Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile Industry Thesis 116p

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A Critical analysis

Of

Hyundai Motors Ltd

And

Ford Motors

From Car automobile Industry

Submitted To:

Prof.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

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EXECUTIVE SUMMARY

This project seeks to critically analyse the Car Automobile industry with main focus on Hyundai Motors India Ltd and Ford Motors ltd. However, the specific focus of this research is on Hyundai Verna and Ford Fiesta which are competitors from the same industry.

A proper study of the Automobile industry is done viz. Indian automobile Industry, vehicle production in India, Growth of Indian automobile Industry, future of automobile industry in India.

A proper study of the Global Car Industry is also done viz. Car industry in India, Sales of cars in year 2007-08, The Nano revolution, future of car industry in India. Further, an introduction to Mid Size Car segment, to which both Hyundai Verna & Ford Fiesta belong.

An overview of both the companies is mentioned in this report with their marketing and general business information. Also, financial analysis of balance sheets and profit and Loss Accounts of both the companies is done.

General information about Hyundai Verna & Ford Fiesta is also given in this report.The research adopts a qualitative methodology by conducting in-depth interviews with Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who provided us with valuable information such as the sales of their respective showrooms, business models, market shares of both the cars under study etc.

Recommendations are made in the form of proposed entrant - New Tech Motors India Ltd in the cars automobile industry.

Finally, this report concludes by making a summary of the findings.


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ACKNOWLEDGEMENT

This project would have been difficult to complete, but for the invaluable contributions from some important persons. We would like to take this opportunity to thank them.

We wish to put to record the heartfelt gratitude and immense respect to Prof. Subroto Ganguly (Faculty). We wish to thank him for the valuable time he gave us and the immense patience he had, in answering even the seemingly trivial queries we had to ask. His encouragement and patience helped us instill a great degree of self-confidence to deliver a good research work.

We are also thankful to Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who provided us with valuable information about their companies which helped us in our research work.


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TABLE OF CONTENTS

TOPIC PAGE NO.

I. METHODOLOGY……………………………………………………………...7

II. INDUSTRY…………………………………………………………………8-26

1. INTRODUCTION TO INDIAN AUTOMOBILE INDUSTRY…………………………………………………..8

2. VEHICLE PRODUCTION IN INDIA………………………………………..11

3. INDIAN AUTOMOBILE COMPANIES……………………………………..13

4. FUTURE OF AUTOMOBILE INDUSTRY IN INDIA……………………...17

5. GLOBAL CAR INDUSTRY…………………………………………………..20

6. CAR INDUSTRY IN INDIA…………………………………………………..23

7. FUTURE OF CAR INDUSTRY IN INDIA…………………………………..24

8. MID SIZE CAR SEGMENT………………………………...………………...26

III. COMPANY………………………………………………….…………………27

9. ABOUT FORD INDIA LTD…………………………………...………….28-34

COMPANY OVERVIEW………………………………………………….29 PROFILE OF KEY PERSONNELS………………………………………30 BUSINESS MODEL………………………………………………………..32 FORD SERVICES………………………………………………………….34

10. ABOUT HYUNDAI MOTORS INDIA LTD……………………………..35-43

COMPANY OVERVIEW………………………………………………….37 BUSINESS MODEL………………………………………………………..38 COMPANY R&D……………………………………….…………………..42 COMPANY ENVIRONMENT…………………………………………….43


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IV. PRODUCT……………………………………….…………………………44-66

11. HYUNDAI VERNA……………………………………………………………45

12. FORD FIESTA………………………………………...……………………….56

13. COMPARISON………………………………………………………………...67

14. CUSTOMER SEGMENT FOR FORD FIESTA &HYUNDAI VERNA………………………………………………………………….…...…68

15. COMPETITION……………………………………………………………….70

V. FINANCIAL ANALYSIS…………………………..……………………...73-90

FORD MOTORS LTD…………………………………………………….74 HYUNDAI MOTORS INDIA LTD……………………………….………83 FINANCIAL COMPARISON BETWEEN FORD

MOTORS LTD & HYUNDAI MOTORS LTD………………………….92

VI. RECOMMENDATIONS…………………………………………………94-109

VII. CONCLUSION…………………………………………………………….….110

VIII. BIBLIOGRAPHY…………………………………………………………..…112

IX. ANNEXURE……………………………………………………………….…..113

16. INFORMATION GATHERED FROM THE CONVERSATION WITH SALES MANAGERS

NCR FORD………………………………………………….……..….114 FX HYUNDAI………………………………………………….…..….115


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METHODOLOGY

We have used various sources for our project work.

Qualitative Data collection through in-depth interviews with Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who provided us with valuable information about their companies.

Secondary research through various search engines, company websites, car magazines.


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INDIAN AUTOMOBILE

INDUSTRY


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INDIAN AUTOMOBILE INDUSTRY GROWTH

Automobile Industry is the largest industry in India with an impressive growth in the last two decades. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalisation of the sector.

According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans.

Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors. In 2-Wheelres segment, Hero Honda is leading putting behind Bajaj Auto Ltd.

OVERVIEW

India, sourcing base for global auto majors. Passenger car and motorcycle segment is set to grow by 8-9%.

The two-wheeler segment will clock 11.5% rise by 2007.

Commercial vehicle to grow by 5.2 per cent.

Estimated component market size is US$ 6.7 bn.

FACTS AND FIGURES

India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03.

The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said.

Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales


http://www.surfindia.com/automobile/automobile-industry.html

http://www.surfindia.com/automobile/hyundai-motor.html

http://www.surfindia.com/automobile/general-motors.html

http://www.surfindia.com/automobile/suzuki-motor-corporation.html

http://www.surfindia.com/automobile/hero-honda-motors-ltd.html

http://www.surfindia.com/automobile/bajaj-auto-ltd.html



http://www.surfindia.com/automobile/tata-motors-ltd.html


http://www.surfindia.com/automobile/maruti-udyog-ltd.html

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would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.

INDIAN AUTO MARKET GROWTH FOR THE YEAR 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05.

The automotive industry crossed a landmark with total vehicle production of 10 million units.

According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05.

The growth of domestic passenger car market was 7.5 per cent

Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.

The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05.

Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05.

Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.

Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005.

Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05.

Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.



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VEHICLE PRODUCTION IN INDIA

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks.

Production of 4-Wheelers

Manufacturers2005-06 (Apr-Mar)In Nos.


Japanese OEM Korean OEM

Maruti Udyog Ltd. 572,097 Hyundai Motor India Ltd. 260,440

Toyota Kirloskar Motor Pvt. Ltd.

44,975 American OEM

Honda Siel Cars India Ltd. 41,361General Motors India Pvt. Ltd.

30,687

Swaraj Mazda Ltd. 11,946 Ford India Pvt. Ltd. 26,946

Total 670,379 Total 57,633

European OEM Indian OEM

Skoda Auto India Pvt. Ltd. 9.767 Tata Motors Ltd. 449,878

Daimler Chrysler India Pvt. Ltd. 1,780 Mahindra & Mahindra Ltd. 128,601

Volvo India Pvt. Ltd. 1,004 Ashok Leyland Ltd. 65,085

Tatra Trucks India Ltd. 125 Force Motors Ltd. 35,728

Fiat India Pvt. Ltd. 671 Eicher Motors Ltd. 24,348

Hindustan Motors Ltd. 15,458

Total 13,347 Total 719,098


http://www.surfindia.com/automobile/hindustan-motors.html

http://www.surfindia.com/automobile/eicher-motors-ltd.html

http://www.surfindia.com/automobile/fiat-india-private-ltd.html

http://www.surfindia.com/automobile/volvo.html

http://www.surfindia.com/automobile/mahindra-mahindra-ltd.html


http://www.surfindia.com/automobile/skoda-auto-india-private-ltd.html

http://www.surfindia.com/automobile/ford-india-limited.html

http://www.surfindia.com/automobile/swaraj-mazda-ltd.html



http://www.surfindia.com/automobile/toyota-kirloskar-motor-ltd.html




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Production of 2-Wheelers



Japanese Indian

Hero Honda Motors Ltd. 3,006,486 Bajaj Auto Ltd. 2,042,289

Honda Motorcycle & Scooter India (Pvt.) Ltd.

603,436TVS Motor Company Ltd.

1,366,866

Yamaha Motors India Pvt. Ltd. 248,665 LML Ltd. 107,044

Suzuki Motorcycle India Pvt. Ltd. 2,328Kinetic Engineering Ltd.

82,392

Majestic Auto Ltd. 56,819

Kinetic Motor Company Ltd.

53,880

Royal Enfield (Unit of Eicher Ltd.)

30,596

Total 3,860,915 Total 3,739,886

Source: Automotive Component Manufacturers Association of India

During this decade, it is seen that two-wheelers are the most produced in automobile industry followed by passenger cars and then three wheelers. The following are the number of units produced in 2003-04 and 2004-05 (April-Sept. 04) of different segment of vehicles:

Name of the Sector No. of units Production

2003-042004-05

(April-Sept. 04)



http://www.surfindia.com/automobile/royal-enfield-motors-ltd.html

http://www.surfindia.com/automobile/kinetic-engineering-ltd.html



http://www.surfindia.com/automobile/yamaha-motors-india-pvt-ltd.html

http://www.surfindia.com/automobile/tvs-motor.html




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Commercial Vehicles 9 275224 156815

Cars 12 842437 465983

Multi-Utility Vehicles 5 146103 114739

2-wheelers 12 5624950 3023805

3-wheelers 4 340729 177554

Total 42 7229443 3938896

INDIAN AUTOMOBILE COMPANIES

CURRENT SCENARIO

Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market.

Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies components to global majors like Ford, General Motors and Land Rover.

Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world.

OVERVIEW

In 1980s Hindustan Motors (HM) was leading car manufacturer in India. HM is popular with its Ambassador model.

In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car."

Maruti Udyog Ltd. was set up to manufacture budget cars.

In 1993 foreign auto makers entered the Indian market.

FACTS AND FIGURES

The onset of automobile industry in India saw companies like Hindustan Motors, Premier Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers. The era, 1950s - early 1990s was known as 'license raj,' when India was closed to the world and imports. Hindustan Motors (HM) was the leader in car








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manufacturing and sales until the 1980s, when the industry was opened up from protection. HM, joint venture with Mitsubishi produced Lancer and Pajero, but is best known for its own model, Ambassador.

Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned the manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian middle-class. The cabinet passed a unanimous resolution for the development and production of a "People's Car." It was christened Maruti Limited. However, the company as Maruti Udyog Ltd. matured only after the death of Sanjay Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to 1,96,820 cars.

1991, the liberalisation of the Indian economy opened the market for foreign automobile makers to venture in India. The license raj ended in 1993 and many foreign players entered the Indian market by way of Joint ventures, collaborations or wholly owned subsidiary.

Global Players in India:

Segments Companies

Cars/ SUVs Suzuki

Honda

Toyota

Mitsubishi

GM

Ford

Daimler-Chrysler

Skoda

Fiat

Hyundai

Tata

M & M

Two-wheelers TVS

Hero Honda

Bajaj Auto

Yamaha

Kinetic

LML

CVs Tata

Ashok Leyland

Swaraj Mazda

Mahindra & Mahindra




















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Tatra

Eicher -Mitsubishi

Volvo

Tractors Escorts

M & M

L&T

Punjab Tractors

New Holland

ITL-Renault

John-Deere

Steyr

Auto industry sees decline in growth after 7 years in FY ended 2007-08

After seven years of successive growth, the domestic automobile industry has recorded a degrowth in the financial year ended 2007-08 as high interest rates and availability of finance weaned consumers away from vehicle purchasing. Production of vehicles in FY 2007-08 plummeted mainly due to declining motorcycle and three-wheeler sales in the country.

In the financial year ended in March, domestic vehicle sales fell by 4.70 per cent. During the year, motorcycles sales reported a sharp fall of 11.90 per cent to 57,68,341 units from 65,47,195 units. Lack of implementation of control on overloading along with issue of financing dragged sales of medium and heavy commercial vehicles by 1.66 per cent to 2,70,994 units as compared to the previous year. The decline in sales has been mainly due to availability of finance, issue of repossessing vehicles and high interest rates which have led to lower sales.


http://www.surfindia.com/automobile/punjab-tractors-ltd.html




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Passenger car sales

In March, among passenger car companies Hyundai Motor India Ltd recorded the highest growth at 29,396 units, an increase of 52 per cent. Maruti Suzuki, reported almost flat sales at 55,758 units.

During the month, both scooters and motorcycles reported a decrease in sales volumes. The scooters segment fell 5.07 per cent to 83, 022 units and the motorcycles to 5,06,884 units, a decrease of 0.04 per cent.


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FUTURE OF AUTOMOBILE INDUSTRY IN INDIA

An industry that was licensed, controlled and restricted in the early years of independent India and had limited contribution to the economy, currently contributing about 5% of the GDP and it is targeted to grow five fold by 2016 and account for over 10% of India’s GDP.

While, the Automobile industry’s evolution dates back to late 1960s (though genesis could be traced back to 1940s), economic liberalisation of early 1990s gave it a further boost.

The year 2001 marked the beginning of landmark policy reforms in the sector, Quantitative restrictions were removed, 100 percent FDI was permitted through automatic route, no condition of foreign exchange neutralisation, no export obligation,


http://economictimes.indiatimes.com/Auto/Auto_industry_set_to_grow_five_fold_by_2016/articleshow/2939060.cms

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etc.

