Enrolment no: 01261201721

Minor Project -II

(BBA-218)
BBA IV Semester

Detailed Study on Marketing Strategy Of Hyundai

Internal Guide: Kumari Megha Submitted By: Isha Rawat

Designation: Assistant Professor Batch- 2021-2024

Submitted To:
Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)

1
 DECLARATION
I hereby declare that this Minor Project-I titled Detailed Study on Marketing Strategy of Hyundai
submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work
undertaken during the period from MARCH 2023 to JUNE 2023 by me and has not been submitted to any
other University or Institution for the award of any degree diploma / certificate or published any time
before.

(Signature of the Student)

Name: Isha Rawat
Enroll. No: 01261201721

Date: / / 2023

2
 BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled “ Detailed Study on Marketing
Strategy of Hyundai” is the bonafide research work carried out by Isha Rawat student of BBA,
BCIPS, Dwarka, New Delhi, in partial fulfillment of the requirements for the Minor Project Report of
the Degree of Bachelor of Business Administration.

He / She has worked under my guidance.

Project Guide: Kumari Megha

Date:

Counter signed by

HOD: Dr. Davinder Sharma

Date:

3
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Kumari Megha , who
gave me the golden opportunity to do this project on “DETAILED STUDY ON
MARKETING STARTEGY OF HYUNDAI”, who also helped me in completing my
project. I came to know about so many new things I am really thankful to them.

ISHA RAWAT

BBA (IVth semester)

4
 TABLE OF CONTENTS

S.NO TOPIC PAGE.NO.

1 LIST OF TABLES 6

2 LIST OF FIGURES 6

3 CHAPTER-1: PURPOSE OF THE STUDY 7

4 CHAPTER-2: INTRODUCTION 8-17

5 CHAPTER-3: INDUSTRY OVERVIEW 18-34

6 CHAPTER-4: COMPETITOR ANALYSIS 35-45

7 CHAPTER-5: FINDING & CONCLUSION 46-47

8 BIBLIOGRAPHY 48

5
 LIST OF TABLES AND FIGURES
TABLES & FIGURES PAGE NO.

Fig 2.1.1 10

Fig 2.2.1 12

Fig 2.2.2 13

Fig 2.2.3 13

Fig 2.2.4 14

Fig 2.2.5 14

Fig 2.2.6 15

Fig 2.2.7 15

Fig 2.3.1 17

Fig 2.3.2 17

Fig 3.2.1 21

Fig 4.2.1 36

Table 4.2.1 37

6
 CHAPTER-1
PURPOSE OF STUDY

1.1. Objective of the project report

 To study the Overall marketing strategy and marketing mix adopted by Hyundai.
 To study the Hyundai motors.
 To study the competitors and their market share vis a vis Hyundai.
 To Find the Strength.

1.2. Scope of the study

 It will help me understand the working style and techniques of Hyundai company
and how it acquires its competitive edge over the other competitors.
 It will help me understand for future how a company runs.

7
 CHAPTER-2
INTRODUCTION

2.1.About the industry

Hyundai Motor Corporation competes in the automotive industry. The past five years were
tumultuous for automobile manufacturers. Skyrocketing fuel prices and growing
environmental concerns have shifted consumers' preferences away from fuel-guzzling pickup
trucks to smaller, more fuel-efficient cars. Some automakers embraced the change by
expanding their small-car portfolios and diversifying into the production of hybrid electric
motor vehicles. Other automakers were more reluctant to shift their focus from big to small
cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car
fold. When fuel prices did fall during the second half of 2008, it was due to the US financial
crisis ripping through the global economy. This had a domino effect throughout the developed
and emerging worlds, with many Western nations following the United States into recession.
Industry revenue fell about 15.4% in 2009. 2 Pent-up demands will aid industry revenue
growth, estimated at 2.1% in 2013, thus bringing overall revenue to an estimated $2.3 trillion.
3 Overall, the large declines followed by recovery are expected to lend the industry average
growth of 2.2% per year during the five years to 2013. Throughout the past five years, growth
in the BRIC countries supported production. Rising income in these countries led to an increase
in the demand for motor vehicles. Also, Western automakers moved production facilities to
BRIC countries to tap into these markets and benefit from low-cost production. Over the next
five years, the emerging economies will continue their growth, and demand for motor vehicles
in the Western world will recover. Industry revenue is forecast to grow an annualized 2.5% to
total an estimated $2.6 trillion over the five years to 2018.

Industry Life Cycle This industry is in the mature stage of its life cycle.

Hyundai Kirloskar Motor Pvt Ltd is a subsidiary of Hyundai Motor Corporation of Japan
(with Kirloskar Group as a minority owner), for the manufacture and sales of Hyundai cars in
India. It is currently the 4th largest car maker in India after Maruti Suzuki, Hyundai, and
Mahindra. The company Hyundai Kirloskar Motor Pvt Ltd (TKMPL) according to its mission
statement aims to play a major role in the development of the automotive industry and

8
employment opportunities, not only through its dealer network, but also through ancillary
industries with a business philosophy of "Putting Customer First". On June 7, 2012, Vice
Chairman of the company revealed that the company is planning to enter the healthcare sector
and its first hospital is will open in Karnataka in May 2013. TKMPL's current plant at Bidadi,
Karnataka is spread across 432 acres and has a capacity of 80,000 vehicles per annum.
TKMPL's second manufacturing plant on the outskirts of Bangalore, Karnataka has a capacity
of 70,000 vehicles per annum. Both plants have a combined capacity of 150,000 vehicles per
annum. On 16 March 2011, it announced that it was increasing production to 210,000 vehicles
per annum due to increase in demand for its models especially the Etios and Fortuner. With
effect from June 1, 2012, Hyundai Kirloskar Motor will be increasing the prices of Etios
diesel and Innova by 1 per cent and Fortuner and Etios Liva diesel by 0.5 per cent. The price
hike is on account of the weakening of Rupee. Hyundai announced that Etios sedan and the
Liva hatchback has posted sales of over one lakh units, hence Hyundai is all set for giving its
production a big boost. Hyundai Kirloskar Motor (TKM) plans to hike the production
capacity of its Etios series models by 75% by early 2013. Hyundai Kirloskar Motors would
launch its motor racing series in 3 cities in India next year.

9
The Headquarters of Hyundai in Hyundai City,
Korea

Fig.2.2.1

10
Industry Demand Determinants

Worldwide automobile demand is tied to vehicle prices, per capita disposable income. fuel
prices and product innovation. On the supply end, vehicle prices stem from material and
equipment costs, with higher steel and plastic prices raising manufacturers' purchasing costs
and, ultimately, retail prices. During the past five years, automakers have been plagued with
high steel and plastics prices, which have raised manufacturing costs and product prices. On
the demand side, per capita disposable incomes determine affordability for consumers. As
incomes increase, the propensity to purchase motor vehicles increases as they become more
affordable. Incentives are used to generate sales during periods of low economic growth. Over
the past five years, there has been a significant increase in the number of automobile financing
companies being established in the BRICs. This has resulted in the number and range of
automobile loans increasing, which has contributed to stronger industry demand. In the
developed world, overall improved quality among most manufacturers has caused buyers to
feel freer to use price to differentiate similar products. Consumers are increasingly better
informed about a vehicle's actual cost and less likely to accept large annual price increases. In
an era of low inflation, customers familiar with dealer cost information from consumer
publications and the internet have become more astute when negotiating the purchase of a
vehicle. In this way, consumer awareness and access to information can determine demand.
Movements in fuel prices also generally influence the demand for vehicles by type. During
periods of high fuel prices, more fuel-efficient vehicles are in demand. Over the past five years.
the price of fuel has been rising, which has encouraged the adoption of hybrid and other fuel-
efficient models. For example, Japanese carmakers offering more fuel- efficient vehicles took
market share from manufacturers of large vehicles throughout the latter half of the past decade.
Last, product innovation can spur demand, especially with regard to more fuel efficient vehicles
such as hybrids and electric models. The more fuel-efficient a model is, the more likely a
consumer will be willing to invest up front in a new car for potential savings on fuel costs down
the road.

