Hyundai1 Saurabh Tyagi

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PROJECT REPORT

ON

HYUNDAI MOTOR INDIA

LIMITED

Submitted by:

SAURABH TYAGISAURABH TYAGI

FIP/BBA(G) IB/021FIP/BBA(G) IB/021

MANAV RACHNA INTERNATIONAL UNIVERSITY

Faculty Of International Programmes1
http://info.mriu.edu.in/


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HYUNDAI MOTOR INDIA LIMITED

APROJECT REPORT

Submitted to

Manav Rachna International University

In Partial Fulfillment of

BACHELOR OF BUSINESSADMINISTRATION

Submitted By

SAURABH TYAGIBBA(G) IB- V SEMESTER

ROLL NO. FIP/BBA(G) IB/ 021

Manav Rachna International University

http://info.mriu.edu.in/


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CONTENTS

Topics

Acknowledgement 4

Introduction 5 - 7

Corporate and Management Philosphy 8 - 9

Core Values and Statement 10

Hyundai Profile ( Management )

Hyundai Profile ( Manufacturing )

Hyundai Profile ( Research & Development )

Hyundai Profile ( Quality & Service Management )

Milestones Achieved

Hyundai Motor India Foundation

11 - 15

16 - 20

21 24

25 - 26

27 - 28

29 - 31

Zonal Office ( India )

Major Products Offered

SWOT Analysis

Work Cited

32 - 33

34 - 37

38 - 40

41



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ACKNOWLEDGEMENT

I would like to thank Miss Kanupriya Shekhar & Mrs. Priyanka

Verma. for providing me this project which will certainly enhance

my skills and knowledge and explore me to dynamic managerial

world.

I would like to my heartiest thank to the staff ofHyundai Motor

Company ( Sarita Vihar, New Delhi ) who give me permission

for this project and give me need full guideline and support and co

operation.

This project give me opportunity to enhance professional skills and

give me a way for a success and achieving ambition in life.

I am sure that the reader will find this report useful to enhance

their knowledge in Hyundai Motors & help them in various ways.

SAURABH TYAGI



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INTRODUCTION

Hyundai Motor India Limited (HMIL) is a wholly ownedsubsidiary of Hyundai Motor Company (HMC), South Korea and isthe largest passenger car exporter and the second largest carmanufacturer in India. HMIL presently markets 8 models ofpassenger cars across segments. The A2 segment includes theEON, Santro, i10 and the i20, the A3 segment includes the Accentand the Verna, the A5 segment includes the Sonata Transform andthe SUV segment includes the Santa Fe.

HMIL's fully integrated state-of-the-art manufacturing plant nearChennai boasts of the most advanced production, quality and

testing capabilities in the country. To cater to rising demand, HMILcommissioned its second plant in February 2008, which producesan additional 300,000 units per annum, raising HMILs totalproduction capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customerswith cutting-edge global technology, HMIL has set up a modernmulti-million dollar research and development facility in the cybercity of Hyderabad. It aims to become a centre of excellence forautomobile engineering and ensure quick turnaround time to

changing consumer needs.

As HMC's global export hub for compact cars, HMIL is the firstautomotive company in India to achieve the export of 10 lakh carsin just over a decade. HMIL currently exports cars to more than 115countries across EU, Africa, Middle East, Latin America and AsiaPacific. It has been the number one exporter of passenger car ofthe country for the sixth year in a row. To support its growth andexpansion plans, HMIL currently has a 336 strong dealer networkand 721 strong service points across India, which will see furtherexpansion in 2011.



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Since inception, HMIL has dominated the automobile market with the reputation ofbeing the fastest growing automobile manufacturer in India. HMIL's growth has beendriven by volume-oriented revenues coupled with technological soundness andsuperior designs.

A major force in the Indian automobile scenario, HMIL is the second largestmanufacturer in India. Focusing on the latest technologies and innovative



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marketing strategies, HMIL has carved out a niche for itself in the market todaywith most of its models leading in their respective segments. Its been a long

journey from just 8,447 units in 1998, till today when HMIL has become a key

player in driving the industry growth year after year.

