehicle manufacturer.
The automobile industry is one of the most important drivers of economic growth of India
and one with high participation in global value chains. The growth of this sector has been
on the back of strong government support which has helped it carve a unique path among
the manufacturing sectors of India. The automobiles produced in the country uniquely
cater to the demands of low- and middle-income groups of population which makes this
sector stand out among the other automobile-producing countries.
This chapter analyses the roles of government policy, infrastructure, and other enabling
factors in the expansion of the automobile and automotive component sectors of India. In
2017, India became the world’s fourth largest automobile market, and the demand for
Indian vehicles continues to grow in the domestic and international markets. To meet the
future needs of customers (including the electrical vehicles) and stay ahead of
competition, manufacturers are now catching up on up gradation, digitization, and
automation. The chapter also analyses India’s national policy in light of these
developments.
This chapter analyses the role of government policy, infrastructure, and other enabling
factors in the expansion of the automobile and automotive component sectors and the
direction they are likely to take for growth path in the next few years. The analysis in this

chapter is organized into seven sections: The first section discusses the structure and
makeup of the Indian automobile industry. The second section analyses the growth of the
sector over the past decades, while the third section discusses the role of government.
The fourth section deals with other enabling factors in the growth of the industry. The
fifth section analyses initiatives in upgrading and innovation. The sixth section includes
a discussion of the future scenario and the seventh section concludes. The Indian
automobile industry – comprising of the automobile and the automotive components
segments – is one of the key drivers of economic growth of India. Being deeply integrated
with other industrial sectors, it is a major driver of the manufacturing gross domestic
product (GDP), exports, and employment. This sector has grown on account of its
traditional strengths in casting, forging and precision machining, fabricating (welding,
grinding, and polishing) and cost advantages (on account of availability of abundant low-
cost skilled labour), and significant foreign direct investment (FDI) inflows.
India was the sixth largest producer of automobiles globally with an average annual
production of about 29 million vehicles in 2017–2018, of which about 4 million were
exported.2 India is the largest tractor manufacturer, second largest two-wheeler
manufacturer, second largest bus manufacturer, fifth largest heavy truck manufacturer,
sixth largest car manufacturer, and eighth largest commercial vehicle manufacturer. The
contribution of this sector to GDP has increased from 2.77% in 1992–1993 to about 7.1%
now and accounts for about 49% of manufacturing GDP (2015–2016).3 It employs more
than 29 million people (direct and indirect employment). The turnover of the automobile
industry is approximately US$ 67 billion (2016–2017)4 and that of the component
industry is US$ 43.5 billion (2015–2016).5 As per the OICA6 statistics, the Indian industry
accounted for 4.92% of vehicle production globally in 2017 (5.38% of production in the
car segment and 3.48% of production in the commercial vehicle segment. India is a prime
destination for many multinational automobile companies with aspirations of business
expansion in Asia. It attracted about US$ 14.48 billion (5.2% of total) in cumulative FDI
equity inflows between 2000 and 2015.8 the basic advantages that the country provides
as an investment destination include cost-effectiveness of operations, efficient
manpower, and a fast-growing dynamic market. In the past, major investments have
come from Japan, Italy, and the USA followed by Mauritius and Netherlands. The industry
manufactures a wide range of products to meet both domestic and international

demands. Irrespective of any policy regime, the two-wheelers segment has dominated
the market share. Its share in production increased from around 54% in 1970–1971 to
80% in 1990–1991, close to 75% in the 1990s and 80%.
Till the 1980s, the commercial vehicles were the second largest segment (after two-
wheelers) holding around 20% share in production. After the mid-1980s, passenger
vehicles emerged as the second dominant segment, increasing its share from 7% in 1985–
1986 to around 15% in 2011–2012 and 14% in 2015–2016. Sales of passenger cars
touched 1.2 million units in 2006 and 3 million units in 2016–2017 to maintain the
second largest market share in the industry.
Production in the sector is mainly concentrated around four large auto manufacturing
hubs across the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-Nasik-
Aurangabad in the west, Chennai- Bengaluru-Hour in the south, and Jamshedpur-Kolkata
in the east of India.
For every vehicle produced, direct and indirect employment opportunities are created
with employment of 13 persons for each truck, 6 persons for each car and 4 for each
three- wheeler and one person for two-wheelers. The $ 93 billion automotive industry
contributes 7.1% to India’s GDP and almost 49% to the nation’s manufacturing GDP (FY
2015-16).
As a major employment generator, GDP contributor and FDI earner, the automotive
industry is instrumental in shaping the country’s economy and hence regarded as a
'Sunrise sector' under Make in India.
In order to further promote the sector, initiatives are being undertaken by the
Government of India to promote innovation and R&D and create a favourable policy
regime to make India a prominent manufacturing destination.
The Automobile Mission Plan 2016 – 2026 envisages creating India as one of the top three
automobile manufacturing centres in the world with gross revenue of US $ 300 ban by
2026.Policy Initiatives & Investments Major Investments and FDI Inflows FDI Inflow
The Automobile industry witnessed a US $ 5.5 of FDI inflow into the country during April
2014 to March 2016. Japanese participation in the Indian automobile industry brought
significant changes to the structure of the passenger car market, including utility vehicles.

Gradually, established players such as Telco entered the commercial passenger car
segment capitalizing on their engineering capabilities, and economies of scale, 18 and
domestic players in the commercial vehicle segment started developing passenger cars
on a limited scale. Indian companies such as Telco, M&M, Hindustan Motors, Premier
Automobiles, and DCM entered into JVs with Ford, Mercedes, General Motors (GM), and
Peugeot for assembly of medium-sized cars from knocked-down units. This increased the
market competition and restructured pressures on existing players.
The post-1992 period is widely regarded as the second wave of FDI in the sector, which
played a crucial role in bringing dynamism, diversification, and intense competition in
the industry. Many companies started operating at a significant scale in the market and
started operations in the midsize car segment. Indian companies such as Tata Motors
introduced special purpose vehicles and platforms to enter the passenger car segment.
This period saw creation of wide networks, as many companies had full technology and
competence in producing state-of-the-art models of vehicles and had contractual
arrangements with their component suppliers.
The role of foreign presence in the passenger vehicle segment grew much more than all
the other segments of automobiles, followed by the multi-utility vehicle segment. Thus,
foreign partners now hold all or a greater share of the equity in most of these cases even
though most of them initially formed JV of equal sharing of equity. The inability of the
Indian partners to contribute toward capacity expansion allowed foreign partners to
increase their stake or take total control by buying out their Indian partners.
In both the waves of FDI that occurred in 1983 and post-1992 period, a significant
amount of FDI by the multinational corporations (MNCs) flowed into the country to build
modern plants. Marti Suzuki’s investment in the early 1980s was made possible mainly
due to its willingness to invest capital. Subsequently, various MNC manufacturers have
made investments of millions of US dollars in the country.
In the post-2000 period, Indian firms such as Marti Suzuki slowly started moving toward
building its own design and development capabilities. Tata Motors made rapid strides
toward developing an advanced level of technological capability by launching the first
indigenously developed Indian car, “Tata India” (1998). In 2002, M&M launched
“Scorpio” as a sport utility vehicle (SUV) – a product of in-house design and development

effort. In 2004, Tata Motors signed a JV with Daimler-Benz for manufacturing Mercedes-
Benz passenger cars in India. The Mercedes-Benz India Limited plant assembled
completely knocked-down units imported from abroad.
Increased competition led to restructuring and cutting of costs, enhanced quality, and
improved responsiveness to demand. MNC automakers such as Hyundai, Nissan, Toyota,
Volkswagen, and Suzuki which had established production plants in India eventually
started using India as an export platform for their overseas networks. The small car
segment did particularly well, and India’s potential as a global hub for manufacturing
small cars began to be recognized.
Between the years 2001 and 2010, passenger vehicle sales grew at a compound annual
growth rate (CAGR) of 15.67%. Of the total sales, roughly 10% were contributed by
exports. Between 2000 and 2015, the average year-on-year growth rate of export of
vehicles from the country was approximately 23%.22 the industry is known for export of
mini hatchbacks and an evolving export base for midsize cars and compact SUVs. As per
the World Trade Organization’s World Trade Statistical Review 2017, India was the tenth
largest exporter of automobile products worldwide in 2016, accounting for US$ 13 billion
worth of exports.
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
has allowed 100% foreign direct investment (FDI) under the automatic route. Some of
the recent initiatives taken by the Government of India are - In November 2021, the union
government added 100 advanced technologies, including alternate fuel systems such as
compressed natural gas (CNG), Bharat Stage VI compliant flex fuel engines, electronic
control units (ECU) for safety, advanced driver assist systems and e-quadricycles, under
the production-linked incentive (PLI) scheme for the automobiles. In September 2021,
the Union Minister for Road, Transport and Highways, Mr. Nit in Gadara announced that
government is planning to make it mandatory for car manufacturers to produce flex-fuel
engines after getting the required permissions from the Supreme Court of India. In
September 2021, the Indian government issued notification regarding a PLI scheme for
automobile and auto components worth Rest. 25,938 core (US$ 3.49 billion). This scheme
is expected to bring investments of over Rest. 42,500 (US$ 5.74 billion) by 2026.The

Indian government has planned ~US$ 3.5 billion in incentives over a five-year period
until 2026 under a revamped scheme to encourage production and export of clean
technology vehicles. As of June 2021, Rest. 871 core (US$ 117 million) has been spent
under the FAME-II scheme, 87,659 electric vehicles have been supported through
incentives and 6,265 electric buses have been sanctioned to various state/city
transportation undertakings. In July 2021, India inaugurated the national automotive test
tracks (NATRAX), which is Asia’s longest high-speed track to facilitate automotive testing.
In Union Budget 2021-22, the government introduced the voluntary vehicle scrap page
policy, which is likely to boost demand for new vehicles after removing old unfit vehicles
currently plying on the Indian roads. In February 2021, the Delhi government started the
process to set up 100 vehicle battery charging points across the state to push adoption of
electric vehicles. The Union Cabinet outlaid Rest. 57,042 core (US$ 7.81 billion) for
automobiles & auto components sector in production-linked incentive (PLI) scheme
under the Department of Heavy Industries. The Government aims to develop India as a
global manufacturing centre and a Research and Development (R&D) hub. Under NAT
Rip, the Government of India is planning to set up R&D centres at a total cost of US$ 388.5
million to enable the industry to be on par with global standards. The Ministry of Heavy
Industries, Government of India has shortlisted 11 cities in the country for introduction
of EVs in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The Government will
also set up incubation centre for start-ups working in the EVs space. In February 2019,
the Government of India approved FAME-II scheme with a fund requirement of Rest.
10,000 core (US).
1.2 LEVEL AND TYPE OF COMPETITION –FIRMS OPERATING IN THE

INDUSTRY.
All the manufacturers use marketing and advertising as crucial tools for competition. Car
manufacturers subdivide their markets and charge their consumers different prices
depending on their demand elasticity. Competition in the automobile industry can best

be described by using Porter’s five forces of competition. This paper will analyse the five
forces of competition to determine their strengths in relations to the car-making industry.
Threat of Entry
According to Porter (2008), threats of new entry determine whether it is easier or

difficult for new companies to enter the industry. Threats of entry are very low in the
automaker industry ( 2012). New companies cannot enter the automobile industry easily.
Car manufacturers, like manufacturers in other sectors, must develop products with
unique features. A new entrant, therefore, must have a high capital investment to ensure
that they manufacture cars with unique designs, comfort, safety features, and
sophisticated electronic functions. Fuel consumption is a major challenge in the
automobile industry. Car manufacturers must use modern technology in making engines
to ensure their cars are fuel-efficient.
The threat of entry is also very low because the industry gives prominence to brand
loyalty. Car manufacturers depend on brand loyalty to ensure that their loyal and existing
customers keep coming back. For this reason, it is technically difficult for new carmakers
to enter the industry and convince new clients to purchase their products. Examples of
carmakers that enjoy strong brand loyalty include Mercedes, General Motors,
Volkswagen, and BMW. It will be difficult for new entrants to compete with these
companies or brands because they (new entrants) aim at winning new customers while
existing companies aim at retaining their customers. Strong brand loyalty offers
numerous advantages. For instance, a company with a stronger brand loyalty incurs
lower marketing costs than a company with a lower loyalty. Carmakers with stronger
brand loyalties also enjoy more freedom in making price changes than manufacturers
(new entrants) without. Besides, existing car manufacturers have significant shares in the
Market as compared to new entrants, who must invest to gain market share or woo
consumers to their side (Porter, 2008).
Competitive Rivalry