11
2.2.1. Products/Services offered

1. Express Maintenance

EM60 provides High Quality Express Maintenance in just 60 minutes. Three specially trained
technicians work simultaneously to reduce time. Quality check is an inherent part of each
process. Specially designed Express Maintenance tools and techniques ensure quality job in
just 60 minutes.

Fig.2.2.1

2. Quick Road Side Assistance

Quick Support Anywhere & Anytime with 24X7 Road Side Assistance. Call Toll Free 1800
102 5001 or with Toll 01242355001 / Download Hyundai Assistance India App from Google
Play store or Apple i-store. Hyundai Road Side Assistance is Free up to 3 years & it can be
availed up to 8 years at nominal cost at your Nearest Hyundai Dealer.

12
 Fig.2.2.2

3. The Service Super Market

Hyundai Dealership is One Stop Shop for all vehicle service needs! Experience all services
under one roof at our world class dealerships with world class infrastructure. Our 250+ Dealer
Network offers range of products, services to cater to all service needs including Tyre Battery,
Car Spa & Beautification, Insurance through the best associates in the industry. Body & Paint
Services as well as Used car sales services at the same facility make your vehicle ownership
pleasant & totally hassle free.

Fig.2.2.3

13
4. Best in Class Warranty

We ensure you complete peace of mind by providing assurance of repair / replacement , within
the period of 100,000km / 3years, whichever is earlier . The date as mentioned in the delivery
note given during first sale to be considered for Warranty related enquiries. Items not covered
under warranty are explained in "Owner's manual".

Fig.2.2.4

5. Vehicle Pick up & Drop

We like taking your hassles of picking / dropping the car for service from / at your convenient
location. We value your time & your trust on Hyundai Quality Service.

Fig.2.2.5

14
6. Qualified Manpower

We ensure the best of personnel are taking care of your Hyundai vehicle to get the repairs
right in First time. They are recruited from the best technical institutes supported by Hyundai
& constantly improved through various Skill contests. The manpower is trained through
Hyundai Global Training Service System & is equipped to use hi-tech tools & equipment.
The manpower, be assured, Gets it right, First time...Every time.

Fig.2.2.6

7. Instant Service Status Information

We ensure that you stay updated about your vehicle, no matter where you are! Our evolutionary
customer relationship building tool [e-CRB] constantly updates live status while you wait for
your vehicle at customer lounge at all Hyundai Dealerships. When outside, receive prompt
updates through SMS on Repair Estimation, Estimated Delivery time , Repair Completion ,
Delivery & Invoice.

Fig.2.2.7
15
2.2.2 Manufactured/assembled locally

1. Hyundai i10 (Launched 2002)

2. Hyundai zantro (Launched 2003)
3. Hyundai accent (Launched 2010)
4. Hyundai xcent (Launched 2014)
5. Hyundai grand i10 (Launched 2011)
6. Hyundai getz(Launched 2005)
7. Hyundai creta (Launched 2009)
8. Hyundai aura (Launched 2021)
9. Hyundai i20 nline (Launched 2022)
10. Hyundai verna (Launched 2022)
11. Hyundai alcazar (Launched 2022)
12. Hyundai venue (Launched 2022)
13. Hyundai yucson (Launched 2023)

2.2.3 Imported

1. Hyundai ioniq (Launched 2023)

2.2.4 Discontinued

1. Hyundai santa fe (2000-2013)

16
2.3.Geographic area

(PECENTAGE IN INDIA)

Production (2022)

Fig 2.3.1

MAP OF HYUNDAI’S WORLDWIDE OPERATIONS

Fig 2.3.2

17
 CHAPTER-3
INDUSTRY OVERVIEW

3.1 Industry Developments

Before 1937, it served as a department of the Hyundai Industries. The main objective of
establishing the company was to manufacture automobiles. The investor achieved this by
building Type A engine. The engine was used to power Hyundai AA, the company's pioneer
car. By working at his father's company, he was able to gain skills on the construction of
automobiles. As such, he did not need the assistance of another person to head the project. For
this reason, he was able to save the resources at his disposal (Hyundai Motor Corporation
2015).Through his leadership, the company was able to develop further. Ever since the
invention of Hyundai AA, the company has continued to engage in entrepreneurial activities
to further its objectives. Currently, it owns a Hyundai of live brands that include Lexus, Hino,
Ranz, Scion, and Hyundai. The social enterprise school approach can also be used to show the
impacts of entrepreneurial activities on the development of Hyundai Motor Company. Social
enterprise initiatives often involve the provision of charitable contributions to the public. The
contributions are part of the profits made by the enterprise. The revenue contributed is often
aimed at assisting members of the public to deal with social problems (Hyundai Motor
Corporation 2015). Hyundai Motor Company has over the years established a number of
social enterprises in the education sector. The enterprises are aimed at promoting literacy
among members of the society. The most popular is the National Centre for Family Literacy
and the United Negro College Fund. The two are aimed at promoting the provision of high
quality education to children from poor backgrounds. As a result of such initiatives, the
company has been viewed by many as a philanthropic entity. As such, more customers are
willing to purchase its products to increase its capacity to support the programs (Devinney
2009). Consequently, the entrepreneurial activity has led to the development of the
organization, On the other hand, supporting such programs can be seen to eat into the
revenues generated by the organization. The resources could be injected into other profitable
ventures to generate more revenue. As such, to some extent, social enterprises established over
the years by Hyundai Motor Company have hindered its development. One can also use the
Schultz approach to analyze theeffects of entrepreneurial activities on the development of the
18
states that an entrepreneur has the capability to deal with different issues affecting their
business. It also acknowledges that change is inevitable.

As such, entrepreneurs must be in a position to anticipate and be adequately prepared for it. In
most cases, additional resources are required to ensure the continuity of a business when such
changes occur (Emiliani 2006). For this reason, reallocation is vital. Reallocation can also be
necessitated by the emergence of new needs. In most cases, the move will alter the performance
of a business. As such, the entrepreneur must have the capability to reallocate the resources
effectively with minimal negative effects. Changes in the automobile industry have prompted
Hyundai Motor Company to shift its strategy. One major change that has occurred recently in
the sector is the rising demand for hybrid cars. The change was as a result of constant calls by
environment protection agencies on automobile manufacturers to adopt green technology. In
1997, the company set up a blant to help in the production of hybrid automobiles that had the
capability to run on electricity. The entrepreneurial activity led to the production of Hyundai
Prius in the same year. It was the first mass production of hybrid cars. Today, the organization
has sold over 7 million hybrids across the world. The adoption of green technology has helped
Hyundai Motor Company receive the backing of many environmental agencies. Its activities
have been considered to be environmentally friendly.

