Hyundai (Without videos)

Team – 5 (Fifth Row)MCA – IV (B)

• Hyundai Motor Company is a Korean automaker which was established in 1967 by Mr. C. J Yung

• Headquartered in Seoul, South Korea The company employs about 75,000 persons around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms worldwide.

• Hyundai has 5 Research & Development centers worldwide. Located in South Korea, California, United States, Germany, Japan and Hyderabad, India

• Hyundai is presently South Korea’s #1 carmaker, manufacturing dozens of models of cars, vans, and minivans

• The current Chairman & CEO is Mr. M.K Yung

Introduction

Hyundai in India

•It is currently the second largest carmaker after Maruti Suzuki and largest auto exporter in India.

•Hyundai sells several models in India, the most popular being the Santro, Accent, i10 and i20. Other models include Getz, Verna, Tucson, Sonata, and Santa Fe. •The current MD & CEO is Mr. H.W Park

•Hyundai has two manufacturing plants in India located in Tamil Nadu. Both plants have a combined annual capacity of 600,000 units.

• Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC)

• HMIL currently has a 307 dealer networks and 631 strong service points across the country

• In 1968, Hyundai released its first car model, the Cortina in cooperation with Ford Motor Company

• In 1975, the Pony, the first Korean car, was released in cooperation with Mitsubishi motors

• The company began to produce models with its own technology in 1988, beginning with the midsize Sonata.

• In 1996, Hyundai Motors India Limited was established with a production plant in Chennai, India.

• In 1998, Hyundai acquired rival Kia Motors 51% of Market Share

• In 1999, Hyundai's parent company, Hyundai Motor Group, invested heavily in the quality, design, manufacturing, information technology and long-term research of its vehicles. It added a 10-year or 100,000-mile (160,000 km) warranty to cars sold in the United States and launched an aggressive marketing campaign.

History

• In 2009, Hyundai was the Highest Ranked in the J.D. Power and Associates Initial Quality Study.

• In 2008, Hyundai ranked as the eighth largest automaker.

• In 2001, Hyundai sold a 9% stake to DaimlerChrysler to strengthen its global market position and to boost sales abroad

• In 2004, Hyundai was ranked second in "initial quality" in a survey by J.D. Power and Associates.

• And in 2010 it was the world fastest growing automaker.

History

• The HKAG is South Korea's largest automobile manufacturer, the second largest automaker in Asia after Toyota and the world's fifth largest automaker after Toyota, GM, Volkswagen and Ford as of the end of 2009.

• In 2008, Hyundai ranked the eighth largest auto maker, without including Kia. It was formed through the purchase of 51% (currently 34.58%) of South Korea's second-largest car company, Kia Motors, by Hyundai Motor Company in 1998.

Hyundai-Kia Automotive Group

Market Value

Growth Chart

Overall Market Value

The Board of Directors makes decisions on matters defined by the laws, matters delegated by the general shareholders´ meeting, and key matters related to the basic guidelines for company operations and work execution. Moreover, they have the authority to supervise duties of directors and management, and consist of four internal directors and five external directors.

Organization Structure of Top Management

Ethics Committee, which monitors internal transactions and supervises transparency and ethics management. The Ethics Committee consists of five external directors, one executive, and two advisors. It reviews matters related to the Anti-Trust, Fair Trading Act, Securities Trading Act, policies on ethics management and the Ethics Charter.

The Audit Committee under the Board of Directors consists of four external directors. It is responsible for auditing finance and management of HMC. It has the authority to review reports on business management and financial status. The Audit Committee approves matters related to audit, the shareholders´ meeting, directors, and the board of directors. It can access business and management information for auditing.

Organization Structure

Overall Organization Structure

» SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

» It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

SWOT Analysis

Strengths: characteristics of the business or team that give it an advantage over others in the industry.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

Opportunities: external chances to make greater sales or profits in the environment.

Threats: external elements in the environment that could cause trouble for the business.

SWOT Analysis

A strength could be:Your specialist marketing expertise.A new, innovative product or service.Location of your business.Quality processes and procedures.Any other aspect of your business that adds value to your

product or service.

