CHUNG JU YUNG

Introduction
The Automobile Industry in India is the eleventh largest in the world with an annual production
of approximately two million units. India is expected to overtake China as the worlds fastest
growing car market in terms of number of units sold and the automobile industry is one of the
fastest growing manufacturing sectors in India.
At Hyundai, weve rethought our business and created cars that combine performance, quality,
design and innovation into a complete package.
Its time you rethink what you expect from an employer.
At Hyundai, we understand you're not just building a career you're building a life. We believe
in our people and realize that our success is a direct result of our commitment in offering you
great opportunities for your career.
A number of Industries are dominated, globally by large corporations, which are now called by
different names MNCs, TNCs or International corporations. A significant share of the worlds
industrial investment, production, employment and trade are accounted for by over 65000
MNCs with over 8, 00,000 affiliates.
The Multinational Enterprise is a company that takes a global approach to foreign market and
production. It is willing to consider market and production location anywhere in the world. A
Transnational Company (TNC) is a company owned and managed by nationals in different
countries.
Hyundai motors is a South Korean multinational automotive manufacturer The company was
founded in 1967 and, along with its 32.8% owned subsidiary, Kia Motors, together comprise
the Hyundai Motor Group, which is the world's fifth largest automaker based on annual vehicle
sales . Hyundai is currently the fourth largest vehicle manufacturer in the world. Hyundai Motor
India Ltd is a wholly owned subsidiary of the Hyundai Motor Company in India. It is the 2nd
largest automobile manufacturer in India.

Hyundai Motor India (HMIL)

Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor Company of
South Korea. When Hyundai Motor Company entered the Indian Automobile Market in 1996
the Hyundai brand was almost unknown throughout India.
During the entry of Hyundai in 1996, there were only five major automobile manufacturers in
India, i.e. Maruti , Hindustan, Premier, Tata and Mahindra. Daewoo had entered the Indian
automobile market with Cielo just three years back while Ford, Opel and Honda had entered less
than a year back.
For more than a decade till Hyundai arrived, Maruti Suzuki had a near monopoly over the
passenger cars segment because Tata Motors and Mahindra & Mahindra were solely utility and
commercial vehicle manufacturers, while Hindustan and Premier both built outdated and
uncompetitive products.

BENCH MARKS
The Best Mid-size Car of the Year award by the NDTV Profit C The Hyundai Verna has
bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by
India's leading automotive publication Overdrive & HMIL has also been awarded the
benchmark ISO 14001 certification for its sustainable environment management practices
Performance Car of the Year 2007 from Business Standard Motoring. the Best Value for
Money Car by the CNBC Auto car Auto awards B Awards 2007

Who We Are
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company
(HMC). HMIL is the largest passenger car exporter and the second largest car manufacturer in

India. It currently has ten car models across segments - Eon, Santro, i10, Grand i10, i20, Xcent,
Verna, Elantra, Sonata and Santa Fe.
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts advanced
production, quality and testing capabilities. HMIL forms a critical part of HMCs global export
hub. It currently exports to around 120 countries across EU, Africa, Middle East, Latin America,
Australia and the Asia Pacific.
HMIL has been Indias number one exporter for the past eight years consecutively. To support its
growth and expansion plans, HMIL currently has 397 dealers and more than 1,045 service points
across India. In its commitment to provide customers with cutting-edge global technology, HMIL
set up a modern multi-million dollar R&D facility in Hyderabad. The R&D center endeavors to
be a center of excellence in automobile engineering.

Literature Review

First and second mover advantages have received a great deal of attention from academic
literature over the past few decades. Traditionally, first movers are defined as innovators or
pioneers of a market and thus the first to enter said market, while second movers are defined as
the firms that enter a market after the first mover.
While the literature has shed much light on the topic of market entry, there is no magical
strategy that will automatically make a firm or product launch successful. This is most likely
because of the nature of business or that there is no magical fixed strategy that will
automatically make a firm successful in its market. However, if literature on the topics of market
entry, positioning strategy, advertising, and luck are observed together, a much clearer picture
emerges on how a firm might find an advantage over its competitors that allows it to sustainably
grow within its market.
First and Second Mover Advantages
Beginning with first and second mover advantages, the literature seems to have come to a
general consensus on when and how innovators and second movers should enter a market.
It also suggests though, that while both positions have advantages that can be acquired, there are
also inherent risks for each order of entry as well as optimal times of entrance for each that must
be achieved before the advantages can be attained. For instance, the optimal time of entrance for
a pioneer occurs when a firm acquires or 6 develops technology that allows it to make a
revolutionary product, take advantage of an untapped market, or creates a new product that
cannot be copied (Teece, 1987).
Once a pioneer is established in its new market, the company will have the majority of the
market share. In most cases, the first mover will be able to hold the market share for quite a long
time due to the order of entry effect which states that the order of entry into a market is inversely
related to the market share held by a firm. Urban et. al estimate, the second mover will make