The second force of competition in the industry is the rivalry between competitors. The
internal rivalry in this industry is moderate. The car industry is oligopolistic with 10
global manufacturers controlling over 70 percent of the global car market according to
2013 statistics (OICA, 2013). The top 20 carmakers sold about 78 million cars out of the
total 87 million vehicles in 2013. The internal rivalry is only intense among the top five
carmakers. However, the rivalry is likely to go higher because of the effects of
globalization. Globalization has forced companies to expand and compete in emerging
markets (2012).
The rivalry in the car manufacturing business is also moderate because the number of
competitors is relative. Despite the industry having more than 50 players, only four
companies produced more than 5 million vehicles each in 2013 (OICA, 2013). The
internal rivalry between competitors is also moderate because the industry attracts
strong customer loyalty.
Threats of Substitutes
The third competitive force in the industry is the threat of substitutes. The threat of
substitutes in the global car-manufacturing market is strong. The industry has many
substitute companies that are ready to capture the attention of customers sensitive to
price (Lee, 2011). Any change in the price of one carmaker will lead to an increase in
demand for another. Consumers prefer cars that are less costly and cheaper to maintain.
For instance, consumers will prefer substitutes (carmakers) that manufacture durable
cars at the expense of less durable cars. Customers will also purchase vehicles that are
fuel-efficient and flexible (e.g. hybrid cars). Price-elasticity in this industry makes
consumers seek more information on the products before making purchasing decisions.
Power of Consumers
The fourth force in the industry is the bargaining power of consumers. The bargaining
power of buyers in the industry is moderate. After purchasing a house, people think of
buying cars. Most buyers are sensitive to prices, therefore, would negotiate with
automakers to obtain better deals. However, carmakers tend to offer significant discounts
to corporations that make purchases in bulk. To create a balanced playing field, where

they sell cars for profits while preserving customer loyalty, automakers try to make
durable and efficient products. They also provide quality customer services to convince
their consumers to purchase cars at profitable prices.
Supplier Power
The last competitive force is supplier power. Supplier power in the car-manufacturing
business is very low. The power of suppliers is low in the industry because carmakers
have the opportunity to choose parts from a range of manufacturers (Min, 2005).
Carmakers go for suppliers with low production and labour costs because they sell less
expensive parts. The bargaining power of suppliers also remains low in the automobile
industry because some carmakers prefer to manufacture their components. Carmakers
often demand price concessions from suppliers because they have a pool of suppliers
from whom to choose.
Potential for Profitability for the Industry
The analysis of the five forces can gauge the profitability of the car-manufacturing
business. The low threat of new entrants shows that the industry is profitable. The
industry only provides room for existing companies by restricting the number of new
entrants. Barriers to entry ensure that existing companies recoup profits for their
investment. The low threat of new entrants also implies that the industry can regulate
the number of competitors. However, the high threat of substitutes lowers the industry’s
profitability. Car manufacturers face increased threats from substitutes. An increase in
price will encourage consumers to look for substitutes. Similarly, a decrease in quality
will also force consumers to look for alternative products. The knowledge that consumers
can purchase automobiles from other automakers makes the industry less profitable.
The moderate competitive rivalry also makes the industry less lucrative. The “big five”
carmakers pose intense competition among themselves, thus, reducing the profitability
of the industry. To remain profitable, these manufacturers must segment their markets.
For instance, General Motors and Toyota increase their profitability by targeting price-
sensitive consumers and emerging markets because they manufacture affordable
automobiles. Volkswagen and Ford target consumers who fancy durable cars. The low

bargaining power of suppliers makes the industry lucrative as car manufacturers can
obtain car components at reduced prices, thus, lowering production costs. The moderate
bargaining power of consumers makes the industry moderately profitable as car
manufacturers can lure consumers to purchase products at profitable prices.
Recommended Strategy and Strategic Actions
As the president of a global automaker, I would adopt a cost leadership strategy for my
company. In a cost leadership strategy, a company strives to manufacture products at a
cost lower than its competitors do. I will manage costs in all marketing and non-
marketing operations of the company. According to Barito, Abdullah, and Wan (2012),
cost leadership strategy helps companies to create a competitive advantage over their
competitors. The company will take several strategic actions to be a cost leader in the
industry. First, the company will ensure that it purchases parts from less expensive
suppliers. The company will take advantage of the low bargaining power of suppliers in
the industry to obtain car components at relatively cheaper prices. Second, the company
will target price-sensitive consumers. Having reduced production costs by purchasing
less expensive car components, the company will find new markets where it can sell high
volumes of cars at competitive market prices. Third, the company will use the just-in-time
system to be a cost leader. This system involves delivering products whenever consumers
need them. The company will open manufacturing plants in markets with cheap, skilled
labour to reduce production costs. According to Kitchen and Short (2011), a cost
leadership strategy is beneficial as it discourages new entrants into the industry. The
outstanding feature of the current struggle for supremacy in the industry has been the
race between Ford and Chevrolet for the No. 1 spot in production and sales. Ford's
aggressive efforts to oust Chevrolet from its long time occupancy of first place, and
Chevrolet's stubborn resistance, have resulted in a battle whose effects are being felt
throughout the industry.
Ford, which trailed Chevrolet in 1953 production, finally passed its rival at the end of the
first quarter of 1954 but, by the end of May, Chevrolet was ahead again. Other positions
also were changed at the end of the first five months. Plymouth, traditionally the No. 3
car, had dropped to fifth place, having been passed by both Buick and Olds-mobile.
General Motors and Ford each turned out more cars in the first five months of 1954 than
in the comparable 1953 period.

 Maruti Suzuki
The unparalleled winner of automobile manufacturers in India is Marti Suzuki. It holds

about 48% of the market share in the Indian passenger car market. During the year 2020,
Marti Suzuki manufactured 1,563,297 units of assorted vehicles for both export and
domestic markets. The company has 3 manufacturing plants in India. The top selling
models offered by Marti Suzuki are Swift Dire, Suzuki Vitoria, Suzuki Grand Vitoria, and
Suzuki Alto, among others.
 Hyundai India
Hyundai Motor is the second largest automobile manufacturer in India. It is even India's
number one passenger car exporter to countries across Africa and the Middle East.
Hyundai's flagship model Santo was a hit and helped the company come close to the
hearts of the Indian auto lovers.
During the year 2017-2018, Hyundai Motors manufactured around 521 thousand
vehicles for the domestic and export markets. Hyundai has two manufacturing plants in
Chennai with the most advanced production, quality, and testing capabilities. The top
selling models offered by Hyundai Motor India are Eon, Santo, i10 and i10 Grand, Leandra,
Cent, Verna, Crete, and Tucson.
 Tata Motors
Tata Motors is another auto-giant in India. It is among the top four vehicle brands in India.
The company's products include buses, trucks, coaches, commercial vehicles and cars.
Tata Motors passenger cars division produces different types of cars including hatchback,
sedan, SUV and MUV. The top selling models offered by Tata Motors are Sumo, India,
Tiago, Safari, Zest, Nixon, Hex, Stormed, and Bolt.

 Mahindra & Mahindra
When it comes to being the largest tractor manufacturers, Mahindra & Mahindra lead the
chart both in India and the world across. Apart from this, a part of the Mahindra Group -
M&M is the largest SUV maker in the country. The top flagship model of Mahindra in India
includes Mahindra Bolero, Mahindra Scorpio, Mahindra XUV500 and Mahindra Tharp.
 Honda Cars
Honda Cars Ltd is a joint venture between Spiel limited- an Indian company and a
Japanese company - Honda Motor Co Ltd. Honda entered the Indian automobile market
in the year 1995. The top flagship model of Honda Cars Ltd. includes Honda City, Honda
Jazz, Honda Accord, Honda CR-V and Honda Brio, among others .This automobile
company manufactured around 4.4 million automobiles worldwide in 2020. The
company's automobiles are also exported to nearby countries.
1.3 PRICING STRATEGIES IN THE INDUSTRY
The product line pricing strategy is nothing providing service with an option to upgrade
upon choosing higher value packs. Consumers are pushed to compare the packages and
choose a wise plus cost-effective product or service. The other purpose of the product
line strategy is to bring a product or service to the spotlight which had low visibility or
recognition earlier. Whereas, economy pricing strategy embraces no to the low marketing
cost in product or service promotion. It's more like the budget pricing of a product or
service. A great example would be promoting only a certain range of
Business magnate might use different combinations of price strategies to increase sales,
but finding the right strategy is a crucial step in the journey towards success. Often, the

misconceived thought on price setting is, sales volume is directly proportional to profit.
An increase in sales volume is expected to increase a company's profit.
Effective pricing strategies shall help a company sell its products in a competitive market
to witness a profit. So, what are price strategies? Well, it is a way or literally an approach
to find the competitive price of service or a product in that particular market. This
strategy is one of the other marketing strategies followed in the system of every
management. It is indeed a known fact that a company's ultimate goal is to maximize their
turnover. In order to maximize the profit, one has to choose the right strategy for price
setting.
There are different strategies one can depend on in the process of price setting. A few
significant factors are given below.
Penetration & psychological pricing strategies
In order to gain a great market share, many companies embrace the penetration pricing
strategy. The company aims to set up a customer-based price in the market.
This is primarily achieved by providing a free to low price for their products or services
to a limited period of time. This later on, with a revised version comes into the market as
a premium product with a little raise in the price.
This strategy is implied to meet the expectation that consumers will hop on to new
brands when they're priced low. Large automobile sales concern and then moved from
sales to production.
The replacement of Singer by Standard was simply the rise of one company and the
decline of another On the other hand, a psychological pricing strategy is a method that
embraces a consumer's emotional response rather than considering their rational one.
Here consumer ignores the quality of a service/ product but sticks on to the costing price.
Product line & economy pricing strategies

The product line pricing strategy is nothing but, providing service with an option to
upgrade upon choosing higher value packs. Consumers are pushed to compare the
packages and choose a wise plus cost-effective product or service. The other purpose of
the product line strategy is to bring a product or service to the spotlight which had low
visibility or recognition earlier. Whereas, economy pricing strategy embraces no to the
low marketing cost in product or service promotion. It's more like the budget pricing of
a product or service. A great example would be promoting only a certain range of
products or services that shall gain specific and quick attention among people.
Customer value-based pricing strategy
This is the most effective method that is followed by many successful companies. Value-
based pricing is a nothing but, price setting strategy that exclusively focuses on consumer
perceived value of a service or product. This is entirely based on how consumers value
the product or service and how they find it worth buying.
Many companies that offer unique and high-value products choose this strategy in setting
the price. The value-based pricing embraces customer's abilities to buy a product by
considering the unparalleled experience upon buying a particular service or a product.
Many luxury automakers find customer-value based pricing strategy an effective method
of approach. A value-based strategy will enable manufacturing companies to extend the
life-cycle of existing products and will help to establish a great bond with value-added
suppliers.
Pricing analytics
Manufacturers and service providers predict the future well enough to carry out a price
optimization system. They approach the Autopen Consulting Group for a detailed analysis
of pricing strategies for automobiles. We evaluate the past performance with a specific
set of market conditions and suggest the state of conditions for the probability of profit
for your product or service in the market. This will help the automotive industry to gain
an insight into pricing strategy. Pricing analytics include the process of finding the
underperformers of a particular industry. It's highly crucial to analyse why certain
product lines become your cause of down economy. We develop reports exclusively after

researching the probabilities and will let you understand the customer value definition
with facts and figures.
Customer satisfaction
When a pricing system includes detailed pricing analytics, it will definitely boost the
customers' satisfaction. The system of achieving maximum profit with minimum wasted
effort shall only be obtained upon consulting the business consultants. ACG shall help you
find not only the best pricing strategy for your company but also identify the substitute
product or service that might better fit in a customers' budget. This will help your sales
team create a budget based service or product that shall come with a package deal to the
customers which in turn allows you to enhance customer's ability to purchase.
Almost everything in business aims for justification for the value of a specific price.
Customers do not buy a product or service by just seeing the price tag, they meticulously
research before buying it. With much of comparisons, they find the right choice that will
fit in their budget and lifestyle. Our business consulting services shall help you
understand how customers understand the value of a service or product. Impacts on
buying decisions with that of other parameters before drawing the conclusion.
1.6 INDUSTRIAL PERFORMANCE GLOBAL, NATIONAL AND REGIONAL
BASIS
Global sales of automobiles are forecast to fall to just under 70 million units in 2021, down
from a peak of almost 80 million units in 2017. The auto industry's most important
industry segments include commercial vehicles and passenger cars. China is counted
among the largest automobile markets worldwide, both in terms of sales and production.
 The latest statistics from the International Organization of Motor Vehicle

Manufacturers reveal a major decline in production across all manufacturing
regions, with the most significant decreases in Latin America (24.8%), Western
Europe (24%), and North America (20.3%).