As a result, auto industry got an added push, with output doubling. Also, the industry undertook many technological innovations to ensure that it meet international standards, for instance, in terms of safety standards and emission norms. Thus came a phase that is to mark a real paradigm shift in the industry. In a sense the automotive industry in India is just about 10-15 years old!

From a production of 185,000 units in 1970-71, the industry currently produces 11 million vehicles. And from a turnover of $34 billion, the industry is expected to reach a turnover of $150-200 billion in next ten years.

Manufacturers are increasingly adopting an outward looking approach and exploring new markets/territories, ranging from Middle East, Europe, South Africa, Algeria, Latin America, Russia, etc. Exports have increased immensely from a mere 38,000 units in 1990-91 to 1.01 million units in 2006-07. Some estimates suggest that by 2010, car exports, alone would reach 1 million.

This will have a huge impact on the economy. For every additional commercial vehicle produced in the country 13 new jobs are created, every additional car adds five jobs, two wheelers about 0.5 and three wheelers around 4 jobs.

The growth momentum is witnessed not just by the industry manufacturing vehicles but also by a large number of other industries like supply chain companies, infrastructure companies, oil companies, insurance & finance companies, etc. The automobile is being recognised for what it actually is, a means to promote Entrepreneurship, Employment and Economic Development.

Companies in India are setting up green field manufacturing facilities, increasing production capacities and entering into joint ventures. Manufacturers are investing overseas and establishing footprints across the world. For instance, TVS Motor Company and Bajaj Auto are investing in Indonesia.

Ashok Leyland and Tata Motors in Thailand, Mahindra and Mahindra and Tata Motors in South Africa. Almost all major companies, including both domestic players and global automotive groups are investing heavily in new manufacturing and assembly plants in automotive hubs across India and have announced massive expansion plans.

Much of the foundations for the future importance of the automotive industry in India are






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being laid now. Expansion and investment plans of close to $14 billion have been announced.

Prime Minister Manmohan Singh has recently launched the Ten Year Plan for the Indian auto industry, the Automotive Mission Plan 2006-2016; it is a comprehensive document covering all aspects of the industry with 25 key interventions. The Ministry of Heavy Industries & Public Enterprises, the nodal ministry for the auto sector, has been instrumental in making this possible.

The Mission Plan has set a target that by 2016, its output in dollar-terms should have quadrupled, while GDP is expected to have merely doubled. In other words, aim is to achieve industry output $145 billion and consequently, make the automotive sector’s contribution rise to at least 10% of the country’s GDP.

The target is to attract investment worth USD 35-40 billion by 2016. It aims to develop India as the preferred location in the world for the design and manufacture of automotive products. The Mission Plan’s identified intervention areas would enable the industry to attain world class standards and emerge as the vanguard of the Indian economy.

With all these plans, the industry is set to have a major impact on India’s future economic growth. The industry is entering into a new phase of its development and evolution, results of which will be visible in over next ten years. Prime Minister, Dr Manmohan Singh had aptly said that the building of ‘Brand India’ in the world was powered by the Indian automotive industry meeting global standards.

A key is the collective execution and implementation of the interventions in the AMP and a joint Government - Industry effort. The consequence as we could all hope would be a remarkable transformation of India’s entire economic landscape.


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GLOBAL CAR INDUSTRY


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INTRODUCTION

In early 2000s, the car industry occupied a position of strategic importance in many countries. However, with increasing maturity, the industry's average profit margins had declined from 20% or more in the 1920s to around 10% in the 1960s and less than 5% in 2004. The car industry represented just 1.6% of Europe's stockmarket capitalization and 0.6% of USA's . About 20 years back, the corresponding figures had been 3.6% and 4.0% respectively.

In recent times, the automobile market in America, Europe and Japan, where over 80% of


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the world's cars and trucks were sold, had stagnated. Supply had increased vis-à-vis demand for several reasons. In countries like Germany and France, rigid labour laws had inhibited the closure of redundant factories. In America, the arrival of European, Japanese and South Korean makers and their aggressive plans to expand market share had also created overcapacity. Effective capacity had increased slowly but steadily as carmakers continued to improve their productivity. The car industry also seemed to be undergoing a structural transformation in the early 2000s.

Many players were trying to move towards a build-to-order model that could serve niche segments efficiently. As new electronic control devices emerged and concern for the environment grew, new players with new competencies were likely to enter and challenge the incumbents. Under these circumstances, the leading car makers wondered what they had to do to revitalize themselves and strengthen their competitive position.

BACKGROUND

The car industry was born in Germany more than 100 years ago. Early development of the industry began in France in the 1900s. It was in America that the industry came of age thanks to Henry Ford, who introduced the assembly line production system.

The car industry pioneered many innovative business practices. For example, the industry introduced the concept of "planned obsolescence," i.e. frequent changes in design to induce customers to switch to a new model every other year. At the same time, by virtue of its sheer size and ubiquity, the industry attracted wide public attention. In the 1960s, consumer activist Ralph Nader attacked the safety record of the 'Big Three' Detroit manufacturers, General Motor, Ford and Chrysler.

In the 1970s, as oil prices quadrupled, the industry found itself under attack from environmentalists. The industry also attracted government scrutiny on account of safety concerns, antitrust worries (in the days when General Motors had 60% share of the US market) and pollution. But in view of its size and the number of jobs it created, the industry continued to receive strong government support. When small, fuel efficient and reliable Japanese cars started to eat into the market share of the Big Three, the American government resorted to protectionism.

The global car industry had been consolidating almost since its birth. In the late 1920s, there were 270 car companies in the world, most of which were based in America. From these, the Big Three - G M, Ford and Chrysler emerged.

In 2004, the global car industry comprised seven big groups and three smaller ones. In volume terms, six groups - GM, Toyota, Ford, Renault/Nissan, Volkswagen and DaimlerChrysler and their affiliates accounted for about 70% of global sales.


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CAR INDUSTRY IN INDIA

SALES FOR FY 2007-08


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Spurred by a huge demand due to increasing purchasing power, new product launches, coupled with attractive finance schemes and booming exports, cars sales has been growing at a frenetic pace.

Maruti Suzuki India, the country’s biggest car maker, recorded its highest ever annual sales (7,64,842 vehicles), registering a growth of 13.3 per cent in 2007-08 over 2006-07.

Mahindra & Mahindra Limited (M&M) cumulative sales grew by 30 per cent in 2007-08- 2,31,355 units compared to 1,78,201 units in the corresponding period last fiscal.

Hyundai Motors India Limited (HMIL) has shown a robust growth at 16.13 per cent with 360,934 units during 2007-08, against 310,787 units sold in 2006-07.

SkodaAuto has sold 14,187 vehicles in 2007-08 against 12,444 in 2006-07, a growth rate of 14.06 per cent.

General Motors India (GM), the wholly owned subsidiary of US-based General Motors Corporation, reported 71 per cent increase in domestic sales in 2007-08 - at 66,543 units against 38,857units in 2006-07.

Mercedes-Benz India recorded a 59 per cent sales growth during the first quarter of 2008.

Honda sold 62,802 cars in 2007-08, higher than the 61,325 units sold in 2006-07.

The new fiscal year (2007-08) has started on a robust note with domestic sales of several segments witnessing robust growth rates in April 2008.

THE NANO REVOLUTION

Tata Motors has introduced the global auto industry to a whole new consumer segment, with the 'Nano' also shedding light on how to leverage emerging markets as innovation hubs. The Nano promises to be a potentially revolutionary innovation, delivering a car to huge segments of the market hitherto unable to afford one. This Tata small car is a landmark event in India as well as the world's automobile history. The Tata Motors plant in Singur in West Bengal has a maximum capacity of 2,50,00; at full capacity the Nano has the potential to become the largest selling model in India. The first truly original automobile product from India, Nano is powered by a 623 cc, four-speed manual transmission engine. Despite the small size it is a modern car capable of meeting Bharat-III and Euro-4 emission norms and safety standards.

FUTURE OF CAR INDUSTRY IN INDIA


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Not very long ago, the only cars that were available in India were the Ambassador and the Premier Padmini. All that was in pre-liberalisation India, which existed before 1991.

Post liberalization, India is on every car manufacturer’s map. The reasons are not hard to notice. Currently, India is the second largest two-wheeler market and the fourth largest commercial vehicle market in the world. Not only it is the eleventh largest passenger car market globally, but it is also expected to be the seventh largest by 2016.

Companies like Ford are planning to make India a regional hub for exports of both small cars as well as engines. According to Mr. Michael Boneham, President Designate for Ford India, the company plans to export the small car and the engine for markets abroad. He indicated that one of the markets would be chiefly Ford Asia Pacific Region while other markets are under consideration presently.

There are many reasons for the impressive growth of the Indian car industry. Some of these are comparatively easy availability of vehicle finance, attractive rates of interest, and convenient instalments.

Competition has forced manufacturers to be innovative and responsive to customer demands and needs. Now that India is not alien to quality and perfection, customer expectations have soared to higher levels. Depending upon customers needs, four segments - small, midsize, premium and sports utility vehicles currently represent the car market in the country.

A niche concept cars segment is also emerging wherein reputed re-modellers like DC Chhabria cater to individuals who wish to remodel their vehicles to create concept cars for their use. Contrarily, a segment is also emerging comprising of people who wish to upgrade to cars from two wheelers. Tata already is in the process of launching the small car Nano to suit this segment’s needs. Many other car manufacturers such as Bajaj Auto are also following suit and are in the process of coming up with their specific versions to cater to this segment.

Currently, there is high demand for cars across all these segments. With the growing economy, people left with a lot of disposable income spend it towards meeting their mobility needs such as cars. Banks and other financial institutions have an assortment of vehicle loan schemes with attractive rates of interest and convenient instalments.

These schemes encourage people to go in for loans to purchase cars of their choice. Additionally, a convenient union budget in the current financial year (2008-09) has


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worked in favour of the automobile sector, which has seen an uptrend in sales across various segments.

MID SIZE CARS SEGMENT


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A mid size car is referred to as an automobile with a size between that of compact and full size cars. The price range of mid size cars lies between Rs 3 to 8 lakhs. The mid size cars have the capacity to carry 4 passengers- 2 adults and 2 children.

The credit of manufacturing of these cars goes to companies like- Fiat India, Ford, General Motors, Hindustan Motors, Hyundai motors, Maruti Udyog, San Motors and Tata Motors. While the companies like- Ford, Hyundai, General Motors and Mahindra & Mahindra are yet to launch their models under this segment. This model basically target executive class.


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COMPANY


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FORD INDIA LIMITED

"Make Every Day Exciting"

Ford India, originally an American company entered the Indian market with Ford Escort in the year 1988. The 2001 model Ford Ikon was a successful car on Indian roads. The company added more happening brands to the market, such as Ford Fusion, Ford Fiesta, Ford Mondeo and Ford Endeavour.

Founder Henry Ford

Country USA

Year of Establishment 1903 (in India 1988)

Industry Automotive

Listings & its codes NYSE: F

Website www.india.ford.com

Global Website www.ford.com

SEGMENTS AND BRANDS OF FORD INDIA

Endeavour Fiesta

Focus

Fusion

Ikon

Mondeo


http://www.surfindia.com/automobile/ford-fusion.html

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http://www.surfindia.com/automobile/ford-fiesta.html

http://www.surfindia.com/automobile/ford-endeavour.html

http://www.ford.com/

http://www.india.ford.com/

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COMPANY FLASHBACK

Ford Motor Company, an American company, manufactures and sells automobiles worldwide. The company was launched from a converted wagon factory with Rs. 28,000 cash from twelve invesors. Henry Ford, the founder, was 40 years old when the company was founded. Today, it is the largest family-controlled company in the world. It has been in continuous family control for over 100 years.

Ford introduced itself in India in 1988 with its Ford Escort model. Later in 2001 it was replaced by locally produced Ford Ikon. Since then it has added Fusion, Fiesta, Mondeo and Endeavour to its product line.

The company has invested heavily in India to give the finest in automobiles. Rs. 1700 crore has been invested in integrated manufacturing plant at Maraimalai Nagar, 45 kms from Chennai. The plant is equipped with state-of-the-art Ford technology in an area of 350 acres. It has a capacity of 100,000 vehicles per annum.


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PROFILE OF KEY PERSONNEL

ARVIND MATHEW – Managing Director and President

Arvind Mathew is the Managing Director and President of Ford India.

He took this position in August 2005.

With his vast international experience and expertise in new vehicle programs, Arvind will

lead the company’s aggressive growth phase, as the company enters a new decade in the

country.

LUCY MILLAR – Vice President, Finance & IT

Lucy is the Vice President of Finance and IT at Ford India. She took up this position in

May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.

SCOTT McCORMACK – Vice President, Marketing, Sales & Service


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Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He

took this position in July 2006. Scott reports to Arvind Mathew, President and Managing

Director, Ford India.NANCY REISIG – Vice President, Human Resources

Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in

March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford

India.

SANDIP SANYAL – Vice President, Supply and Total Value Management

Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford

India. He took this position in September 2005. Sandip reports to Arvind Mathew,

President and Managing Director, Ford India.