about the pioneers market share, while a third mover will make about 6/10, its market share1
When the pioneer obtains this majority market share, it will have the opportunity to create stable
preference patterns for its product from the fundamental consumer traits of those in its market.
This fact will make the innovators product the standard to which all other entrants products in
the market are held2 (Urban et al, 1986).
The innovator will also have the ability to create barriers to entry in the form of patents, tradesecret protection, etc. Such barriers make it more difficult for, if not prohibit imitators from
following it into the market (Teece, 1987). These are just a few of the many advantages that a
pioneer can acquire once it successfully breaks into a new market.

MARKET BACKGROUND
Till 1980, Indian passenger car market was dominated by two players Ambassador, Hindustan
Motors Fiat Padmini The Government also controlled the design & make of the cars. It had
following impact on the Indian Auto market Low CAGR (3.5%) Owning a car remained a
distant reality for the common man
In 1980, GOI allowed a JV between Maruti & Suzuki to manufacture cars in India which
resulted in a 18.6% CAGR for the next decade In 1993 GOI de-licensed the auto industry,
making way for new players in the industry

Advent of Hyundai in India Hyundai was one of the earliest car manufacturers to enter
India, it made its official entry in 1996 Extensive market & consumer research were carried out
by top management of the company The purpose of the research was to understand need &
requirements of Indian consumer from a car Hyundai also wanted to understand the
distribution chain with respect to Indian markets Another major highlight of the research was
to understand the consumers preference of cars with respect to their country of origin (like
Japanese cars were considered to be most fuel efficient cars)

Became the first foreign car manufacturer to set up its own manufacturing unit in India

The real Challenge Indians were unsure about Korean products especially automobiles.
Hence the first task was to ensure that Indian consumers develop a positive association with
Korean car makers. Second issue was developing a corporate image for Hyundai. Since cars are
high involvement product, customers will make a choice looking on the maker, service support,
spares availability

Third issue was about the design of Santro. Santro was designed to be a tall boy car and
initial product testing revealed that Indians did not liked the tall boy design.

The fourth issue was the grip of Maruti on the Indian car market.

Launch of Santro Hyundai Santro was launched in 1998, within a record time of 17
months .The car was placed below 3Lakhs B segment, where it directly competed with the leader
Maruti Zen and new entrants like Tata Indigo & Daewoo Matiz

Initially, the car wasn't much liked by the analyst, as they felt the car lacked the elegance
and the segment was dominated by Maruti Suzuki Zen

To combat competition Santro was positioned as the complete family car which offered
features like AC, Power Steering, Power Windows & Central Locking

India is about Bollywood Hyundai decided to use the likes of Shahrukh Khan to enter
and compete with the existing market leader

First TV commercial SRK and KIM(CEO, Hyundai Motors)The ad introduced the

brand and the company with a subtle statement from Kim : We settle only for the best.

Teaser ad The first ad was followed by teaser ads where Kim tries to convince SRK
that Hyundai is serious about India, the quality issue and the brand Santro.

Final ad Finally came the launch ad which showed ShahRukh who represented the
Indian consumer saying " I am Convinced" to Kim. ShahRukh fitted perfectly to the promotional
scheme of Santro.

The success story With the launch of Hyundai Santro, within no time Hyundai emerged
as the second largest player in India.