In calendar year 2010 (Jan Dec) HMIL grew by 7.8% cumulatively registering totalsales of 603,819 units as against 559,880 units of 2009 with domesticsales surging by 23.1% over 2009. Domestic sales accounted for 356,717 units in2010 as against 289,863 in the year 2009. Overseas sales accounted for247,102 units as against 270,017 units in 2009 which reflects a decline of 8.5% forthe calendar year 2010.



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Hyundai Corporate Philosophy



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The 5 core values we have defined as part of our new corporatephilosophy are tents that have existed in us throughout our history, and

are principles that all employees promise to further foster in ourorganization.

STATEMENT

http://www.hyundai.com/in/en/CompanyInfomation/HMC/index.htm#globalityhttp://www.hyundai.com/in/en/CompanyInfomation/HMC/index.htm#peoplehttp://www.hyundai.com/in/en/CompanyInfomation/HMC/index.htm#collaborationhttp://www.hyundai.com/in/en/CompanyInfomation/HMC/index.htm#challengehttp://www.hyundai.com/in/en/CompanyInfomation/HMC/index.htm#customer


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HYUNDAI PROFILE

MANAGEMENT

Not satisfied by todays performance, we think that the truerepayment for our customers love is the continuous pursuit oftomorrows goals. This is the beginning of Hyundai Motor

Companys endless race as a leading global firm creatingcontinuous value.

Hyundai Motor Company, as it expands on the world stage,completed its sixth overseas full-cycle production facility in St.

Petersburg, Russia, in 2010. The Russian plant is capable ofproducing 150,000 cars per year, and will be a stepping-stone forHyundais expansion in the European market. In China, a thirdplant with an annual capacity of 400,000 units is underconstruction, joining two plants that can make 600,000 cars peryear. A Brazil factory, which will be completed in 2012, will solidifyHyundais position in the largest Latin American market.



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In 2010, Hyundai Motor Company achieved a significantaccomplishment, increasing global sales by 16.3 percent over2009, selling 3.61 million vehicles in the midst of ongoing globaleconomic tumult. In America, the Sonata and Tucson (ix35) helpedpush annual sales to more than 500,000 units for the first time. InChina and India the release of specialized models for the localmarkets led to sales of 700,000 and 600,000 units, respectively. In2011, Hyundai Motor Company has set the goal of increasinginternal competitiveness and reaching 3.9 million sales. We willmake this an even more successful year by maximizing brandvalue in developed markets and expanding sales capacity inemerging markets.

Hyundai Motor Company was included in 100 Best Global Brandsof 2010 published by the brand consultancy Interbrand for thesixth straight year. After joining the 100 best global brands in 2005

at position 84, Hyundai has steadily increased its position, to 65thoverall in 2010, with a brand value of $5 billion, showing 9.3percent growth over 2009. This is an impressive result whencompared to a 2.8 percent average in the business sector. It waspossible by Hyundais diverse portfolio and remarkable success inChina, U.S. and emerging markets. Hyundai will continue to pushitself to provide even better service and to improve quality in orderto imprint the idea that Hyundai equals to a global premium brandin our customers minds.



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For the third straight year, U.S. auto publication Wards Auto Worldpicked Hyundais Tau engine as one of the industrys 10 BestEngines. The current Tau is a direct-injection engine with a 5,000cc capacity, greater than the previous 4,600 cc engine, and boastsworld-class performance with a maximum torque of 429 HP (435ps) and maximum torque of 376 lbft (52.0 kgm). Wards Autoreconfirmed Hyundais core engine technology and quality instating the reasons for selection: With the flawless design,expanded capacity, direct-injection system and remarkableperformance, it proved that Korean cars have grown to arespectable position among the worlds luxury brands. Goingforward, Hyundai will continue to strive in high-efficiency R&D andwill concentrate on technical ability, in order to become an eco-friendly global leader

Influential German auto magazine Autobild gave its highest qualityaward to Hyundai Motor Company in 2010, beating out 19 globalautomakers. The award was based on a number of criteria,including a durability test, an owner questionnaire and a dealer-blind test. Hyundais quality was demonstrated in all areas, and wereceived especially high scores in the 100,000-kilometer drivingdurability test and the service and maintenance fields.Also in 2010 the Accent was selected for first place among smallcars in the Initial Quality Study (IQS) published by the U.S. market



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research firm J.D. Power. Among medium-sized cars, the Elantra(badged as Avante in some markets) won third place for Best inClass. The Sonata and Genesis were each fourth in their class, andthe Tucson rose to fifth. Most Hyundai was evaluated by J.D. Powerscored in the Top Five.