In this case, Hyundai Motor Company has shown interests in the aviation sector. The
activities are contrary to its initial objective, which was to manufacture and distribute
automobiles. In 2002, the organization secured the services of Scaled Composites. The aim
was to create proofof a model aircraft. In the process, the TAA-1 was created. Hyundai Motor
Company also collaborates with other players in the aviation industry. Currently, it is the
minority shareholder at Mitsubishi Aircraft Corporation. The automobile manufacturer
invested US$ 67.2 million in the corporation to fund a project involving the production of a
regional jet. The first deliveries of the project are set to be made in 2017. The entrepreneurial
activity is likely to encourage thedevelopment of Hyundai Motor Company.

19
3.2 Vision & Mission/Core values

Hyundai's Vision Statement

Hyundai's corporate vision statement indicates the company's long-term strategic plan in the
automobile industry. This vision statement reads, "Hyundai will lead the future mobility
society, enriching lives around the world with the safest and most responsible ways of moving
people. Through our commitment to quality, ceaseless innovation, and respect for the planet,
we strive to exceed expectations and be rewarded with a smile. We will meet challenging
goals by engaging the talent and passion of people who believe there is always a better way."
This vision entails industry leadership, as well as the various principles and ideals that the
company applies to ensure the competitiveness of its automotive products. Hyundai's
corporate vision has the following key elements that reflect the future strategic direction of
the business:

1. Global leadership in safe and responsible mobility

2. Exceptional quality, innovation, and respect for the planet

3. Engagement with talented and passionate people

In its corporate vision statement, Hyundai highlights its position as a global leader in the
futureof mobility, specifying a global market reach. The automobile company adds that safety
and responsibility are among the main ideals that influence its leadership. The corporate vision
also includes quality and continuous innovation, which are among the principles of The
Hyundai Way that guides the business. In addition, the company emphasizes environmental
conservation in its operations and automotive products. These factors directly relate to the
technological and ecological trends shown in the PESTEL/PESTLE analysis of Hyundai
Motor Corporation. The company's operations aim to exceed expectations, which means
providing cars that more than just satisfy customers' current preferences and expectations.
The "respect for the planet" element of the vision statement also reinforces Hyundai's
corporate social responsibility strategy to address stakeholders, especially with regard to the
natural environment as a stakeholder of the business. Furthermore, the corporate vision
strategically guides human resource management in terms of the workers that the automotive
company hires and keeps. For example, Hyundai values passionate and talented employees
who are optimistic in finding better options and ways of doing things.
20
The vision statement's human resource aspect relates to Hyundai's organizational culture,
which involves continuous improvement and emphasis on quality. The corporate vision
statement's emphasis on safety, quality and innovation align with the automobile company's
corporate mission statement and its emphasis on continuous innovation.

Fig.3.2.1

Hyundai's Mission Statement

Hyundai's corporate mission is "to make ever-better cars, to build a future where everyone
has the freedom to move." This mission statement is a combination of the company's official
statements regarding the mission of its business: "to build a future where everyone has the
freedom to move" and "to make ever-better cars." Hyundai's corporate mission statement has
thefollowing key elements that reflect the enterprise and the purpose and goals of its business:

1. Make ever-better cars

2. Build an inclusive future

3. Freedom to move for everyone

21
Hyundai Motor Corporation uses various mission statements for its businesses in different
markets. However, with regard to the business of automobile manufacturing and sales, the
company's corporate mission statement pertains to its strategic actions in mobility technology.
For example. Hyundai aims to continuously improve its automobiles. This objective aligns
with the technological innovation and integration trend affecting the automotive industry and
transportation sector. Such an objective influences Hyundai's intensive growth strategy and
generic strategy for competitive advantage, especially with regard to continuous improvement
for effective product development. The corporate mission also drives the company to
emphasize inclusiveness in its multinational business operations in vehicle production and the
maintenance of the business organization and its resources. In relation, Hyundai's corporate
mission statement includes the objective of providing products that enable mobility for
everyone. This objective entails the development of automotive products for the global market.
involving automobile as well as related technologies. The internal and external strategic factors
assessed in the SWOT analysis of Hyundai Motor Corporation determine how the business
positions itself to achieve these objectives based on the mission statement. The company's
corporate vision statement supports the objectives contained in the corporate mission.

In its mission statement, Hyundai focuses on automotive products (cars) and customers
(everyone). These details make the corporate mission specific enough in terms of what the
automaker's business organization does. However, the ideal corporate mission statement should
also include information about Hyundai's self-concept, markets and technology, as well as
concerns regarding the company's image, business development, and workers. Thus, the firm
has room to improve its corporate mission statement, such as by adding the aforementioned
details to have a concise but broad-enough representation of its automotive business and its
reason for existence.

22
3.3 Government Regulation

To make the ambitious 'Make in India' Programme successful in the auto sector, the
government should "eliminate unique regulations" like low tax for cars below a particular size,
Current regulations dictate that a car with a petrol engine capacity under 1,200 cc or diesel
engine under 1,500 cc and with a length shorter than four meters attracts an excise duty of 12
per cent. However, the duty can go as high of 30 per cent, depending on the size of the car, if
the length is more than 4 meters. Ishii said the opportunity to export is inversely proportional
to the number of unique regulations in India. About Hyundai's plans to launch new cars in
India, he said, "India is always changing the regulations very quickly. On the other hand to
introduce a new car it takes a lot of time, planning and development time. It takes around four
years on an average, so the fluctuation in regulation makes a lot of problem in preparation."

While noting that India had 5-10 times more regulations than Thailand or Indonesia, he also
said 'Make in India' initiative will enhance India's competitiveness.
When asked to explain "unique regulations", he referred to the sub-4 meter regulation.
At present, a car with a petrol engine capacity under 1,200 cc or diesel engine under 1,500 cc
and with a length shorter than four meters attracts an excise duty of 12 per cent. However, if
the length is more than 4 meters, the duty could go as high of 30 per cent depending on the size
of-the-car.

"Make in India will give us a very good opportunity to promote exports more from India
because our export strategy globally is based on competition," he told reporters here.
Hyundai is present in the Indian market through a joint venture with the Hyundai

"So we are in a global competition... so 'Make in India' initiative will promote a lot of
competitive activity to enhance its (India's) competitiveness... but at the same time we will
have to eliminate unnecessary unique regulations in India," Ishii said. The more you have
unique India regulations here the less you have the opportunity to export, he added.

23
Hyundai exports verna series cars from India. In March, it exported 1,290 units. He said
changing regulations in India make introducing new cars in the country. "India is always
changing the regulations very quickly.

Hyundai Sales Group Managing Coordinator, Akitoshi "Etioshi" Takemura said the company
has reinforced product line in the country.

"We just should not get into the things which we see now but based on the current knowledge,
we have to think of scenario four years down the line. We have developed a capable team and
now we are are talking to our headquarters to develop the key products and the results you
would see 2018 onwards" he added.

When asked about the company's sales expectation for the current year, Ishii said: "We would
like to maintain our sales as last year. We sold around 1.35 lakh units last year and would like
sell the same number this year, maintaining around 5 per cent market share in the Indian
market".

24
3.4 SWOT ANALYSIS

Strengths

 Brand Reputation: Hyundai is known for its reliability, quality, and durability. This
strong brand reputation has helped the company establish customer loyalty and attract
new buyers. Hyundai had a brand value of $35 bn in 2022.
 Diverse Product Portfolio: Hyundai offers a wide range of vehicles catering to
different customer segments, including sedans, hatchbacks, SUVs, trucks, and luxury
vehicles under brands like Hyundai, Lexus, Hino, and Daihatsu. This diverse product
lineup helps Hyundai reach a broader customer base and adapt to changing market
trends.
 Technological Innovation: Hyundai's commitment to research and development has
resulted in groundbreaking technologies, such as the Hyundai Hybrid System, fuel
cell vehicles, and advanced safety features. This focus on innovation helps the
company maintain a competitive edge and meet evolving customer needs.
 Strong Global Presence: Hyundai has an extensive global presence, with
manufacturing facilities and distribution networks in multiple countries. This enables
the company tobenefit from economies of scale, adapt to local market demand. Needs,
and manage risks associated with fluctuations in currency and regional demand.