Its success can be attributed to following business decisions :- Exhaustive study of

Indian consumer, their needs and expectations from a car Focused on developing a strong
distribution chain in India Was the first company to tie-up with private banks for easy
financing of cars Took an important business decision of launching Santro prior to Accent
looking at the Indian market at that point in time Further increased their portfolio by launching
Accent & Sonata to cater to the upper segments (C & D)
8

HMIL is the largest passenger car exporter and the second largest car manufacturer in
India It currently markets nine car models across segments

HISTORY
Hyundai celebrates its 45th anniversary this year. Beyond all expectations, it has emerged as a
new big player among the worlds top automotive companies. however, hyundai will not settle
for that, and will continue to seek out bigger possibilities with the same passion and spirit of
challenge as the beginning. From providing cars to being a lifetime partner, hyundai will
accompany people all over the world in their everyday lives today. 0 - 5th in 50 years. The power
of new thinking has helped Hyundai become the world's fifth largest motor group in less than
fifty years, selling 4.05 million vehicles in 2011.
In 1967, in an innovative arrangement, Chung Ju-Yung started the Hyundai Motor Company to
build the Cortina in Korea, in association with Ford.
Smart enough to realise world-class expertise could unlock lucrative new markets, Chung hired
former Austin Morris boss George Turnbull in the 1970s to lead development of the very first
Hyundai car. Within two decades Hyundai was exporting in volume, to the huge US market
among others.
Today, Hyundai has the world's biggest car plant. HMIL's first car, the Hyundai Santro was
launched in 23 September 1998 and was a runaway success. Within a few months of its inception
HMIL became the second largest automobile manufacturer and the largest automobile exporter in
India. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second largest
car manufacturer in India. HMIL presently markets 10 models - Eon, Santro, i10, Grand i10,
Xcent, Elite i20, Verna, Elantra, Sonata and Santa Fe.
HMILs manufacturing plant near Chennai claims to have the most advanced production, quality
and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second
plant in February 2008, which produces an additional 300,000 units per annum, raising HMILs
total production capacity to 600,000 units per annum.HMC has set up a research and
development facility(Hyundai Motor India Engineering - HMIE) in the cyber city of Hyderabad.
9

As HMCs global export hub for compact cars, HMIL is the first automotive company in India to
achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more
than 120 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been
the number one exporter of passenger cars of the country for the eighth year in a row.
Hyundais Founding Chairman

Chung Ju-Yung 1915 2001

Chung Ju-Yung was born in North Korea in 1915 as the eldest son of a poor peasant farming
family. At the age of 18, he set off for good to Seoul with hopes of finding a better life.
Success was not immediate. He worked in various jobs, such as railway construction,
bookkeeping and dock work. Mr. Chungs first experience as an entrepreneur came in 1938 when
he started his own rice store. However, he was forced to close his business a year later because of
the policies of the Japanese occupation forces.
After the liberation of Korea in World War II, Mr. Chung went into business repairing trucks for
U.S. Armed Forces. He then went into the engineering and construction business, eventually
building multibillion-dollar mega-projects around the world.
His venture into the shipbuilding business is legendary. Despite a lack of experience in
shipbuilding, he persuaded a customer to give him an order to build a ship for tens of millions of
dollars. Now the company that he started is the largest shipbuilder in the world.
By sheer force of effort and creativity, Mr. Chung built businesses that helped make Korea the
economic powerhouse that it is today. From humble beginnings, he rose to great heights. But
even at the peak of his success, he remained disciplined, lived simply and worked hard.
In his final years, he turned his efforts toward the reunification of Korea. This son of a farmer
sought to open avenues of communication between the North and South Korean governments
and between the people, north and south. In private talks with leaders, in cross-border business
ventures and in grand gestures, such as driving 1000 cattle back to North Korea, he helped bring
hope back to the most cherished goal of reuniting the Korean people. It may well be that this
10

final act of kindness and concern, while acting as an ambassador of peace, may be viewed by
history as Mr. Chungs greatest achievement.
Our Honorary Founding Chairman had many great philosophies that he lived by, but the one that
we should all remember is: It is failures rather than successes that teach us invaluable lessons
It is not necessary to remember ones success. That should be remembered by others instead.
Rather, we should remember our losses and failures Those who forget their failures will fail
again and again