 Vehicle sales data show a similar story, with 2020 passenger cars sales registering
a year-on-year 15.9% drop and commercial vehicle sales dropping a less
devastating 8.7%. In some world regions, passenger car sales decreased by more
than 20% from 2019 levels; these include Latin America (down 29.3%), the
NAFTA region (28.9%), Africa (24.7%), and Western Europe (21.1%).
 Export trade also suffered a blow from 2020 coronavirus restrictions aiming to
slow down the virus's spread. Motor vehicle exports came to an almost complete
standstill in Eastern Europe, Latin America, and the Middle East, where yearly
vehicle export totals were more than 97% below their 2019 levels. Other regions
experienced export decreases of 40–50%.
 Against the backdrop of an overall motor vehicle market contraction in 2020,
exports and sales in the global EV market registered lucrative growth. Global EV
sales have accelerated by 39% in comparison to 2019, while EV export trade
increased by 18%. Germany now ranks second in EV sales, after China, overtaking
the United States in 2020. Norway was the top country by electric vehicle sales
share, with 75% of cars sold in the country being electric, followed by Sweden
(32%), Netherlands (25%), and Denmark (16%).
India is expected to be the world's third-largest automotive market in terms of volume

by 2026.
The Automobile industry of India, currently manufactures 22.7 MN vehicles including

Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and
quadricycles in April-March 2020.
Domestic automobiles production increased at 2.36% CAGR between with 26.36 million
vehicles being manufactured in the country. Overall, domestic automobiles sales
increased at 1.29% CAGR between with 21.55 million. The automobile industry in India
is the world’s fifth largest. India was the world's fifth largest manufacturer of cars and
seventh largest manufacturer of commercial vehicles in 2019. Indian automotive
industry (including component manufacturing) is expected to reach Rest. 16.16-18.18
trillion (US$ 251.4-282.8 billion) by 2026. The industry attracted Foreign Direct

Investment (FDI) worth US$ 30.51 billion between April 2000 and June 2021 accounting
for 5.5%.
1.7 PROSPECTS AND CHALLENGES IN THE INDUSTRY
The automobile industry is supported by various factors such as availability of skilled

labour at low cost, robust R&D centres, and low-cost steel production. The industry also
provides great opportunities for investment and direct and indirect employment to
skilled and unskilled labour.
Indian automotive industry (including component manufacturing) is expected to reach

Rest. 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026.
Fittingly for an industry that’s all about moving people and things around, the automotive
industry is in transition heading into 2021. Semiconductor shortages, potential revisions
to fuel economy standards in the U.S. and the ongoing rise of all-electric and plug-in
hybrid vehicles worldwide are among several notable trend lines to keep an eye on both
this year and in the coming decade.
Moreover, automakers and their partners will be looking to rebound from the turmoil of
2020. The COVID-19 pandemic put a dent into sales, especially in its early months.
Ultimately, 2020 sales fell approximately 15% year-over-year, a big drop but one that
could have been much worse if not for low interest rates, long financing terms and the
widespread desire to avoid public transportation during a pandemic.
Will that resilience continue in 2021? Let’s explore some of the big trends on the horizon
for the automotive industry to find out.
1. Semiconductor shortage puts pressure on automotive supply chains

Factory shutdowns were a big cause of diminished auto sales in 2020. They could persist
in 2021, but for other reasons, with the biggest one being a shortage of semiconductors.

These chips are important to the microcontroller units that underpin everything from
the transmission to the airbags in modern vehicles. Without sufficient supply,
automakers like GM were forced to extend plant shutdowns into March 2021.
More devices than ever, ranging from gaming consoles to pickup trucks, now include
semiconductors, and supply has struggled to keep pace with demand. Crypto currency
mining, which often requires advanced chips for proof-of-work operations, has also
driven up demand and exacerbated the shortage.
The bottleneck is the tier 3 suppliers that manage chip foundries. Because additional chip
making capacity takes time to build out, some automakers are rethinking their stances
toward just-in-time operations and inspire has helped automotive companies, including
a distributor in the Middle East, modernize their supply single-sourcing in their supply
chains.
The ongoing could lead to production of 672,000 fewer light vehicles in Q1 2021, per IHS
Market.
2. Automakers place big bets on all-electric fleets and batteries
After more than 100 years as the literal motor of the auto industry, the internal
combustion engine’s (ICE) days may be numbered. In January 2021, GM announced that
it was aiming to sell only zero-emission cars and trucks by 2035. Jaguar announced a
similar commitment not long after, with a much more aggressive target timeline of 2025.
Even for automakers that haven’t explicitly committed to an electric-only goal, the rising
popularity of electric vehicles (EVs) and plug-in hybrids has far-reaching implications for
their supply chains and operations.
EV fleets require mass production of lithium-ion batteries. GM is building a battery plant

in Ohio and spending billions overall to transition its fleet away from ICE technology. This
shift comes with some challenges, as battery suppliers have traditionally been outside the
automotive supply chain.
Moreover, they may need to seek alternatives to current lithium-ion batteries, for reasons
of cost and material availability. Cobalt, a key material in Li-ion batteries, is produced

almost exclusively in one country (Democratic Republic of the Congo), while nickel —
used in Li-ion cathodes — has become expensive and in short supply due to high demand.
Both cobalt and nickel are also associated with environmentally destructive mining. Tesla
has begun to move some of its vehicles to lithium iron phosphate batteries, which use
neither cobalt nor nickel and as such are cheaper and seen as more sustainable.
3. Fuel economy standards in flux
ICE vehicles will still be on the roads for a while. Accordingly, fuel economy standards
will remain an important consideration for automakers and regulators. The Biden
administration announced a review of federal fuel economy rules in January 2021. In
response, the Environmental Protection Agency could reverse some of its actions from
during the Trump administration, when standards were loosened and California was
sued over its ability to set its own state-specific rules. Some automakers are already
bound to an agreement struck with California, though notably GM is not. California
mandates an average of 51 miles per gallon for an automaker’s vehicles by 2026. A new
federal deal is still being negotiated as of March 2021.
The new generation of automotive start-ups are focusing on building platforms with high-
tech modules that are then configured to the end-customer needs. This paradigm shift
from a traditional, complex automotive manufacturing process with limited flexibility is
giving way to a process that is driven by the end-customer and their usage. The process
of managing this supply chain is developing in a similar fashion to the semiconductor /
high-tech industry. The focus is on designing efficiently and then tailoring the customer
manufacturing process for order fulfilment and quality before reaching the customer.
4. Evolution of Connected Vehicles and Growing Prominence of Autonomous

Vehicle
Automotive and allied sectors are going through fast paced technological innovations.
Increasing funding in R&D of connected vehicles and autonomous vehicles, launch of
semi-autonomous vehicles in recent years and growing integration of Iota in automobiles
validates the aforesaid fact. Connected vehicle technology refers to collection of data and

communication by automobile with its surroundings. United States Department of

Transportation is developing connected vehicle safety applications and European
Commission is planning to deploy Cooperative Intelligent Transport Systems for
implementing connected vehicle technology throughout the US and EU, respectively. In
fact, average microprocessor/microcontroller per vehicle rate has witnessed rise in
growth.
COMPANY PROFILE

2.1 BRIEF HISTORY OF THE ORGANIZATION AND CURRENT BOARD OF

DIRECTORS/ORGANIZATIONAL CHART
Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947.
Hyundai Motor Company was later established in 1967, and the company's first model,
the Cortina, was released in cooperation with Ford Motor Company in 1968.When
Hyundai wanted to develop their own car, they hired George Turnbull in February 1974,
the former Managing Director of Austin Morris at British Leyland. He in turn hired five
other top British car engineers. They were body designer Kenneth Barnett, engineers
John Simpson and Edward Chapman, John Crosthwaite, formerly of BRM, as chassis
engineer and Peter Slater as chief development engineer. In 1975, the Pony, the first
South Korean car, was released, with styling by Giorgio Giugiaro of ItalDesign and
powertrain technology provided by Japan's Mitsubishi Motors. Exports began in the
following year to Ecuador and soon thereafter to the Benelux countries. Hyundai entered
the British market in 1982, selling 2993 cars in their first year there.
In 1984, Hyundai began exporting the Pony to Canada, but not to the United States, as the
Pony would not pass emissions standards there. Canadian sales greatly exceeded
expectations, and it was at one point the top-selling car on the Canadian market. In 1985,
the one millionth Hyundai car was built. Until the 1986 introduction of the larger Hyundai
Grandeur, Hyundai offered a locally assembled Ford Granada for the South Korean
executive market. The import of these knocked down kits was permitted as long as
Hyundai exported five cars for every single Granada brought in (the same demands were
placed on Kia).
In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as
"Best Product by Fortune magazine, largely because of its affordability. The company
began to produce models with its own technology in 1988, beginning with the midsize
Sonata. In the spring of 1990, aggregate production of Hyundai automobiles reached the
four million mark. In 1991, the company succeeded in developing its first proprietary

gasoline engine, the four-cylinder Alpha, and also its own transmission, thus paving the
way for technological independence.
In 1996, Hyundai Motor India Limited was established with a production plant in
Irungattukottai near Chennai, India.
In 1998, Hyundai began to overhaul its image in an attempt to establish itself as a world-
class brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung
Mong Koo, in 1999.Hyundai's parent company, Hyundai Motor Group, invested heavily in
the quality, design, manufacturing, and long-term research of its vehicles. It added a 10-
year or 100,000-mile (160,000 km) warranty to cars sold in the United States and
launched an aggressive marketing campaign.
In 2004, Hyundai was ranked second in "initial quality" in a survey/study by J.D. Power
and Associates in North America.Hyundai is now one of the top 100 most valuable brands
worldwide according to Interbrand. Since 2002, Hyundai has also been one of the
worldwide official sponsors of the FIFA World Cup.
In 2006, the South Korean government initiated an investigation of Chung Mong Koo's
practices as head of Hyundai, suspecting him of corruption. On 28 April 2006, Chung was
arrested, and charged for embezzlement of 100 billion South Korean won (US$106
million). As a result, Hyundai vice chairman and CEO, Kim Dong-jin, replaced him as head
of the company. The plans appeared to work, as by 2004, the brand was ranked second
in J.D. Power and Associates’ ranking of ‘initial quality.’ Furthermore, the company
catapulted itself into the top-100 most valuable brands in the entire world. After having
acquired rival Kia Motors in 1998, the company’s $57.2 billion sales in South Korea made
it the country’s second-largest corporation. Furthermore, the 4.05 million cars sold
worldwide in 2011 ranked fourth in the industry (behind General Motors, Volkswagen,
and Toyota). The company continues to establish itself as one of the premier auto
companies in Canada, Mexico, Brazil, China, India, Japan, Germany… practically
everywhere in the world.The company also made some waves in the motorsports circuit,
eventually earning a top-10 finish at the 2000 Swedish Rally with the Accent WRC. The
brand continually finished in the top-five for their subsequent races, but they were unable
to secure an overall victory, leading to Hyundai withdrawing from the events. Recent
reports have indicated that the company is focused on once again entering the racing

circuit, and they’re eying the Veloster as their go-to vehicle. In 2012, the Environmental
Protection Agency learned that 35-percent of Hyundai and Kia’s vehicles from 2011-2013
had inflated fuel economy numbers. Some of the specs had as much as a six mile-per-
gallon discrepancy, leading the company to issue reimbursements for the respective
vehicles. The brand also ran into issues in Brazil, where consumers claimed that the
Hyundai Veloster’s engine wasn’t nearly as impressive as advertised. Instead of
delivering the advertised 138 horsepower, it was discovered that the accompanying until
only produced 119 horsepower.
On 30 September 2011, Yang Seung Suk announced his retirement as CEO of Hyundai
Motor Co. In the interim replacement period, Chung Mong-koo and Kim Eok-jo will divide
the duties of the CEO position.
In 2014, Hyundai started an initiative to focus on improving vehicle dynamics in its

vehicles and hired Albert Biermann, former Vice President of Engineering at BMW to
direct chassis development for Hyundai vehicles; stating "The company intends to
become a technical leader in ride and handling, producing vehicles that lead their
respective segments for driver engagement."
On 14 October 2020, Euisun Chung was inaugurated as the new chairman of the Hyundai
Motor Group. His father, Chung Mong-Koo, has been made Honourary Chairman. In April
2021, the company said that its profits rose by 187%, the highest rise in four years. The
company recorded a profit of $1.16 billion from the beginning of 2021 until
March.Hyundai has six research and development centers, located in South Korea (three
offices), Germany, Japan and India. Additionally, a center in California develops designs
for the United State. Hyundai established the Hyundai Design Center in Fountain Valley,
California in 1990. The center moved to a new $30 million facility in Irvine, California, in
2003, and was renamed the Hyundai KIA Motors Design and Technical Center. The facility
also housed Hyundai America Technical Center, Inc, a subsidiary responsible for all
engineering activities in the U.S. for Hyundai. Hyundai America Technical Center moved
to its new 200,000-square-foot (19,000), $117 million headquarters in Superior
Township, Michigan (near Ann Arbor) in 2005[citation needed]
In 2004, Hyundai America Technical Center completed construction of its Hyundai/Kia

proving ground in California City, California. The 4,300-acre (17 km) facility is located in

the Mojave Desert and features a 6.4-mile (10.3 km) oval track, a Vehicle Dynamics Area,
a vehicle-handling course inside the oval track, a paved hill road, and several special
surface roads. A 30,000-square-foot (2,800) complex featuring offices and indoor testing
areas is located on the premises as well. The facility was built at a cost of $50 million.In
the 2021 review of WIPO's annual World Intellectual Property Indicators Hyundai ranked
as 4th in the world for its 141 industrial design registrations being published under the
Hague System during 2020. This position is up on their previous 7th place ranking for 57
industrial design registrations being published in 2019. In 1998, after a shake-up in the
South Korean auto industry caused by overambitious expansion and the Asian financial
crisis, Hyundai acquired the majority of rival Kia Motors.In 2000, the company
established a strategic alliance with DaimlerChrysler and severed its partnership with
the Hyundai Group. In 2001, the Daimler-Hyundai Truck Corporation was formed. In
2004, however, DaimlerChrysler divested its interest in the company by selling its 10.5%
stake for $900 million.
Hyundai has invested in manufacturing plants in North America, India, the Czech
Republic, Russia, China and Turkey as well as research and development centers in
Europe, Asia, North America and the Pacific Rim. In 2004, Hyundai Motor Company had
$57.2 billion in sales in South Korea making it the country's second largest corporation,
or chaebol, after Samsung. Worldwide sales in 2005 reached 2,533,695 units, an 11
percent increase over the previous year. In 2011, Hyundai sold 4.05 million cars
worldwide and the Hyundai Motor Group was the world's fourth largest automaker
behind GM, Volkswagen and Toyota. Hyundai vehicles are sold in 193 countries through
some 5,000 dealerships.In February 2021, CNBC reported that Apple and Hyundai-Kia
are close to finalizing a deal to build an autonomous Apple car. The vehicle was said to be
completely designed by Apple and would be built in Hyundai or Kia plants, and could
potentially go into production in 2024.
Hyundai Motor announced shortly after that it is no longer in talks with Apple.In June
2021, Hyundai Motor Group completed its acquisition of a controlling interest in the
robotics firm, Boston Dynamics. Hyundai Motor Group now takes an 80% share of the
company. As of 2 July 2018, as part of organizational restructuring, Hyundai has
announced the creation of three regional headquarters – Hyundai Motor India, Hyundai
Motor North America and Hyundai Motor Europe. The regional headquarters will have

various divisions for planning, finance, products and customer experience. They will
work in collaboration with Hyundai Motor Company – the corporate headquarters based
in Seoul, South Korea.
Hyundai Motor India led by SS Kim will oversee the operations of the brand in the
regional market. Indian Quality Centre (INQC) is one of five quality centres worldwide,
along with those in the US, China, Europe and Middle East.The India centre located at
Faridabad, Haryana will conduct durability studies of existing models and benchmark
parts and systems for constant improvement.The key activity of the centre is to
"contribute in new car development from pilot stage to create quality product with zero
defect".
BOARD OF DIRECTORS
 Chung Eui-sun (chairman), chairman of Hyundai Motors