Weaknesses

 Dependence on Certain Markets: Hyundai relies heavily on specific markets like

North America and Japan, which account for a significant portion of its sales. This
dependence can expose the company to regional economic fluctuations, changes in
consumer preferences, and potential geopolitical risks.
 Slow Adaptation to Electric Vehicles (EVs): Although Hyundai has pioneered hybrid
technology, it has been relatively slow in embracing fully electric vehicles compared to
competitors like Tesla and Nissan. This delay in EV development may limit
Hyundai's ability to capitalize on the growing demand for electric vehicles and meet
increasinglystringent emissions regulations.
 Product Recalls: Hyundai has faced several high-profile product recalls over the years
due to safety concerns and manufacturing defects. These recalls can harm the

25
  Intense Competition: The automotive industry is highly competitive, with numerous
well-established players such as General Motors, Volkswagen, Ford, and Honda. This
fierce competition can pressure Hyundai's market share, pricing power, and profit
margins. 

Opportunities:

 Growing global automotive industry: The global automotive industry was severely
affected by the economic downturn, with a decline in revenues being recorded in 2008 and
2009. However, 2011 saw a strong rebound which has continued into 2012. According to
MarketLine, the global automotive manufacturing industry grew by 8.9% in 2012 to reach
a value of $1,563.9 billion. The recovery of global automotive industry thus provides
Hyundai an opportunity to gain more customers and increase revenues.

 Hyundai poised to benefit from growing partnership with BMW: Hyundai is poised
to benefit from the growing partnership with BMW. In June 2012, BMW and Hyundai
signed a memorandum of understanding aimed at long-term strategic collaboration on
technological fields. As part of the agreement, the two companies will partner for the joint
development of a fuel cell system, joint development of architecture and components for a
future sports vehicle, collaboration on power-train electrification and joint research and
development on lightweight technologies. The growing partnership between the two
companies is expected to boost the technological know-how of the companies and may
result in the development of new products thus increasing revenues in the long run. Also,
in the short run, the combined partnership will result in significant synergies and cost-
savings, boosting the operational margins.

 Strong outlook for the global new car market: The global new cars market has
experienced moderate growth during 2008-2012. However, forecasts suggest this will
accelerate to strong double digit growth during the 2012-2016 periods. Thus, the strong
outlook for the global new car market coupled with the company’s new product launches
provides a growth opportunity for the company.

26
Threats:

 Intense competition: The worldwide automotive market is highly competitive.

Hyundai faces strong competition from automotive manufacturers in its various markets.
The competition among various auto players is likely to intensify in light of continuing
globalization and consolidation in the worldwide automotive industry. The factors
impacting competition include product quality and features, the amount of time required
for innovation and development, pricing, reliability, safety, fuel economy, customer service
and financing terms. Increased competition may lead to lower vehicle unit sales and large
inventory, which may result in downward pricing pressure, thus impacting the financial
condition and results of operations of the company.

 Appreciating korean Yen a major concern: Hyundai is sensitive to the fluctuations in

foreign currency exchange rates and is principally exposed to fluctuations in the value of
the Japanese Yen, the US dollar and the Euro. The strengthening of the Japanese Yen
against the US dollar and fluctuations in foreign exchange rates would have a material
adverse effect on Hyundai's reported operating results, which in turn would impact the
valuation of the company.

 Natural disasters could impact production structure: Hyundai is subject to

disruption of production due to natural disasters such as earthquakes, floods, among
others. Hyundai primarily operates in Japan which is a highest earthquake prone region in
the world. The country has witnessed many devastating earthquakes in the recent years
which seriously disrupted the economy. In 2011, the country witnessed one of the worst
hit earthquakes in its history in the form of 2011 Tohoku earthquake, which led to a
temporary production halt at its domestic auto manufacturing facilities. In the same year,
major floods occurred in Thailand which halted its operations and production of about
150,000 Hyundai automobiles. Such natural calamities, if occur frequently, could
severely influence the production output of the company due to work stoppages and in
turn impact the overall revenue base and profitability.

27
3.5 Hyundai Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Hyundai analyzes the brand with the marketing mix framework which
covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like
product innovation, pricing approach, promotion planning etc. These business strategies, based
on Hyundai marketing mix, help the brand succeed in the market.

Hyundai Product Strategy:

The product strategy and mix in Hyundai marketing strategy can be explained as follows:

Hyundai is one the world's leading automobile manufacturers in the world. Hyundai has a
diverse set of products ranging from cars to warranties. Hyundai has more than 40 car models
which are further broken down into different categories:

Hyundai Passenger Cars

Grand i10 , i20, xcent, creta, eon, zantro, alcazar, Aura, nios, verna , elantra, tucson

Hyundai Commercial vehicles

grand i10, xcents

Hyundai Hybrids

Ioniq & Plug-in Hybrid

The other products include Fuel Cells like Mirai, Hyundai Sports Coupe GT86 and C-HR.
Hyundai also offers gears and other car parts. Besides these they provide e-Hyundai,
biotechnology, marine, financial services, warranties that have various mileage coverage
options ranging from 36,000 to 1,00,000 miles, road assistance and car services. As customers
are their priority they invested $20 million+ towards a research center that was dedicated to
gather data about customer expectations from Hyundai.

28
Hyundai Price/Pricing Strategy:

Below is the pricing strategy in Hyundai marketing strategy:

 Hyundai has always maintained quality and affordable prices for their vehicles. Their
main objective is to make profit by allowing credit payments to their customers at low
interest.
 The pricing strategy in the marketing mix of Hyundai is based on competition,
segment, geography and demand. Hyundai cars price range starts at $20,000 and
premium models can go up to $100,000. Their prices are flexible to changing market
conditions and prices of competitors thus affecting their selling prices.
 The price range of their cars changes according to the model, add options and make.
Hyundai’s profits mainly increase because of the pricing and features offered with
their products. They have always stood by the company’s mission of satisfying
customers’ needs and wants by producing high quality automobiles at affordable
prices. Such affordable prices also help the brand in their marketing.

Hyundai Place & Distribution Strategy:

Following is the distribution strategy in the Hyundai marketing mix:

 Hyundai makes use of a number of retailers and dealership outlets for distribution of
their products so as to reach maximum customers. For distribution Hyundai use
showrooms, exhibition centers or even special events, which also adds to the marketing
of the brand. There are a few retailers that also provide only Hyundai spare parts and
accessories.
 The company relies heavily on dealerships to sell their products to potential customers.
Hyundai vehicles in Japan are sold through four main channels namely Hyundai for
Luxury Brand of vehicles, Toyopet for medium market, Corolla for compact vehicles
and Netz for targeting customers with new values in the 21st century.
 Hyundai has around 170 distributors in all the countries and regions worldwide that
they are based in. Hyundai distribute Lexus brand vehicles through a network of
approximately 170 sales outlets and Daihatsu through approximately 2000+ sales
outlets. The sales staff at each of these outlets are highly skilled in not only sales but

29
 also product information, data collection, finance and order taking. Owing to their
quality and reliability, Hyundai have maintained these networks over the years.