A weakness could be:Lack of marketing expertise.Undifferentiated products or services (i.e. in relation to your

competitors).Location of your business.Poor quality goods or services.Damaged reputation.

SWOT Analysis

An opportunity could be:A developing market such as the Internet.Mergers, joint ventures or strategic alliances.Moving into new market segments that offer improved profits.A new international market.A market vacated by an ineffective competitor.

A threat could be:A new competitor in your home market.Price wars with competitors.A competitor has a new, innovative product or service.Competitors have superior access to channels of distribution.Taxation is introduced on your product or service.

SWOT Analysis

Strengths• The Quality Advantage Hyundai owners experience fewer problems with their vehicles than any

other car manufacturer in India (J.D. Power Study). • Buying Experience Like No Other Hyundai has a sales network of 250 state-of-the-art showrooms across

189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve higher nameplate in the J.D. Power Study.

• Quality Service across 1036 Cities In the J.D. Power Study Hyundai scored the highest across all 7

parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

SWOT Analysis

Weaknesses

• Commodity Price Risks Hyundai commodity price risks to higher costs due to changes in

prices of inputs such as steel, aluminum, plastics and rubber, which go into the production of automobiles. In order to mitigate these risks, the company continues to attempts to enter into long term contracts based on its projections of prices.

• Exchange Rate Risk The company is exposed to the risks associated with fluctuations in

foreign exchange rates mainly of import of components & raw materials and export of vehicles. The company has a well structured exchange risk management policy. The company manages the exchange risk by using appropriate hedge instruments depending on the prevailing market conditions and the view on the currency.

SWOT Analysis

Opportunities

• Leading Growth As the market leader, company led the growth in the passenger car sector

last year. Hyundai sales went up to 30% .This is the highest annual sale since company began operations 20 years ago. Hyundai also gained market share from 40.3% to 47.7% In a year. Net Sales (excluding excise) grew by 31% to Rs.93,456 million. Operating Profit Margin increased from 0.8 % to 4.7 % in a year. Profit after Tax jumped 270% to Rs. 5421 million.

Threats• Risk Factors In the course of its business, Hyundai is exposed to a variety of

market and other risks including the effects of demand dynamics, commodity prices, currency exchange rates, interest rates, as well as risk associated with financial issues, hazard events and specific assets risk. Whenever possible, they use the instrument of insurance to mitigate the risk.

SWOT Analysis

Threats from Competitors

•Maruti Udyog Limited For the fiscal year ended December 2006, Maruti generated revenues of $193,517 million, an increase of 4.3% from the previous year. The company reported a net income of $2,805 million for fiscal 2005, down 26.6% from the previous year.

•Tata Motors Limited In the 2006 fiscal year, Tata Motors generated revenues of $3,542.2 million. The company made a net profit of $185 million in the 2006 fiscal year.

SWOT Analysis

• Supply Chain of Indian Automobile Industry in India is very similar to the supply chain of the automotive industry in Europe and America. The orders of the industry arise from the bottom of the supply chain i. e., from the consumers and goes through the automakers and climbs up until the third tier suppliers. However the products, as channeled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers.

• Supply Chain Management is moving the right items to the right customer at right time through efficient means.

• Glovis, an affiliated company of Hyundai/Kia Motors Group, is in charge of Hyundai/Kia’s automotive parts supply chain management (SCM), which is now RFID - Enabled.

• RFID is a technology that uses communication via radio waves to exchange data between a reader and an electronic tag attached to an object, for the purpose of identification and tracking. Some tags can be read from several meters away and beyond the line of sight of the reader. The application of bulk reading enables an almost parallel reading of tags.

Supply Chain Management

Supply Chain Management

• HMIL has two manufacturing plants in Sriperumbudur, Tamil Nadu capable of producing 600,000 vehicles annually.

Production and Manufacturing

Objective

•Predict future styling trends.•Research for new & unique aesthetics.