 Won Hee Lee, president and CEO of Hyundai Motors
 Albert Biermann, president of R&D
 Eon Tae Ha, president of domestic production
 Sang-Hyun Kim, CFO of Hyundai Motors
 Eun Soo Choi, former president of the Daejon High Court
 Dong Kyu Lee, former secretary-general of the Fair Trade Commission (South
Korea)
 Byung Kook Lee, former Commissioner of the Seoul Regional Tax Office
 Chi-Won Yoon, CEO of UBS Asia-Pacific
 Eugene Ohr, former partner at Capital Group Companies International
 Sang-Seung Yi, Professor of Economics, Seoul National University.
Hyundai’s corporate governance structure includes a nine-member board of directors

(including four internal directors and five external directors), an audit committee, an
ethics committee and a committee to recommend external director candidates.

Organization Chart


2.2 MISSION/VISION STATEMENT AND QUALITY POLICY

FOLLOWED/QUALITY CERIFICATION ATTAINED
Mission
To provide products, services and solutions of the highest quality and deliver more value
to our customers that earns their respect and loyalty. Realize the dream of mankind by
creating a new future through ingenious thinking and continuously challenging new
frontiers. Our philosophy’s key elements:
 Realization of Possibilities
 Unlimited Sense of Responsibility
 Respect for Mankind”
Vision
The pride of company is now measured worldwide .Hyundai motors company continues
to develop cutting edge engines that will beat as the heart of next generation cars, we are
confident that we will be the major player of the automobile industry in the future.
QUALITY POLICY
Our promise to you as our customers is to: On arrival, we will attend to you promptly.
Listen carefully to your requirements and concerns and agree on the work that needs to
be carried out on your vehicle. Thoroughly explain all repairs that will need to be
performed and review all costs. Agree a time when your vehicle will be ready for pickup.
During the day we will have only fully Hyundai-trained technicians carry our work on
your vehicle. Check for any software updates recommended by Hyundai and perform
those free of charge. Offer professional recommendations if we identify any parts needing
replacement and explain if these need to be replaced immediately or at a later date.Obtain
your prior authorization before commencing any additional work Use only genuine
Hyundai parts. Ensure the vehicle is returned at the time agreed, making a courtesy call
to let you know the car is ready, in a clean and showroom-ready condition. On collection,

we will explain the invoice to you to ensure you understand the work that has been
carried out. Following your visit make contact within 3 business days to ensure you are
satisfied with the service provided and note any necessary improvements in our service
for the future. The company has constructed a total system of quality management and
concentrates on accomplishing complete customer satisfaction with world-class quality
and service through continuous improvement for continued growth as the Top
Corporation which guides the automobile and machinery industries in the age of global
competition.
Montgomery, Ala., Feb. 21, 2007- Hyundai Motor Manufacturing Alabama, LLC (HMMA)
has achieved Certification to the International Automotive Task Force’s (IATF) most rigid
quality management standard, ISO/TS 16949, a set of Quality Management System
requirements specific to the automotive industry. ISO/TS 16949 is the highest
automotive operating standard in the world.
Hyundai’s $1.1-billion assembly plant, which began production on May 20, 2005, is one
of the most technologically-sophisticated automotive manufacturing facilities in the
world.
J.D. Power and Associates ranked HMMA tenth out of 73 plants in North/South America
in initial quality in 2006, after less than one full year of production. HMMA’s 2800 team
members produce the Hyundai Sonata sedan and Santa Fe crossover SUV.
“Before job one ever rolled off the assembly line, we committed ourselves to leading the
industry in business management processes,” said John Kalson, Director of Production,
and Hyundai Motor Manufacturing Alabama. “We believe that quality vehicles start with
quality manufacturing, and we’re proud to deliver both at HMMA.”
HMMA initiated the evaluation process for ISO/TS 16949;2002 certification in the
summer of 2004, shortly before the 2-million square-foot plant opened for business. The
two-year process began with a performance evaluation of current HMMA systems versus
TS 16949 requirements. Once the evaluation was complete, HMMA Team members and a
consulting team from SAI Global refined the systems, satisfying the TS requirements but
also ensuring total vehicle quality. Never being satisfied, HMMA members are continually
looking for ways to improve work processes.

“We’re very excited that Hyundai has taken this initiative to ensure the highest OEM
manufacturing quality standards are met,” said Rob Brayfield, President, of VCA North
America, “Hyundai’s commitment to continually improving quality and customer
satisfaction will no doubt raise the bar for the industry.”
Benefits of adopting the ISO/TS 16949 standard include improving quality of processes
at the facility along with streamlining supply chains, both leading to a better overall
product.
 Established Hyundai Seal tech Chennai, India – 2007.03

 Achieved Good Quality SQ-MARK From HMC. – 2010.04
 Achieved ISO/TS 16949 – 2010.06
2.3 BUSINESS PROCESS OF THE ORGANIZATION-PRODUCT PROFILE
HMIL has two assembling plants in Sriperumbudur, Kanchipuram locale, Tamil

Nadu.HMIL's assembling plant close Chennai cases to have the most progressive
generation, quality and testing abilities in the country.To take into account rising interest,
HMIL authorised its second plant in February 2008, which delivers an extra 300,000 units
for each annum, raising HMIL's aggregate creation ability to 600,000 units for every
annum. Current Production Capacity with these 2 plants in
Sriperumpudur,Kancheepuram expanded to 7,00,000 autos every year.In the production
process, every one of the boards of the auto are squeezed at the Press shop and welded
together at the Body shop for the most part controlled by robots making the human
intercession less and to guarantee predictable form quality. The completed body at that
point goes to the Paint shop where condition inviting water based process is utilised.
Manufactured Cars
The following cars are manufactured in this factory
1. Hyundai Eon (Launched 2011)
2. Hyundai Grand i10 Facelift (Launched Feb-2017)

3. Hyundai XcentFacelift (Launched April-2017)
4. Hyundai Elite i20 (Launched 2014)
5. Hyundai i20 Active (Launched 2015)
6. Hyundai Elantra (Launched 2016)
7. Hyundai Creta (Launched 2015)
8. Hyundai Tucson (Launched 2016)
9. Hyundai 3rd Gen-Verna (Launched 2017)
IMPORTED CARS;
1. Hyundai Santa Fe Third Generation (Launched 2014)
DISCONTINUED CARS
1. Hyundai Santro (1998–2003)
2. Hyundai Santro Xing (2003-2014)
3. Hyundai Accent GTX (1999–2002)
4. Hyundai Sonata Gold (2001–2005)
5. Hyundai Sonata (Launched 2012)
6. Hyundai Accent Viva (2002–2004)
7. Hyundai Accent CRDi (2002–2006)
8. Hyundai Terracan (2003-2007)
9. Hyundai Getz (2004–2007)
10. Hyundai Accent GLS (2004–2005)
11. Hyundai Sonata Embera (2005–2009)
12. Hyundai Accent GLE (2006–2011)

13. Hyundai Verna (2006–2010)
14. Hyundai Getz Prime (2007–2010)
15. Hyundai i10 (2007-2010)
16. Hyundai Verna Transform (2010-2011)
17. Hyundai Elantra (2004–2010)
18. Hyundai Tucson (2005–2010)
19. Hyundai Sonata Transform (2010–2011)
20. Hyundai Santa Fe Second Generation (2010-2013)
21. Hyundai Accent Executive (2011-2013)
22. Hyundai i20 (2008-2014)
23. Hyundai Verna (2011-2015)
24. Hyundai Elantra (2012-2016)
25. Hyundai i10 (2010-2016)
26. Hyundai Grand i10 (2013-2017)
27. Hyundai 4S Fluidic Verna (2015-2017)
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC). HMIL is India’s first smart mobility solutions provider and the number
one car exporter since inception in India. It currently has 10 car models across segments
SANTRO, GRAND i10 NIOS, all-new i20, AURA, VENUE, Spirited New VERNA, All New
CRETA, ELANTRA, New 2020 TUCSON & KONA Electric. HMIL’s fully integrated state-of-
the-art manufacturing plant near Chennai boasts of advanced production, quality, and
testing capabilities.
HMIL forms a critical part of HMC’s global export hub. It currently exports to around 88
countries across Africa, Middle East, Latin America, Australia, and Asia Pacific. To support
its growth and expansion plans, HMIL currently has 522 dealers and more than 1,298

service points across India. In its commitment to provide customers with cutting-edge
global technology, Hyundai has a modern multi-million-dollar R&D facility in Hyderabad.
The R&D center endeavours to be a center of excellence in automobile engineering.
2.4 CUSTOMERS OF THE ORGANIZATIONS-LEVEL OF OPERATION

(GLOBAL/NATIONAL/REGIONAL)
Hyundai’s 2020 global sales total 3.74 million units, down 15.4% Y/y
Korea sales rise 6.2%; overseas sales retreat 19.8%
December sales decline 6.4% Y/y to 373,970 units
Company targets 2021 global sales of 4.16 million units
to sell 3.42 million units overseas; 741,500 units in Korea home market
SEOUL, January 4, 2021 – Hyundai Motor Company today announced its 2020 global sales
performance, which recorded a 15.4 percent decline from a year earlier amid the ongoing
COVID-19 pandemic.
Led by the popularity of SUV models and eco-friendly line-up, sales in Korea market
increased 6.2 percent to 787,854 units while those out of Korea dropped 19.8 percent as
the sluggish economic activities dented auto demand in most of regions.
While competition in global automotive markets gets ever fiercer this year amid
recovering auto demand worldwide, Hyundai aims to sell 4.16 million units around the
globe in 2021 with optimized business strategies by each region. The company targets to
sell 741,500 units in Korea and 3.41 million units in overseas markets.
For December, monthly sales totaled 373,970 units including 305,484 for overseas
markets.
The company will continue implementing diverse measures to take care of its customers
and to offer the world-best products meeting their needs. Furthermore, the company
plans to solidify its global leadership in eco-friendly mobility market with the launch of
upcoming IONIQ 5—its first dedicated BEV model.
 Maintain a clean, safe and friendly environment
 Schedule an appointment that is convenient to you
 Attend to you promptly on arrival in a friendly and professional manner
 Provide you with an accurate time and cost estimate

 Obtain your authorization before commencing any additional work

 Thoroughly explain all repairs performed and review all costs
 Ensure the vehicle is returned at the time agreed in a clean and tidy condition
The Hyundai center at the Namyang technology research center is amassing world-class
design capabilities to improve the quality of design so that the company can gain
leadership in the world’s automotive market and make a leap to become a premium
brand. Building on the vibrant forms inspired by nature of the Fluidic Sculpture design
philosophy, it develops vehicle interiors and exteriors using computer-based digital
design. In addition, it is opening a new chapter as a global trend leader by incorporating
new materials and new technologies into designs and enabling customers to experience
the value of Modern Premium through the use of more elegant colors and advanced
materials.
Global
The Hyundai center is a design network centered on the comprehensive global design
center at the Namyang technology research center that extends to Europe, USA, India,
China and Japan. It leverages this network to grasp customers’ lifestyle trends and to
develop differentiated design strategies for each region. The North America and Europe
design centers are developing competitive models that support Hyundai’s regional
development strategies, and design studios in India, China and other emerging markets
are showcasing designs that reflect the needs of local consumers to deliver the unique
value of Modern Premium to customers.
National
Indian Quality Centre (INQC) is one of five quality centres worldwide, along with those in
the US, China, Europe and Middle East.The India centre located at Faridabad, Haryana will
conduct durability studies of existing models and benchmark parts and systems for
constant improvement.The key activity of the centre is to "contribute in new car
development from pilot stage to create quality product with zero defect".The centre will
also be responsible for ensuring "top level safety quality" through proactive customer
oriented management system and understanding feedback from them to eliminate
potential risks. The centre also has an objective to study market conditions and other Asia