STEVE BRIDGMAN – Country Manager, Ford Credit

Steve Bridgman is the Country Manager for Ford Credit, a Division of Ford India that

provides wholesale funding to the Indian Ford dealer network. Steve reports to Arvind

Mathew, President and Managing Director, Ford India.


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BUSINESS MODEL

VIRTUAL PLANT TOUR:

All cars spring to life at Ford's Rs. 1700 crore integrated manufacturing plant at

Maraimalai Nagar, 45 kms. from Chennai. The plant, equipped with advanced

manufacturing technology from Ford, covers 350 acres, provides employment to about

2,000 people directly and many more thousands indirectly and has a capacity to

manufacture upto 100,000 vehicles per annum. Ford is a 6-Sigma company. Every step of

every process is planned to perfection.

Step 1: STAMPING Semi-automatic press line moulds blank sheets into various body parts.

Thorough checks for perfection in dimensions and surface quality.

Step 2: BODY SHOP Entire shell checked with military precision for dimensions.

Subjected to stresses to check quality of welding.


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Step 3: PAINT SHOP Cutting-edge technology creates a finish that's unaffected by rain or sunshine.

Painting so complete that even underside gets full PVC coating for corrosion

protection.

Baking done to Ford's global paint specifications.

Step 4: T C F Interiors taken care of, before doors and seats come on in Trim zone.

In Chassis area, professionals use high power tools to fit in engine, front

suspension, bumpers etc.

Once nuts and bolts are tightened to perfection, the car gets its wheels.

Rolls into final line for remaining parts and filling of fluids.

Step 5: QUALITY TESTING Stringent testing ensures every car is at its best, even in trying conditions.

All Ford cars complies with Bharat III emission standards, notified by the

Government of India.


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FORD SERVICE

Thank you for choosing a Ford. It is our endeavour to give you complete satisfaction in

all our services.

As a Ford owner, you have access to a whole range of top-notch services, from product-

related assistance to allied automobile services. Ford’s commitment is to give its

customers all the help and support to get the most from owning a Ford.

A dedicated Customer Relationship centre is at your service in every Ford dealer outlet.

You can call them for any assistance.

However for any further support you can contact Ford India Customer Relationship

Centre (0800 to 1800 hrs – Monday to Saturday)

1800 425 2500

Toll Free (BSNL/MTNL customers)

For other subscribers

6000 2500 *

Add STD code of your state capital

Example: Punjab – use Chandigarh code (0172) 6000 2500

* Call charges apply.

Email : [email protected]

Mailing address:

Ford India Private Limited,

S.P. Koil Post, Chengalpattu – 603 204.

Tamilnadu, India

FORD SOLUTION

Ford solutions aims to provide quality, peace-of-mind products for the customer and embodies a brand synonymous with its ability to provide products that can be tailored to suit one's individual needs. Ford Solutions serve to develop products for Ford and the Dealer body that enhance customer satisfaction.


mailto:[email protected]

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HYUNDAI MOTOR INDIA LIMITED

"Drive your way"

Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the world. Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car manufacturer in India. Santro, Getz, Accent, Elantra, Sonata Embera and Tuscon are the most successful brands of HMIL. HMIL presently markets 34 variants of passenger cars in six segments.

Santro in the B segment Getz Prime, i10 in the B+ segment

Accent and Verna in the C segment

Elantra in the D segment

Sonata Embera in the E segment

Tucson in the SUV segment.

The company is an ISO 14001 for its sustainable environment management practices.

Country South Korea

Year of Establishment 1967

Listings & its codes KSE: 005380; LSE: HYUD

Retail Finance Partners HDFC Bank, ICICI Bank, Mahindra Finance, Punjab National Bank, Sundaram Finance.

Contact Details A-30, Mohan Co-Operative Industrial Estate


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Mathura Road, New Delhi - 110044 Tel: +(91)-(11)- 41678800 Fax: +(91)-(11) - 41678811

Website www.hyundai-motor.com www.global.hyundai-motor.com

SEGMENT AND BRANDS

Accent Elantra

Getz

Hyundai i10

Santro Xing

Sonata Embera

Tucson

AWARDS

2005 No 1 Entry Midsize Car' by Accent Petrol.

No 1 Entry Midsize Car' by Accent CRDi.

Hyundai Getz became the 'Car of the Year' by BS Motoring.

Hyundai Motor India Limited became the 'Company of the Year' by BS Motoring.

Hyundai Getz became the 'CNBC Autocar Car of the Year.'

Hyundai Elantra became the 'Best Value for Money Car' by CNBC.

2003 Hyundai Motor India adjudged as the 'Car Maker of the year' at the ICICI Bank Overdrive awards.

2002 Hyundai Santro topped the 'JD Power Asia Pacific Intial Quality Study (IQS)' that measures the product quality for three consecutive years (2000, 2001 & 2002).

Hyundai Santro topped the 'JD Power Asia Pacific Apeal' study that measures customer satisfaction for three


http://www.surfindia.com/automobile/hyundai-sonata-embera.html

http://www.surfindia.com/automobile/hyundai-santro-xing.html

http://www.surfindia.com/automobile/hyundai-i10.html

http://www.surfindia.com/automobile/hyundai-getz.html

http://www.surfindia.com/automobile/hyundai-elantra.html

http://www.global.hyundai-motor.com/

http://www.hyundai-motor.com/

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consecutive years (2000, 2001 & 2002).

Hyundai Accent topped the 'JD Power Asia Pacific IQS' for 2002 and the APEAL study for 2001 & 2002.

COMPANY FLASHBACK

Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is South Korea's largest car maker. It is headquartered in Yangjae-Dong Seocho-Gu Seoul. HMC is also the world's sixth largest car maker and operates the world's largest integrated automobile manufacturing facility in Ulsan, South Korea.

In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly owned subsidiary of Hyundai Motor Company and is the second largest and the fastest growing car manufacturer in India.

HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of 17.26% over previous year. It is the country's fastest growing car company having rolled-out 10,00,000 cars in just 90 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,800 crores. The company has recorded a growth of 27.2% in exports over the year 2004.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units.

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 is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum by end of 2007.


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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 183 to 250 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 around 1,000 in 2007.

The year 2006 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to over 65 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet another path-breaking record in its young journey by rolling out the fastest 10,00,000th car.

The company has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

BUSINESS MODEL

COMPANY PRODUCTION:

Modern automobile engineering practices require a holistic approach to production management, which cannot be accomplished in a non-integrated manufacturing and assembly setup.

The production management processes at Hyundai Motor India are overlaid with an organization-wide implementation of manufacturing best practices like Just-in-time inventory management, Kaizen, TPM and TQM, that helps in making the world's best cars, right here in India.

THE PRESS SHOP

A computer controlled line that converts sheet metal to body panels of high dimensional accuracy and consistency.


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THE BODY SHOP

A hi-tech line that builds full body shells from panels. Automated robotic arms are used for intricate welding operations that ensure superior and consistent build quality.

THE PAINT SHOP

This is one of the most modern paint shops in the country and uses the environment friendly water based process for superior and lasting exteriors. A unique process management system is followed which helps to deliver the most extensive colour range, independent of minimum batch requirements, helping customers get their preferred colour anytime.

THE ALUMUNIUM FONDRY

Forges the engine cylinder blocks for cars to exacting design specifications.

THE ENGINE AND TRANSMISSION SHOP

THE PLASTIC EXTRUSION UNIT


One of the biggest engine shops in the country, this unit is equipped with the most modern tooling and testing facilities to make a wide range of engines inhouse.

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Moulds the dashes, bumpers and other plastic components to perfect fit and finish.

THE PLASTIC PAINT SHOP

One of the very few manufacturing units in India to have this facility in-house, Hyundai's plastic paint shop delivers a high grade finish on exterior plastic components.

THE TEST TRACK

With comprehensive performance testing facilities like rattle testing and ABS brake testing, this track is designed to meet pre-delivery (PDI) certification standards to exacting Euro specifications.

OTHER PLANT PICTURES

Assembly Line Assembly Line


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Pre Delivery Inspection Pre Delivery Inspection

Wheel Alignment Calibartion Administration Block

Assembly Shop Office


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COMPANY R&D

Hyundai and Kia together have R&D centres in the United States, Europe, Japan apart from the global R&D headquarters at Ulsan, Korea.

The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$ 2 Billion, up from US$ 1.2 Billion to enhance its thrust on new product development and achieve global quality benchmarks by year 2005. This includes the $30 Mn Hyundai-Kia

Design and Technical Center in Irvive, California.

FOCUS

The R&D team focuses on the development of new products and technologies that include interior and exterior design changes, development of new generation engines and alternate fuel systems, concept vehicles and advanced passenger safety and comfort systems, in line with evolving customer preferences across the globe. Recent successes of the team include the development of the Hyundai patented Common Rail Direct Injection (CRDi) engine in association with Detroit Diesel and the award winning Fuel Cell Santa FE.

EFFORTS

Some of the ongoing projects that the Hyundai R&D team is involved in include the development of the 'World Engine' in association with Daimler Chrysler and Mitsubishi and the development of Automotive Telematics in association with IBM.


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That the efforts of the Hyundai R&D team has paid great dividends to the company is evident from the fact that the company's newly engineered products like the Santa Fe and the Getz have made waves in the global automotive markets and the 'US Consumer Reports' magazine has ranked Hyundai cars in level with that of Honda in its recent quality rankings

COMPANY ENVIRONMENT

Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. Living up to its commitment of providing global standards of quality and process management in India, Hyundai had put in place an Environment Management System (EMS)at its manufacturing plant in Chennai right from its project stage. The certification process was completed in a record time of 10 months with 'Zero NCRs'. The assessment was done by TUV SUDDEUTSCHLAND and covered areas like Awareness Training, Technology Upgradation, Recycling, Waste Management and fulfilling Government Regulations.

HMI is also working on a backward integration strategy that will support vendors of the company in implementing EMS.

Hyundai Motor Company, S.Korea, the parent of HMI, has been doing considerable work on sustainable Environment Management. The company has a well defined framework in place for developing products that reduce pollutant emissions and processes for preservation of natural resources and energy along all the stages of the product lifecycle from production, sales, use to disposal. The company has also been in the forefront of development of environment friendly technologies like Hybrid Electric Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001 certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.


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PRODUCTHyundai Verna & Ford Fiesta


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HYUNDAI VERNA

BIG, REFINED AND COMFORTABLE, VERNA COMES ACROSS AS A GOOD ALL ROUNDER. STYLING MAY NOT EXCITE EVERYONE AND NEITHER WILL THE PETROL ENGINE WHICH THOUGH QUIET, IS NOT PUNCHY. THE DIESEL IS THE ACE IN THE VERNA'S PACK AND DELIVERS A WALLOP THAT REDEFINES THE MEANING OF PERFORMANCE DIESEL.

PRICING

Ex-Showroom Prices for DELHI

ModelEx-Showroom

Prices (Rs.)Verna i 626519Verna Xi 645051Verna Xxi 703168Verna XXi_ABS 723205Verna CRDi 755241Verna CRDi_ABS 777283Verna CRDiSX 805204Verna CRDiSX_ABS 827249


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STANDARD FEATURES

Verna i Xi XXi VGT VGT SX

Exterior

Body ColorOuter Door handles, Rear view mirror, Waistline Mldg

S S S S S

Rear Defogger with Timer S S S S S

Front & Rear Mud Flaps S S S S S

Alloy Wheels - - S - -

Chrome Rear Garnish - S S - S

Full wheel Cover - S S - S

Hub Cap S - - S -

Interior

Wood grain interiors - S S - S

2 Tone Interiors S S S S S

Room Lamp with Theater Dimming S S S S S

Illuminated Glove Box - S S - S

Multi box instrument facia S S S S S

Vanity Mirror with cover - Passenger Side S S S S S

Vanity Mirror with cover - Driver Side - S S - S

Clutch Foot rest S S S S S

Rear Door Map Pockets w/ bottle holder S S S S S

Seat back pockets - S S - S

Seat Back Hook - S S - S

Leather Wrapped Steering Wheel - - S - -

Leather Wrapped Gear Shift Knob - - S - -

Seating

Adjustable Rear Headrest - 3 nos. - S S - S

60: 40 Split folding Rear Seat S S S S S

Rear Center Armrest w/ Cup Holder S S S S S

Front seat Center Armrest - S S - S

Dual height Adjustable Driver Seat - S S - SFull Cloth Upholstery S S S S S

Comfort & Convenience

Digital Clock S S S S S2 speed Variable intermittent wipers S S S S SLuggage Net - - S - -


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Ticket holder S S S S SAir conditioner with Cabin Heater S S S S SAutomatic Climate Control - - S - SElectrically Adjustable Rear View Mirror - S S - S

Front map lamps with Sun glass holder - - S - S

Rear tail gate open indicator Lamp S S S S SSeat Belt Reminder Lamp S S S S SKey Not Removed Warning S S S S SHeight Adjustable Front Seat Belts - S S - -

Digital Odometer with 2 tripmeters S STrip

ComputerS

Trip Computer

Power Outlet S S S S S

Audio

2 DIN Music system with MP3 - - S - S4 Speakers - S S - SFront Tweeters - - S - SMicro Antenna S S S S S

Comfort

Power Windows with Timelag operation S S S S SIlluminated P/Window switches with Drv side Auto Down