The Santa Fe was selected as the 2011 Top Safety Pick by the U.S.Insurance Institute for Highway Safety (IIHS). The IIHS, which is atrusted authority in safety evaluation, granted a Good ranking,

the top rating, to the Santa Fe in all safety tests for frontal, sideand rear collisions and roof safety. In addition, the Tucson (badgedas ix35 in some markets) obtained the top score of five stars in thenew-car safety evaluation of Euro NCAP.Because our leading level of safety has been recognized byinternational authorities, we expect that the trust placed inHyundai cars, not only by the U.S. and European markets butaround the world, will only increase.



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MANUFACTURING

+ Ulsan Factory, the largest single factory in the world

Ulsan is Hyundais main factory, made up of five independentfactory facilities on a 5 million square-meter site, where over

34,000 employees produce an average of 5,400 vehicles perday. In addition, it has a dedicated pier where three 50,000-ton ships can dock at once, and has been called a factory ina forest, with 58,000 planted trees and cutting-edgeenvironmental protection facilities.

+ Asan Factory, where automotive quality is in the air

Asan is a fully self-sufficient factory that produces 300,000 largepassenger cars annually for strategic export. With a bright andrefreshing factory environment centered on people and theirenvironment, this factory proves that the quality of the workenvironment translates to the quality of the vehicle.



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+Jeonju Factory, worlds largest production center

for commercial vehiclesThe Jeonju factory, with an annual production capacity of 125,000vehicles, is a specialized factory for commercial vehicles, makingtrucks larger than 2.5 tons and medium-to-large buses for 25passengers or more.

+ The U.S. factory, pride of Alabama

In its first year in 2005, the Alabama factory reached 10th placeamong 37 North American factories for quality. Since 2009, it has



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been continuously selected as the North American automotivefactory with the greatest productivity, and in 2010 it achieved anannual production record of 300,000 units.

+ The China factories, keeping pace with the worlds biggest market

The China factories have a total annual production capacity of600,000, with the establishment of a second factory capable ofproducing 300,000 units per year. To keep pace with the rapidlyexpanding Chinese market, a third factory is under constructionand will be finished by 2012, bringing total China capacity to 1million cars per year.

+ The India factories, the worlds best base camp for theproduction and sale of small cars

The India factories are integrated facilities that can independently

handle functions ranging from R&D to testing, manufacturing andsales. A second factory was built in 2008, raising annual capacityto 600,000 cars per year, and India has become the productionbase for the i10, the first model exclusively made for overseasmarkets. The i10 is exported to 120 countries. In 2010, 600,480vehicles were made in India and 603,819 were sold.



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+ The Czech factory, a beachhead for expanding Europeanmarket share

The Czech plant, located in central Europe, exceeded 300,000

total units produced in November 2010, only two years afterproduction began in November 2008. In addition, Hyundai was thefirst automotive manufacturer to be awarded the Start Plusquality award by the Czech Quality Award Association, furthersolidifying the plant as a beachhead for expansion of Europeanmarket share.

+ The India factories, the worlds best base camp for theproduction and sale of small cars

The Russia factory, which began mass production in 2011, has anannual capacity of 150,000 cars. This factory is staffed by skilledemployees trained in Korea and the Czech Republic, and focuses

on strengthening designs to meet Russian local needs. Inparticular, we customized the Solaris (Accent) for Russian marketwith stronger flexibility and dynamism, in view of the Russiandriving culture, climate and roads. The Solaris has been selectedas the Best Small Car by Klaxon, one of Russias top threeautomotive magazines.