OVERVIEW
Hyundais cars and sport utility vehicles continue to provide customers a high level of content
and performance at an affordable price. Every vehicle in the lineup demonstrates Hyundais
emergence as an auto manufacturer whose products compete successfully in technology, quality,
styling and refinement with automobiles from around the world.
Hyundai sold its first car, the subcompact Excel model, in the U.S. in 1986. At the time, few
Americans had ever heard of Hyundai or its products. Since that time, Hyundai has expanded
and upgraded its product line in the U.S. and now accounts for more than two percent of the U.S.
auto market.
Hyundai now markets a full line of vehicles from the subcompact Accent to the award-winning
Santa Fe sport utility vehicle to the luxurious Genesis sedan. The vehicles were developed
exclusively by Hyundai Motor Company and are fitted with engines and transmissions designed
and engineered by Hyundai.
Hyundai Motor Company
Chung Ju-Yung founded the Hyundai Motor Company in 1947 as Hyundai Engineering and
Construction Co. Hyundai Motor Co. (HMC), established in 1967, is the auto sales leader in the
Korean domestic market and exports vehicles to 190 countries worldwide.
Hyundai Motor Co. operates the worlds largest integrated automobile manufacturing facility in
Ulsan, located on Koreas southeast coast. In 1996, Hyundai opened the Namyang Technology
11

Research Center, which includes a complete testing facility with a 2.8-mile oval test track and a
new $40 million aeroacoustic wind tunnel. That same year, HMC began production at its stateof-the-art Asan Plant, located southeast of Seoul.Hyundai now operates eight research centers in
Korea along with four international centers, including Hyundai America Technical Center, Inc.,
in Ann Arbor, MI, and Hyundai California Design Center in Fountain Valley, CA. Hyundais
automotive technology centers employ approximately 4,100 researchers with an annual budget of
five percent of current revenues. Current research projects include: electric-powered vehicles,
low-emission gasoline engines, solar- powered vehicles, hydrogen-powered fuel cell vehicles
and other alternative fuel vehicles.

STRATEGIES BY HYUNDAI MOTORS

1. 24 * 7 service- Hyundai Road Side Assistance Programme is a 24x7 emergency support
provided in the event of any mechanical or electrical breakdown and or traffic accident of
a vehicle. It is an initiative to increase the HMIL's focus on its customers. The Road Side
Assistance Program was launched with the aim of providing emergency road side
assistance services round the clock to ensure a pleasurable and uninterrupted journey
virtually anywhere in India.
2. Warranty - Hyundai Motor India Limited herein after called "HMIL warrants that each
new Hyundai vehicle sold shall be free from any defects in material and workmanship,
under normal use and maintenance, subject to the following terms and conditions.
3. Parts delivery centers- works closely with all centers and have set up the center on every
required place as in to help out the cutomers with their needs
4. Customer Relations - Hyundai assessed its contact center operations and determined it
needed to improve its customer service to create a greater bond between its customers
and the Hyundai brand
5. Free service- Free car care clinic is a nationwide activity being organized twice every
year where Hyundai provide free 80 point checkup to its customers. The Comprehensive
80 point check up includes an examination of the transmission, engine, electrical,

12

underbody, exterior, AC etc. This activity is organized at around 1000 locations across
India checking & servicing more than 2 lac Hyundai cars over a period
TYPES OF CUSTOMER
1.
2.
3.
4.
5.

Status minded
Finance minded
Technical minded
Looks minded
Mix of above

SWOT ANALYSIS
Strengths

Strong domestic market.

Good quality
Cheap labor costs
Production facilities

Weaknesses

Design
No luxury cars
No innovations

Opportunities

Cheaper cars
diversification
Cost Reduction
European and African market

Threats

Competitors from Germany, Japan.

Threat from local companies
10yrs warranty in USA
13

14

MILESTONE 2014

August 11, 2014: Elite i20 National Launch at New Delhi.

March 14, 2014: Xcent National Launch at New Delhi.

February 19, 2014: DNA Awards 2013-14 Grand i10 wins Hatchback of the Year.

February 19, 2014: BBC Top Gear Magazine Awards 2013 Grand i10 wins Small car of
the Year.

February 5, 2014: ET Zig wheels Awards 2013 Grand i10 wins the Compact car of the
Year.

February 5, 2014: Grand i10 wins Motor Vikatan Small Car of the Year.
February 5, 2014: Auto Bild India & CarWale - The Golden Steering Wheel Awards 2014
: Grand i10 wins Hatchback of the Year.

February 5, 2014: Santa Fe Launch at Auto expo.

February 4, 2014: Global Media Preview of Xcent in New Delhi.

January 30, 2014: CNBC TV 18 Overdrive Awards 2014: Grand i10 has been awarded
the Small Car of the Year and Grand i10 U2 has been awarded the Engine of the Year.