Methodology

- Analyze competitors' models.- Analyze styling trends through the motor shows and other events.- Analyze lifestyles (image map production).- Analyze style positioning maps.

Objective

•Propose preliminary ideas for creating a concrete image of the target car model.•Two-dimensional Painting System Computer Aided Styling(CAS) : Digital Design

Methodology

•Designers use colored pencils, markers and other tools to draft concrete images ofthe future shapes they envision.•Consider the proportions of the side, front and rear view in order to express theimage in sense of realism.

Objective

•The design is recreated through a computer-generated 3D image whose data is then used for assessing design and aerodynamics..

Objective

•Embody the 2D design image into the 3D shape•The model is used for measuring the air resistance coefficient in a wind tunnel.

Objective

•A design diagram is created to produce the full-scale model. At the same time, the design can be studied in its actual size

Objective

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Color designs are included in the initial product plan, and the work is carried out at the same time as styling. This involves not only the colors adorning the interior and exterior, but also all the areas related to materials, including embossing and surface treatment.

Body Shop

It is 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.

It is one of the most modern paint shops in the country and uses the environment friendly water based process for superior and lasting exteriors which delivers the most extensive color range, helping customers get their preferred color anytime.

Paint Shop


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 in-house.

Assembly Shop

In Assembly Shop all the engine and suspension parts, the electrical parts, the under body parts etc. are fitted into the car. The cars go through complete testing in the Assembly Shop. The Assembly Shop comprises the Trim Line, the Chassis Line, the Final Line and the OK Line.

Engine & Transmission Shop



RELATIONSHIP POLICIES OF HYUNDAI MOTORS:

• As we know, the acquisition cost is not the only cost one faces when buying a car. it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Hyundai Motors provides very good after sale services to its customers. It is in the economy segment that the affordability of spares is most competitive as compared to others.

• It also provides its long term customers either with stable prices or lower price increases as compared to the new customers.

• HYUNDAI motors provides financial incentives and rewards to the customers who bring more business to their service station by recommending and spreading good word of mouth to others about their services.

Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.

Customer Relationship Management

Hyundai Road Side Assistance Programme

It is a 24x7 emergency support provided in the event of any mechanical or electrical breakdown and or traffic accident of a vehicle. It is an initiative to increase the HMIL’s focus on its customers.

Hyundai Advantage

Hyundai Motor India Ltd. has started its certified used car program under the brand name “Advantage” to give good quality used cars to Indian Customers. Vehicle are certified by Hyundai Engineer using 147 check points and comes with Hyundai Warranty upto 1 year/20,000Km & two free services Through this program customer is assured of Trust and Peace of Mind.


Car Loans Services

Hyundai also provides loan services to the customers through their finance partners.

And many more

Online Services

• Test Drive Request


• Price Check


• Service Center Locator


• Hyundai invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value.

• New brand Ambassador of Hyundai Motors is Jürgen Klinsmann

• Brand Ambassador of Hyundai i10 and i20 is Shahrukh Khan

Promotions Road Shows

• The company plans to stage road shows, to display vehicles in the pavilions during various college festivals and exhibition.

Television advertisements

• Advertisements to promote and market our product will be shown on leading television channels. Major music and sports channels will promote and they will reach out to the youth will be promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers

Marketing & Advertising

Radio Radio is the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural.

Workshops and Seminars Workshops and seminars will be held in colleges and big corporate to make people aware

about the companies past performance and product features, its affordability and usage, vast distribution network. Road shows will be conducted where free trials of the car would be given.

Banners, neon signs Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres and

shops to promote our brand car.

Booklets and pamphlets Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to

read. These booklets will provide information about our company; the products offered which suits the customers need accordingly.


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Organization structure of marketing department

Hyundai Commercial Advertisement

Hyundai Selects SAP for Complete IT Systems

One of the Largest my SAP™ Automotive Implementation: Plant to Produce 300,000 Cars a Year

Hyundai Motor Company (Hyundai) , one of the world’s leading automotive manufacturers, has chosen SAP as the main solution provider for the company’s first U.S.-based original equipment manufacturer (OEM) assembly plant.

