A PROJECT REPORTON

BRAND ANALYSIS OF MARTUTI WAGON R V/S HYUNDAI SANTRO

In partial fulfillment of the degree of Bachelor of Business Administration

M.J.P.R.U, Bareilly

INVERTIS INSTITUTE OF MANAGEMENT STUDIES BAREILLY

SUBMITTED TO: SUBMITTED BY: Mr. Vaibhav Sharma Shobhit BhardwajProject Guide BBA – VI Sem.

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who,

directly or indirectly made this project possible.

I have got considerable help and support in making this project report a reality

from many people.

I would like to thank Mr. Vaibhav Sharma, IIMS, and Bareilly whose endeavor

for perfection, under fatigable zeal, innovation and dynamism contributed in a big

way in completing this project. This work is the reflection of his thought, ideas,

concept and above all his modest effort.

Shobhit Bhardwaj

PREFACE

Project work is one of the most important activities of Professional curriculum at every level irrespective of degree or diploma. This provides us an opportunity to apply our knowledge, skills and aptitude in real life. It also provides an opportunity to work in a group and share responsibilities.

The purpose of practical training for management students is to keep them understands the management of working organization in all it’s aspects especially in the area specialization. It also helps them to broaden their horizon and in efficiency grasping the intricacies in good stand when they are actually in management position in an organization . It also intends to integrate the theoretical concept with the practical working of an organization.

The project should include relative information and details of the market so that it is easy to draw inference from it about the current market situation . Proper execution of plans and projects are responsible for the economic growth of the country

INDEX

Introduction to Automobile Industry Company Profile Maruti Udhyog Ltd. Product of Maruti Udhyog Ltd. Company Profile Hyundai Motors Ltd. Products of Hyundai Motors Ltd. Comparative study of Hyundai and Maruti Products

Research Methodology

o Objective of the studyo Hypothesiso Collection of Datao Questionnaire

Data Analysis and Interpretation Conclusion Bibliography

OVERVIEW OF INDIAN AUTOMOTIVE INDUSTRY

The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century truned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created.

The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry Ford's first experimental car that same year.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style rather than speed.

During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body.

The 1937 Pontiac Deluxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires.

The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. This was the Indian automobile history, and today modern cars are generally light, aerodynamically shaped, and compact.

CAR MANUFACTURERS IN INDIA

The reason behind the immense growth of the India Car Industry can be attributed to the availability of car loans, affordable rates of interest, smooth repayment facilities and the deductions offered to the customers by the retailers.

The constant changes in the existing car models with regard to design, innovation, technology, and colors, have led to a fiercely competitive market. Now that technology and innovation are not alien concepts for Indian car makers, Indian cars are becoming increasingly sleek, stylish, and luxurious.

Major players in the Indian Car Industry:

Fierce competition among the major car players can be witnessed in the Indian Car industry. The India car industry is being dominated by the following major players:

HINDUSTAN MOTORS MARUTI UDYOG REVA ELECTRIC CAR CO DAIMLER CHRYSLER INDIA PRIVATE LTD FIAT INDIA PRIVATE LTD FORD INDIA LTD GENERAL MOTORS INDIA HONDA SIEL CARS INDIA LTD HYUNDAI MOTORS INDIA LTD TOYOTA KIRLOSKAR MOTOR LTD SKODA AUTO INDIA PRIVATE LTD AUDI AG BMW CHEVROLET FORCE MOTORS NISSAN MOTOR CO. LTD PORSCHE ROLLS-ROYCE MOTOR CAR COMPANIES IN INDIA TATA MOTORS

CAR SEGMENTATION

With the expansion of Indian Automobile market over a period of time the segmentation of car models came in to existence based on cars defining characteristics namely:

Size Performance Price

However with continuing growth of market SIAM (Society of Indian Automotive Manufacturers) implemented the segmentation of cars on the basis of length of the cars.

CAR SEGMENTATION AS PER SIAM

MINI (A1) SEGMENT

A1 ( Mini- Up to 3400mm): Maruti 800 The segment grew very fast in the initial years of expansion of automotive

industry in India The segment started shrinking when new segments came into existence and

is continuously on decline.

COMPACT (A2) SEGMENT

A2 (compact- 3401 to 4000 mm): Santro, i10, Getz Prime, WagonR, Alto, Palio Stile, Indica, Zen Estilo, Aveo U-VA, Spark, Ford Fusion Diesel, Swift

The A2 segment is growing continuously and accounts for 67.8% of the total car market today

There are more than 50 lakhs of A1 segments users who can be upgraded to A2 segment.

THE MID-SIZE (A3) SEGMENT

A3 ( Mid- Size- 4001 to 4500mm): Esteem,SX4,Accent, Siena, Indigo, Icon, City, Lancer, Cedia, Fiesta, Aveo, Verna, Logan and Ambassdor.

A3 segment has started growing now and is expected to spend rapidly in future.

Within A3 segment upper A3 segment has started growing now.