Pacific regions to develop new cars and adapt strategies for continuous product quality
improvement .The Company opened a training centre at the facility. It will have its own
body and paint unit. The new service training will ensure overall skill development of
entire service profile of dealer manpower.
Regional
As of 2 July 2018, as part of organizational restructuring, Hyundai has announced the

creation of three regional headquarters – Hyundai Motor India, Hyundai Motor North
America and Hyundai Motor Europe. The regional headquarters will have various
divisions for planning, finance, products and customer experience. They will work in
collaboration with Hyundai Motor Company – the corporate headquarters based in Seoul,
South Korea .Hyundai Motor India led by SS Kim will oversee the operations of the brand
in the regional market.
2.5 COMPETITORS OF THE COMPANY

The company possesses good brand equity and is considered the largest exporter of cars
in the Asian market. Hyundai’s product line is huge and produces about
eight products that start from small car segments like Eon to big car segments SUV
segments. Their vehicles are produced with great designs and have good safety
features.Hyundai being one of the top automobile industries, it does face some strong
competitors. Through this article, let us discuss the top Hyundai competitor.
1) Toyota Motor Corporation
A top Hyundai competitor, Toyota is a popular automotive manufacturing company

formed during the year 1937 and headquartered in Aichi, Japan. To meet the market
requirements and its competitors, Toyota produces many vehicles that are designed
by their team.It has a stronghold in research that has seen its way in producing motor-
powered vehicles. The various products of Toyota are cars, SUVs, 4WDs, and hybrids.
Amongst the revenue, Toyota is ranked fifth in the world.The company produces
approximately 10 million vehicles per year with the help of their huge human power.
Toyota’s vehicles are looked upon while making choice during purchase. Toyota’s
vehicles are known for using great technology. The company produces vehicles using

great technology. Their vehicles have a unique design thereby being popular
worldwide. It provides a great customer service and due to which it is a top Hyundai
competitor.
2) Volkswagen
Also a top Hyundai competitor well-known brand in the automotive industry.

Volkswagen was formed during the year 1937 and is headquartered in Germany. The
company produces buses, cars, heavy trucks, motorcycles, light trucks, engines, and
maritime machinery.
The company serves in almost 117 countries worldwide. It is estimated that the company
produces about 10 million vehicles per year. Volkswagen is the largest brand in the
automotive sector produces many brands like Volkswagen Beetle, Volkswagen Jetta,
Volkswagen Phaeton, Volkswagen Passat, Volkswagen Vento, Volkswagen Polo, and
Volkswagen .The buyers have a wide range of cars to be chosen from. The company has
an excellent means of, print media, online ads etc. Volkswagen has a great image and has
its existence across the world. Each and every product is unique and due to which it is a
top Hyundai competitor.
3) GM Motors
Company that is commonly referred as GM is an American automobile industry that was

established during the year 1908 and is headquartered in Michigan, United States. The
company designs products and trucks, cars, and various automobile parts .It also
provides financial service. It is one of the main automobile industries in the world. The
company has a strong presence in Europe, North and South America. In China, GM
operates by means of many JVs and own Chinese enterprises that makes largest foreign
automaker with regards to sales. Having such strong markets has helped GM to
consolidate global market leadership.GM has varied product with various brands like
Buick, GMC, Opel, and many more. Their products are available across the world. The
company has a strong focus on technology and has invested a huge amount in various
Research and activities. It innovates and services, improves features related to safety and

fuel economy. It has a great emphasis on creating -friendly policies thereby creating safe
and eco-friendly vehicles and due to which it is a top Hyundai competitor.
4) Ford Motors
Automobile company that was established during the year 1903 and is headquartered in
Michigan, United States. The company designs manufacture and sells various automobile
vehicles. Ford vehicles are designed for a commercial purpose and it meets the security
and quality that every user would prefer. Ford vehicles are known for reducing emission
to a great extent.Ford has its great in the automobile sector and takes great effort to
manufacture the vehicles. It designs its own vehicles and Ford vehicles are available in
small and big size. It also provides great customer service to their customers. It
approximately has a brand value of $19.771 billion as per the report of Brand Finance
and is top 46 in the list.It has excellent Research & Development wing that is devoted to
the improvement of vehicle with respect to fuel, safety and develops new products. Few
of the new technology that it has worked with is fuel efficiency like six-speed
transmissions, direct injection of gasoline, and plug-in hybrid powertrain. It has a
great and due to which Ford is a top Hyundai competitor.
5) Nissan
Yet another top Hyundai competitor, is a popular automobile industry that was
established during the year 1933 and is headquartered in Yokohama, Japan. Nissan’s
popular brands are Datsun, Nissan, and Infiniti. It is also famous for its largest producers
of the electric vehicle across the globe.It is estimated that their sale of electric vehicles is
about 275,000 per year. Nissan has its presence in about 191 countries across the world.
The company has a strong Research and Development team thereby having a lot of
innovations in the automobile sector.
Nissan main market attraction is Russia, China, Japan, and the US.Nissan produces huge
products like sports utility vehicles, passenger cars, zero-emission vehicles, luxury cars
and many more. Nissan plans to add commercial autonomous vehicles by 2020 and has
partnered with NASA for it. It has a strong presence in about 20 countries and sale in 170
countries, due to which it is indeed a top Hyundai competitor.

6) Honda Motors
Honda is a popular automobile industry that was established during the year 1946 and is
headquartered in Tokyo, Japan. It is the largest manufacturer of motorcycle and the
internal combustion engine. It produces approximately 14 million internal combustion
engines per year.The main key to success for this brand is having an excellent R&D. The
manpower employed in R&D provides tremendous support for the development of
various products and due to which Honda comes up with stylish and efficient designs that
are a great hit in the market.Honda’s vehicles are equipped with great technology and
due to which it has seen man opting for their vehicles.Honda leads in the manufacturing
of high-powered vehicles worldwide and it keeps delivering hit products every time. Due
to its excellent strength factors, Honda has a major market share in most of the products
that it manufactures. The product portfolio of Honda is huge and a great hit, due to which
it is considered a top Hyundai competitor.
7) Fiat
Fiat Automobiles commonly known as Fiat is a popular automotive brand that was
established in the year 1899 and is headquartered in Piedmont, Italy. Fiat is the
abbreviation for Fabbrica Italiana Automobili Torino.
It is a major manufacturer of the automobile in Italy. Its business operations include

design, production, and sale of vehicles and its related components.
Fiat vehicles have a unique design, stylish in look and are available at an affordable rate.
Fiat produces about two million cars per year and is known for the technology included
in their vehicles. It operates in many foreign markets that have helped them to deal with
businesses in the right way. Fiat has a strong association with old and luxury cars.
The automobiles brand and Maserati are associated with Fiat. The company produces
sedans, hatchbacks, and SUVs. Fiat has an excellent and due to which it is considered one
of the top Hyundai competitor.

8) Renault
Yet another Hyundai competitor, Renault is a French automobile manufacturing company

that was formed during the year 1899 and is headquartered in France. Renault produces
cars, vans, trucks, tractors, buses, coaches, and auto rail vehicles.It is known for its stylish
design and durability. The company has a strong customer base that has made this brand
a popular one. Over the years it has also accumulated many loyal customers which have
bought this brand to this level. One more key highlight of this brand is the strong
international presence that it possesses. It is not just confined to Europe but widespread
across the world.Renault’s cars are manufactured for every part of society thereby it
designs and manufactures cars that vary from small cars to SUVs. As it deals with a huge
range of cars, it is seen separate in the market. Renault is available in about 110 countries
and has about 125,000 people working for them. As these cars are available for feasible
prices, it is indeed a top Hyundai competitor.
9) Volvo
A popular automotive manufacturing company, was formed during the year 1927 and is
headquartered in Gothenburg, Sweden. The main business operations of Volvo are
production, and sale of trucks, buses, and construction equipment. Apart from these it
also produces systems for the marine and industrial drive.Volvo cars are believed for
their safety standards and classic style. It is placed as a safe car to drive by having
innovative safety features.
The main strength of Volvo cars is its efficiency and excellent safety features. It has a high
inclination in maintaining a quality of driving. Volvo cars have about 2,300 and hence
their vehicles are available worldwide.The brand focuses on quality, durability, and
safety of the vehicle by focusing on the materials used in its production. It has a diverse
portfolio and its business operations are well balanced and provide an end-to-end
solution. Due to its lead in the automobile industry, it is a top Hyundai competitor.

10) Peugeot
Peugeot is an automotive manufacturing company that is formed during the year 1810
and headquartered in Sochaux, France. It has its large manufacturing plant in France. The
company designs and produces cars, luxury cars, sports car, and commercial vehicles.
Peugeot is known for its innovative design and their cars are reliable. Peugeot has
received many international awards for their vehicles that include five European cars of
the year awards.It is also ranked second for average CO2 emission amongst all the brands
in Europe. These cars have also dominated the World Rally Championship.
2.6 STRATEGIES – BUSINESS, PRICING MANAGEMENT
Target Markets
Hyundai marketing strategy is based on differentiated marketing. The primary consumer

target is consisting of middle to upper-income professionals, who wants value for their
money and comfortable ride in city conditions. The secondary consumer target group is
college students who always need style and speed. The primary business target is of
midsized to large sized corporates that always want to help their managers and
employees by providing them a car with ease of transport.
The secondary business target is for entrepreneurs and small business owners who want
to provide discounts to managers buying a new car.
Marketing Communications
By passing all messages throughmedia, the Hyundai will reinforce the brand name &
main points about the product differentiation. Research about media consumption,
pattern will help the advertising agency to choose appropriate media and timing to reach
prospect before & during the product introduction.Thereafter, advertising will be given a
pulsing to maintain brand awareness and communicate various differentiation messages.
The agency wills also co-ordinate public relation efforts to build Hyundai brand &
support the differentiation of message. To attract attention & encourage purchasing, the
Hyundai offers limited time, registration & insurance. To attract retain & motivate

channel partners for a push strategy, the Hyundai use trade sales promotions and
personal selling channel partner.
Road shows
The company plans for the stage road shows and to display vehicles in the pavilions
during various college festivals and exhibition. This will bring appeal to youngsters more
and attracts them towards the cars of Hyundai.
Television advertisements
Advertisement to promote and market the product and market the products will be
shown on the leading television channel. Major music and sports channel will promote
and they will promote and they will reach out to the youth will be promoted through Star,
Zee, Sony and Door darshan etc as it has more viewers, to promote a product like Creta.
Radio
Radio is the medium with the widest coverage.Studies have recently shown high levels
of exposure to radio broadcasting both within urban and rural areas whether or not
listener actually own a set.So, radio announcements on various,play station like FM will
be made and advertisement will be announced on the radio about the products features
and price, qualities etc.
Banners, neon signs
Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and
shops to promote the brand cars.

Rural Marketing
Hyundai Motors India has introduced with a new marketing initiative – ‘Ghar Ghar Ki
Pehchaan’ to tap the India rural car market. The company has rolled out special schemes
for government employees in rural areas and members of gram panchayats on the
purchase of the New Santro. Hyundai Motor is keen to expand its market to rural areas
with settings up 300 new rural sale outlets, all this expansion is in progress for the launch
of the cheapest car for the Hyundai stable until November this year. Currently Hyundai is
balancing its standard with 325 dealership outlets overall within cities and this new
expansion strategy could make the rural outlet number network of India extend to 1,000.
Hyundai Motor’s, India’s second largest car manufacturer has announced to generate
employment facilities for about 2,000 sales executives at these rural outlets. According to
Hyundai Motors, the car markets which are present in areas outside the superior 40 cities
are marked under rural areas.
The pricing strategy of the Hyundai will focus on setting the list price, credit terms,
payment period and discounts. If Hyundai decides to choose the price penetration
strategy, it will have to set the lower price than competitors. The company will be able to
win market share based on discounted pricing. 1 March 2006 Immediate Release Hyundai
Launches Pricing Strategy and Standardises Parts Prices the cost of owning and servicing
a Hyundai has never been cheaper for Kiwi motorists from this week. Hyundai
Automotive New Zealand has announced a revolutionary new parts policy that will see
genuine part prices across Hyundai’s model range standardised, and in many cases
becoming considerably cheaper. Known as the Family Pricing Strategy, the policy sees the
price of regular maintenance genuine Hyundai parts standardised across models, and is
the first step toward standardised service costs.Surveys by Hyundai revealed the
company already had competitively priced genuine parts, having similar prices to the
aftermarket competitors and in many cases beating them. Hyundai New Zealand
Aftermarket Manager Peter Tolley said getting the company’s spare parts aligned across
the model range was the first part of the company’s strategy to keep ownership costs as
low as possible for all Hyundai vehicles. It would also ensure customers have the
reassurance of genuine Hyundai parts which come with a 12 month, 20,000km
warranty.The “grey”parts market is a worldwide problem for the motor industry because