Hyundai reviewed solutions from multiple ERP vendors, including Oracle, before selecting SAP for its ability to provide a comprehensive solution. Hyundai's IT subsidiary, Autoever, is already working on the initial phase of the implementation.

Hyundai has chosen the mySAP.com® e-business platform to bring efficiency to operations at its new plant that will produce approximately 300,000 cars per year, making it one of the largest overseas production sites around the globe.

Enterprise Resource Planning System

The implementation will include core ERP functionality with mySAP™ Human Resources (mySAP HR); mySAP™ Financials; the industry-specific solution, mySAP Automotive; as well as SAP’s leading supply chain solution, mySAP™ Supply Chain Management (mySAP SCM).

Hyundai Motor Company will become the first Korean carmaker to implement an ERP system to streamline all core business needs by empowering employees and managers with self-service tools using mySAP HR and by improving its ability to process and interpret financial information and business data using mySAP Financials.

About SAPSAP is the world’s leading provider of e-business software solutions. Through the mySAP.com® e-business platform, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains.

Enterprise Resource Planning System

Hyundai have been using Romax Designer software in all the new product development since 1997 as, together with Romax’s engineering services, it helps Hyundai to speed up the development times and enables Hyundai to make improvements in areas such as NVH.

Hyundai have verified the accuracy of the software through testing over the years and Hyundai engineers are very happy to work with Romax and its engineers – not least because Romax enables them to successfully carry out concurrent engineering.

RomaxCollaborations

Shell Lubricants extends collaboration with Hyundai Motor India(C)2010 Shell Lubricants is one of the world’s largest and successful finished lubricant manufacturers. The firm today confirmed its plans to extend its strategic alliance with Hyundai Motor India Ltd.

Shell Lubricants

Hyundai-Kia Automotive Group FIFA Partnership

Hyundai Motor Co. has strengthened its commitment to international football by extending its official automotive partnership agreement with FIFA from 2007 to 2014 while at the same time adding affiliate Kia Motors Corp. as a co-partner.With this agreement, Hyundai Motor Co. and Kia Motors Corp. become one of the six Official FIFA Partners who will enjoy the highest level of association with FIFA

Collaborations

1. Smart Connectivity System The ‘Smart Connectivity System’ uses a Wi-Fi function in a vehicle and mobile communication network for sharing and for real-time synchronization of content between mobile devices, such as smart phones and tablet PCs, and a vehicle. Major Features:- A widget that displays information on weather, news, stock market and planning in real time- Real-time synchronization of personal information and images between a smart phone and vehicle via wireless LAN- SNS (Social Networking Service) linked with Twitter for real-time uploading of messages and images- LBS (Location-Based Service) linked with Google Maps to display destinations and route guidance information- Entertainment function for playback of music and videos from a smart phone via real-time streaming

Technology

2. Intelligent haptic system

The ‘Intelligent Haptic System’ is applied to major controllers to help control vehicle functions with tactual feedback and LED-based visual feedback. This is a next-generation intelligent control system that improves the concentration of the driver to enhance safety. The Intelligent Haptic System consists:- •The Lumino Haptic Console Switch is the vehicle’s main controller and allows the driver to concentrate on driving while controlling all the major functions with tactual feedback for the entire hand. Also, LEDs around the switch provide visual feedback (lumino function) with various menu tree-based colors for a driver. •With the Haptic Steering Wheel Switch, the user can use his/her thumb to control air conditioning, phone, media and other functions just like they do with the iPod. •The Haptic Touch Screen is a resistive touch screen, which uses pressure by a finger on the LCD screen and provides icons for dashboard switches.

Technology

3. Multifunctional Safety Vision System The ‘Multifunctional Safety Vision System’ protects the safety of a driver via the visual recognition function of a vehicle camera. This system uses a camera to calculate the distance while driving from the vehicle ahead and gives the driver a collision warning to avoid a possible accident. In addition, the system consists of the Front Collision Warning System (FCWS), which gives the driver a lane departure warning when he/she is about to leave his/her lane, and the Advanced Around View Safety System (AAVS), which recognizes driving conditions 360 degrees around a vehicle during high-speed driving.