Hyundai Promotion & Advertising Strategy:

The promotional and advertising strategy in the Hyundai marketing strategy is as follows:

 Hyundai focuses a lot on marketing communication to increase their sales volume.

Their promotional strategy in the marketing mix is to be aggressive and have a wide &
comprehensive brand reach. They involve in personal selling at sales outlets where sales
staff promote their products, advertising through newspapers, billboards, T.V, radio,
social media (Facebook, twitter, YouTube), flyers.
 Promotions through public relations such as Hyundai Together Green program for
environmental initiatives, initiatives to reduce greenhouse gas emissions, Meal per
Hour program for the sandy superstorm victims in New York thus creating a positive
image for the company. Hyundai use catchy slogans for the brand and endorse
celebritiesas brand ambassadors creating a brand recall for customers.
 They also have direct selling for corporate clients. Besides these they conduct a
Hyundai Dream Car award contest for children every year for the past 10 years,
‘Feeling the Street’ for the talented street musicians to shine on world stage, sponsor
various sports, athletics and motor sports events all over the world and also conduct
motor shows. Thiscovers the entire Hyundai marketing strategy & mix.

3.6 Growth Potential & Problems facing

3.6.1 GROWTH POTENTIAL OF HYUNDAI

Lasting growth for Hyundai will depend on aligning our interests with the larger interests of
customers and the community. We must be a company where people think seriously about the
role and responsibility of their company in the world. Our economic and industrial contribution
in each region grows, for example, as we globalize our operations. Another way to align our
interests with the larger interests of the community is through technology.

By the end of 1997, we will introduce the world's first new-energy transport that is
commercially competitive with conventional automobiles. That is when we will put a hybrid-
30
electric passenger car onto the market in Japan. Our hybrid-electric car will have a gasoline
engine to generate electricity or provide supplementary power to the wheels. It is twice as fuel-
efficient as conventionally powered vehicles of comparable size and performance. Equally
important, the value of its potential fuel savings could prove greater than its cost premium over
conventional vehicles. So, it actually could save money for car owners.

PRIORITIES FOR HYUNDAI IN THE GROWTH STRATEGY

 Fortifying our product line

 Asserting a competitive edge in technology
 Accelerating globalization
 Reclaiming market share in Japan
 Cultivating demand in new business sectors

Measures for asserting a competitive edge in technology have centered on environmental

themes. We have introduced or demonstrated new power train technologies in the past year
that will make Hyundais run cleaner and greener than ever. Those technologies include...

 A direct-injection system that makes gasoline engines more efficient

 Hybrid-electric systems that double fuel efficiency and reduce noxious emissions
 Pure electric, "zero emission" vehicles that alleviate urban pollution
 Fuel-cell systems that could transform the automobile in the 21st century.

3.6.2 PROBLEMS FACED BY HYUNDAI

During its operation, Hyundai has faced few challenges that being obstacles for the company
to be success.

Firstly, product proliferation problems with defective seats. Hyundai faces a common
problem is a lack of materials and missing parts as the main damage it faces. Seating issues
seriously affect production performance. Problem Hyundai increased the seat varieties from
12 to more than 30 in March 1992. Hyundai Motors Manufacturing is facing issues with
defective seats. KFS was responsible for the majority of the detected scat-defects by the end
of April, the run ratio of TMM fell from 95% to only 85%. This decrease caused a shortage of
45 cars per shift. Hyundai Motors Manufacturing, Kentucky.

31
Secondly, the disturbance problems on the smoothness and speed of production. It is happening
due to inefficient process flow. The inventory reduction and elimination of surplus materials
cause wastage to occur.

As example, in the 1970s. Taichi Ohno, a Chief Engineer of the Hyundai Motor Company
who was a manufacturing practitioner systematically managed to suppress various sources of
waste in the process he was running. Waste is easily detected from the environment around
the activities performed when it shows irregularities in the processes carried out in an
inventory.

Other challenges are from unsatisfactory vehicle quality problems. This problem occurred
when less emphasis on the system to check the quality before making production The
company's image deteriorated and consumers lost faith in the production of Hyundai
products. The third largest vehicle manufacturer in 2011, Hyundai Motor Corporation was the
eleventh largest company in the world by revenue. The world's largest vehicle manufacturer,
Hyundai Car Company is facing recall problems. This issue makes consumers lose their
confidence and also the corporate image deteriorates. Nearly a million vehicles worldwide, on it
to replace damaged parts that can cause drivers to lose control of the steering wheel. As to
pursue maximum profit and cost reduction, suppliers pay more attention to how to reduce
costs.

By using quality raw materials Hyundai Motor Corporation is so confident with their
suppliers, that they change the design without taking permission. Hyundai Motor Corporation
their largest supplier changed the design of the pedals leading to pedal problems. Hyundai
Motor Corporation's lack of effective quality control caused them to remember happening
They don't do enough design testing before they produce. Their biggest mistake is that they
don't use quality inspection after production. Due to lack of negligence and being
overconfident can cause them to be big problems in the future.

32
3.7 Hyundai Key Statistics & Contribution to Indian economy

3.7.1 Hyundai Key Statistics

 As of 2021, it was the leading motor vehicle manufacturer worldwide based on global
sales, overtaking the Volkswagen Group in 2020. The Hyundai brand is the
company's best-selling Subsegment, with around 8.9 million vehicles sold in 2021.
At just over
2.6 million units, electrified vehicles are gaining importance for Hyundai. The
company made strides in the electric vehicle market by being the first and largest
automobile company to offer a hybrid car in its line-up. The Hyundai Prius was such a
success that the company began to provide a hybrid option for some of its other
models, such as theCamry and the Corolla. However, the corporation still lags behind in
the plug-in electric vehicle sector, holding around 1.9 percent of the market in 2021
compared to 11.3 percent for the Volkswagen Group.
 Hyundai was stalled from recovering financially from the worldwide recession that
started in 2008 by a series of recalls and natural disasters in Japan and other production
center locations, such as Thailand. Hyundai's revenue finally surged in 2013 and
recovered from the COVID-19 pandemic throughout its 2022 fiscal year. Net income
was up by over 15 percent year-over-year reaching 31.38 trillion Japanese yen in the
2022 fiscal year (around 218.5 billion U.S. dollars with an exchange rate of 1 Japanese
Yen equals 0.007 U.S. dollars as of September 20, 2022). The manufacturer's namesake
brand also consistently ranked among the most valuable car brands within the global
automotive sector.
 As of 2022, it came in second only to Tesla, beating out competitors such as Mercedes-
Benz or BMW. Despite an improved financial performance compared to the 2021 fiscal
year, the Hyundai Motor Corporation faced the same challenges as its competitors in
2022. Though on the rise, vehicle production was 7.5 percent below its pre-pandemic
output. The global automotive semiconductor shortage led to production halts,
including in the company's Japan factory, which were still ongoing in June and July
2022. Production suspensions further hit Hyundai's national output as Typhoon
Hinnamnor neared western Japan.