+ The Turkey factory, preparation for targeting theEuropean market

The Turkey factory, expanded in March 2007 from an annualproduction of 60,000 units to 100,000, is in a strategic locationconnected to Europe, Africa and the Middle East; by localized

manufacture of the Accent and i20, this plant contributes greatly



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to expansion of exports.tion record of 300,000 units.

+ The Brazil factory, gateway to the Latin American market

The Brazil factory will serve as a gateway for the Latin Americanmarket by establishing a production base in the regions largestmarket. After the groundbreaking ceremony in February 2011, theplant is planned to begin producing small passenger cars with astyle suited to the Brazilian market in 2012, greatly expandingHyundais market share.



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RESEARCH & DEVELOPMENT

Anchored by HyundaiKia R&D Motors Center in Korea, we are building aglobal R&D network spanning the US, Europe, Japan and India.

This extensive network helps us develop designs and localized modelsthat best satisfy regional markets, thereby driving our growth into aglobal best automaker.



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+ Technical research center in Namyang, Korea

Hyundais technical research center in Hwaseong City, GyeonggiProvince, is a world-class integrated research center with a

planning building, design building, power train building, windtunnel facility, collision testing facility and integrated provingground. Over 10,000 researchers are working constantly todevelop vehicles with world-class performance, quality andenvironmental friendliness.

+ Mabuk environmental technology center, Korea

The Mabuk environmental technology center in Yongin City,Gyeonggi Province, is advancing in the research of technologiesthat can lead the eco-friendly automobile industry, such as thedevelopment of next-generation environmentally friendly vehicles,including hydrogen fuel-cell cars. Mabuk also works on automotive

recycling technologies and eco-friendly clean production.+ Europe technical center



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Near Frankfurt, Germany, designed as a high-tech multifunctionalbuilding with an area of 33,058 square meters, the Europetechnical center includes engineering centers for the development

of high-quality automobiles as well as the development of enginessuited to European environmental regulations.

+ India technical center

Located in Hyderabad, Indias IT city, the India technical center isactively supporting the design and documentation of automobilesas well as the development of products suited to India.

+ U.S. technical center

With headquarters in Ann Arbor, Mich., a technical center and aproving ground in California, the U.S. technology center is a



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cutting-edge institute that oversees automotive research anddevelopment suited to American driving expectations.

+ Proving ground in California, USA

The California proving ground is 10 times the size of the Namyangfacility, sprawling over 17.5 million square meters with more than250 kilometers of track, costing $60 million. The largest high-speed circuit has an elliptical three-lane track 10.4 kilometerslong, and can be driven at speeds of up to 250 km/h.

+ U.S. Design CenterLocated in Irvine, Calif., the U.S. design center is a sprawlingfacility where top designers gather to swiftly analyze and createdesign appealing to customers around the world.

+Japan technical center

Located in Chiba, the Japan technical center develops cutting-edgeelectronic and hybrid technologies.



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QUALITY & SERVICE MANAGEMENT

A bright tomorrow can only be reached by the greatest effort today. Todemand the best in quality and customer service is the greatest task thatHyundai faces.

Hyundais philosophy is that our most important promise to the customeris top quality. To keep this promise, Hyundai works to become a most-wanted brand through expansion of its top quality image.

SERVICE MANAGEMENT, DETAILED INTEREST & CONCERN



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Our before-service program, offered worldwide, goes looking for thecustomer before the customer comes looking for us. In addition, Hyundai

operates HGSI, an improved customer satisfaction index, that is the basisfor evaluating and improving the overall level of service to achievegreater customer satisfaction. In order to provide the same premiumservice worldwide, regardless of dealer, Hyundai provides an elite dealercertification for superior dealers and a Hyundai Training Program toprovide an additional of service.



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MILESTONES ACHIEVED

1996: Hyundai Motor India Limited was established at its firstplant near Chennai.

1998: the first Santro was produced.

2000: Hyundai launched its 100,000th car from Chennai. It alsolaunched the Zip drive. Santro crossed 100,000 cars in sales andexported 760 Accents and Santro cars to Algeria.