S S S S S

Tilt Steering S S S S S

Battery Saver S S S S S

Remote Tail gate & Fuel filler lid S S S S S

Safety

Dual - Member side impact beams S S S S S

Collapsible steering column S S S S S

Central locking system S S S S S

Child Proof Rear Door locks S S S S S

Day & Night mirror S S S S S

Key less entry with theft deterrent system - S S - S

Front Fog Lamps S S S S S

Clutch lock system S S S S S

Impact sensing for auto door unlocking S S S S S

RR Disc brakes - - O O O

ABS - - O O O

S – Standard

O – Optional


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COLOUR SHADES OF VERNA

DEALER NETWORK IN DELHI

Dealer Name

Address City STD Phone Fax

Deep Hyundai

13, Bhera Enclave, Paschim Vihar, Outer Ring RoadPIN - 110041

New Delhi

011

25275051 / 25275052 / 26542474 / 25275053

25275053

Hans Hyundai

69/1A, Najafgarh Road, Moti NagarPIN - 110015

New Delhi

01151010123 / 51427101 / 5

51427115

Himgiri Hyundai

B - 99 , Wazirpur Inds Area ,

PIN - 110052

New Delhi

011 27376001 - 2 27376001

HMP A-30 Mohan Cooperative Industrial Area Phase-IPIN - 110044

New Delhi

011 41599852 / 61 41678333

MGF Hyundai

1 , Jhandewala , Faiz Road , ND.PIN - 110 005

New Delhi

011 25825100 / 200 25823800

Samara Hyundai

B-35, Lala Lajpat Rai Marg, Lajpat Nagar-IIPIN - 110024

New Delhi

01129818288, 29818495,

29819289

Suhrit S-6 Building No 18- New 011 41645666 - 70 41642971


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Hyundai 19,Gulmohar Community Center,Yusuf Sarai.PIN - 110016

Delhi

Sunrise Hyundai

F - 18 Vikas Marg Preet ViharPIN - 110092

New Delhi

011 42421222

EXTERIOR

Based on the universally accepted design philosophy of safety and compactness, the Hyundai Verna is essentially inspired by the concept of ‘large on the inside and compact outside’. This design treatment is simple. Clean exterior lines with well-proportioned looks. A balanced front end with integrated full width lower intake, moderately flared wheel arches and optional 14" alloy wheels which lends it a sportier look. The strong shoulder lines and confident stance at the same time gives it a strong and well defined character. The overall impression it creates is of a well made car with a dynamic character which ensures that no matter where you go, the Verna, will be an eye-catcher and a stare-grabber par excellence. You just can’t miss it on the roads.


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INTEGRATED WRAP AROUND HEADLIGHTS Clever integration of the side repeaters into the wrap around clear headlight housings has increased the clean aspect of the frontal design.

ELEGANT FRONT FOG LAMPSThe fog lamps are efficiently and elegantly incorporated into the full width lower air intake. The result is an undisturbed bumper profile, highlighting the strength of the front look.

RADIATOR GRILLE The radiator grille shows the tasteful, restrained use of bright metal work to full advantage. It adds a welcoming traditional aspect while blending perfectly into the hood/bumper configuration.

ELECTRIC OUTSIDE REAR VIEW MIRROR Aerodynamic exterior mirrors are electrically operated. The ovoid shape of the mirrors perfectly inherit the dynamic headlamp treatment.

GRIP TYPE DOOR HANDLES The door handle summarizes what the Verna brings to its customers-refined yet fascinating car that rises above its class.

MICRO ANTENNA The rear roof-mounted micro antenna is compact and efficient. It is aerodynamic, stylish and robustly flexible allowing both improved signal reception and outstanding look.

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INTERIOR

The well-balanced exterior of the Verna doesn't flatter to deceive. Its world-class interior design matches up on all fronts and impresses even the most fastidious critics. While the wraparound driver and passenger environment exudes comfort and style, the optimized seating and storage options provide practicality. The Verna's two-tone colour scheme provides an element of class to the entire cabin. A dynamic balance created between the exterior and the interior of this sedan makes it a masterpiece of design. A car you would love to flaunt and love to drive at the same time.

GAUGE CLUSTER & TRIP COMPUTER The gauge cluster boasts new, easier to read, green LED lit instruments.

SUNGLASSES HOLDER No more frantic searching for the sunglasses.

TALENTED SUNVISOR A ticket holder is on the back of the sun visor.


INTEGRATED WRAP AROUND HEADLIGHTS Clever integration of the side repeaters into the wrap around clear headlight housings has increased the clean aspect of the frontal design.

ELEGANT FRONT FOG LAMPSThe fog lamps are efficiently and elegantly incorporated into the full width lower air intake. The result is an undisturbed bumper profile, highlighting the strength of the front look.

RADIATOR GRILLE The radiator grille shows the tasteful, restrained use of bright metal work to full advantage. It adds a welcoming traditional aspect while blending perfectly into the hood/bumper configuration.

ELECTRIC OUTSIDE REAR VIEW MIRROR Aerodynamic exterior mirrors are electrically operated. The ovoid shape of the mirrors perfectly inherit the dynamic headlamp treatment.

GRIP TYPE DOOR HANDLES The door handle summarizes what the Verna brings to its customers-refined yet fascinating car that rises above its class.

MICRO ANTENNA The rear roof-mounted micro antenna is compact and efficient. It is aerodynamic, stylish and robustly flexible allowing both improved signal reception and outstanding look.

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PORTABLE ASH TRAY The ash tray reflects the style of the air vents and upper centre console. It is portable yet holds firmly when placed in its original location for the maximum usage. This allows uniform style and neatness, plus improved interior cleanliness.

STORAGE SPACE The illuminated glove box in the facia has large capacity.

SEAT POCKETSThere can never be enough storage. Pockets in the back of the front seat are part of the Verna’s array.

REAR CENTER ARMRESTRear cup holder is adjustable for different sized containers.

SEAT ARMRESTDriver’s seat has an armrest for convenience.


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STURDY DOOR MAP POCKETNot only maps, but beverages, mobile phones and other journey necessities fit snugly and safely in the easy to access and sturdy door pockets.

COMFORT:

KEYLESS ENTRYThe remote control key effortlessly unlocks and locks the doors at the touch of a button.

CLEVER STORAGE TRAY The clever idea to bring about maximum use of minimum room for storing maps, snacks etc., right under the steering wheel.

THREE NOZZLE WINDSCREEN WASHER Newly introduced three way nozzle along with efficient wipers promises a clear view for the driver.

ADJUSTABLE POWER STEERING WHEELThe tiltable power steering wheel minimizes your effort to maneuver the car’s direction at your will and the tiltable soft finish steering wheel keeps you firmly in control.


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FULLY AUTOMATIC TEMPERATURE CONTROL (FATC)The fully automatic temperature control system will make you comfortable inside.

SAFETY:

ABSSure handling and anti-lock brakes help to keep the Verna on-line.

BIGGER DISC BRAKESBigger front disc and booster sizes mean safer, faster braking.

HEIGHT ADJUSTABLE FRONT SEAT BELTSAdjustable seatbelt mountings help to make everyone comfortable.

Pros Cons Verdict

Space, comfort, performance (CRDi).

Petrol motor lacks punch.Another value for money all rounder from Hyundai.


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PARTNERS

FORD FIESTA

If you need matchless performance from an exhilarating car, the Fiesta is the car for you.

Engineered to excite your senses, the Fiesta, powered by Dura Technology, gives you

unmatched driving experience, exceptional safety and fuel economy.


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http://www.mahindrafinance.com/

http://www.pnbindia.com/

http://www.sundaramfinance.in/products/carfinance/carfinance.asp

http://www.kmpl.com/

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PERFORMANCE

Whether you’re driving on city roads or highways the Fiesta’s performance is spirited

and responsive. The way the car hugs curves and takes off at traffic signals will set your

pulse racing.

STYLING

Contemporary automotive design that perfectly combines style and solidarity. That’s the

Ford Fiesta.

OWNING A FIESTA HAS NEVER BEEN EASIER

Finance options:

Low down payment of Rs. 36,000/-*

Low EMI of Rs. 1999 per Lakh*

Low interest rate of 6.66%*

Fiesta 1.4 Duratec EXI

Price Starting from Rs. 5.94 Lakhs

Overview:

The Ford Fiesta is a car engineered globally for India. Fiesta has unmatched driving

dynamics, technology, comfort and styling.


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You won't fall in love with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be

within the sophisticated confines of this car built to induce sheer obsession, with its

raring to go spirit and powerful styling. With design, engineering and technology inputs

from around the world and over 700,000 kms of testing in 9 countries, this is a car built to

make you Go Fida.

Key Features:

Engine :

The 1.4 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC

engine with drive-by-wire electronic throttle control for very smooth and most responsive

driving experience imaginable. It also comes with an advanced knock sensing technology

and twin hole injectors that ensure performance and fuel efficiency.

This high value petrol packs in 82 ps power with powerful head-turning Fiesta styling.

Performance

Whether you're driving on city roads or highways, the Fiesta's performance is spirited and

responsive. The way this car hugs curves and takes off at traffic signals will set your

pulse racing.

Comfortable ride

Engineered specifically to adapt to demanding Indian road conditions, the Fiesta

combines its high stability with exceptional driving comfort. The suspension is specially

tuned to better absorb road surface disturbances and minimize discomfort to passengers.

Safety

Structurally engineered to withstand severe collisions, the Fiesta's crash worthiness is

verified with over 400 virtual crash simulations.

Optimised steel strength in critical areas along with structural reinforcement, ensures

passengers and the driver are unscathed even in a frontal offset collision. So when you

drive the Ford Fiesta you can be sure things are as safe as can be.

The car with a brain

The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a

computer managing the car’s engine diagnostics and electrical functions. It comes with

GEM sensors that oversee all critical functions.

Technology


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Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and

economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.

DuraVrooom: A driving experience that's so exciting, it will move you faster than

anything else has before.

DuraSmooth: The Fiesta’s petrol and diesel engines are so refined, they are guaranteed to

leave you speechless.

DuraSave: Thanks to a combination of unmatched economy and exciting performance,

you save on every drop of fuel.

Styling

Contemporary automotive design that perfectly combines style and solidity. That's the

Fiesta for you. With a powerful grille, a muscular bonnet, flared wheel arches, meaty side

panels and ornamental headlamps and tail-lamps, the Fiesta effortlessly mixes brawn with

beauty. Get used to heads turning in your direction.

Go Fida without worries

Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty"

that covers the car against all electrical and mechanical failures for an additional period.

Fiesta 1.6 Duratec ZXI

Price Starting from Rs. 6.20 Lakhs

Overview:

Nothing fires your need for speed like Petrol. And no other petrol car in its class can

match the Ford Fiesta Pace Petrol for that sheer rush. Powered by the Duratec 1.6L


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engine that puts out over 101 PS, and raring to go with instant response Drive-by-wire

technology, there's simply no argument that when it comes to setting your pulse racing,

nothing can keep up with the Ford Fiesta

Key Features:

Engine :





A high performance petrol that delivers 101 Ps power & 146 Nm torque packing in all the

excitement you'll ever need.

Performance



pulse racing. Its powerful acceleration (0 – 100 kmph in 11.43 seconds) will leave you

breathless.

Comfortable ride




Electrically operated rear view mirrors ensures that you have the best view from every

angle. Keyless entry opens up the Fiesta to you at the touch of a button and height

adjustable seats gives you the freedom to decide your seating posture.

Safety

Structurally engineered to withstand severe collisions, the Fiesta's crash worthiness is

verified with over 400 virtual crash simulations.


passengers and the driver are unscathed even in a frontal offset collision.


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Technology









Styling



panels and ornamental headlamps and tail-lamps, the Fiesta effortlessly mixes brawn with

beauty. Get used to heads turning in your direction.




Fiesta 1.6 Duratec SXI

Price starting from 6.90 lacs

Overview:

Nothing fires your need for speed like Petrol. And no other petrol car in its class can

match the Ford Fiesta Pace Petrol for that sheer rush. Powered by the Duratec 1.6L


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engine that puts out over 101 PS, and raring to go with instant response Drive-by-wire

technology, there's simply no argument that when it comes to setting your pulse racing,

nothing can keep up with the Ford Fiesta. This version also comes with Anti-lock brake

system (ABS) and Electronic brake distribution (EBD) and Driver Air bag that inflate on

impact. So when you drive the Ford Fiesta, you can be sure things are as safe as they can

be.

Key Features:

Engine :





This high value petrol packs in 101 ps power with powerful head-turning Fiesta styling.

Performance



pulse racing. Its powerful acceleration (0 – 100 kmph in 11.43 seconds) will leave you

breathless.

Comfortable ride





angle. Keyless entry opens up the Fiesta to you at the touch of a button and height


Safety

Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and

your Fiesta are forever on track. Structurally engineered to withstand severe collisions,

the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.




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drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love

with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be within the sophisticated

confines of this car built to induce sheer obsession, with its raring to go spirit and

powerful styling. With design, engineering and technology inputs from around the world

and over 700,000 kms of testing in 9 countries, this is a car built to make you Go Fida.