33
3.7.2 Hyundai Contribution to Indian Economy

 Hyundai Group plans to invest 48 billion rupees ($624 million) to make electric
vehicle components in India, as the Japanese carmaker works toward carbon neutrality
by 2050.Hyundai Kirloskar Motor and Hyundai Kirloskar Auto Parts signed a
memorandum of understanding with the southern state of Karnataka to invest 41
billion rupees, the group said in a statement Saturday. The rest will come from
Hyundai Industries Engine India.
 Hyundai is aligning its own green targets with India's ambitions of becoming a
manufacturing hub though the switch to clean transport in the South Asian nation is
slower than other countries such as China and the U.S. Expensive price tags, lack of
options in electric models and insufficient charging stations have led to sluggish
adoption of battery vehicles in India.
 From a direct employment point of view, we are looking at around 3,500 new jobs,"
Hyundai Kirloskar Executive Vice President Vikram Gulati told the Press Trust of
India in an interview. "As the supply chain system builds, we expect much more to
come in later."
 India's EV Sales Seen Doubling Led by Battery-Powered Scooters
 Indian automakers could generate $20 billion in revenue from electric vehicles between
now and fiscal year 2026, according to forecast by Crisil. By 2040, 53% of new
automobile sales in India will be electric, compared with 77% in China, according to
Bloomberg NEF.

34
 CHAPTER-4
COMPETITOR ANALYSIS

4.1 Hyundai Competitors

 Ford: Founded in 1903 by Henry Ford, Ford Motor Company is a multinational

automobile manufacturer headquartered in Michigan. With an impressive number of
4.2 million sold units in 2020, it has a revenue of around US$ 136.3 billion;
 Chevrolet: The automobile division of the manufacturer General Motors (GM) was
founded in 1911, in Michigan, just like its rival Ford. Chevrolet had around 2.4 million
vehicles sold worldwide in 2021;
 Nissan: It is a Japanese multinational automobile manufacturer, based in Yokohama,
Japan, and accounts for an impressive number of 4.75 million sold units in 2020, with
revenue of around US$ 90.8 billion;
 Honda: Another Japanese multinational automobile manufacturer, Honda is
headquartered in Tokyo, Japan, and it is also responsible for designing, manufacturing,
and selling motorcycles and power equipment;
 Mercedes-Benz: Headquartered in Stuttgart, Germany, Mercedes-Benz is a luxury and
commercial vehicle automotive manufacturer founded in 1926. Although it competes
in the luxury segment, Mercedes was has sold over 2.1 million units globally in 2020,
making it the largest brand of premium vehicles in the world;
 BMW: Another German luxury and commercial vehicle automotive manufacturer,
BMW is headquartered in Munich, Germany, and it is also responsible for designing,
manufacturing, and selling motorcycles, which — same as its vehicles — compete in
the luxury sector of the market;
 Tesla: Last but not least, Elon Musk’s automotive and clean energy company aims
exclusively at electric vehicles — but not just that. It also works with battery energy
storage, solar panels, solar roof tiles, and related services. As far as it concerns
Hyundai, Tesla sold over 930,400 vehicles in the year 2021, and over 295,300 units of
Tesla’s Model 3 and Model Y were sold in the first quarter of 2022, according to
Tesla itself.

35
4.2 Key players in the industry

The automobile (automotive companies) sector has mushroomed over the years into a mature
and well established industry. Innovation and manufacturing of vehicles has helped the industry
to grow into a profitable one. Automobile companies have contributed significantly to the
development of the world’s economy by creating jobs paying lots of taxes and earning loads
of foreign exchange. There are several automobile manufacturing companies in the world that
produces vehicles in a large quantity.

Here we have listed the top 10 largest automobile manufacturing companies in the world.

Fig 4.2.1

1) Tata-Motors:
Tata Motors is the Asia’s largest and 17th largest automobile manufacturing company in the
world. This company is known for its production of cars, trucks, vans, coaches and so on. Tata
Motors record the highest sales and is widely popular across the country in 2017.This company
is passionate about anticipating and providing the best commercial and passenger vehicles
globally as well as the best customer experiences.

36
Key facts:

TATA MOTORS Established 1945

Employee Strength 60,000

Company Turnover $42 Billion

Vehicles Sold >9 Million
Sales & Service Points >6, 600
Table 4.2.1

Tata Motors can be found on and off-road in over 175 countries around the globe. Cars, buses
and trucks of Tata Motors roll out at 20 locations across the world, seven in India and the rest
in the UK, South Korea, Thailand, South Africa and Indonesia.

2) Mahindra & Mahindra Ltd:

Mahindra & Mahindra Ltd is a US $19 billion global federation of companies. This company
is the world’s largest tractor manufacturing company and also India’s second largest vehicle
manufacturing company. Mahindra & Mahindra is India’s top SUV manufacturing company
that produce two wheelers, bus, pickup, tempo, trucks, and commercial vehicles.

This company commits to invest in technology and grow global presence. Mahindra &
Mahindra aims to multiply output both in quantity and quality with a major focus on
manufacturing excellence. This company has created several industry-leading and category-
defining brands.

3) Maruti-Suzuki:
Maruti Suzuki had brought a big revolution in the automobile industry. This is one of the old
companies that expertise in the field of production of cars. This company has manufactured
cars such as Alto, Omni, Estilo and so on. The total annual production capacity of this company
is about 14, 50,000 units.

Maruti Suzuki works with a mission to provide a car for every individual, family, need, budget
and Way of Life. For this, it offers 15 brands and over 150 variants ranging from Alto 800 to
the Life Utility Vehicle Maruti Suzuki Ertiga.

37
4) Hyundai-Motor-Corporation:
Hyundai Motor Corporation is one of the top most automobile manufacturing companies in
the world. This company designs, manufacturers and markets various automobile product
ranges from SUVs, minivans, luxury & sport utility vehicles, trucks and buses among others.

Hyundai Motor Corporation has other vehicle manufacturing subsidiaries which include
Daihatsu Motor for the production of mini-vehicles and Hino Motors for the production of
buses and trucks. Hyundai car engines are fixed with either combustion or lately the hybrid
engines such as the one in the Prius.

5) Chevrolet:
Chevrolet is an American division of the General Motors. The company has an array of trucks,
automobiles and commercial vehicles as the products it offers with its services including oil
changing, vehicle insurance, vehicle financing, vehicle sales and vehicle repairs. Chevrolet has
the reputation of being a car of all the purses and all the purposes. Its wide range of vehicles
includes subcompact automobiles and medium duty commercial trucks among others.

6) MITSUBISHI-MOTORS-CORPORATION:
Mitsubishi Motors Corporation develops design, and manufacture, sale and purchase
automobiles and component parts, replacement parts. This company manufactures component
parts, replacement parts and accessories of said used automobiles.

Mitsubishi helps to bring higher productivity and quality to the factory floor. In addition,
extensive service networks around the globe provide direct communication and comprehensive
support to customers.

7) Honda-Motor-CoLtd.-Company:
Honda Motor Co Ltd. Company is a world leading automaker and the largest motorcycle
producer in the world. Its motorcycle lines feature everything from super bikes to scooters,
with the company also being dedicated to the production of personal watercrafts and ATVs.

The models of this company include seven luxury vehicle models as well as SUVs and others.
Within its lines are also Honda Power products and machinery such as snow blowers, tillers,

38
lawn mowers, outboard motors and portable generators. Engine quality, durability and
economic fuel consumption are the main reasons why customers prefer Honda machines.

8) Ford Motor Company:

Ford Motor Company is one of the leading automobile manufacturers in the world that ranks
high among the top automobile companies. Some of its most staple brands include Lincoln,
Taurus, Focus, Mustang, and Fiesta etc. The company’s automobiles are characterized with
luxury under the Lincoln Marque brand, with other brands being good for sports and off-road
performances. In the past, Ford manufactured some of the best, trucks, buses and tractors.