2001: The 200,000th car was rolled out. The new look hatchbackSantro and luxury sedan Sonata were launched.

2002: the 1.1 litre E-Epsilon engine was launched globally. In2002, the 300,000th car of Hyundai was launched with the launch ofthe Accent Viva. The Santro Automatic Transmission as well as theAccent CRDi were launched.

2003: Hyundai started exports to Latin America. It rolled out the400,000th car. It started exporting the Santro Xing and SUV

Terracan in the same year.

2004: Hyundai Motors India Limited crossed sales figure of100,000 in the export market.

2005: Santro became known as the largest selling car of Hyundai.Hyundai launched the SUV Tuscon. It also launched the GlobalDealer Management System. This was a great launch year forHyundai as it launched the Santro Xing with eRLX technology, theSonata, and the export version of its Getz car the GLE. It alsoexported its 200,000th car overseas.

2006: Hyundai launched its 1, 000,000 car and also launched theHMIL Foundation. It launched both the Hyundai Verna in Petrol andDiesel. It exported its 300,000th car.

http://www.driveinside.com/cars/hyundai/http://www.driveinside.com/cars/hyundai/


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2007: the company launched the Getz Prime, Verna CRDiSx, theSonata CRDi Automatic, the Santro CNG and exported its 400,000thcar.

2008: Hyundai inaugurated its 2nd plant in Chennai, and launchedthe following cars: i10 with the Kappa engine, Santro Eco and the i20hatchback.

2009: Hyundai launched many cars- the new Sonata Transform,the new Verna Diesel Automatic, and the i10.

2010: Hyundai launched the i10 electric car in India. This was theyear it had 10 lakh car exports, launched the Verna transform, had30 lakh sales, including 20 lakh domestic sales. It also launched theall new next Generation i10, and the Santa Fe.

http://www.driveinside.com/cars/hyundai-sonata-transform/current-year/162/http://www.driveinside.com/cars/hyundai-sonata-transform/current-year/162/


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Hyundai Motor India Foundation(HMIF)

HMIF was formed in the year 2006 with the purpose of 'giving back' to societyand to initiate Corporate Social Responsibility (CSR) activities in the areas ofhealth care, educational and vocational training, environment, road safety, art,science, technology, etc. HMIF gets its direct funding from HMIL's earnings asit contributes Rs.100 for every car sold in the Indian market to enable HMIF tocarry out its social activities.Happy Move

Hyundai Motor India Foundation(HMIF), as part of its CorporateSocial Responsibility programrecently organises the 'HappyMove Global Youth Volunteerscamp'. As part of the initiative,students from India and Koreaare work together towards acommon cause of communitydevelopment. The activities inthe camp are focused oneducation and renovationactivities. The 'Happy MoveGlobal Youth Volunteers Camp'is also supported by FieldServices and InterculturalLearning (FSL), an Indian NGOIndia, and InternationalWorkcamp Organisation (IWO),an NGO from Korea.Hyundai Traffic Squad

Students Traffic VolunteerScholarship Scheme is aninitiative by HMIF to sponsor the'economically backward' collegestudents and also help inmanaging traffic better. A groupof carefully chosen students,after proper training by the localtraffic police, work as trafficmarshals at busy intersections inconjunction with the trafficpolice to control and managetraffic.



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The students are paid a stipend for their efforts and this scheme is successfullyrunning in the cities of New Delhi, Chennai and Kolkata. HMIL will further

expand the scheme to other cities of IndiaEducational and VocationalTraining Program

HMIL, under the aegis of HMIF iscommitted to the task ofimproving conditions in localschools around Sriperumbuduras well as nationally. At regularintervals it donates chairs,

tables, computers to the schoolsto create a better environmentfor educating children. Till date,over 20,000 school studentshave benefited through thisprogram. HMIF has adopted ITI'sin Assam and Ulundurpet toequip them with latestinfrastructure facilities and alsoprovides employmentopportunities to students whograduate from here.