many parts are substandard and unsafe. To combat this Hyundai Motor Company has
been keen to get involved in this local initiative. “Working closely with Hyundai Motor
Company and its suppliers has meant that we are able to offer some substantial
reductions in pricing to benefit the New Zealand consumer,” stated Mr Tolley. “We
expected customers to benefit from some substantial parts savings, particularly on the
larger vehicles such as Terracan, Santa Fe and the new Grandeur” said Mr Tolley. You will
see genuine components like front brake pads drop from anything up to $253 each down
to $85 under the Family Pricing Strategy. Simple components like oil filters on our petrol
engines will drop from up to $38 down to $15. 75. These savings are genuine, long term
and will lead into very competitive servicing costs for our customers. ” Mr Tolley said
Hyundai was going to greater lengths than any other vehicle manufacturer with this new
pricing strategy.
2.7CSR ACTIVITIES
CSR arm of Hyundai Motor India Ltd. (HMIL) today donated Rs 5 Crores to the “Chief
Minister Public Relief Fund” under Hyundai Cares 3.0 COVID-19 relief initiative, to
strengthen the state’s war against the second wave of the pandemic.The donation was
handed over to Chief Minister of Tamilnadu Thiru M K Stalin. Additionally, a donation of
Rs 5 Crores worth of Medicare Equipment has been announced, comprising of medical
equipment such as High Flow Nasal Oxygen machines, Bipap machines, Oxygen
concentrators and 2 oxygen plants to be set-up at government hospitals in Tondiarpet
and Tambaram. On the anvil are some other medical consumables for front line workers
of various hospitals. Commenting on the contribution, SS Kim, MD & CEO, Hyundai Motor
India Ltd. said, “Hyundai has always stood by the government of Tamil Nadu in its most
trying times. Today, when the state is fighting strong against the second wave of COVID-
19 pandemic, we have once again put together a package to help the state overcome the
crisis.This contribution is an expression of our solidarity with the people of the state that
has been the Home of Hyundai in India for over two decades. In line with our global vision
– ‘Progress for Humanity’, Hyundai is committed to undertake every effort to help India
overcome this unprecedented calamity.” Hyundai is committed to the principal of
progress for humanity. Our goal is to help enrich to lives of humankind, improve the
wellbeing of society, and to be better for the planet. Through corporate social

responsibility, we will use our time, talent and treasure to make the world better. The
Hyundai Motor Group is like a big family and just as in every family, it is the members
that makes us unique. We recognize ourselves as a global citizen consisting of many
different individuals who care for each other. In this role, we feel highly responsible for
our environment – not only from an economical perspective but also with regards to
social development. Our aim is to stand ‘Together for a better future’. As such Hyundai
Motor Group’s slogan for CSR activities is: Moving the World Together. Our self-
perception as well as our global CSR philosophy is deeply rooted among our Core Values:
Customer, Challenge, Collaboration, People, and Globality.
2.8 EXPORT AND IMPORT
Hyundai Motor India Ltd (HMIL) is the country’s largest passenger car exporter. HMIL
began exporting cars in 1999 and since then it has maintained the esteemed crown
position till date. Keeping innovation & challenge at its heart, HMIL has able to cater to
customers across the globe, whether it be the Middle East, Africa, Asia.
• HMIL began exporting cars in 1999 when it shipped a batch of 20 Santro to Nepal.
• The all new Accent received tremendous response with an order of above 10,500
With its strong product line up which includes Eon, Grand i10, Xcent, Elite i20, i20
Active, Creta and Accent (Next Gen Verna). HMIL currently exports to 87 countries.
March, 2018
 ECGC : Most Diversified Exporter 2017 and Best Five Star Export House 2017
April, 2018
 49th EEPC INDIA National Export Awards (2016 – 17) in the Product Group - Motor
Vehicles (Large Enterprise)
October 2017
 Hyundai Motor India Ltd. receives the 40th EEPC India Southern Region Export
Awards.
March 2017
 48th Export awards (National) under category Special trophy in excellence in export
of high technology products 2015-16.
October 2016

 FIEO – Top Exporter (Gold Category) Award for Southern Region 2014-2015.
December 2015
 HMIL awarded as 'Exporter of the Year' at CNBC Overdrive Awards.
December 2015
 HMIL wins the presigious Top exporter award by EEPC under Large Enterprises for the
year 2013 – 2014.
June 2015
 Exported 8.5 lakh i10 cars worldwide.
March 2014
 Export of 20 lakh cars.
July 2013
 Hyundai Motor India ships out the first Grand i10 car
February 2012
 Fastest Export of 15 Lakh cars.
December 2011
 Eon launch & first shipment
November, 2010
 HMIL receives the coveted 'Niryat Shree' Gold and Silver Trophies for 2008-09 by the
Federation of Indian Export Organizations (FIEO). The Gold Trophy was received in
the Engineering and Metallurgical products – Non-MSME category and the Silver
Trophy in the Highest Foreign Exchange Earner category.
September, 2010
 HMIL receives the 'All India Award for Export Excellence 2008-09' by the Engineering
Export Promotion Council (EEPC). HMIL was awarded the Gold Trophy – in the Large
Enterprise category
February, 2010
 Fastest Exports of 10 Lakh cars
August, 2009
 Hyundai Motor India Ltd. receives the EEPC 'National Award for Export Excellence for
2007-08. Hyundai won the Gold Trophy in the 'Large Enterprise' category.
March, 2009
 Hyundai Motor India honored with 'EXIM Achieved Award' for the year 2008 by Tamil
Chamber of Commerce

Feburary, 2009
 Hyundai Motor India conferred the Top Exporter of the Year for 2006-07 in the
category of 'Large Enterprises' and received the Gold Trophy at the Southern Region
Annual Award Presentation by the Engineering Export Promotion Council (EEPC).
December, 2008
 HMIL has awarded with the 'Niryat Shree' Silver trophy for the year 2005-06 by the
Federation of Indian Export Organizations (FIEO).
November, 2008
 Hyundai exports its first batch of 'i20' to European market. The first export
consignment comprised 2,820 units of 'i20'.
June, 2008
 Fastest Export - Over 1 Lakh units of 'i10' exported since its launch in Oct 31, 2007
March, 2008
June, 2008
 Fastest Export of 5 Lakh units
June, 2008
August, 2007
 Fastest Export of 4 Lakh units
June, 2007
 HMIL adjudged the Top Exporter of the Year for 2005-06 in the category of 'Large
Enterprises' and received the Gold Trophy by the Engineering Export Promotion
Council (EEPC)
March, 2007
 Hyundai Motor India ships out the first 'GETZ' car
October, 2006
 Hyundai Motor India rolls out the fastest 300,000th export car
Noverber, 2005
 HMIL exports its first shipment to UK.
October, 2005
 HMI exported its 2 Lakh car to the overseas market.
October, 2004

 HMIL crossed the figure of 1 Lakh vehicles in exports and emerged as the largest
exporter in the Indian Automobile Industry.
August, 2003
 Export shipment of 1,500 Santro Xing cars leave for Europe, HMIL becomes the small
cars export hub for Hyundai Motor Company.
HYUNDAI MOTOR INDIA LTD. is a Indian Importer / Buyer of Bumpers and parts thereof
and deals in majorly hs code 870810, 87081010, 87081090, 87082100, 87082900 Major
trading partners of HYUNDAI MOTOR INDIA LTD. are Korea, Republic of, VIETNAM,
DEMOCRATIC REP. OF, CHINA, JAPAN, GERMANY. This company trade reports majorly
contain, Market analysis, Price analysis, Port analysis and trading partners. By
subscribing to the report you can check, Product type, Hs codes, Indian ports, Price and
trading partners and countries. We have compiled the reports of more than 80 countries
data to present the output.

MAJOR EXPORTERS FROM INDIA

2.9 COLLABORTIONS AND EXPANSION PLANS
Hyundai Motor Group and SK Innovation Co. have agreed to cooperate in the
development of a sustainable ecosystem for electric vehicle (EV) batteries that are key to
the future mobility industry.The two parties announced today their plan to cooperate in
diverse business areas related to the EV battery industry, including battery sales
solutions, battery management service and battery reuse and recycling.The collaboration
stems from the companies’ shared need to create a battery value chain and strengthen
eco-friendliness in business operations covering the entire lifecycle of EV batteries.Unlike
existing cooperation schemes between mobility companies and battery companies that
tended to center on battery supply, the Hyundai-SK cooperation aims for a virtuous cycle
of battery usage known as the Battery as a Service (BaaS), which includes lease or rental
service. As a result, the cooperation is expected to catalyse the spread of diverse
cooperation systems between mobility and battery companies.Through this partnership,
the two parties aim to strengthen the stability of the battery supply chain and create a
virtuous cycle of resources from recycling to production; reduce carbon emissions;
encourage optimal design that connects EVs and battery reuse, and create synergies by
maximizing added value through the optimal design of batteries.To enable cooperation,
both sides are focusing on the initial process of collecting and verifying the battery pack
of Kia Motors’ Niro EV model.In particular, the two companies will seek solutions that can
maximize value and eco-friendliness of EV batteries, including reuse of batteries that are
no longer useable in vehicles in diverse applications such as the Energy Storage Systems
(ESS); and battery recycling that extracts economically valuable metals such as lithium,
nickel and cobalt.These innovations are expected to enhance the value and
competitiveness of the battery recycling industry, which will buttress the future EV
era.Furthermore, Hyundai Motor Group and SK Innovation plan to synergize their
respective affiliates’ business infrastructures and capabilities spanning diverse
industries, thereby strengthening their battery competitiveness and expanding the
growth of related sectors. Hyundai’s "Strategy 2025" would see $53bn invested over the
next five years to try and make it a global leader in the supply of next-generation
transport.

The lion’s share of the 2021 investment, $5.2bn, will go on factories in the domestic
market, but $265m will be spent in North America, $195m in Brazil and $176m in India.
The push to expand its electric vehicle production began last year, when it budgeted
$7bn for plants, a rise of 40% on the previous year.
This was accompanied by a $4.2bn investment in R&D, aimed at "smart mobility
solutions" – industry jargon for autonomous vehicles. Starting from 2022, Hyundai plans
to offer models equipped with level 3 autonomous driving technology, meaning the car
can drive itself, but the driver must be poised to take over if the situation requires it.
It is also investing areas such as the "hydrogen eco-system", where Korea is emerging as
a global pace setter. A recent report by the Intra link consultancy predicted that the
hydrogen market will increase from $12.6bn in 2020 to $24bn by 2030.
As well as land transport, Hyundai plans to introduce a cargo-carrying unmanned aircraft
system with a hybrid powertrain in 2026, and launch an all-electric version to carry
goods between cities in 2028. In the 2030s, the company plans to launch intercity
passenger services.
2.10 SWOT ANALYSIS OF THE COMPANY
 Hyundai India has such a brand reputation that it is almost believed to be an Indian
brand, with many positive accolades for becoming India’s second-most-selling market
share brand next to MUL
 Hyundai Motor India Limited is Asia’s largest automotive exporter, which showed a 10
percent rise compared to the previous FY
 Domestic sales are that by 19.1 per cent on average
 HMIL is known for its better-performing quality goods and has consistently advanced
in many parameters in the race with Maruti Udyog limited
 The model length comprises around 8 vehicles, beginning with the new Eon in the
small car segment to the SUV segment Santa Fe
 Only HMIL is known among automobile players for its CSR activities

 Since its operations in India, Hyundai products never fail to win laurels from different
automotive ratings in each segment
 Hyundai, has the largest showroom and service station network in India, next to
Maruti
 Distribution and Reach: Hyundai has a large number of dealers in almost every state,
backed by a powerful distribution network ensuring that its products are readily
accessible to a large number of customers in a timely manner.
 Cost structure: Hyundai’s low-cost structure helps it to produce at low cost and sell its
products at low cost, making it affordable to its consumers.
 Automation: has allowed more productive use of the resource and cost savings from
different production stages. It also allows its products to be consistent in quality, and
provides the flexibility to scale up and down production according to market demand.
 Skilled labour force: Hyundai has aggressively invested in its workforce training,
which has resulted in it recruiting a large number of motivated and skilled employees.
 Has a diverse workforce, with people of many national, racial, cultural and educational
backgrounds that help the company bring in different ideas and approaches to do stuff.
 Has trained and certified committed team-workers.
 Entering new markets: Hyundai’s creative teams helped it come up with innovative
products and enter new markets. It was popular in the past, it took on most of the
initiatives on new markets.
 Social Media: On the three most popular social networking sites, Hyundai has a strong
social media presence with over millions of followers: Facebook, Twitter, and
Instagram. It has a high level of customer engagement on those platforms, with low
customer response time.
 Website: Hyundai has a well-functioning and entertaining website that receives a
massive amount of internet traffic and sales.
 Product Portfolio: Hyundai has a large product line where it offers products in a wide
range of categories. It has a number of exclusive product offers that rivals have not.
 Hyundai has a well-established IT system which ensures the success of both its
internal and external operations.