4.3 Market share of each player

As of February 2023, the car sales numbers are on the rise, with a year-on-year growth of 27%.
This denotes that the demand for four-wheelers among Indian residents is increasing steadily.
However, the Indian automobile market is flooded with leading car manufacturers, making it
difficult for buyers to select the best brand. This article summarises the top car manufacturers
in India to assist readers in making an informed choice.

1. Maruti Suzuki | Market Share: 44.23%

Collaborating with Suzuki Motor Corporation, a Japanese automobile manufacturer, Maruti

Suzuki, a household name, holds a market share of 44.23% as of February 2022 and is the
leading car manufacturer in India.

As of 2021, it sold around 13,65,000 car units. It is known for manufacturing cars with optimum
features at affordable prices. Besides, the brand also extends excellent after-sales services.

Some of the popular models from this brand are – Swift, Alto, Vitara, Baleno, Ertiga, Wagon
R, and Celerio. Currently, it owns 3 manufacturing plants in India.

2. Hyundai Motor Company | Market Share: 14.54%

Headquartered in Seoul, Hyundai Motor Company or Hyundai is India's 2nd largest car
manufacturer. It holds a market share of 14.54% as of February 2022.

As of FY 2021, the brand witnessed a growth of 19% in India and sold 5,00,000 car units
against 4,20,000 in 2020.

39
It manufactures both premium and affordable car models, bearing top-notch features. Santro, a
flagship car model of this brand, helped increase its outreach. Some of the popular models from
this brand are – Santro, Xcent, Creta, Elantra, Eon, i10 Grand, i10 and Tucson. Currently, it
owns 2 manufacturing plants in Chennai, equipped with best-in-class production technology
and testing capabilities.

3. Tata Motors | Market Share: 13.20%

Tata Motors, a subsidiary of Tata Group, came into the commercial vehicle market in 1991
with Tata Sierra. The launch of Indica made this brand one of the top contenders in this
segment.

As of February 2022, it has a market share of 13.20%. Further, it marked an aggregate sales of
73,875 units in this similar month of the year and has grown by 27% over the preceding
financial year.

It manufactures an extensive range of car models, including sedan, SUV, MUV, hatchback,
etc. Every car model bears an excellent built quality. Some of the popular car models from this
brand are – Hexa, Tiago, Indica, Safari, Storme, Nano, and Bolt. Currently, it owns 6 domestic
assembly units and 4 international units.

4. Mahindra & Mahindra | Market Share: 9.13%

A multinational automobile manufacturer based in Mumbai, Mahindra & Mahindra is one of

the best car manufacturers in India, holding a market share of 9.13% as of February 2022.
Moreover, in February 2022, it sold around 54,455 units and reported an increment in the
market growth by 89%.

It is the largest SUV manufacturer in the country. Consumers can select from the top car models
based on their requirements, including Scorpio, Bolero, Thar, XUV500 and Xylo.

5. KIA Corporation | Market Share: 5.98%

Kia is a multinational automobile company based in Seoul. As of CY 2021, it reported

cumulative sales of approximately 2,27,844 units. It ranks among India's top 5 automobile
manufacturers in terms of its sales as it witnessed a year-on-year growth of 29% in India.
Further, it holds a market share of 5.98% as of February 2022.

One of the primary reasons for its growth in the Indian market is its feature-packed cars at an
affordable price range. Additionally, cars from this brand are known for bearing top-notch
40
safety features. Insurance Institute for Highway Safety identified 8 car models from Kia on its
TOP SAFETY PICK+ (TSP+) and 2022 TOP SAFETY PICK (TSP), including Carnival Seltos
in this award list. The car portfolio of this brand includes – Carnival, Seltos, Carens and Sonnet.

6. Toyota Motor Corporation | Market Share: 2.89%

A Japanese multinational automobile company, Toyota is the largest vehicle manufacturer

worldwide. It constitutes a market share of 2.89% as of February 2022. Moreover, its sales
figure in February 2022 was 8,745 units.

This brand retails cars with top-notch safety features and strong built quality. This brand's top
car models are - Innova Crysta, Urban Cruiser, Glanza, Camry, Fortuner, and Vellfire.

7. Honda | Market Share: 2.37%

Honda Motors stepped into the Indian market in 1995. As of February 2022, it occupies a
2.37% market share in India. At the same time, it registered sales of 9,524 units.

This car manufacturer produces durable and fuel-efficient cars equipped with the latest
technology and attractive design. Some of the popular car models of this brand are – Honda
City, Amaze, Brio, Accord, Civic and Jazz. Currently, it owns two manufacturing plants in
India, having a capacity to manufacture 60,000 to 1,00,000 units in a year.

8. Renault | Market Share: 2.17%

Renault Group is one of the best car manufacturers in India and is a multinational automobile
company headquartered in France. As of February 2022, it holds a market share of 2.17% in
India. Additionally, its overall sales breached the 8,00,000 milestone in India.

The company produces affordable cars in extensive variants such as SUVs, hatchbacks and
MPV. Some of the popular car models of this brand include – Triber, Kwid, Duster and Kiger.
Currently, it owns one manufacturing plant in the country, sharing the partnership with Nissan.

9. MG Motor | Market Share: 1.50%

Morris Garages is a British automobile manufacturer and one of the youngest car companies
in the Indian market. It launched its automotive product in 2019, and since then, it has been
known for manufacturing innovative vehicles. It also sells electric SUVs.

41
In 2021, it registered an increase in sales by 43%. As of February 2022, it owns a market share
of 1.50%. Some of the top car models from this brand are – Hector, Hector Plus, Astor, Gloster,
and ZEV.

10. Skoda Auto| Market Share: 1.49%

Based in the Czech Republic, Skoda is one of the leading car manufacturers in India. As of
February 2022, it occupies a market share of 1.49%. In a similar month of this current fiscal
year, Skoda Auto India Pvt. Ltd. witnessed a sale of 4,503 units, mostly derived from its top
SUV model, Kushaq.

This company is popular for manufacturing premium cars with luxurious interiors and optimum
driving performance. Some of its popular models include – Kushaq, Rapid, Octavia, Superb.
Currently, it has two manufacturing plants.Keep this list of top 10 car manufacturers in India
in mind before heading to the market and investing in a car

4.4 Key Challenge facing the competitors

1. Production recovery
While the pandemic led to massive production halts in 2020 due to intense social distancing
norms and nationwide lockdowns, 2021 saw some activity from industry players trying to
kickstart a recovery. However, their efforts were seriously constrained from the ongoing
supply chain issues, semiconductor shortages, and different degrees of lockdowns countries
imposed to deal with the numerous waves and variants of the virus.
The resulting limited or complete production shutdowns further exasperated the existing
automotive industry challenges of resource shortages and excess unwanted production. This
later translated into significant financial losses, directly impacting the global GDP.
2022 brought a ray of hope as the vaccination drives started to take effect, allowing nations
to reopen industries unanxiously. As per the latest ACEA numbers, nearly 8 million vehicles
were manufactured in the EU in the first three quarters of 2022, representing a 5.8% rise
from the 2021 numbers for the same period. Other major markets, including North America
and China reported 11.8% and over 15.1% increase in their outputs respectively. Many auto
companies also altered their car-making approach – embracing the industry 4.0 for
efficiency and better manufacturing resilience.