Luxury

The Fiesta is quite unmatched when it comes to delivering luxury. Apart from best-in-

class front and rear room space, the Fiesta also comes with luxuries that include leather

upholstery, 6 CD changer with speakers, power mirrors, hydrographic finish, silver

accents on AC vents and steering, leather steering, reading lights and climate control with

a variable displacement AC compressor, to name a few. It’s a ride worthy of royalty.

Technology





DuraSmooth: The Fiesta’s engine is so refined, they are guaranteed to leave you

speechless. DuraSave: Thanks to a combination of unmatched economy and exciting

performance, you save on every drop of fuel.

Fida Over Styling



panels, turn indicators on outside rear view mirrors and ornamental headlamps and tail-

lamps, the Fiesta effortlessly mixes brawn with beauty. Get used to heads turning in your

direction.


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Fiesta 1.4 Duratorq SXI

Price starting from 8.10 lakhs

Overview:

Get turned on.

Every time you turn it on.


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The Ford Fiesta is a car engineered globally for India. Take a close look at what makes

the Fiesta unmatched in driving dynamics, technology, comfort and styling.

You won't fall in love with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be

within the sophisticated confines of this car built to induce sheer obsession, with its

raring to go spirit and powerful styling. With design, engineering and technology inputs

from around the world and over 700,000 kms of testing in 9 countries, this is a car built to

make you Go Fida.

Key Features:

Engine

The more you drive the 1.4 Duratorq TDCi,the more you will doubt it's a diesel.All

thanks to the drive-by-wire technology,the compact lightweight all aluminium alloy

engine,and the compact lightweight all aluminium alloy engine, and the two-stage fuel

injection sysytem with APC(Accelerometer Pilot Control).Which makes the car

smoother, more responsive and refined.

Performance



pulse racing.

Comfortable ride





angle, keyless entry opens up the Fiesta to you at the touch of a button and height


Safety

Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and

your Fiesta are forever on track. Structurally engineered to withstand severe collisions,

the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.




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drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love

with the Ford Fiesta. You’ll Go Fida over it. You’ll long to be within the sophisticated

confines of this car built to induce sheer obsession, with its raring to go spirit and

powerful styling. With design, engineering and technology inputs from around the world

and over 700,000 kms of testing in 9 countries, this is a car built to make you Go Fida.





Luxury

The Fiesta is quite unmatched when it comes to delivering luxury. Apart from best-in-

class front and rear room space, the Fiesta also comes with luxuries that include leather

upholstery, 6 CD changer with speakers, power mirrors, hydrographic finish, silver

accents on AC vents and steering, leather steering, reading lights and climate control with

a variable displacement AC compressor, to name a few. It’s a ride worthy of royalty.

Technology









Styling



panels, turn indicators on outside rear view mirrors and full chrome surround twin jewel

headlamp and tail-lamps, the Fiesta effortlessly mixes brawn with beauty. Get used to

heads turning in your direction.


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Comparison between Hyundai Verna VGT CRDi & Ford Fiesta 1.4 ZXi TDCi

Price (Ex-Showroom Mumbai) Rs. 7,91,990 Rs. 7,86,315


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Features Hyundai Verna VGT CRDi

Ford Fiesta 1.4 ZXi TDCi

Air Conditioner

Power Windows

Power Steering

Specs Hyundai Verna VGT CRDi

Ford Fiesta 1.4 ZXi TDCi

Overall Length (mm) 4310 4282

Overall Width (mm) 1695 1686

Overall Height (mm) 1490 1468

Kerb Weight (kg) 1173 1150

Mileage Overall (km/liter) 13.8 14.9

Seating Capacity (person) 5 5

No of Doors 4 4

Displacement (cc) 1493 1399

Power (PS@rpm) 110@4000 68@4000

Torque ( Nm@rpm) 235@1900 160@2000

Transmission Type Manual Manual

Gears 5 5

Minimum Turning Radius (meter) 5 4.9

CUSTOMERS


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What drives Ford Fiesta and Hyundai Verna?

The Ford Fiesta and Hyundai Verna are targeted at the passionate driver who seeks adventure.

The core target audience for the Ford Fiesta and Hyundai Verna is mainly male in the age group of 25-35-plus years, who is an achiever and someone who loves control, precision, is very confident, and drives well. Ford Fiesta and Hyundai Verna are targeted at customers who may be considering fewer luxury features but a bigger brand name.


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The setting is wild and rugged. A young urban male takes his Ford Fiesta out on an incredible adventure on the outskirts of his city. Setting up a slalom course of torches, the driver uses his car to light them at high speed, showcasing the maneuver ability and exact precision of the vehicle, all the while listening to his favourite old Hindi song. No driving on wide open roads with a girlfriend in tow and zooming at high speed in this new television commercial.

Indeed, as Scott McCormack, Vice-President (Marketing, Sales and Service), Ford India Pvt Ltd, says, the whole idea was to move away from traditional stereotypes – that the Fiesta is not about just speed and acceleration but control and precision as embodied in the new TVC.

Test drives are an important sales tool, as consumers like to get behind the wheel to make a more informed decision. Fiesta and Hyundai Verna have strategically used their advertisements to reiterate and stimulate the buyer to take the patented five-minute test-drive challenge. This feature of the Fiesta and Hyundai Verna ads helped increase the curiosity in the minds of the prospective buyer. On tracking dealerships, Ford understood that this element specifically has helped skyrocket enquiries from future buyers.

According to Ford India, the Fiesta has contributed largely to its sales; since the car’s launch in 2005, more than 65,000 Fiestas have hit the road. Fiesta has become a significant player in the C segment. However, cross shopping does not happen often in the C segment, even though a premium hatchback customer (B segment) could opt for a sedan for a little bit more. Fiesta launched itself with Abhishek Bachchan as the brand ambassador for a one-year period, and his style and panache helped the brand establish itself early.

COMPETITION GENERIC COMPETITION


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Small cars Premium cars Luxury cars Sport utility vehicles

Segments Companies

Cars/ SUVs Suzuki

Honda

Toyota

Mitsubishi

GM

Ford

Daimler-Chrysler

Skoda

Fiat

Hyundai

Tata

M & M











http://auto.indiamart.com/cars/

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Motor cycles Scooters Scooterettes/Mopeds

Segments Companies

Two-wheelers TVS

Hero Honda

Bajaj Auto

Yamaha

Kinetic

LML







http://auto.indiamart.com/two-wheelers/

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Buses Trucks Tractors Ambulance Defence vehicles Construction equipments

Segment Companies

CVs Tata

Ashok Leyland

Tatra

Eicher -Mitsubishi

Swaraj Mazda

Mahindra & Mahindra

Volvo

Tractors Escorts

M & M

L&T

Punjab Tractors

New Holland

ITL-Renault

John-Deere

Steyr

BRAND COMPETITION

Maruti Suzuki SX4 GM Honda City Threat of new entrants:- Maruti Suzuki Swift Dezire


http://www.surfindia.com/automobile/punjab-tractors-ltd.html







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FINANCIAL ANALYSIS


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BALANCE SHEET OF FORD INDIA LTD.

Industry :Automobiles - passenger Cars

(Rs in Crs)Year Mar 07 Mar 06 Mar 05 Mar 04 Mar 03 Mar 01 SOURCES OF FUNDS :Share Capital 1,097.00 986.08 850 850 850 850Reserves Total -767.8 -788.41 -640.85 -628.9 -582.37 -467.61Total Shareholders Funds 329.2 197.67 209.15 221.1 267.63 382.39Secured Loans 392.41 408.46 541.62 482.52 575.55 682.43Unsecured Loans 284.55 186.24 238.09 175.26 108.91 60.37Total Debt 676.96 594.7 779.71 657.78 684.46 742.8Total Liabilities 1,006.16 792.37 988.86 878.88 952.09 1,125.19APPLICATION OF FUNDS :Gross Block 1,359.70 1,344.99 1,097.27 1,035.51 1,024.84 1,025.34Less : Accumulated Depreciation 535.59 433.19 351.02 278.57 220.71 94.02Net Block 824.11 911.8 746.25 756.94 804.13 931.32Lease Adjustment 0 0 0 0 0 0Capital Work in Progress 128.03 104.54 301.72 167.43 144.72 0Investments 0 0 0 0 0 0Current Assets, Loans & AdvancesInventories 192.53 230.04 247.54 98.53 131.48 114.45Sundry Debtors 201.2 47.51 52 52.83 37.83 44.33Cash and Bank 53.99 27.36 5.16 18.98 0.42 1.89Loans and Advances 140.09 93.2 59.69 44.13 47.88 238.78Total Current Assets 587.81 398.11 364.39 214.47 217.61 399.45Less : Current Liabilities and ProvisionsCurrent Liabilities 499.9 601.97 408.35 249.06 176.05 185.34Provisions 34.28 20.23 15.45 11.52 39.49 23.25Total Current Liabilities 534.18 622.2 423.8 260.58 215.54 208.59Net Current Assets 53.63 -224.09 -59.41 -46.11 2.07 190.86Miscellaneous Expenses not written off 0.39 0.12 0.3 0.62 1.17 3.01Deferred Tax Assets 0 0 0 0 0 0Deferred Tax Liability 0 0 0 0 0 0Net Deferred Tax 0 0 0 0 0 0Total Assets 1,006.16 792.37 988.86 878.88 952.09 1,125.19Contingent Liabilities 0 0 0 0 0 0http://www.capitaline.com

PROFIT AND LOSS ACCOUNT OF FORD INDIA LTD.

(Rs in Crs)


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YearMar 07(12)

Mar 06(12)

Mar 05(12)

Mar 04(12)

Mar 03(12)

INCOME :Sales Turnover 2,722.33 1,780.96 1,621.62 1,326.02 1,036.37Excise Duty 0 307.24 293.63 209 180.45Net Sales 2,722.33 1,473.72 1,327.99 1,117.02 855.92Other Income 0 28.84 40.99 23.06 32.85Stock Adjustments 0 -30.69 82.81 -44.8 39.35Total Income 2,722.33 1,471.87 1,451.79 1,095.28 928.12EXPENDITURE :Raw Materials 0 1,177.90 1,153.60 848.39 674.63Power & Fuel Cost 0 17.19 14.64 12.99 9.75Employee Cost 0 52.63 39.26 31.6 27.66Other Manufacturing Expenses 0 27.3 21 20.2 17.65Selling and Administration Expenses 0 166.59 102.4 92.1 99.51Miscellaneous Expenses 2,567.15 32.83 27.38 30.26 28.73Less: Pre-operative Expenses Capitalised

0 0 0 0 0

Total Expenditure 2,567.15 1,474.44 1,358.28 1,035.54 857.93Operating Profit 155.18 -2.57 93.51 59.74 70.19Interest 30.56 59.46 31.37 46.6 61.7Gross Profit 124.62 -62.03 62.14 13.14 8.49Depreciation 104.06 83.75 74.09 59.67 62.73Profit Before Tax 20.56 -145.78 -11.95 -46.53 -54.24Tax 0 0 0 0 0Deferred Tax 0 0 0 0 0Reported Net Profit 19.61 -147.57 -11.95 -46.53 -54.24Extraordinary Items 0 -1.79 -0.79 -1.18 -2.83Adjusted Net Profit 19.61 -145.78 -11.16 -45.35 -51.41Adjst. below Net Profit 0 0 0 0 0P & L Balance brought forward -788.41 -640.84 -628.9 -582.37 -528.13Statutory Appropriations 0 0 0 0 0Appropriations 0 0 0 0 0P & L Balance carried down -768.8 -788.41 -640.85 -628.9 -582.37Dividend 0 0 0 0 0Preference Dividend 0 0 0 0 0Equity Dividend % 0 0 0 0 0Earnings Per Share-Unit Curr 1.79 0 0 0 0Book Value-Unit Curr 30.01 20.05 24.61 26.01 31.49

ANALYSIS OF PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF FORD MOTORS


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RETURN ON INVESTMENT

Return on Net Worth (RONW) : The ratio measures the net profit earned on the equity shareholder’s funds. It is the measure of overall profitability of a company after discharging cost of borrowed capital and income tax payable to the government. It is also known as Return on equity or ROE ratio.

RONW (%) =

(PAT – Preference dividend)*100

Equity shareholder’s fund or net worth (equity capital + reserve and surplus – miscellaneous expenditure not written off)

2007 2006 2005 2004

RONW (%) 5.96 -74.7 -5.72 -21.1

Interpretation:

There was a decline in overall profitability of a company from 2004-06. There is an improvement in 2007.

LIQUIDITY RATIO


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Current ratio : This ratio measures the ability of a company to discharge its day-to-day bills, or current liabilities as and when they fall due, out of the cash or near cash or current assets that it possesses.

Current ratio =

Current assets, loans & advances + short term investments

Current liabilities + provisions + short term debt

2007 2006 2005 2004

Current ratio (times)

0.63 0.38 0.377 0.288

Interpretation:

The current ratio of Ford Motors Limited for past 4 years is increasing which means that the company is capable to meet the current obligations.

Quick ratio : This ratio measures as to how quick is the ability of a company to discharge its current liabilities net of working capital limits, as and when they fall due, out of cash, or current assets net of inventories that it possesses.

Quick ratio =

Current assets, loans & advances – inventories +short term investments

Current liabilities +provision +short-term debt net of working capital limits

2007 2006 2005 2004


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Quick ratio (times)

0.73 0.27 0.27 0.44

Interpretation:

The quick ratio of 1:1 is considered good. But the company‘s quick ratio of past 4 years is not equal to 1:1. Therefore, high current ratio and low quick ratio indicates weak working capital management.