SWOT ANALYSIS OF HYUNDAI COMPANY

DISCUSSION

3.1 LITERATURE REVIEW AND-ON ANY TOPIC IN

MARKETING/FINANCE/IT
Literature review consists of a comprehensive literature survey of the empirical work

done by previous researchers in the area of strategy in the Global and the Indian context.
The role of marketing strategy has been discussed in this paper.
Globalization companies are getting higher their production behaviour in different
countries. In this process production faces pole apart challenge where cultural barrier
play a significant role. The businesses need to appreciate the new marketplace culture
and its enlightening elements which really matter for production to design promotion
strategy. This investigate has describe the cultural fundamentals that affect automobile
business approximately the world. In this methodology used in the direction of find the
trends and the marketplace contribute to of the Indian auto portable industry. The
investigate takes addicted to account the went previous to and segments of the market
with different versions current the past and up to date trends in an financial system, and
more especially in an industry, to bring away from home an objective market
investigation. In this opposition, a promotion approach must aspire at being only one of
its kinds, degree of difference – creating and improvement – create. To get hold of unique
and degree of difference advantages, an association has to be alive creative in its
advertising policy. Today outstanding in the direction of innovative advertising strategies
Marathi Suzuki has turn out to be one of the most important and largest retailers of
automobile in India. The companionship has adopted an assortment of Brand position,
Advertising, allocation strategies to take into custody the market.
Also Internet is rapidly growing and providing the platform for e-commerce marketing,
many customers use Internet partly or even fully, for all the buying process stages. Just
about one in seventeen people may have access to internet in India, but every third car
buyer in the country's top cities start their search on the world-wide web. As per Sharma
(2010), four out of every ten new car buyers and three in every ten used car buyers, use
internet to do initial research, before making the purchase. Liu and Xian (2008) discuss
the various opportunities for car manufacturers and dealers to utilize the internet
marketing medium in the five stages of e-marketing buying process - Problem
Recognition, Information Search, Evaluation of Alternatives, Product Choice, Final
Outcome / Post Purchase. With change in consumer buying behavior the car

manufacturer also have made necessary changes in their marketing strategies. Now the
car manufacturers are launching premium models of cars to fulfil requirements of high
class consumers. Since purchasing power of rural India has increased, the marketers have
started shifting their focus towards rural India to capture untapped rural market. This
has reaped huge benefits for companies like in cases of Marti, Hyundai and other car
manufacturers. The Companies not only aim to sell their products but also aim to provide
better after sales services to its consumers. For example, companies have provisions to
send their technicians to repair the cars struck at highways or other outer locations due
to technical failure or in case of a mishap. This improves the company’s credibility and
helps to build its customer base. Companies design their products on the basis of market
segmentation so that they have products to suit every pocket and requirement. Indian
consumer’s liking for credit is also increasing rapidly.
Many financial institutions have come into existence in India and are flourishing with the
car manufacturers. Banks have also become liberal in their loan and credit policies.
However, the existence of any business is only due to unfulfilled needs and wants of the
consumers. To fulfill needs of consumer, products/services are introduced in the market
by business organization. Thus, car manufacturers in India can rationalize their existence
only when they are able to have a thorough knowledge of consumers and understanding
of their buying behavior. The study of consumer behavior focuses on how people build
their preferences to spend their resources like time, money, effort on consumption-
related things (Schiff man and Karuk, 1997). Consumer behavior is a study of the process
concerned when people choose, purchase, use, or eliminate products, services, ideas, or
experiences to satisfy wants and needs.
The concept of “buying behavior” has evolved over the years and plays a vital role in
Creating an impact on purchase of products. The human wants are unlimited and always
expect more and more, and car models are no exception to this behavior which lead to
Companies operating in India, has increased the array of choice for the Indian consumers.
With new players entering into the lucrative Indian domestic market and with the current
players introducing new models indifferent segments, the bargaining power of the Indian
customers is increasing. This has resulted in a decline in consumer loyalty towards a
particular player. In order to compete in the Indian market, car manufacturers need to
produce and sell products that carry the highest customer value. To achieve this goal,
they need to provide European-quality cars at Asian prices. Price is considered as the

crucial selling point in the market. However, rise in the purchasing power of the Indians,
increasing competition in the Indian market, stress on driving comfort and life-cycle
costs, especially costs related to fuel, are also becoming important factors for potential
car buyers in India.
The key success of car manufacturers lies not only in having good products but also in
being able to provide the customer with the level of service they desire, because of
increasing competitiveness in the Indian automobile Industry. Car manufacturers have to
understand the significance of marketing concept and of what consumers think, what
they want, how they work and how the personal and group influences affect the
consumer decision making process in order to serve their customers by developing
quality products and services and selling at a price that gives consumer high value.
Understanding how consumers make purchase decisions can help car manufacturers in
several ways. For example, if a marketing manager knows through research that fuel
mileage is the most important attribute for a certain target market; the manufacturer can
redesign the product to meet that criterion. If a car manufacturer cannot change the
design in the short run,
Maintenance-free features while downplaying fuel mileage. Most people regard buying a
new car as a major investment and the final choice decision is usually made after careful
consideration of alternatives. Consumers are no longer content to acquire basic vehicles
but seek variety ranging from mini cars to large SUVs. Consumer choice has never been
wider as the car market is becoming increasingly fragmented and heterogeneous. In
India, there are about more than twenty five car manufacturing companies that offer a
range of models in different car-type segments. Prices range widely and an executive
sedan may cost more than ten times the price of a small car .In this present era of
marketing all the business activities revolves around consumer and his needs and wants
so it has become mandatory for the marketer to understand the consumer and then plan
the marketing strategy accordingly. Today the business world very well recognizes that
consumer rules the market and correct prediction about when, why, how, and where
consumers do or do not buy a product is crucial for them to succeed. Moreover,
understanding the consumer is not an easy task as it is very difficult and sometimes
impossible to predict about their behavior. Consumer behavior is a blend of economic,
technological, political, cultural, demographic and natural factors as well. Sometimes the
customers positively respond to company's offerings and sometimes they straight away

reject it.Traditionally, economists and market researchers were inquisitive about

identifying the factors that may have an effect on consumers’ automobile purchase
behaviors, and have developed different marketing strategies to estimate market share.
A consumer’s buying preference behavior is influenced by cultural, social, personal and
psychological factors. Most of these factors are uncontrollable and beyond the hands of
car manufacturers but they have to be considered while developing marketing strategies
to influence the complex behavior of the consumers.

3.2 OBJECTIVES ASSESSMENT OF THE COMPANY AND INDUSTRY
The research objective was to focus on historical growth of Hyundai Motors India Limited
to evaluate the performance of Hyundai Motors India Limited with respect to Export,
Sales, Production, and Profit after tax. With a prime objective to fulfil the needs of
diversified customers, the company has been continuously offering variety of its brand
with innovative features to Indian customers. Since inception, Hyundai Motors India
Limited has dominated the automobile market with the reputation of being the fastest
growing automobile manufacture to apply for real life situation. Customers in India.
Presently, Hyundai Motor is considered as the largest exporter of automobiles to
European countries. The object of this paper is to evaluate the performance of Hyundai
Motors India Limited with respect to Domestic Sales, Export, and Profit after tax,
Production
The Hyundai Motor Company is a South Korean multinational automaker headquartered

in Seoul, South Korea. Hyundai was founded in 1967 and it along with Kia, together
comprise the Hyundai Motor Group, which is the world’s fourth largest automobile
manufacturer based on annual vehicle sales in 2010. In 2008, Hyundai (without Kia)
ranked as the eighth largest automaker. In 2012, Hyundai sold over 3.6 million vehicles
worldwide.
Hyundai operates the world’s largest integrated automobile manufacturing facility in

Ulsan, which is capable of producing 1.6 million units annually. The company employees
about 75,000 persons worldwide. Hyundai vehicles are sold in 193 countries through
some 6,000 dealerships and showrooms.
Chung Jug-Yung founded the Hyundai Engineering and Construction Company in 1947.
Hyundai Motor Company was later established in 1967. The company’s first model, the
Cortina, was released in cooperation with Ford Motor Company in 1968. When Hyundai
wanted to develop their own car, they hired George Turnbull, the former Managing
Director of Austin Morris at British Leyland. He in turn hired five other top British car
engineers. They were Kenneth Barnett body design, engineers John Simpson and Edward
Chapman, John Crosthwaite ex -BRM as chassis engineer and Peter Slater as chief
development engineer. In 1975, the Pony, the first Korean car, was released, with styling

by Giorgio Giugiaro of ItalDesign and power train technology provided by Japan’s

Mitsubishi Motors. Exports began in the following year to Ecuador and soon thereafter to
the Benelux countries.
 Television advertisements
Advertisement to promote and market the product and market the products will be
shown on the leading television channel. Major music and sports channel will promote
and they will promote and they will reach out to the youth will be promoted through Star,
Zee, Sony and Door dashing etc. as it has more viewers, to promote a product like Crete.
 Target Markets
Hyundai marketing strategy is based on differentiated marketing. The primary consumer

target is consisting of middle to upper-income professionals, who wants value for their
money and comfortable ride in city conditions.
The secondary consumer target group is college students who always need style and
speed. The primary business target is of midsized to large sized corporates that always
want to help their managers and employees by providing them a car with ease of
transport.
 Print Ads
Daily advertisement in leading newspaper and magazines will be used to promote the
products. Leaflets at the initial stage will be distributed at malls, college areas and various
other location. Product display was and is conducted in various shopping malls which
have highest football.
 Workshops and Seminars
Workshops and seminars will be held in colleges and big corporate to make people aware
about the companies past performance and products features their affordability and
usage ,vast distribution network .Road shows will be conducted where free trails of the
cars would be given.

 Booklets and pamphlets
Booklets will be in car showrooms, retail outlets, etc. for the customer who wants to read.
These booklets will provide the perfect information about the company the products
offered which suits the customers need accordingly.
 Rural Marketing
Hyundai Motors India has introduced with a new marketing initiative – ‘Guar Guar Ki
Pehchaan’ to tap the India rural car market. The company has rolled out special schemes
for government employees in rural areas and members of gram panchayats on the
purchase of the New Santro. Hyundai Motor is keen to expand its market to rural areas
with settings up 300 new rural sale outlets, all this expansion is in progress for the launch
of the cheapest car for the Hyundai stable until November this year. Currently Hyundai is
balancing its standard with 325 dealership outlets overall within cities and this new
expansion strategy could make the rural outlet number network of India extend to 1,000.
3.3OBJECTIVE ASSESSMENT OF LITERATURES GATHERED UNDER

RESPECTIVE TOPICS IN MARKETING/FINANCE/IT, ETC
Marketing is thought to have significantly contributed to car manufacturers’ outstanding

results. However, contribution of marketing strategy to car
Manufacturers’ performance, success and, indeed, to influence car buyers’ brand
Preference, satisfaction and loyalty by adding consumer value has been questioned and
criticized. Many of the researchers have argued that traditional marketing strategy is
inadequate for the businesses and it lacks customer orientation (Booms and Biter, 1981;
Greenrooms, 1994; Rafi and Ahmed, 1995; Webster, 1998; Gombak, 1998; O’Malley
and Patterson, 1998; Day and Montgomery, 1999; Lovelock, 2001; Arouse, Shibleand
Khawaldeh, 2005; and Akroush, 2010). The rationale behind their argument isthat
marketing needs a paradigm shift due to changing business environment and
customers’ needs and wants, unprecedented advancements in information
technology,severe competition and emerging new competitive spheres and changes in
regulatoryenvironments nationally and globally. This stream of research has

introducedrelationship marketing, a paradigm shift, as an alternative paradigm to

transactional marketing which has contributed to the marginal influence of marketing in
today’sbusiness performance (Webster, 1992; Gummesson, 1994; Morgan and Hunt,
1994;Gronroos, 1996, 2004; Payne and Frow, 2005; and Osarenkhoe and Bennani,
2007).Their argument is that relationship marketing should be adopted as a new
marketing strategy for businesses which should lead to achieve the intended
performance levels .However, recent empirical evidence (Hakansson and Waluszewski,
2005; Zineldin and Philip son, 2007; and Arouse, 2010) indicates that relationship
marketing and transactional marketing paradigms are complementary paradigms rather
than paradigm shift. Among this marketing controversy, leading marketing scholars have
expressed serious concerns about marketing ‘strategic role, its identity as well as its
impact on company’s performance (Day, 1992; Hunt, 1992; Srivastava Tasadduq and
Liam,1998; Varadarajan and Jayachandran, 1999; and Day and Montgomery, 1999).
Theystate that there has been a considerable decline in marketing’s strategic influence
incompanies and, its influence on consumers’ decisions is marginal at best.
The debate continues when a stream of researchers has approached the contribution of
positioning strategy to influence car buyers’ brand preference. They argue that
despitethe importance of the positioning concept, there is lack of empirical research
examining the role of positioning strategies in consumers’ categorization processes
ofbrands. While it is well established that consumers perceive brands as similar
whenthey share the same (product) attributes (Tversky, 1977), it is unclear whether
brandssharing the same type of positioning strategy (i.e., positioning base) are also
perceivedas similar by consumers.
In fact, the question whether and to what extent positioning information incorporated in
marketing communications influences car buyers’ brand categorization processes has
not received empirical attention in the literature. In thisc ontext, car buyers may perceive
a brand as distinct or similar to other car brands due to numerous (external) criteria
which are not explicitly communicated, such as their visually accessible or inferred
features, price perceptions, appropriateness-in-use,personal goals, expertise, or prior
experience with the product (Bijmolt, Michel, Rikand Wayne, 1998; Friedmann and
Lessig, 1987; Day, Shocker, and Srivastava, 1979;Dubé and Schmitt, 1997; Graeff, 1997;
Lefkoff-Hagius and Mason, 1993; Ratneshwar Lawrence, Cornelia and Melissa, 2001; and
Sujan and Dekleva, 1987).