Technology

Hologram HUD

•This futuristic technology places various useful information in front of the driver on the windshield using a 3D hologram

Biometric Smart Key System

•Going beyond the current button-type ignition, we are developing a smart-key system for the future using biometrics so that the car recognizes a driver's face, handprint or veins.

Technology

Infotainment systems:Featuring a state-of the-art communication terminal with built-in GPS that is connected to various other electronic devices in the car, the system offers a wide range of useful information and data to promote safer driving. Hyundai·Kia Motors became the first company in Korea to offer an integrated telematics system (Mozen) to enhance driving pleasure and convenience.

ASV(Advanced Safety Vehicle) SystemASV system is a key technology of our intelligent transportation systems (ITS) which integrate people, automobiles and roads to produce a smarter and safer driving experience.

Technology

Hyundai Traffic SquadStudents Traffic Volunteer Scholarship Scheme is an initiative by HMIF to sponsor the 'economically backward' college students and also help in managing traffic better. A group of carefully chosen students, after proper training by the local traffic police, work as traffic marshals at busy intersections in conjunction with the traffic police to control and manage traffic.

Educational and Vocational Training ProgramHMIL, under the aegis of HMIF is committed to the task of improving conditions in local schools around Sriperumbudur as well as nationally. At regular intervals it donates chairs, tables, computers to the schools to create a better environment for educating children. Till date, over 20,000 school students have benefited through this program.

HMIF was formed in the year 2006 with the purpose of 'giving back' to society and to in the areas of health care, educational and vocational training, environment, road safety, art, science, technology, etc. HMIF gets its direct funding from HMIL's earnings as it contributes Rs.100 for every car sold in the Indian market to enable HMIF to carry out its social activities.

Hyundai Motor India Foundation

Hyundai Driving SchoolAs part of skill development, driving school was started by HMIF to train unemployed youth in Kancheepuram & Thiruvallur Dist.Three batches (100) had been trained during 2009 and this will be an ongoing programme.

Medical Camps for NeighborhoodsHMIF conducts a number of free Medical Camps. Apart from this, the Foundation has also entered into an agreement with Sri Ramachandra Medical University for operating a Mobile Health Clinic in villages between Poonamalee and Kanchipuram. The mobile clinic will have a Medical Officer, Pharmacist, Nurse, Attendant and maintain a regular supply of medicines. The van has a Satellite link which enables it to be in direct contact with the hospital and get assistance and advice even in the remotest of villages.

Hyundai Motor India Foundation

Hyundai MotorsFamous Awards

• Genesis awarded Car of the Year in North America

• Exceeded an accumulated export sales of 1 million cars in Africa

• i30 and Grand Starex awarded as Best Cars in Australia for the second consecutive year

• Selected as Best Marketer of the Year in the US

Hyundai Motors India Famous Awards

HMIL receives the 'Niryat Shree’ Gold and Silver Trophies for 2008-09 by the Federation of Indian Export Organizations (FIEO).

Hyundai i10 wins 'Small Family Favorite Car Award' by CarWale.com

Hyundai i20 wins the ‘Viewer’s Choice Award’ at the Overdrive CNBC TV 18 Awards 2010.

Latest News about Hyundai Motors India

• Hyundai Sells 2.5 Lakh Units Of i20

• Hyundai Santa Fe, New SUV From Hyundai Launched In India

• Hyundai Unveils BlueOn, Its First Electric Car

• Hyundai Motors Reports 7.3 Percent Sales Growth In May

Cars & their Prices in India

• The Nuvis is the eleventh signature concept car to be designed at the company’s California Design Center in Irvine

• 2.4-liter Theta II engine to a 6-speed automatic transmission

• 160 BHP with maximum speed of 270 Kmph.

• Equipped with Sensors and LED Panels

The Latest Concept Car

Documents

Hyundai (Without videos)