42
2. Less vehicle sales
Drastically reduced vehicle sales emerged as a critical challenge for the automotive industry
during peak COVID-19 period. Now, two years past that time, the issue of poor sales
continues to still plague the industry, with a domino effect of different factors taking turns
to keep the numbers low. During the pandemic, it was the global lockdowns that impacted
sales as stay-at-home mandates and remote working took away the need to travel. This of
course did not come as a surprise; a new vehicle purchase would be the least of priorities for
consumers during a global pandemic.
In 2021, the numbers recovered marginally, but remained low due to low inventories. Many
willing customers had to deal with inexplicably long wait times, with popular models
coming with a wait queue that was 12 months or longer. The long delivery times hinted
towards a reinvigorated demand at a time when the supply was lacking. In fact, when this
demand was rising, auto giants such as Hyundai were scaling back production due to parts
shortages. In February 2021, Hyundai announced that it was again lowering its vehicle
production-by-byover150,000units.
According to Germany’s Center for Automotive Research (CAR), global vehicle sales for
2021 stood at over 71.3 million, having gone up from over 68.6 million in 2020. While sales
were expected to rally in 2022, the conditions created by the combination of Russia-Ukraine
conflict, and China’s strict zero COVID policy-fueled lockdowns are likely to lead to a
contraction of 5%, with numbers falling to approximately 67.6 million.
3. Massive layoffs
The auto sector has been dealing with the pressing issue of job losses since before the first
lockdowns took effect in 2020. The livelihoods of auto industry workers are being
challenged by a spate of different factors over the past few years, with manufacturing
shutdowns and outdated skills being the most prominent of them all.
In 2020, with the coronavirus spreading unchecked, many firms had to shut factories and
conduct massive layoffs in response to the global lockdowns. Nissan for instance, closed its
Barcelona unit in Spain, after reporting massive losses. Meanwhile, Swedish car maker, AB
Volvo, also announced plans to lay off over 4,100 white-collar workers in H2 2020. Many
other manufacturers in Europe were also forced to put their employees on short-term work
duringthepandemic.
In 2021, while lockdown led layoffs took a backseat, the underlying issue of skill
transitioning again became a major cause behind job losses for auto sector workers. The
43
transition to industry 4.0 and electrification has broken away from the labour –I ntensive
traditional model. Experts estimate that the impacts of the transition are likely to play out
over the long term. As per estimates by the German Association of the Automotive Industry
(VDA) over 215,000 jobs are likely to be lost by 2030 in Europe, while US-based Economic
Policy Institute estimating that over 75,000 jobs would become redundant by 2030 in the
country.
4. Disrupted supply chain
The COVID-19 pandemic triggered a chain of events that have since continued to contribute
towards supply chain disruptions for the industry. China, which ranks among the top
automobile markets in the world, had over two-thirds of its automobile manufacturing
capacity affected due to the lockdowns. This also severely impacted the supply chain as the
country is one of the leading exporters of raw materials and components for the sector.
Amid all the disorganization and disruption, many industry players also announced their
shift towards electrification in 2020-21. For instance, in January 2021, American
heavyweight General Motors, announced its intentions to build and sell a complete portfolio
of zero-emission vehicles by 2035. This created additional pressure on the sector and further
exasperated the bottleneck in semiconductor production.
In 2022, the Russo-Ukraine war forced auto industry pundits to cut vehicle sales and
production forecasts for the coming two years. The conflict has shuttered numerous factories
across Eastern Europe, causing spikes in the prices of already scarce raw materials,
jeopardizing green tech progress.
5. Liquidity
Liquidity is among the biggest challenges the automobile industry has faced after the
destabilization brought forth by the pandemic. Factory shutdowns and crashing sales
gradually caused heavy financial losses, and the parts as well as semiconductor shortages
kept the recovery down, with OEMs forced to operate on minimal liquidity.
Market conditions have further worsened due to the Ukraine war and are likely to push many
small auto firms out of business. Cash reserves had already hit their all-time low during
COVID-19; the situation is expected to take time to recover.
As the industry’s financial challenges continue to reign, automakers are likely to turn to the
governments for supportive measures to obtain liquidity assistance. Leveraging AI in
automotive market to forecast cash influx in real-time and establishing a liaison with
global financial institutions to drive investments towards automation, upskilling, and
44
connected technologies are also some options carmakers can tap into while dealing with the
said liquidity challenges.

6. Change in customer behavior

The unstable, recession-heavy blend of the global economy, price inflations, and the all-
around dire state of financials and public health have hammered a considerable behavioural
change in consumer buying patterns.
During 2020, a critical time period where the pandemic was spreading unchecked, making
large purchases such became the least of everyone’s worries. Many consumers backed out
of their ongoing vehicle purchase commitments to rethink finances and prepare for the worst-
case-scenario, a key challenge the automotive industry had immense difficulty in addressing.
In 2021, for those that could afford, buying a car from dealerships or offline showrooms
became next to impossible, given the year-long wait periods. To combat the same, many
automakers have attempted to transition their inventories to an order-based model. This
helped them redirect their resources towards the vehicles that were seeing demand, pausing,
or freezing the assembly lines of poorly selling models. Many also made the car purchase
experience digital and implemented numerous other steps to build up the dwindling
consumer confidence.
However, the uncertainties birthed by growing geopolitical tensions and the infamous crypto
crash of 2022 reversed all progress automakers had made in this regard. Several industry
players have cautioned that sales may likely fall below the 2020 numbers due to the deflating
economy and the increasing tight-fisted spending approach of consumers.

45
 CHAPTER-5
FINDINGS & CONCLUSION

FINDINGS

 The strong industry position of Hyundai is based upon a number of factors

including a diversified product range, highly targeted marketing and a commitment to
lean manufacturing and quality.
 The Hyundai uses marketing techniques to identify and satisfy customer needs. Its
brand is a household name. The company also maximizes profit through efficient
manufacturing approaches (e.g. Total Quality Management).
 Hyundai's believes in putting the customer first and aims to provide the best levels of
customer satisfaction as its main marketing strategy. Their dealers have also worked
hard to provide their high levels of customer support."
 Competition is intense in the Indian market for domestic and foreign companies. The
Indian market is important for Hyundai with potential to aid its growth strategy,
 While Suzuki-Maruti, Tata Motors, Hyundai, Mahindra & Mahindra and KIA
command the top five positions in the domestic passenger vehicle segment, Hyundai,
Honda, GM and Ford are fighting each other for the sixth position.

46
CONCLUSION

 It is concluded that Suzuki-Maruti, Tata Motors, toyota, Mahindra & Mahindra and
KIA command the top five positions in the domestic passenger vehicle
segment,Hyundai, Honda, GM and Ford are fighting each other for the sixth position.
Incidentally, in the first five months of the fiscal (Apr-Aug’22) Skoda has moved to
the tenth position, overtaking Italian major Fiat.
 Competitive pricing and a better value offerings were driving the sales of most auto
majors for the past few months. Despite a competitive business environment, most
of the car majors were able to hold on to their market shares in the April to August
'04 period. The exceptions were toyota. Mahindra & Mahindra. Hindustan Motors and
Fiat, who saw their market shares fall marginally.
 The market is slow and there are visible signs of discounting, particularly in the
higher end of the car segment. However, since entry level and compact cars are
volume segments, the slowdown's effect is more visible here.
 For many automobile companies, it was a double whammy in August '04. The
truckers' strike and adhikmas (inauspicious period) last month affected dispatches of
most car companies, including Maruti Udyog, General Motors and Tata Motors,
resulting in lower sales. The exceptions were Honda Siel Cars India, Ford India and
Hyundai Kirloskar.

47
 BIBLIOGRAPHY

1. http://www.slideshare.net/

2. http://www.wikipedia.org/

3. www.hyundai.co.in

4. www.fourwheelers.com

5. www.smallears.com

6. https://www.tecnovaglobal.com

48