January 15, 2014: Car India & Bike India Awards 2014: Grand i10 has been awarded the
Hatchback of the Year and HMIL has been awarded the Automobile of the Year.

January 13, 2014: NDTV Car & Bike Awards 2014: Grand i10 has been awarded the Car
of the Year and Entry Hatchback of the Year and HMIL has been awarded the Car
manufacturer of the Year.'.

15

BUSINESS

In 1998, after a shake-up in the Korean auto industry caused by overambitious

expansion and the Asian financial crisis, Hyundai acquired 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 the North America, India, the Czech
Republic, Russia, China and Turkey as well as research and development centres 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 . 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 - a distinction it earned
when it surpassed Ford Auto Group in 2009. Hyundai vehicles are sold in 193
countries through some 5,000 dealerships.
The Hyundai brand power continues to rise as it was ranked 65th in the 2007 Best
Global Brands by Inter brand and Business Week survey, with brand value
estimated at $5.0 billion. Public perception of the Hyundai brand has been
transformed as a result of dramatic improvements in the quality of Hyundai vehicles.

As of 2011, it is the world's fastest growing car brand for two years running
Hyundai is strengthening its brand competitiveness by participating in diverse sports contests
that bring the worlds people together. Hyundai began to forge connections with UEFA (the
European soccer league) and FIFA (the international soccer league) in 1999, and became an
16

official sponsor of the 2006 Germany World Cup, Euro 2008 and the 2010 South Africa World
Cup. Going forward, Hyundai will continue its soccer promotions with road shows and street
parades at the 2011 Womens World Cup in Germany, Euro 2012, and the 2014 Brazil World
Cup.
When Hyundai entered India with the Santro, Maruti Suzuki was practically the only strong
competitor it faced. This uncrowded marketplace allowed the Korean carmaker to make a mark
in the domestic circuit with much ease. Today, it is the second largest player in the domestic
market and has the crown when it comes to exports. But the years ahead are expected to be
tougher than those that went by. There are 17 car manufacturers in India today and each one is
fighting for volumes in a market that is set to become the world's third-largest by 2020.

17

Manufactured locally
Hyundai Eon (Launched 2011)
Hyundai Santro Xing (Launched 2003)
Hyundai Next Gen i10 (Launched 2010)
Hyundai Grand i10 (Launched 2013)
Hyundai Xcent (Launched 2014)
Hyundai Elite i20 (Launched 2014)
Hyundai Fluidic Verna (Launched 2011)
Hyundai Neo Fluidic Elantra (Launched 2010)

IMPORTED
Hyundai Sonata (Launched 2012)
Hyundai Santa Fe Third Generation (Launched 2014)
DISCONTINUED
Hyundai Santro (19982001)
Hyundai Accent GTX (19992002)
Hyundai New Look Santro (20012003)
Hyundai Sonata Gold (20012005)
Hyundai Accent Viva (20022004)
18

Hyundai Accent CRDi (20022006)

Hyundai Getz (20042007)
Hyundai Verna (20062010)
Hyundai i10 (2007-2010)
Hyundai Verna Transform (2010-2011)
Hyundai Elantra (20042010)
Hyundai Tucson (20052010)
Hyundai Sonata Transform (20102011)
Hyundai Santa Fe Second Generation (2010-2013)
Hyundai Accent Executive (2011-2013)
Hyundai i20 (2008-2014)

19

RESEARCH AND DEVELOPMENTIn the past many MNEs focused most heavily on the production strategy aspect of operations,
failing to realize that an effective production strategy begins with new product development.
New product development/service development Speed to market Time-to-market accelerators:
Factors that help to reduce bottlenecks and errors and to ensure product quality Modular
integrated robotized system: A software-based production process that relies entirely on robots
Concurrent engineering: The process of having design, engineering, and manufacturing people
working together to create a product, in contrast to working in a sequential. The R&D Centre
will further facilitate the development of India as Hyundais global hub for manufacturing and
engineering of small cars.
Hyundai Motor Company, South Korea, which has set up the R&D Centre in Hyderabad. HMIE
is a centre with one of the most advanced research and development facilities which focuses on
state of the art product and design engineering and rigorous quality enhancement. The new R&D
Centre at Hyderabad in India is Hyundai Motor Companys fourth overseas R&D centre.
The new R&D Centre in Hyderabad will support all back-end operations like computer aided
engineering (CAE), computer aided design (CAD) and help the R & D work taking place across
Hyundais car line-up
The R&D Centre will help in developing vehicles which includes their styling, design
engineering and vehicle test & evaluation. The R&D Centre will play a pivotal role for cars
manufactured in India in order to satisfy the specific needs of the Indian customers.
Hyundai Motor Companys other overseas R&D centers are located in the United States,
Germany,
Japan & Korea.