TURNOVER RATIOS


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Fixed assets turnover ratio : This ratio measures the extent of turnover or volume of gross income generated by the fixed assets of a company or in other words the efficiency in their utilization.

Fixed assets turnover ratio =

Net sales

Net block of fixed assets

2007 2006 2005 2004

Fixed assets turnover ratio

(times)

3.30 1.61 1.77 1.47

Interpretation:

The fixed assets turnover ratio of ford motors limited of past 4 years indicates that there is a substantially higher growth in the efficiency of fixed assets utilization which further reflected in a higher RONW.

Net Worth Turnover Ratio : This ratio measures the extent of turnover or volume of gross income generated by the net worth of the company. In other words, it is the efficiency in the resource utilization from the angle of the residual interest, i.e. equity shareholders.

Net worth turnover ratio =

Net sales

Net worth (equity capital + reserves & surplus – miscellaneous expenditure not written off)

2007 2006 2005 2004

Net worth 8.27 7.459 6.358 5.06


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turnover ratio (times)

Interpretation:

Increase in RONW in 2007 contributed by improvement in net worth turnover of ford motors limited for past 4 years. In other words, the increase in RONW has improved due to higher resource efficiency as well as higher operating margins. Therefore, it is an ideal situation for a company.

Stock turnover ratio : This ratio measures to discover the possible trouble in the form of overstocking or over valuation. A low stock turnover ratio results in blocking of funds in inventory which may ultimately result in heavy losses due to inventory becoming obsolete or deteriorating in quality.

Stock turnover ratio = Cost of sales

Average stock

2007 2006 2005 2004

Stock turnover ratio (times)

26.98 13.35 10.22 22.42

Interpretation:

The stock turnover ratio of ford motors limited of past 4 years is not efficiently used. As high stock turnover ratio indicates brisk sales.

PROFITABILITY RATIOS


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Gross profit margin : This ratio measures several intermediate profit margin indicators and finally the PAT.

Gross Profit (%) =

GP*100

Net sales

2007 2006 2005 2004

Gross profit margin (%)

4.57 -4.20 4.67 1.17

Interpretation:

The gross profit margin of ford motors limited has been increasing for past 4 years. Therefore, this indicates that high gross profit margin of ford motors limited reflects the ability to maintain a low cost of production.

Net profit margin : This ratio indicates net margin earned on a sale of Rs.100.

Net profit margin =

Net operating profit *100

Net sales

2007 2006 2005 2004


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Net profit margin (%)

0.72 -10.01 -0.89 -4.16

Interpretation:

The net profit margin of ford motors limited has increased in 2007 but there was a decline in net profit margin from 2004-06. Therefore, this indicates that in 2007, company is capable to return dividends and stock price appreciation to shareholder.

BALANCE SHEET


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HYUNDAI MOTORS INDIA LIMITED

Industry :Automobiles - passenger cars(Rs in Crs)

Year Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 Mar 01 SOURCES OF FUNDS :Share Capital 812.54 812.54 812.54 812.54 812.54 812.54Reserves Total 1,242.48 717.38 449.43 208.39 329.6 175.87Total Shareholders Funds 2,055.02 1,529.92 1,261.97 1,020.93 1,142.14 988.41Secured Loans 0 0 0 0 0 34.97Unsecured Loans 521.95 418.09 596.33 571.54 617.82 647.44Total Debt 521.95 418.09 596.33 571.54 617.82 682.41Total Liabilities 2,576.97 1,948.01 1,858.30 1,592.47 1,759.96 1,670.82APPLICATION OF FUNDS :Gross Block 3,107.57 2,759.27 2,548.84 1,926.18 1,695.92 1,620.36Less : Accumulated Depreciation 1,371.42 1,079.03 839 662.55 496.81 299.22Net Block 1,736.15 1,680.24 1,709.84 1,263.63 1,199.11 1,321.14Lease Adjustment 0 0 0 0 0 0Capital Work in Progress 167.21 14.67 0 0 0 0Investments 0 0 11.73 11.9 169.07 109.9Current Assets, Loans & AdvancesInventories 741.54 634.15 466.9 253.98 254.78 195.84Sundry Debtors 224.88 306.34 114.76 54.79 101.27 19.71Cash and Bank 535.1 146.32 543.92 548.51 384.95 170.64Loans and Advances 949.21 788.45 163.36 85.71 88.41 126.14Total Current Assets 2,450.73 1,875.26 1,288.94 942.99 829.41 512.33Less : Current Liabilities and ProvisionsCurrent Liabilities 959.62 798.14 760.49 416.16 272.8 208.82Provisions 630.87 595.93 223.06 38.09 164.83 65.02Total Current Liabilities 1,590.49 1,394.07 983.55 454.25 437.63 273.84Net Current Assets 860.24 481.19 305.39 488.74 391.78 238.49Miscellaneous Expenses not written off 0 0 0 0 0 1.29Deferred Tax Assets 18.19 14.83 17.6 0.91 0 0Deferred Tax Liability 204.82 242.92 186.26 172.71 0 0Net Deferred Tax -186.63 -228.09 -168.66 -171.8 0 0Total Assets 2,576.97 1,948.01 1,858.30 1,592.47 1,759.96 1,670.82Contingent Liabilities 74.07 49.96 115.45 0 13.08 0http://www.capitaline.com

PROFIT & LOSS ACCOUNT


http://www.capitaline.com/

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HYUNDAI MOTORS INDIA LIMITED

(Rs in Crs)

YearMar 06(12)

Mar 05(12)

Mar 04(12)

Mar 03(12)

Mar 02(12)

Mar 01(12)

INCOME :Sales Turnover 8,540.11 7,351.90 5,713.74 3,955.86 3,395.23 2,994.12Excise Duty 1,123.41 1,046.00 913.26 870.72 785.26 791.65Net Sales 7,416.70 6,305.90 4,800.48 3,085.14 2,609.97 2,202.47Other Income 420.59 349.13 191.87 104.6 71.19 53.59Stock Adjustments 62.99 97.77 33.96 -3.6 43.4 3.47Total Income 7,900.28 6,752.80 5,026.31 3,186.14 2,724.56 2,259.53EXPENDITURE :Raw Materials 5,705.98 4,931.09 3,531.86 2,191.16 1,849.59 1,582.83Power & Fuel Cost 63.86 56.53 42.2 36.75 29.24 26.02Employee Cost 161.36 133.26 106.83 89.18 58.72 45.29Other Manufacturing

Expenses 217.43 163.89 92.71 54.99 51.82 50.11Selling and Administration

Expenses 628.62 562.12 373.96 317.02 151.52 109.17Miscellaneous Expenses 19.79 31.58 113.37 54.99 56 56.52Less: Pre-operative Expenses

capitalised 0 0 0 0 0 0Total Expenditure 6,797.04 5,878.47 4,260.93 2,744.09 2,196.89 1,869.94Operating Profit 1,103.24 874.33 765.38 442.05 527.67 389.59Interest 3.35 13.21 14.71 16.82 32.81 59.38Gross Profit 1,099.89 861.12 750.67 425.23 494.86 330.21Depreciation 295.01 250.01 178.55 168.02 198.16 142.25Profit Before Tax 804.88 611.11 572.12 257.21 296.7 187.96Tax 321.24 144.75 190.05 84.75 22.09 16Deferred Tax -41.46 59.44 3.22 7.71 0 0Reported Net Profit 525.1 406.92 378.85 164.75 274.61 171.96Extraordinary Items 0.1 -0.04 0.03 0.95 1.19 0.11Adjusted Net Profit 525 406.96 378.82 163.8 273.42 171.85Adjst. below Net Profit 0 0 0 0 0 0P & L Balance brought

forward 654.98 407.43 0 0 0 0Statutory Appropriations 0 0 0 0 0 0Appropriations 0 159.37 378.85 164.75 274.61 171.96P & L Balance carried down 1,180.08 654.98 0 0 0 0Dividend 0 121.88 121.88 121.88 121.88 0Preference Dividend 0 0 0 0 0 0Equity Dividend % 0 15 15 15 15 0Earnings Per Share-Unit Curr 646.25 479.77 446.65 202.76 337.96 211.63


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Book Value-Unit Curr 2,529.13 1,882.89 1,553.12 1,256.47 1,405.64 1,216.44

ANALYSIS OF PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF HYUNDAI

MOTORS LIMITED

RETURN ON INVESTMENT

Return on Net Worth (RONW) : The ratio measures the net profit earned on the equity shareholder’s funds. It is the measure of overall profitability of a company after discharging cost of borrowed capital and income tax payable to the government. It is also known as Return on equity or ROE ratio.

RONW (%) =

(PAT – Preference dividend)*100

Equity shareholder’s fund or net worth (equity capital + reserve and surplus – miscellaneous expenditure not written off)

2006 2005 2004 2003

RONW (%) 25.55 26.59 30.02 16.13

Interpretation:

There is decline in overall profitability of a company in past 4 years.


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LIQUIDITY RATIO

Current ratio : This ratio measures the ability of a company to discharge its day-to-day bills, or current liabilities as and when they fall due, out of the cash or near cash or current assets that it possesses.

Current ratio =

Current assets, loans & advances + short term investments

Current liabilities + provisions + short term debt

2006 2005 2004 2003

Current ratio (times)

1.54 1.34 1.31 2.07

Interpretation:

The current ratio of Hyundai Motors Limited for past 4 years is increasing from 2004-2006 but at a slower pace as compared to 2003.

Quick ratio : This ratio measures as to how quick is the ability of a company to discharge its current liabilities net of working capital limits, as and when they fall due, out of cash, or current assets net of inventories that it possesses.

Quick ratio =

Current assets, loans & advances – inventories +short term investments

Current liabilities +provision +short-term debt net of working capital limits


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2006 2005 2004 2003

Quick ratio (times)

1.07 0.89 0.83 1.51

Interpretation:

The quick ratio of 1:1 is considered good. But the company‘s quick ratio of past 4 years is not equal to 1:1. Therefore, high current ratio and low quick ratio indicates weak working capital management.


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TURNOVER RATIOS

Fixed assets turnover ratio : This ratio measures the extent of turnover or volume of gross income generated by the fixed assets of a company or in other words the efficiency in their utilization.

Fixed assets turnover ratio =

Net sales

Net block of fixed assets

2006 2005 2004 2003


(times)

4.27 3.75 2.80 2.44

Interpretation:

The fixed assets turnover ratio of Hyundai motors limited of past 4 years indicates that there is a substantially higher growth in the efficiency of fixed assets utilization which further reflected in a higher RONW.

Net Worth Turnover Ratio : This ratio measures the extent of turnover or volume of gross income generated by the net worth of the company. In other words, it is the efficiency in the resource utilization from the angle of the residual interest, i.e. equity shareholders.

Net worth turnover ratio =

Net sales

Net worth (equity capital + reserves & surplus – miscellaneous expenditure not written off)


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2006 2005 2004 2003

Net worth turnover ratio

(times)

3.609 4.12 3.80 3.02

Interpretation:

Decline in RONW resulted in decline in net worth turnover of Hyundai motors limited. Therefore, it is not an ideal situation for a company.

Stock turnover ratio : This ratio measures to discover the possible trouble in the form of overstocking or over valuation. A low stock turnover ratio results in blocking of funds in inventory which may ultimately result in heavy losses due to inventory becoming obsolete or deteriorating in quality.

Stock turnover ratio = Cost of sales

Average stock

2006 2005 2004 2003

Stock turnover ratio (times)

17.037 17.17 17.34 20.94

Interpretation:

The stock turnover ratio of Hyundai motors limited of past 4 years is not efficiently used. As high stock turnover ratio indicates brisk sales.


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PROFITABILITY RATIO

Gross profit margin : This ratio measures several intermediate profit margin indicators and finally the PAT.

Gross Profit (%) =

GP*100

Net sales

2006 2005 2004 2003

Gross profit margin (%)

14.8 13.6 15.6 13.7

Interpretation:

The gross profit margin of Hyundai motors limited has been increasing at a slower pace for a past 4 years. Therefore, this indicates that low gross profit margin of Hyundai motors limited reflects the less ability to maintain a low cost of production.

Net profit margin : This ratio indicates net margin earned on a sale of Rs.100.

Net profit margin =

Net operating profit *100

Net sales


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2006 2005 2004 2003

Net profit margin (%)

7.079 6.45 7.89 5.30

Interpretation:

The net profit margin of Hyundai motors limited has increased in 2006 as compared to 2005. Therefore, this indicates that company is capable to return dividends and stock price appreciation to shareholder.


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FINANCIAL COMPARISON BETWEEN THE FORD MOTORS LTD & HYUNDAI MOTORS LTD

RETURN ON INVESTMENT (ROI)

RATIOS FORD MOTORS

HYUNDAI MOTORS

CONCLUSION

Return on Net Worth (RONW)

The overall profitability of a company has declined from 2003-06.

Company’s overall profitability has also declined from 2003-06.

Both the company shows a decline in overall profitability for past 4 years but the efficiency of Hyundai Motors is better as compared to the Ford Motors.