Medical Camps forNeighbourhoods

HMIF conducts a number of freeMedical Camps. Apart from this,the Foundation has also enteredinto an agreement with SriRamachandra Medical Universityfor operating a Mobile HealthClinic in villages between

Poonamalee and Kanchipuram.The mobile clinic will have aMedical Officer, Pharmacist,Nurse, Attendant and maintain aregular supply of medicines. Thevan has a Satellite link whichenables it to be in direct contactwith the hospital and getassistance and advice even inthe remotest of villages.



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Hyundai Driving School

As part of skill development,driving school was started byHMIF to train unemployed youthin Kancheepuram & ThiruvallurDist.Three batches (100) hadbeen trained during 2009 andthis will be an ongoingprogramme.



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ZONAL OFFICES

Central 1DelhiA-30, Mohan Cooperative IndustrialEstate, Mathura-Road, New-Delhi-110044

Tele: 011- 41678800Fax: 011- 41678811email: [email protected]

Central 2Lucknow605, 20-A, Rattan Square Complex,Vidhan Sabha Marg, Lucknow- 226001

Tele: 0522- 6714600

Fax: 0522- 6714611email: [email protected]

East 1KolkataDN-27, Mira Towers, 7th Floor,Sector-5, SaltLake,Kolkata-700091


East 2Guwahati (Branch Office)Ganpati Enclave, 3rdFloor.Urubari,G.S.Road, Opp. BoraService,Gowahati-781007

Tele: 0361- 2466173-74Fax: 0361- 2466175email: [email protected]

West 1MumbaiBusiness Square,A/102, First Floor,Chakala,Andheri-Kurla Road Andheri EastMumbai-400069


West 2Ahmedabad1st Floor, City Mall,Near Rajpath Club,S.G.Road,Dodekdev, Ahemdabad.


South 1ChennaiNP 54, Developed Plot, Thiru VikaIndustrial Estate,Ekkaduthangal, Guindy Chennai-600032

Tele: 044- 42204600

Fax: 044- 42119530

South 2HyderabadGayathri 6-3-1239/2/B/1,RenukaWnclave, Somajiguda,Rajbhavan Road,Hydrabad-82

Tele: 040- 64631130/31/32/43Fax: 040- 23303566

email: [email protected]

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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email: [email protected]

ChandigarhDLF Tower-3, 3RD Floor,RajeevGandhi Chandigarh

Technology Park, Chandigarh-160101

Tele: 0172- 6605000Fax: 0172- 6605000

mailto:[email protected]:[email protected]


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CARS OFFERED BY HYUNDAI MOTORS

PASSENGER ( NEWZEALAND )

Equus

Genesis

Genesis Coupe

http://worldwide.hyundai.com/showroom/passenger-cars/genesis-coupe-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/genesis-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/equus-focus.html


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Veloster

Azera

Sonata

Elantra

Accent

i40

i30

i30cw

i20

i10

http://worldwide.hyundai.com/showroom/passenger-cars/i10-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/i20-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/i30cw-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/i30-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/i40-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/accent-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/elantra-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/sonata-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/azera-focus.htmlhttp://worldwide.hyundai.com/showroom/passenger-cars/veloster-focus.html


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RECREATIONAL ( NEW ZEALAND )

Veracruz / ix5

Santa Fe

Tucson / ix35

ix20

H-1

PASSENGER ( INDIA )

http://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_22_111010151236.htmlhttp://worldwide.hyundai.com/showroom/recreational-vehicles/h-1-focus.htmlhttp://worldwide.hyundai.com/showroom/recreational-vehicles/ix20-focus.htmlhttp://worldwide.hyundai.com/showroom/recreational-vehicles/tucson-focus.htmlhttp://worldwide.hyundai.com/showroom/recreational-vehicles/santa-fe-focus.htmlhttp://worldwide.hyundai.com/showroom/recreational-vehicles/veracruz-focus.html


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http://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_JD_080313145313.htmlhttp://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_AE_091211142730.htmlhttp://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_BJ_080313131438.htmlhttp://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_EK_080313114302.htmlhttp://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_ET_090825214207.html


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HYUNDAI SWOT ANALYSIS

1. Strengths

The Quality Advantage

Hyundai owners experience fewer problems with their vehicles than anyother car manufacturer in India (J.D. Power IQS Study). The Santro was

http://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_TM_101011145152.htmlhttp://www.hyundai.com/in/en/Showroom/Flash/SRFOVERVIEW/DF_IN_SR_HE_091212131302.html


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chosen the best in the premium compact car segment and the Getz inthe entry level mid - size car segment across several parameters. Thisstudy measures owner in terms of design, content, layout and

performance of vehicles across several parameters.

