from Hindustan Motors and sleek µFiet¶ from Premier Automobile¶. of India dictated as to what type of vehicle the two company should manufacture. ‡ No domestic or foreign car manufacturers were allowed to enter the Indian car market as per the norms of GOI. after India became independent in 1947. ‡ For HM and PA.the car market had just two model¶s to offer to its customers µAmbassdor.this lead to poor technology in Indian cars. the Govt.BACKGROUND NOTE ‡ For a long time. .

5%.000.000 in 1960 which increased to 30.40.In 1983 it launched MARUTI 800 just for Rs. . ‡ The demand for cars was around 15. car prices remained high as quality was inferior.Govt tied up with a japanese company SUZUKI and in india it came up with MARUTI UDYOG LTD.000 in two decades which meant that the compound annual rate was 3.‡ As a result. this effected the growth of the industry. ‡ In 1980 GOI felt the need to introduce a car for the lower segment.

‡ Entering indian market was not so easy for any korean company at that time as the surveys gave a clear picture that indian customers prefered companies like FORD MOTORS. ‡ But it finally entered india with a low price car SANTRO in competition with MARUTI. .TOYOTA MOTORS and HONDA MOTORS over HYUNDAI.‡ Maruti udyog ltd had around 85% of market share when an korean company HYUNDAI was planning to enter the indian market.

. leading business newspaper reported that Hyundai Motors India Limited Company (HMC) was expected to reduce the price of its flagship car SANTRO by as much as Rs.40.THE PRICE CUT ‡ In august 2004.000.

³We are not cutting prices on the santro. ‡ Rebutting the reports on price cuts. . which has reduced the price of its largest selling car in B segment-Alto by rs.we have allowed our competitors the prerogative of cutting prices´.BVR Subbu said:.58. ‡ This move had resulted in Alto replacing Santro as the largest selling car in B segment in the period january to june 2004.000 in two price cut starting from September 2003. ‡ Several dealers of santro felt that the company would not reduce Santro¶s price as it had not adopted this tactics before.‡ Indian Experts were expecting reduction in Santo's price in response to the price war waged by the market leader in india-Maruti Udyog Limited.HMIL¶s managing director.

‡ HMC initially wanted to introduce µAccent¶a µC¶ segment car-as its first product in India. ‡ It was felt that the demand for small cars was more. .HYUNDA¶S ENTRY IN INDIA ‡ One of the major players that entered the Indian car market was HMC through its subsidiary HMIL.

000.000 vehicles between April and March 2000.3.000.priced at Rs.‡ HMIL¶s first car named µSantro¶ rolled out in a record time of 17 months. ‡ The µB¶ segment at that time was dominated by MARUTI ZEN a product of MUL. selling 75. priced at Rs.45. .2. ‡ Santro became a major success.89.



´ ‡ The company had also ensured that the car was not priced too high as this would affect sales volume. ± Power steering .‡ The seats were ergonomically designed allowing correct sitting posture. ‡ Experts said´the santro was not only more comfortable but also technologically superior to any other µB¶ segment car. ‡ SANTRO LP came with features like± Air-conditioner ± Heater and.

± Tinted glass all around. .HMIL gave advertising contract to Saatchi & Saatchi which decided to rope in a superstar of Indian movies-Shahrukh Khan.‡ SANTRO LE had all the features of SANTRO LP and in addition had ± Spoiler power windows ± Central locking ± Rear wipers and washer ± Body coloured bumper ± Remote tail gate release and. ‡ To promote the Santro brand.

.‡ After santro¶s opening success.HMIL ran a new ³Customer satisfaction campaign´.

the major players realized that d 'B' segment would be the fastest growing in the car industry. . ‡ they felt that if santro lost its market shared financial performance of the company would be badly affected as it had no other product in its portfolio. Analysts felt HMIL's major weakness was that it had only one model to offer.this was akin to keeping 'all the eggs in 1 basket'.LAUNCH OF ACCENT : ‡ In mid 1999.

and a year later. in October became the largest selling car in the C segment.and MUL's 'Esteem' and Ford's 'Ikon'.Accent gave stiff competition to other cars in the 'C' segment. ‡ During the first year of launch. .it emerged third in terms of market share in its segment.The next year it graduated to second position leaving 'Esteem' behind.HMIL introduced 'Accent' in the Indian car market.‡ Responding to these concerns. Soon after the launch.

7.000. HMIL relied more on the print media than on television.' priced at Rs.‡ To promote the Accent. ‡ It came up with print advertisements that highlighted the latest technology used in the car. HMIL introduced a diesel variant of the Accent called 'Accent CDRi. . The baseline was chosen to show that Accent was the next level in car technology.25. ‡ Accent was also positioned with the baseline 'THE NEXT STEP'. engine immobilizer n others. such as remote controlled music system. In October 2002.

Zen. MUL's Alto. MUL commanded the largest market share in this segment due to the combined sale of its three cars. which was launched in October 2000. Wagon R and Alto. .REPOSITIONING SANTRO In late 2002. the competition in the µB¶ segment had increased significantly. Although HMIL's Santro remained the largest selling car in the B segment.had received a good response.

another variant. HMIL launched the'Santro Xing'.convenience and comfort. S & S roped in leading actress of Indian cinema-Priety Zinta.‡ To further increase the sale HMIL further decided to reposition the Santro in October 2002. .Santro was repositioned as the 'SUNSHINE CAR'. In mid 2003. HMIL decided to tap the rural market in India. along with Khan in a promotional campaign worth Rs.50mn.The company claimed dat it was an improved version of Santro in terms of safety. ‡ In May 2003.

sales from rural areas comprised 30% of the total sales as compared to 26% in 2001.d company witnessed a growing market share in rural areas.‡ By April 2003. . HMIL believed that once rural buyers became aware of the quality of its cars. they wud certainly shift from the M800 to the Santro.the company identifies states such as Punjab.Uttar Pradesh and Andhra Pradesh that had a sizeable affluent riral population.Haryana. ‡ By the end of 2003.Maharashtra.In the fiscal 2003.Kerala.

I expect this alliance to help us significantly deepen and widen our market penetration. one of the largest public sector banks in India.‡ In November 2003. ‡ Signing the agreement. Subbu said." . to provide financing on its cars.where organized retail financing does not exist.HMIL announced that it had signed an agreement with the Punjab National Bank."We have now made buying a Hyundai more affordable and accessible to thousands of aspiring Hyundai customers beyond the metros and large cities.



Weaknesses:  Commodity Price Risks  Exchange Rate Risk Opportunities :  Leading growth Threats:  Risk Factors  Business Risks .

. ‡ Coincide of Price-cut. ‡ Lack of product diversification.THE CHALLENGES AHEAD ‡ Santro lost leadership status in µB¶ segment ‡ Production line was busy for µGetz¶ production. ‡ Stiff competition from MUL.

requirements. Behind this betterment go the efforts of those in the industry. . cheaper and more convenient mobility every passing day. in the form of improvement through technological research. an extension of the human body that provides us faster.CONCLUSION Automobiles have become an indispensable part of our lives. likes and dislikes of those who use these vehicles. What actually lie behind this betterment of the automobiles are the opinions.

. alternative medicine and so on. vehicular technology. be it about the pollution caused due to vehicle population in cities. or rising motor accidents and causes.These wheeled machines affect our lives in ways more than one. Numerous surveys and research are conducted throughout the world every now and then to reveal one or the other aspect of automobiles.

.. Presented by. Rashi Seth Shweta Kumar Swati Dalal Vanita Kumari .THANK YOU.

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