20

PRODUCTION STRATEGY
ObjectivesExamine the role of research, development, and innovation in production strategy Relate some
of the most critical steps in generating goods and services, including global sourcing, costing
techniques, quality maintenance, effective materials handling, inventory control, and the proper
emphasis on service Describe the nature and importance of international logistics in production
strategy.
The objective is to spread awareness, being informed and increase transparency among our
Customers about various customer-centric service offerings and activities being organized by
Hyundai. To create exceptional automotive value for our customers by harmoniously blending
safety, quality and efficiency. With our diverse team, we will provide responsible stewardship to
our community and environment while achieving stability and security now and for future
generations.

Product Differentiated strategy

Product features- a product that solves problems faster, or solves the same problem cheaper is
worth paying more for. Hyundai has positioned itself as a car company that offers more vehicle
for the money. It is important for the Brand Manager to establish what the cost/benefit ratio is
before making the decision to add a product feature and use it as a differentiation element. If the
overall cost is higher than the premium that can be charged for it this strategy is not worth
pursuing.
Manufacturing process- how the product is made can be a great way to set your brand apart
from competition. In todays economy where most products have become commodities, the
secret ingredient or proprietary technology can definitely make the difference. Lululemon,
21

a well-known Canadian manufacturer of yoga-inspired apparel, has built its success on the
proprietary luon, a fabric that provides shape retention and great stretching capabilities. The
brand has basically become synonym with yoga apparel and dominates the
segment against giants such as Nike and Adidas.
Performance- is another great product attribute that can be used to separate your brand from
competition. BMW makes great use of this concept by positioning their cars as The ultimate
driving machine. Cervelos dedication to designing and building aerodynamic bikes is what
helped the brand carve a distinctive niche in the super competitive race bike segment dominated
by much bigger players such as Trek, Specialized and Giant. Their slogan, Speed. Engineered.
is a great reflection of their philosophy.
Design- Attractive, unique product design is a very effective way to differentiate. Apple is
constantly pursuing this strategy which reflects in the entire assortment, from iPods to
MacBooks. Italian companies frequently pursue this strategy, be it in cars (Ferrari), clothes
(Gucci), or bicycles (Pinarello, Cogliano). Nordic European countries are famous around the
world for their design that combines simplicity, functionality and practicality.
These are just a few examples of how product-based differentiation can be achieved. There are
basically unlimited number of options that a company can pursue, depending on its capabilities.

22

23

SWOT ANALYSIS
Strength of Hyundai

Hyundai India has such a brand equity that it is almost assumed to be an Indian brand,
with lot of good accolades for being Indias second most selling brand next to MUL in

market share
Hyundai Motor India limited is the largest car exporter from Asian Market which showed

a 10% growth compared to last FY

The domestic sales is increasing at an average rate of 19.1%
HMIL is known for its quality products which has better performance and it has

constantly been ahead in the race with Maruti Udyog limited in many parameters
The product length includes around 8 cars, starting from new Eon in small car segment to

SUV segment Santa Fe

Hyundai products never fail to win laurels in each segment from various automobile

ratings ever since its operations in India

Hyundai , has the largest network of showrooms and service station next to Maruti in

India
Growing brand reputation
Strong focus on R&D
Effective resource allocation
Successful marketing campaigns

Weaknesses of HMIL

HMIL took a long time to gain the market share as its not the first mover in India
In terms of most reliable and trusted brand; Maruti is more strong in Indian subcontinent
Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do not
have PAN India presence
24