LIQUIDITY RATIO

RATIOS FORD MOTORS

HYUNDAI MOTORS

CONCLUSION

Current ratio The company’s current ratio has been increasing consistently from 2003-06.

The company’s current ratio has been increasing but at a slower pace from 2003-06.

The ford Motors is more capable to meet its short term liabilities as compared to Hyundai Motors.

Quick ratio The company‘s quick ratio for past 4 years is not equal to 1:1.

The company’s quick ratio for 2006 is 1.07 times which is considered to be good but the quick ratio for past 4 years has been declining.

Hyundai Motors have better working capital management as compared to Ford Motors.


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TURNOVER RATIOS

RATIOS FORD MOTORS

HYUNDAI MOTORS

CONCLUSION


The efficiency of fixed asset utilization of company has been substantially growing from 2003-06.

The fixed assets turnover ratio of a company of past 4 years has also been growing to a large extent.

The fixed assets are more efficiently used by Hyundai Motors than Ford Motors.

Net worth turnover ratio

There is an increase in net worth turnover ratio for past 4 years.

The net worth turnover ratio of a company is declining for past 4 years.

Due to an increase in RONW, Ford Motors is in an ideal situation as compared to Hyundai Motors

Stock turnover ratio The company’s stock turnover for past 4 years has not been efficiently used.

The stock turnover ratio of a company has declined for past 4 years.

Both the companies has a decline in stock turnover ratio which means that none of the company has efficiently used its inventories.

PROFITABILITY RATIO

RATIOS FORD MOTORS

HYUNDAI MOTORS

CONCLUSION

Gross Profit Margin Due to low sales, the gross profit margin of a company has declined in 2006.

The gross profit margin of a company has been increasing at a slower pace for a past 4 years.

The gross profit margin of Hyundai Motors is better than the ford motors. This indicates that the ability to maintain a low cost of production is more with the Hyundai motors.

Net profit Margin There was a decline in net profit margin from 2003-06.

The net profit margin of company has increased for past 4 years.

The net profit margin of Hyundai motors is better as compared to Ford Motors.


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RECOMMENDATION

PROPOSED ENTRANT

MOTORS INDIA LTD.New Tech Motors India Ltd. has entered the Indian Market in May 2008 with its first car New Tech Comfy being launched in June. New Tech has its first factory outlet in Faridabad, Haryana. Its New Tech Comfy will cater the Mid Size car segment (C-SEGMENT).

Founder Tawseef Ahmad

Country INDIA

Year of Establishment 2008

Industry Automotive

Website www.newtechindia.com

Factory Location Faridabad, Haryana


http://www.newtechindia.com/

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CORPORATE STRUCTURE

New Tech Motors India Ltd was founded by Mr. Tawseef Ahmad as a separate legal entity. The company is registered under the Companies Act,1956.

BUSINESS GOALS

Our goal is to provide value to our customers. This goal is established in order to help fulfill our vision -- to become a company that society wants to exist. Our goal is to establish New Tech as a brand that people trust and identify, by

strengthening New Tech’s spirit of innovation and creativity.


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New Tech ComfyPerformance at its best

Come this June and New Tech brings to its Indian customers New Tech Comfy which is all set to put Indian roads on fire. A car that combines luxury, endurance, operational excellence and comfort in such a way that it could create a sensation amongst every generation. Rich in style and swift in movement, Comfy is a symbol of elegance and luxury.

COMPETITIVE ADVANTAGE

What makes New Tech unique is its ability to provide everything under one roof that is sale, service & spares.

Also, we are using Chrome plated wheels in our Comfy Cars. For chromium plating, each individual wheel is polished with superior care and cleaned in special baths. Prior to chrome plating, all wheels are buffed to bring out luster and to obtain mirror finish, this triple chromium process gives superior looks without sacrificing corrosion protection. Main advantages of using chrome plated wheels are:

Increased fuel efficiency Better brake cooling Rust free and corrosion resistant Better grip Compatible with tubeless tyres


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DETAILS OF THE PRODUCT

ABOUT NEW TECH COMFY

FEATURES

High Fuel Economy

Continuously Variable Transmission - CVT Electric Power Steering - EPS

Spacious Interiors

Leather Upholstery Luxurious dual tone interiors Interior space offers numerous storage features

Attractive Styling

Premium interior design Innovative, novel and futuristic exterior design

Driving Enjoyment

High efficiency NVH controls Improved H-type torsion beam rear suspension

Safety Environment

All direction energy absorbing impact structure Neck shock mitigation seat

EXTERIORS

Flamboyant Exterior The New Tech Comfy is an ingenious mix of dynamic styling, advanced technology, versatility and economy. Look at it from the front, the back or the side - and it will leave you speechless!The design elements of Comfy makes it so unbelievably stylish.

Front Styling

High class V shaped front grille

New 3D lens headlamp with blue parking light

Power door mirrors

Roof mounted antenna


http://www.hondacarindia.com/City/ExteriorStyle/Front.aspx#r

http://www.hondacarindia.com/City/ExteriorStyle/Front.aspx#p

http://www.hondacarindia.com/City/ExteriorStyle/Front.aspx#n

http://www.hondacarindia.com/City/ExteriorStyle/Front.aspx#h

http://www.hondacarindia.com/City/safety/saferseat.aspx

http://www.hondacarindia.com/City/safety/impactsafety.aspx

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx

http://www.hondacarindia.com/City/ExteriorStyle/Default.aspx

http://www.hondacarindia.com/City/InteriorStyle/Default.aspx

http://www.hondacarindia.com/City/InteriorStyle/Convenience.aspx#i

http://www.hondacarindia.com/City/InteriorStyle/style.aspx

http://www.hondacarindia.com/City/InteriorStyle/style.aspx

http://www.hondacarindia.com/City/Performance/Steering.aspx

http://www.hondacarindia.com/City/technology/cvt.aspx

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Colors

Seven sizzling colors will be available in the New Tech Comfy.

Nighthawk Black Carbon Bronze Pearl Heather Mist

Royal Ruby Red Bluish Silver Alabaster Silver

Tafeta White

INTERIORS

Crafted for ComfortComfy has marvelous interiors – luxurious and relaxing. Whether you are in the driver’s seat or just along for the ride, your experience in the Comfy can only be unbelievable. Indulge yourself in the sumptuous interiors, where every detail is crafted with precision engineering for immaculate perfection.

Style

Luxurious color tones

Innovative instrument cluster

New high grade stereo with CD/MP3 player

Chrome inner door handles

Front storage space with retractable glass holder partition

Comfort

New, improved seating

Super space

Powerful air conditioning

Automatic temperature control

Footrest in the rear

Smoother rides

Improved rear suspension

NVH Control


http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#v

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#r

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#f

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#i

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#p

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#s

http://www.hondacarindia.com/City/InteriorStyle/Comfort.aspx#n

http://www.hondacarindia.com/City/InteriorStyle/style.aspx#f

http://www.hondacarindia.com/City/InteriorStyle/style.aspx#c

http://www.hondacarindia.com/City/InteriorStyle/style.aspx#n

http://www.hondacarindia.com/City/InteriorStyle/style.aspx#s

http://www.hondacarindia.com/City/InteriorStyle/style.aspx#d

http://www.hondacarindia.com/City/Colors/color.aspx

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Convenience

Height-adjustable driver’s seat

Headlamp beam adjustment

Maximum storage space

Tilt Steering

Power door mirror controls

MODELS

We are launching two models of New Tech Comfy initially:

Comfy OL (This model runs on petrol)

Comfy EL (This model runs on diesel)

PRICING

As New Tech Comfy is being launched in Mid Size Car segment, it will provide the customers luxury at a much affordable price. Also keeping in mind our competitors, Hyundai Verna and Ford Fiesta, we are launching Comfy at a competitive price.

Comfy OL Rs. 720000 (Showroom price) Comfy EL Rs. 810000 (Showroom price)

PLACE

We are planning launch of New Tech Comfy initially in India only, covering all major cities like Delhi, Mumbai, Bangalore, Kolkata, Chandigarh, Hyderabad, Ahmedabad, Pune, Chennai, Lucknow etc.

In the next financial year we are planning to cater to international markets also with Comfy petrol and Comfy diesel and many more new variants of the same.


http://www.hondacarindia.com/City/InteriorStyle/Convenience.aspx#p

http://www.hondacarindia.com/City/InteriorStyle/Convenience.aspx#a

http://www.hondacarindia.com/City/InteriorStyle/Convenience.aspx#m

http://www.hondacarindia.com/City/InteriorStyle/Convenience.aspx#b

http://www.hondacarindia.com/City/InteriorStyle/Convenience.aspx#h

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PROMOTION

We are planning to use various advertising media like television, newspapers, magazines etc to penetrate into the Indian Car Industry.

Television Advertising: We will be promoting our product by TV Advertisements. We have hired Abhishek Bachhan as our brand ambassador. We’ll be putting ads during prime time on almost all popular channels like:-

SONY STAR PLUS ZEE CINEMA SET MAX CNN-IBN ZEE TV

Around 70% of the amount allocated for promotional purpose is to be used for television advertising.

Print Advertisements: Hoardings and billboards will be placed across all major cities all over India. Also, Prints adds will be there in daily newspapers and selected magazines.

NEWSPAPERS

TIMES OF INDIA HINDUSTAN TIMES

MAGAZINES

MOTORING OVERDRIVE INDIA TODAY BUSINESS TODAY BUSINESS & ECONOMY

Around 20% of the amount allocated for promotional purpose is to be used for print advertising.


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Campaigning: Besides print Advertising and television advertising, we are also planning to promote our Comfy car through Campaigns and road shows. This will help us in creating immediate awareness about our product and will help us to demonstrate our product in a better way.

We have planned campaigns in various B-Schools, college Campuses, corporate offices, and last but not the least, Auto exhibitions.In all we have allocated 10% of the promotional amount to campaigns and road shows.

CREDIT TERMSPARTNERS:

We will provide our cars at 3, 4 & 5 year credit plans with minimum down payment of 15% & remaining amount at EMI with the interest rate of 6%.

TARGET SEGMENT

New Tech Comfy is having sporty looks so we are mainly targeting male youngsters in the age group of 20-30 who are passionate drivers and seek adventure.

We are also targeting the age group of 30-35 because of its comfort and luxury.

Sporty looks of New Tech Comfy make it a car for youngsters and its comfort and space makes it a car for family!!


http://www.hdfcbank.com/

http://www.icicibank.com/

http://www.mahindrafinance.com/

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INVESTMENT PLAN

New Tech’s initial investment was Rs.1500 Crores for the first financial year. This investment was made on factory land, machinery, employees hired, constructions, promotion and 18 showrooms opened in six metros.

In the next financial year 2009-10, New Tech is planning to open up six more showrooms in states other than metros which will require an investment of around Rs.300 Crores.

Furthermore in year 2010-11, New Tech is planning to increase number of showrooms which would require an investment of around Rs.200 Crores.

PRODUCTION

Production Process of New Tech Motors India:

1. Stamping2.Welding3.Paint4.General Assembly5.Quality6.Production Control

Stamping:In the Stamping Shop, the vehicle begins to take shape. Housed in the shop are large rolls of steel, each weighing between 20,000 and 40,000 pounds. Cranes are used to lift the rolls and put them into the blanking machine, where rectangular pieces, thin as a dime, are cut and stored in racks. The pieces are automatically moved to one of two large, stamping presses with dies moulded into various shapes. Over 5,400 tons of pressure transforms the steel blank into a specific body part.

Welding: The Welding Shop containing robots capable of manoeuvring and welding body parts. These amazing automated machines position stamped body parts and accurately weld them together to form the vehicle body, called a “body-in-white.”Team Members attach hinges, doors, hood and trunk, then check the quality of each car body to confirm the welding process is perfect.

Paint:The completed “body-in-white” moves from the Welding Shop, along a trestle into the Paint Shop for the nine-hour painting process. The vehicle first rotates 360 degrees in a


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unique electro coat bath to prepare the entire body for paint. Since the Paint Shop is an environmentally-controlled area, Team Members must wear special overalls and gloves to protect themselves and the paint’s finish. A single particle of dust can affect the overall quality of a vehicles paint finish. After drying, the freshly-painted vehicle body heads to General Assembly.

General Assembly:General Assembly houses approximately 700 Team Members who install a variety of parts to complete the vehicle. The painted vehicle body moves through the trim area where wires, brake controls, and other parts are quickly connected inside the vehicle, under the hood, and in the trunk. The doors are taken off early in the process and sent to another area where speakers, power windows, door seals and other parts are installed. In the chassis area, the underside of the vehicle is completed and the engine and drive train are connected to the body. After the tires, battery, front and rear glass, and seats are installed, the doors are reattached to the vehicle. Oil, engine coolant, gasoline and other vital fluids are added, and then the vehicle is started for the first time. A roll booth tests the braking system and then the vehicle is driven on a two-mile test track to check for rattles or other issues.

Quality:Quality checks are built into each step in the production process. Each vehicle has to pass a series of stringent tests, including satisfactory performance on a two-mile test track.

Production Control:In the production control department, NMIL manages whole supply chain activities and the network, beginning with our customer order, moving from suppliers to manufacturers, then through its own distribution network to its own showrooms, and then to customers.

