53347904-47194350-hyundai-ppt(1)

HYUNDAI INDIA

 Hyundai Motor India Ltd. (HMIL) is a wholly owned subsidiary of the Hyundai Motor Company (HMC), Korea, a part of the Hyundai Motor Group comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated companies, with a combined turnover of over US$ 50 Billion. The Hyundai Motor Group with a presence in over 185 countries and combined annual sales of over 3 million units is one of the fastest growing auto manufacturers in the world. HMIL has emerged as the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 26 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata in the E segment and the Tucson and Terracan in the SUV segment.The company recorded combined sales of 215,630 during calendar year 2004 with a growth of 43% over year 2003. HMIL is India's fastest growing car company having rolled-out over 700,000 cars in just over 70 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,700 crores. HMIL has recorded a staggering growth of 149% in exports over the year 2003. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 150,000 units per annum, raising HMIL’s total production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the company’s greater focus on the quality of its after-sales service, HMIL’s service network will be expanded to over 1,000 in 2005.

1. MARUTI SUZUKI

2. HONDA

3. TOYOTA

4. NISSAN

5. TATA MOTORS

6. VOLKSWAGEN

7. BMW (X1 IN COMPETITION WITH NEWLY ENTERED SANTA FE)

8. FIAT

9. CHEVROLET

*SWOT ANALYSIS

* STAR

These high growth products in a fast growing market need more resource commitments. 

i10:

Since its launch in India on October 31, 2007 the i10 has received an

overwhelming response from not only the media but from car buyers across

* CASH COW

These are low growth, high market share products, where minimal investments are envisaged. Indeed, cash cows provide the cash flows that support other businesses 

Santro

Santro rated as the “Best Small Car” and also the “Most Appealing Car” for

* QUESTION MARKS

These are low market share business units in high growth markets. Investment is needed to build them into stars 

Accent

Accent was targeted at corporate executives and high net worth individuals

* DOGS

These are low growth and low market share businesses which generate just enough cash to maintain themselves. 

Elantra

* 1. The threat of new entrants

* In most markets, the capital and expertise needed to setup an auto or parts manufacturing facility, would be a great enough barrier to entry to prevent many new entrants from setting up.

* However, given India's incredible growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to rural residents, the market is attractive. As such, we expect the threat of new entrants to be high.

* 2. The bargaining power of buyers/customers

* Buyers in India have a wide variety of choice. There are more than 20 foreign manufacturers selling in India (including ultra high-end such as Rolls-Royce and Lamborghini). Of course there are also a plethora of incredibly cheap choices, like the famous Tata Nano.

* 3. The threat of substitute products

* India is famous for its two-wheelers (bikes and mopeds) and three-wheelers. These are very real and obvious threats to auto manufacturers.

* 4. The amount of bargaining power suppliers have

* It is likely that the suppliers to the manufacturers have considerable bargaining power. They are not held ransom by one single manufacturer as they can market their products to any of the others in India.

* 5. The amount of rivalry among competitors

* High. The industry is not yet in its shake-out phase and is still struggling to find the up-and-coming stars and possibly topple the leaders.

* India's auto industry is much like China's, as far as Porter's Five Forces is concerned. Like China's, the P5F analysis ignores the massive future prospects which could indeed render this analysis irrelevant.

* Political Conditions

* Hyundai entered India when liberalization was at its peak. As a result, everyone was very open to the idea of foreign companies setting up base in India.

* The government insisted on the Companies using 70% local content in the manufacture of the cars as they would have generated tremendous revenue for India. Hyundai achieved this in a very short time.

* Change in government policies in recent times like opening of FDI in various segments has given a thrust to Hyundai initiatives in India like opening of its R & D centre in Chennai.

* A positive EXIM policy also has helped HMIL to boost its topline with Exports of Santro to other countries.

* Economic Conditions

* The economic conditions during the launch of Hyundai were very relaxed and liberal. Hyundai was launched when the country had just opened its doors to liberalization. So there were no strict norms or bylaws that the company had to adhere by.

* The resources available in India were utilized by the multinationals, which generated considerable revenue for the government.

* A booming banking sector and a phenomenonal growth in Auto Loans market has made Santro more affordable.

* Social Conditions

* A rise in Middle class and concept of small nuclear families has propelled a demand of B-Segment cars. Hyundai Santro provides an exact choice for this demand leading to its high growth.

* An average Indian was bored with the same Maruti 800 as his first car and Santro’s positioning as one’s first car has led to Hyundai’s success.

* Technological Conditions

* Hyundai is a fairly new company in India. As a result when it started out in India it started out with the best of machinery. So, the quality of products was several times better than what was available at that time. This resulted in the acceptance of Hyundai as a technologically superior company in the minds of the people.

* Since Hyundai manufacturers everything from the smallest of screws to the biggest of machines in its factory it is able to maintain the efficiency of the machines. Hyundai therefore manufactures cars under best of conditions with the best of machinery. As a result, the cars manufactured are of top quality.

* STAMPING

* WELDING

* PAINTING

* GENERAL ASSEMBLY

* ENGINE

* QUALITY

* PRODUCTION CONTROL

* JOB ANALYSIS

* SOURCING

* SCREENING AND SELECTION

* ONBOARDING

* INTERNET RECRUITMENT AND WEBSITES