In SUV segment both Tucson and its next model Santa Fe didnt make a major impact
Increase in commodity prices such as steel, aluminium and ancillary parts has affected

margins
Since HMIL concentrates on both domestic and International sales there are higher risks

of exchange rate fluctuations

As Hyundai majorly concentrates on quality, most of its product are in premium category
in each segment. Hyundai is still struggling to make a better impact in small car segment

in terms of cost efficiency like other manufactures

Hyundai doesnt have any product match to compete in Corporate orders like Tata Indica
V2, Tata Sumo, Tata Indigo, Chevy Tavera, Ford Fiesta etc. These vehicles are most
preferred in both cab segment and government booking for bulk orders

Opportunities of HMIL

SIAM Society of Indian automobile Manufacturers, have stated that there is steady
increase in Car sales both Domestic and Indian contributing a valuable share in Indias

Gdp
The export markets growth rate is 22.30% compared to last fiscal year
The saving consumption pattern of India is an added advantage for any segment doing
business in India. This was one of the major reason for Indian market to survive amidst

global recession
There is more scope of HMIL to enter into small car segment as its has dedicated R&D
plant in Hyderabad, India. Hyundai is one of the very few companies that has widest

R&D network across the world located in Korea, Europe, India, US, Japan
Hyundai has very good opportunity in entering into commercial vehicles and
Recreational vehicles as they are already doing well outside India. Currently HMIL has

its focus only on Passenger car segment

Increasing fuel prices
Global demand for ecological vehicles
Changing customer needs

Threats of HMIL
25

Though Hyundai claims itself to have no direct competitors other than MUL, there are
Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to

expand its product category

Foreign Direct Investments flowing in Indian automobile space are not good signs for

already existing Giants like MUL and Hyundai.

Almost all major automobile players have started invading India to open up their market

and their manufacturing plant in India.Chennai is referred to as the Detroit of Asia!

Hyundai faced a slight decline in market share due to tough competition from Fords Figo

and Volkswagen- Polo

Many manufacturers have started to concentrate on small car segment as an alternative to

Nano. These will slowdown the expected sales of Eon.

Exchange rates
Rising raw material prices
Decreasing fuel prices
Intense competition

Hyundai Brand slogan

NEW THINKING . NEW POSSIBILITIES .
A brand slogan embodies the essence of a brand, from its philosophy to its vision and identity.
Hyundais brand slogan NEW THINKING. NEW POSSIBILITIES. reflects the will of
26

Hyundai Motor Company to create new possibilities to benefit the world and its people by
encouraging and developing new thinking. All members of Hyundai have the brand slogan
deeply engraved in their hearts as they move forward in their effort to provide new values and
experiences desired by todays customers through innovative ways that are unique to the brand,
driven by new thinking about customers and cars.
Hyundais Brand direction, Modern premium
Hyundais brand direction Modern premium does not just mean luxury cars; it is about
providing new values and experiences to yet more customers of today through ways that are
unique to the brand and which go beyond what customers expect by combining exceptional
performance with reasonable price and emotional elegance.
Being simple but perfect, staying faithful to the basics yet different from the others, and not
forgetting the big picture while paying attention to the smallest details; developing cars that cater
to the diverse lifestyles of customers and propose an advanced automobile life and culture;
enriching the lives of customers who have an active and positive approach to lifethat is the
Modern premium of Hyundai Motor Company.

FUNCTIONAL STRATEGY

Strategies of an organization are become very important now a day due to taking care of

customers needs and their responsibilities and competitors moves.

Large number of organization is used strategies to overcome the competition from the
competitors.

27

Hierarchy of a company is considering secondary comparing the human resource

management due to just because of the policy which framed for the growth of an

organization.
In present scenario strategic human resources management become most important and it

is termed as long term results picture.

It is focuses on the long term objectives of an organization
It is not only focus on internal affects but also focus on addressing and solving problems

which also affects long run management programs

It is consider very important because its major goal is to increase production by focusing

on business problem that faces externally

Strength and weakness of an organization are revealed soon when the organization has
strategic human resource management.

Hyundai motors latest trend and plans

The new i20 elite launched in 2014 is not only a upper model for older version but also a tough
competitor among that class. it provides luxury, innovation in interior and looks. More than
79,200

customer

enquiries

with

over

15,300

Bookings

within

20

days-

- Highest bookings ever in the Hyundai product portfolio.