A rather thorny issue in brand positioning research concerns the question of which
positioning strategy is “best”; for example, do car brands which are positioned on
tangible brand aspects (i.e., features) perform better than the brands positioned
onintangible aspects (e.g., user imagery)? Interestingly, past empirical research has
notpaid much attention to this question (Keller and Lehmann, 2006; and Pham
andMuthukrishnan, 2002).In the light of this debate, the unanswered question remains:
how does car manufacturers’ marketing strategy impact consumers’ brand preference?
This is an important question for top management and marketing managers of car
companies.Traditionally, the success of marketing strategy has been evaluated by either
financialoutcomes such as return on investment and market share (Buzzell and
Wiersema,1981; Leonard and Sasser, 1982; Philips, Chang and Buzzell, 1983; Wind
andRobertson, 1983; Jain and Punj, 1987; and Appiah-Adu, 1998, 1999) or by
customeroutcomes such as customer satisfaction and customer loyalty (Fornell,
1992;Anderson, Fornell and Lehmann, 1994; and Akroush et al., 2005). Such
behavioraloutcomes lead into superior performance as measured by financial metrics.
Althoughthis is well documented in literature, the contribution of marketing strategy to
influence customers’ brand preference, satisfaction and loyalty by increasing
customer value is still incomplete in Indian automobile industry. Having established
that marketing strategies are grouped together, the purpose of thecurrent study is to
analyze the effectiveness of the major marketing strategies of car manufacturers from a
consumer perspective and thus provide marketing people inIndian automobile industry
with empirically based insights for making soundmarketing decisions. For this purpose,
the researcher uses the factors influencingconsumer decision making, integrated
marketing mix strategies, main positioningbases, namely feature positioning, direct
benefit positioning, indirect benefitpositioning, and surrogate positioning and the
strategic marketing tools namelyelectronic marketing and customer relationship
management.While many academics and executives strongly believe in the strategic role
ofmarketing in automobile industry since it has contributed, and will contribute in the
future, to car manufacturers’ success, they relatively lack concrete empirical
evidenceregarding marketing’s strategic influence on car buyers’ brand preference,
satisfaction and loyalty. This under-researched area is the main theme of this
research.More specifically, brand positioning has an impact on important consumer-
basedoutcome variables such perceived price sensitivity (Kalra and Goodstein, 1998),

brand affect (Jewell and Barone, 2007) as well as on customer derived brand equity,
pricemargins and demand elasticity (Boulding, Lee and Staelin, 1994; Kalra
andGoodstein, 1998; and Keller, 1993, 2003). Essentially, a well-positioned brandappeals
to the particular needs of a customer segment, leads to high consumer loyalty,positively
shaped preferences and beliefs about brand value, and greater willingnessto search for
the brand (Day 1984; Schiffman and Kanuk, 2007; and Trommsdorff andPaulssen, 2005).
Ultimately, positioning has an impact on the financial performance of a company (Day,
1990; Roth, 1992, 1995a, 1995b; and Urban and Hauser, 1993).In general, if the
positioning by a company is done effectively, it has the potential tobuild powerful brands;
however, if done incorrectly, it can also result in fatal branding disasters (Haig,
2005).Based on target customer needs, a car manufacturer must develop a product
identity ,that is, in some way different and superior to competitors’ product identities. In
a price sensitive market, generally low prices as source of differentiation is valued by
target customers. For markets in which differentiation is possible and valued by target
customers, a variety of differentiation strategies are possible. Product differences ,service
differences and brand image differences are meaningful to the customers andthe offer
differentially superior to competitors, can create a more attractive productIdentity.Many
customers are not seeking the lowest price, and many are willing to pay ahigher price for
products that deliver important customer benefits. Differences inproduct durability,
reliability or performance can attract customers who are seekingproducts in these areas.
Thus starting with the target customer needs, a carmanufacturer can seek to develop an
attractive product position by differentiatingtheir product on a product difference that is
meaningful to target customers.Brand benefits such as strong association with prestige
and status are important tomany target customers, and these are the basis of product
marketing. A strong brandenhances positive evaluations of a product’s quality, maintains
a high level of product awareness and provides a consistent image or brand
personality. Thus brand image or personality can be an important source of
differentiation and marketing strategy. Academics and industry experts argue that
customers are won over not by the product and price alone but by the service and happy
experience too. Any customer who hasbeen happy with the service received is likely to
be loyal to the company and most probably he will be ready to compromise or overlook
certain defects over superior rquality of service. This is not all. When a company has one
happy customer, it can be sure that in good time that happy customer will refer many

more customers from his social friends circle as well as family too. This can be a double
edged sword. In case a customer is not happy with his experience or the product, he can
spread talk ill about the company as well as the product to his friends and family too .As
the fast changing automobile industry environment has provided so many inputs in terms
of both the product package and emotional images built into them that influences car
buyers’ behavior and keeps their preferences in a constant state of flux.
The information revolution and intensifying competition places a large amount of
solicited information at the buyer's disposal before purchasing a car. The informational
inputs, advocating the merits of each car model influence the buyer decision to a
great extent.
There are various other factors that influence the buyer behavior may also be the topics
of interest from the car manufacturers’ point of view .For instance, marketers are very
much familiar with the five stages of the customer buying process, around which
marketing activities can be planned and implemented.Within each stage, marketers have
the opportunity to improve the customer experience and influence the customer through
all stages toward a purchase .However, the mass adoption of the Web channels like
websites and on line forums/communities among customers has shifted the stages of the
customer buying process from a mostly offline activity to an increasingly online activity.
Many customers now go through the entire buying process online, or use the online
channel though multiple steps of the process. For instance, a car buyer may recognize
his/her wants for a car after watching an online advertising, collect data about the car
online, look for references and recommendations about the car by posting a topic on an
online forum or by chatting with somebody online and then make the purchase decision
of the car at a nearby dealer shop. So, marketers must respond with specific e-marketing
techniques that address each stage of the process.The marketing strategies of car
manufacturers for consumers brand preference .The present study also takes the
initiative to understand the close relationship of post-economic liberalization scenario of
Indian automobile industry and the marketing strategies through situational analysis
including Porter’s five forces analysis, SWOT analysis, and PEST analysis with a special
reference to car industry in India.

3.3 CONTRIBUTION BY THE STUDENT
In my studies I analise various topics that related to Hyundai motors and various market
strategy that related to improve the activities of the industry to attain growth and
development.
Findings
Family need reign supreme as a reason for a car purchase. Surprisingly 34% of the
car owner bought their car as it suited their personality and lifestyle.Family is a focal
point of a car purchase. Family needs is exactly what the mid car segment should
fulfill.The decision to buy a car is a collective one made by the whole family. The car is
bought not to fulfill the need of the one particular person need but to cater the entire
family’s needs. Therefore the entry-level car should be a family car, which can satisfy the
needs of the whole family.Secondly, the other most important reason for car purchase
was it suited the respondents’ lifestyle and personalityThis reason was particularly
evident in the car owner segment. These people might have bought the car for some
other reason. But after owning it for a while, feel that the car is a necessary
component of their life style.In order to attract to these people to a new purchase,
companies must hit them at the above point. It should be projected to fit the life style of
these people or rather better their lifestyle.People already owing a particular are also
consulted by a large no. of potential buyers. Companies should make sure that the
early buyers of he entry level are completely satisfied with the product. In the case of non-
car owner, they tend to obtain information from the people already owning the car. The
reason could be that, they are a little apprehensive about the purchase and want
to quench their anxiety.
The car owners as well as non car owners are influenced by newspaper and TV ads.
Word of mouth publicity is very powerful tool, it was chosen by 45% car owner
and 32 % by noncar owner. The role of dealers is very important as 10 % of car owners
and 26 % of non car owners are likely to consulate dealers in order to get the
information about the various cars existing in the market.

 Source Of finance
Most of respondents use personal resourcesto obtain funds for the car
purchase.40% of car owner purchased the car by their resources. It was 30 % for
non car owners. The bank loan can’ be ignored, it was 30% and 40% in the
case of existing customer and potential customers. Car owners and non car
owners also prefer company loan as well.
 Car purchase plan of car owners
In my study I found that the nearly 20% of the existing car owner want to replace their
car with a mid size / luxury car. The attitude could be due to additional features in
the new cars, which attract these people, or the nonperformance of their existing car
may compel them to replace the car.
 Customer expectation out of B segment Car:
Features, which a respondents expects in a car, are followed
 Safety
 Driving
 Loan
 Price
 Comfort
 Value for money
During my Research
In decision-making process, family plays a considerable role.
Word of mouth is quite famous to get information about a car.
Before buying a car people consider its price with the advance technology.
Some people also consider loan for buying a car.

CONCLUSION

Automobile market in India today is very dynamic & competitive with a range of players
and products. There are many reasons for the impressive growth of the Indian passenger
car Industry in past couples of years. In today‘s cutthroat competition it is very difficult
to survive for this market. Stiff competition has forced manufacturers to be innovative
and responsive for customer demands and needs and for future satisfaction. Hyundai
motors India is a leading company in Indian Automobile sector which occupies prominent
place due to its innovative strategic marketing, promotional, Brand positioning,
advertising strategies. In today‘s scenario the success of company lies in structuring and
restructuring the marketing strategies according to products and continuous innovation
of the product services. India’s largest car maker Marti Suzuki India Ltd has an unlikely
admirer — its fiercest rival is Hyundai Motor India Ltd. The continued dominance of
Marti, which controls 49.5% of the Indian passenger vehicle market. Volume-wise, Marti
is definitely No. 1 because they have 1.7 million units and Hyundai at 7 lakh (700,000).
So, volume-wise and factory-wise, Hyundai cannot compete and overtake. . Hyundai is
pretty much advance and optimize for rural and urban market point, his goal is towards
the maximum market share with export and including import.

BIBILIOGRAPHY
PRINCIPLE OF MARKETING PHILLIP KOTTLER
 https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
 https://auto.ndtv.com/news/hyundai-india-sells-over-7-lakh-cars-in-2018
decembersales-up-by-4-8-percent-1970993
 https://www.hyundai.com/in/en
 https://www.hindustantimes.com/autos/cannot-compete-with-maruti-suzuki-
in-termsof-volume-hyundai-india-s-ceo-yk-koo/story-
4MjsXtcSUgXLBsQcI49III.html
 https://auto.economictimes.indiatimes.com
 http://m.hyundai.co.in/mobile/
 https://www.cardekho.com/cars/Hyundai

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A STUDY ON MARKETING STRATEGY OF HYUNDAI MOTOR COMPANY

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 1

AN OVERVIEW OF THE INDUSTRY

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 2

1.1 BRIEF HISTORY OF INDUSTRY

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 3

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 4

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 5

1.2 BUSINESS PROCESS OF THE INDUSTRY

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 6

The business processes for automotive in focus on production planning, procurement,

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 7

Automotive business process management market .Global Automotive Business Process

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 8

Automotive Business Process Management Market

1.1 MARKET DEMAND AND SUPPLY-CONTRIBUTION TO GDP-REVENUE

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 9

Light Commercial Vehicles Insights

Heavy Trucks Insights

Three Wheeler Insights

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 12

Buses and Coaches Insights

The market is characterized by the presence of dominant players capturing a large

Country’s overall automotive industry. Companies have launched or announced the

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 13

 Bajaj Auto Ltd.

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 14

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 15

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 16

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 17

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 18

1.2 LEVEL AND TYPE OF COMPETITION –FIRMS OPERATING IN THE

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 19

According to Porter (2008), threats of new entry determine whether it is easier or

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 20

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 21

Potential for Profitability for the Industry

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 22

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 23

The unparalleled winner of automobile manufacturers in India is Marti Suzuki. It holds

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 24

 Mahindra & Mahindra

1.3 PRICING STRATEGIES IN THE INDUSTRY

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 25

Penetration & psychological pricing strategies

Product line & economy pricing strategies

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 26

Customer value-based pricing strategy

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 27

1.6 INDUSTRIAL PERFORMANCE GLOBAL, NATIONAL AND REGIONAL

 The latest statistics from the International Organization of Motor Vehicle

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 28

India is expected to be the world's third-largest automotive market in terms of volume

The Automobile industry of India, currently manufactures 22.7 MN vehicles including

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 29

1.7 PROSPECTS AND CHALLENGES IN THE INDUSTRY

The automobile industry is supported by various factors such as availability of skilled

Indian automotive industry (including component manufacturing) is expected to reach

1. Semiconductor shortage puts pressure on automotive supply chains

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 30

2. Automakers place big bets on all-electric fleets and batteries

EV fleets require mass production of lithium-ion batteries. GM is building a battery plant

HOLY CROSS COLLEGE OF MANAGEMENT AND TECHNOLOGY, PUTTADY 31

3. Fuel economy standards in flux