PROCUREMENT

New Tech Motors India Limited has around 1000 workers working in its factory outlet which is located in Faridabad, for its current (1st) year of production. The company has got its own 18 3S-showrooms in different states with around 40 employees working in each showroom. Company has its own distribution network and does not rely on dealerships due to which the company maintains a huge control on production & sales as the cars are made on demand.

So the total number of employees working at NMIL is approximately equal to 1700.


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RESULTS EXPECTED

SALES FORECAST AND TOTAL ESTIMATED PROFIT

YEAR NO. OF SHOW-ROOMS

AVERAGE NO. OF CARS

SOLD/MONTH/SHOWROOM

TOTAL NO. OF CARS SOLDPER YEAR

PROFITPER CAR

TOTAL PROFIT

2008-09 18 60 12,960 2,00,000 259.2 Crores2009-10 24 80 23,040 1,75,000 403.2 Crores2010-11 30 100 36,000 1,50,000 540.0 Crores2011-12 30 120 43,200 1,30,000 561.6 Crores2012-13 30 110 39,600 1,30,000 514.8 CroresTOTAL 470 1,54,800 Rs.2278.8 Crores

We are expecting total profit of Rs.2278.8 Crores in five financial years. Our planned total investment for these 5 years is Rs.2000 Crores. Out of this, we are expecting that Rs.1764 Crores will be recovered in financial year 2011-12. Remaining Rs.236 Crores will be recovered in year 2012-13.

Therefore, pay back period will be

Pay back period

= 4 years +{ ( Rs.236 Crores ÷ Rs514.8 Crores) × 365 days}

= 4 years and 167 days (approx)

Thus we will be able to achieve our break even point in 4 & ½ years.

MARKET SHARE EXPECTED

We are expecting average sales of approximately 30,000 cars in a year. Thus, by next financial year 2009-2010,we expect to capture around 3% market share in diesel & 7% market share in petrol in mid size car segment, the fastest growing car segment in India.

With the mid size car segment growing at such a fast pace, we are expecting a growth of 30% in our market share in next 5 years, that is, by 2013.


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MACRO & MICRO ENVIRONMENT ANALYSIS

The car industry environment is very complex due to the large number of product markets, buyers, suppliers and customers, which spread across the globe. As such, it has often been described as "the industry of all industries".

There are various forces that influence this environment.

MACRO ENVIRONMENT

Politically:

Added and increasing taxes on petrol for environmental protection discourage driving or purchasing cars with high petrol-consumption.

In some metropolises congestion-charges also negatively impact on car-usage rates.

Regulations regarding car-safety demand high R&D and upgraded basic configurations.

The road infrastructure, in particular, had been given special importance by the government.

The excise and customs duties on cars and auto-components have been continuously declining over the past five years. These factors have contributed in providing the impetus to the auto sector.

Economically:

Driving a car is becoming increasingly expensive due to adverse changes in petrol prices, maintenance and taxes.

Prospering developing countries like India provide new markets for manufacturers.


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Socio-demographically:

Automobiles have developed into lifestyle-products, transferring an image and families owning two or more cars are no rarity.

Generally, preferences head towards smaller and mid size cars for environmental, economical and convenience reasons.

From the ageing populations, the number of active drivers is likely to decrease.

Technologically:

The pace of change and advancements is continuously high leading to new beneficial developments (e.g. lighter, more durable, crash-absorbing materials; IT assists drivers).

Huge Financial resources are required to keep up with the fast pace of changes.

Shorter model-lifecycles and more launches.

Environmentally:

Decreasing oil reserves and increasing pollution may cause severe repercussions on the automobile industry.

Legislative situation:

It includes a lot of treaties and regulations by which automobile manufacturers have to abide. Documents like the Kyoto protocol have worldwide impacts, e.g. on new engine-developments.


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MICRO ENVIRONMENT

1. HORIZONTAL COMPETITION

Threat of new entrants:

Threat of new entrants is low regarding new, not established companies, and high regarding existing companies. Existing companies benefit from brand loyalty (maintain old customers), brand identity/awareness (attract new customers) and their absolute cost advantage (existing expertise, resources, facilities, distribution-channels, supplier-networks).

Rivalry is high since the high growth rate of the mid size car segment naturally attracts many existing competitors aiming to cover it. Additionally, low differentiation of products (image and brand-identity main differentiators), heterogeneity of competitors (BMW vs. DaimlerChrysler, Toyota vs. Honda), similarly high financial backing by parent companies and high exit barriers (manufacturers forced to carry on, hence competition does not cease) intensify rivalry.

The threat of substitutes:

Substitutes such as motorcycles or public transport can be a major road block in the growth of mid size car segment.

Switching from mid size cars to large/luxury cars bears instead a greater substitute threat; however, increasing congestions and running costs impact adversely on the consideration to buy a larger vehicle.

2. VERTICAL COMPEITION


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Bargaining power of suppliers:

The bargaining power of suppliers is low, based on the facts, that supplied parts are not unique and many alternative providers exist (e.g. steel, tires), makes switching easier.

Granting bulk discounts is one area, where suppliers have slight bargaining power, since manufacturers narrow margins depend on those discounts. Nevertheless, the high concentration of suppliers offering substitutes limits this advantage to those, offering (temporarily) unique products (e.g. new IT technology or material development).

The bargaining power of buyers:

The bargaining power of buyers depends on the group and location. Commercial (bulk) buyers (e.g. companies, national authorities), have significantly higher bargaining power than individuals.

Switching costs are moderate, since cars are usually kept for at least three years. Internet price comparisons increase the bargaining power, but this mainly affects dealers.

DEALING WITH RISKA Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

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Environmental issues: From the viewpoint of environmental protection, New Tech will try to reduce CO2 emissions as an effort against global warming. One of the most effective environmental protection efforts we can pursue at this moment is to improve the efficiency of internal combustion engines -- which are the primary means to enable people to enjoy the freedom of mobility – in the effort to minimize CO2 emissions in the atmosphere. Our company is committed to the development of various new technologies that minimize energy losses and maximize energy efficiency.

Competition: Automobile industry is one of the fastest growing industries in India which has intensified the competition in this sector. To deal with such intense competition and to be ahead of the crowd the only way left is product differentiation and customer relationship management. New Tech is planning to invest heavily in R&D in order to bring out innovative and absolutely unique products. Also, in order to create a brand image in the minds of the customers, New Tech is adopting the strategy of CRM. This will help us to acquire new customers in no time.

Substitutes: Every automobile manufacturer has to deal with generic competition which cannot be avoided directly. However, threat of switching from mid size cars to large/luxury cars can be dealt with to some extent. In order to deal with such risk of switching, we are providing our customers cars that provide them luxury, comfort and an ultimate driving experience. New Tech Comfy is one such example and we have many more to come in future. If customers can get the benefits of large cars in mid size cars, then who will think of switching.

CONCLUSION


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Automobile Industry is the largest industry in India which is currently contributing about 5% of the India’s GDP and it is targeted to grow five fold by 2016.

The onset of automobile industry in India saw companies like Hindustan Motors, Premier Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers. Hindustan Motors (HM) was the leader in car manufacturing and sales until the 1980s. The policy reforms in 1991 opened up the sector for many foreign auto makers who entered the Indian markets and the competition levels in the Automobile Industry intensified.

India, in auto sector, is turning to be a sourcing base for the global auto majors. It is expected that automobile industry will touch a mark of 13,008 million by 2010. Even the commercial vehicles are likely to grow at 5.2 per cent. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans.

India is the 11th largest Passenger Cars producing countries in the world. Hyundai Motors India is the second largest player in passenger car market. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years.

Although the Indian automobile industry recorded a de growth in the financial year ended 2007-08, Hyundai Motor India Ltd recorded the highest growth with an increase of 52 per cent.

Automobile industry has a huge potential to grow and prosper in future as manufacturers are investing heavily in new manufacturing and assembly plants in automotive hubs across India and have announced massive expansion plans. Manufacturers are investing overseas and establishing footprints across the world.

The industry is set to have a major impact on India’s future economic growth. The industry is entering into a new phase of its development and evolution, results of which will be visible in over next ten years

Car industry occupies a strategic position in many countries. Currently, there is high demand for cars across all the segments. With the growing economy, people left with a lot of disposable income spend it towards meeting their mobility needs such as cars. Additionally, a convenient union budget in the current financial year (2008-09) has worked in favour of the automobile sector, which has seen an uptrend in sales across various segments. Indian car industry is about to take a new shape altogether with the launch of TATA NANO. Nano is expected to bring about a revolutionary change in the Indian Car Industry.







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Ford motors Ltd, which introduced itself in India in 1988, has invested heavily in India to give the finest in automobiles. Ford is having the world class manufacturing capabilities and is always there to provide services and solutions to its customers.

Hyundai Motor is the sixth largest car maker in the world. Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car manufacturer in India with its presence in almost all the segments. The company is investing heavily in R&D in order to develop new products and technologies. Hyundai Motor India is following management practices and focusing on developing products that are environment friendly .The company has been awarded various times and achieved another milestone with the launch of Hyundai Verna.

As far as our research is concerned, HMIL is far ahead of Ford India. This difference is on the basis of market share, number of cars sold per year & number of showrooms. HMIL is highly penetrated into the B, B+ segment with huge sale of cars like Santro & now i10. Another reason for HMIL being ahead of Ford India is that Hyundai has been able to better understand the tastes & preferences of Indian customers.

As far as the comparison of Hyundai Verna & Ford Fiesta is concerned, Hyundai Verna is better in Style & Comfort whereas Ford Fiesta is better in Mileage & its prices are less as compared to Hyundai Verna.

Now another car, New Tech Comfy, being launched by NMIL this month is going to make the competition more intense & it will try its best to make the life hard for cars like Hyundai Verna & Ford Fiesta.

The positive demographic factors, pro-reform policies of the government and fast pace of growth of the automobile industry made almost all major global auto players making their way into India. The intense competition has compelled the manufacturers to launch the latest global offering in India as early as possible. It has also enabled to keep the prices of the vehicles under check. The consumers, in turn, have benefited from wide choice of models, technologically advanced cars and better service from the car manufacturers.

BIBLIOGRAPHY


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1. www.india.ford.com 2. www.hyundai.co.in3. www.hondacarindia.com 4. http://auto.indiamart.com/cars/mid-size-cars.html 5. http://auto.indiamart.com/cars/hyundai-verna/ 6. http://auto.indiamart.com/cars/ford-fiesta/ 7. www.thehindubusinessline.com 8. http://readers-choice.org

9. http://www.fadaweb.com/indian_auto_scenario.htm

10. www.economictimes.indiatimes.com 11. www.thehindubusinessline.com12. www.icmrindia.org 13. www.ibef.org 14. www.capitaline.com 15. http://www.jagsharma.com/files/Coursework%20Strategy.pdf 16. http://www.surfindia.com/automobile/industry-growth.html 17. http://www.surfindia.com/automobile/vehicle-production.html 18. http://www.surfindia.com/automobile/auto-companies.html 19. http://www.surfindia.com/automobile/ford-india-limited.html 20. http://www.surfindia.com/automobile/hyundai-motor.html




http://www.surfindia.com/automobile/vehicle-production.html

http://www.surfindia.com/automobile/industry-growth.html

http://www.jagsharma.com/files/Coursework%20Strategy.pdf

http://www.capitaline.com/

http://www.ibef.org/

http://www.icmrindia.org/

http://www.economictimes.indiatimes.com/

http://www.fadaweb.com/indian_auto_scenario.htm

http://readers-choice.org/

http://www.thehindubusinessline.com/

http://auto.indiamart.com/cars/ford-fiesta/

http://auto.indiamart.com/cars/hyundai-verna/

http://auto.indiamart.com/cars/mid-size-cars.html

http://www.hondacarindia.com/

http://www.india.ford.com/

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ANNEXURES

Visit to

Ford and Hyundai Showrooms

of

NCR


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ANNEXURE 1

NCR FORD

Information gathered from the conversation with Mr. Anil Arora, Manager Sales & Finance

Ford is having six showrooms in NCR region. Ford sells around 300 cars per month from all the 6 showrooms out of which 50-

60% are Ford Fiesta. Customer segment for Ford Fiesta: C – segment Generic Competition for Ford Fiesta: -

Honda City and Maruti Suzuki SX4 in petrol Hyundai Verna and Swift Dezire in diesel

Brand Competition:- Maruti Suzuki, Hyundai, GM and Honda Threat of new entrants:- Maruti Suzuki Swift Dezire Distribution Channel:-

Factory Outlet(Chennai) transportation Showroom customers

Business Model:- Road shows Free check up camps Corporate visits Telecalling Walk in Customers

Competitive Advantage:- Mileage, luxury, interior. Ford is the only car in its segment which gets 0-100 kms in 11.43 seconds.

ANNEXURE 2


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Fx Hyundai

Information gathered from the conversation with Mr. Raman Jha, assistant sales manager.

This showroom sells around 100 to 125 cars per month.

Verna launched for the segment which is above the A2 segment, also called as C-segment.

Hyundai does most of its business with brand loyal customers so New Verna is for those who have already used Hyundai Santro & Getz.

Hyundai is the only car manufacturer in Indian market who launches same designs in all the 65 countries, not even a single feature is changed.

Hyundai is the 6th largest in World & 2nd largest in India, credit goes to cars like Santro.

Distribution channel:-

Factory outlet (Chennai) Transportation Showrooms customers