A Buying Experience Like No Other

Hyundai has a sales network of 250 state-of-the-art showrooms across189 cities, with a workforce of over 6000 trained sales personnel to guideour customers in finding the right car. Our high sales and customer carestandards led us to achieve higher nameplate in the J.D. Power SSI Study.

Quality Service across 1036 Cities

In the J.D. Power CSI Study Hyundai scored the highest across all 7

parameters: least problems experienced with vehicle serviced, highestservice quality, best in-service experience, best service delivery, bestservice advisor experience, most user-friendly service and best serviceinitiation experience.The 92% of Hyundai owners feel that work getsdone right the first time during service. The J.D. Power CSI study alsoreveals that 97% of Hyundai owners would probably recommend thesame make of vehicle, while 90% owners would probably repurchase thesame make of vehicle.

2. Weaknesses

Commodity Price Risks

Hyundai commodity price risks to higher costs due to changes in pricesof inputs such as steel, aluminum, plastics and rubber, which go into theproduction of automobiles.In order to mitigate these risks, the companycontinues to attempts to enter into long term contracts based on itsprojections of prices. In a volatile commodity market, where yourcompany gives top priority to ensuring smooth availability of inputs, longterm contracts are helpful. They also help minimize the impact ofgrowing input prices. Conversely, long term contracts dilute the benefits,if any of a decline in input prices.

Exchange Rate Risk

The company is exposed to the risks associated with fluctuations inforeign exchange rates mainly of import of components & raw materialsand export of vehicles. The company has a well structured exchange riskmanagement policy. The company manages the exchange risk by usingappropriate hedge instruments depending on the prevailing marketconditions and the view on the currency.



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3. Opportunities

Leading Growth

As the market leader, company led the growth in the passenger carsector last year. Hyundai sales went up 30% to 4,72,000 units. This, as Isaid earlier, is the highest annual sale since company began operations20 years ago. Hyundai also gained market share, mainly on account of itsperformance in the competitive A2 segment where it increased its sharefrom 40.3% in 2005-06 to 47.7% in 2006-07. The record salesperformance was reflected in the financials. Net Sales (excluding excise)grew by 31% to Rs 93,456 million. Operating Profit Margin increased from0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax jumped 270% to Rs

5421 million.

4. Threats

Risk Factors

In the course of its business, Hyundai is exposed to a variety of marketand other risks including the effects of demand dynamics, commodityprices, currency exchange rates, interest rates, as well as risk associated

with financial issues, hazard events and specific assets risk. Wheneverpossible, we use the instrument of insurance to mitigate the risk.

Business Risks

The automotive industry is very capital intensive. Such investmentsrequire a certain scale of operation to generate viable returns. Thesescales depend on demand. Although 2005-06 was year of continuedgrowth for the Indian economy, whether this growth momentum willcontinue has to be seen.

Threats from Competitors

Maruti Udyog Limited

For the fiscal year ended December 2006, Maruti generated revenues of$193,517 million, an increase of 4.3% from the previous year. Thecompany reported a net income of $2,805 million for fiscal 2005, down26.6% from the previous year.

Tata Motors Limited



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In the 2006 fiscal year, Tata Motors generated revenues of $3,542.2million (INR154,935.2 million). The company made a net profit of $185million (INR8,103.4 million) in the 2006 fiscal year.

WORK CITED

http://worldwide.hyundai.com/

http://www.hyundai.com/in/en/main/

http://worldwide.hyundai.com/http://www.hyundai.com/in/en/main/http://worldwide.hyundai.com/http://www.hyundai.com/in/en/main/


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Hyundai1 Saurabh Tyagi

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