Inspired by Fluidic Sculpture 2.0 design philosophy

28

 Styled at Hyundai Motors Design Centre Europe

Generous proportions created by its. The front presents a bold new interpretation of the wellestablished Hyundai hexagonal grille and a new thin horizontal strip connecting the headlamps
packaging
A sporty, dynamic and innovative hatchback with class leading unique features, the all-new Elite
i20 has been designed using Hyundais evolved Fluidic Sculpture 2.0 philosophy. Displaying a
refined, premium style, the all-new Elite i20 showcases Hyundais sleek exterior and intuitive
interior design ethos, projecting a harmonious and sporty appearance

Comparison between foreing motors and Indian motors

HYUNDAI MOTORS

TATA MOTORS

Hyundai Motor is a South Korean based

Tata Motors is India's largest CV manufacturer, with

company that manufactures, sells and exports

an overall domestic market share of 59.4% in FY12

passenger cars, trucks and commercial

and the second largest producer of passenger

vehicles (13.1% in FY12). In 2008, the company

29

vehicles. The company also sells various auto

acquired two iconic brands, 'Jaguar' and 'Land

parts and operates auto repair service centers

Rover' from Ford for a total consideration of US$

throughout South Korea. It also provides

2.3 bn and this is likely to transform it into a global

financial services through its subsidiaries.

player in the passenger vehicles space. It is also

credited with the launching of 'Nano', the world's
cheapest car till date. Tata Motors is also the first
company in the Indian automobile sector to be
listed on the New York Stock Exchange.

30

Press note

New Delhi, February 19, 2014: Hyundai Motor India Ltd. (HMIL), the countrys largest
passenger car exporter and second largest car manufacturer has announced that it will
pass in the full reduction of excise tax benefit to customers in India. The price deduction
benefit will be applicable to all the models from Eon to Santa Fe.Commenting on the
passing of the benefit of reduction of Excise Duty to the Customers, Mr. Rakesh
Srivastava, Sr. Vice President, Sales and Marketing, HMIL said, "The reduction in
Excise Duty would substantially reduce the prices, making cars more affordable. The

quantum of benefit will vary from Rs. 10,000/- to Rs. 1, 35,300/- across all the models.
A Special RSA designed for the customers vehicle beyond warranty period
Pan India reach with Hyundai RSA Retail Program
New Delhi, September 29, 2014: Hyundai Motor India Limited (HMIL), the countrys
largest exporter and the second-largest car manufacturer in association with Allianz
Global Assistance (AGA) has introduced a special 24x7 Roadside Assistance (RSA)
extended Program for the Hyundai customers beyond the warranty period. Hyundais
Roadside Assistance policy can be availed at a nominal amount that will help customers

to maintain the roadside assistance for years to come.

Auto major Hyundai Motor India Limited (HMIL) on Wednesday said it has got over
10,000 bookings for its newly launched entry level hatchback 'Grand' within 20 days of
the vehicle's launch. "With over 10,000 bookings within 20 days, 'Grand' has been well
31

accepted by customers as a value proposition," the company said in a statement. Post the
launch of 'Grand' in the Indian market , Hyundai has experienced a 55 per cent rise in

footfalls at...
the fast-growing compact sedan segment in India's automobile industry is set for heavy
competition with Tata Motors and Ford India today unveiling their products today and
Hyundai India joining in tomorrow. Tata Motors introduced its compact sedan Zest

Conclusion
32

From the outcome of the study conducted the following conclusions can be drawn. The Hyundai
Company is selling all the product specifications that are available like petrol, diesel, and duo.
The respondents were of the opinion that their company is benefitting the customers with global
standards but not with all the models. The respondents also felt that the main reason why the
customers prefer their products is the fuel efficiency of the Hyundai cars and also the type of the
service offered by them. Hyundai Company is effectively utilizing all the advertising mediums
that are available to build their brand in the market and it is extensively using advertisements in
all the available mediums. Hyundai Company organizes brand awareness camps at regular
intervals to popularize its name in the market. It uses famous personalities as the ambassadors of
their brand to attract the customers towards them.
Hyundai Company is delivering the expectations of the customers towards its brand truly
because of which it is popular in the Indian automobile market and also it is successful in
attracting the customers of other brands towards itself. If the same trend continues it may be the
number one automobile company in India with larger market share.

BIBLIOGRAPHY
33

www.Hyundaimotors.com
Wikipedia
Economic Times
www.Scribd.com
http://www.hyundaimotors.com/sustainability/CSR-11/pdf/defining-priorities.pdf
www.Slideshare.com

34