EXECUTIVE (A4) SEGMENT

A4 (Executive-4501 to 4700mm): Elantra, Octavia, Laura, Mercedes C-class, Corolla, Civic, Optra Magnum.

PREMIUM (A5) SEGMENT

A5 (Premium-4701 to 5000mm): Sonata, Teana, Accord, Camry, E-class.

LUXURY (A6) SEGMENT A6 (Luxury-5001mm and above): S-class

C (VAN TYPE): Omni, Versa.

B2 (Passenger Carrier): Tavera, Sumo, Innova.

SUV’s: Tucson, CRV, Endeavour, Grand Vitara, X-Trail, Montero, Safari, Pajero.

CHANGES IN CAR INDUSTRY IN INDIA

The latest developments in the car market in India:

In Nashik, a car manufacture plant has been established as a result of a joint venture of Renault and Mahindra & Mahindra to manufacture a comparatively cheap cars (at US$ 9,700), mainly targeting the Indian middle classes, the youth, and the affluent classes in rural India. Tata Motors has plans to launch a luxury car with an engine of 33 horsepower. The recent reduction in the excise duty of the small cars from 24% to 16% will definitely prove to be a boon for the India car industry.

Technical advancements in the Indian Car Industry:

The latest technical advancements in the car market in India include the following features

Power Steering Radial Tires Anti-lock Breaking Systems Tip-tronic Transmission

The varied car markets in India:

The market for small cars now occupies a substantial share of 70% out of the annual production of 1 million cars in India. Maruti Udyog, with its legendary Maruti -800 is the leader in the small car market. A number of manufacturing plants are coming up for advancements in the field of small cars. The recent launches in the small car market in India are:

Getz Prime by Hyundai Motor Co. Tata Magic by Tata Motors Tata Magic Palio Stile by Fiat India Pvt. Ltd

Mid-sized cars are normally cars ranging from Rs. 3-8 lakh and generally meant to be 4 seaters. The mid-sized car section has recently moved beyond the 1 lakh target. The recent launches in the mid-size car market in India are:

1.4 SXI Duratorq by Ford Motor Co. Indigo XL by Tata Motors

Luxury cars and premium cars are quite expensive and they are purchased for their design, innovation, and technology. They are usually priced over Rs. 20 lakh and have many takers in India. The recent launches in the premium car market in India and the luxury car market in India are:

Sonata Embera H-Matic by Hyundai Motor Co. Nissan Teana by Nissan Motor Co. Ltd

Sports Utility Vehicles (SUVs) have also become very popular in India as they are considered advantageous due to their ability to accommodate more passengers. They are ideal for trips with the whole family. The Sport Utility Vehicle market in India is the most booming market in India presently and SUVs have become the fastest selling cars of India.

INTRODUCTION

MARUTI UDYOG LIMITED

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has

been the leader of the Indian car market for about two decades. Its manufacturing

plant, located some 25 km south of New Delhi in Gurgaon, has an installed

capacity of 3,50,000 units perannum, with a capability to produce about half a

million vehicles. The company has a portfolio of 11 brands, including Maruti

800 ,Omni, premium small car Zen, international brands Alto and WagonR, off-

roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and

Luxury SUV Grand Vitara XL7.In recent years, Maruti has made major strides

towards its goal of becoming Suzuki Motor Corporation’s R and D hub for Asia. It

has introduced upgraded versions of WagonR, Zen and Esteem, completely

designed and styled in-house.Maruti's contribution as the engine of growth of the

Indian auto industry, indeed its impact on the lifestyle and psyche of an entire

generation of Indian middle class, is widely acknowledged. Its emotional connect

with the customer continues Maruti tops customer satisfaction again for sixth year

in a row according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction

Index (CSI) Study. The company has also ranked highest in India Sales

Satisfaction Study. The company's quality systems and\practices have been rated as

a “benchmark for the automotive industry world-wide" by A Belgium, global

auditors for International Organization for\Standardization. In keeping with its

leadership position, Maruti supports safe driving and traffic management through

mass media

Messages and a state-of-the art driving training and research institute that it

manages for the Delhi Government. The company's service businesses including

sale and purchase of pre owned cars (True Value), lease and fleet management

service for corporate (N2N), Maruti Insurance and Maruti Finance are now fully

operational.. These initiatives, besides providing total mobility

When it comes to Indian auto industry, the first brand that comes to Indian

customer mind is Maruti. In our paper we are attempting to identify the future of

Maruti Udyog Ltd which is currently the market leader. The main questions we

will be addressing are,

• Can it sustain its market share?

• Will their be a decline in profits

• What can it do to keep its growth rate?

• How can it compete in the highly competitive small car segment?

• What are its strategic alternatives?

We will analyze the competitors briefly concentrating more on TATA motors, one

of the fast growing Indian auto manufacturer. Maruti Suzuki India Limited is a

publicly listed automaker in India. It is a leading four-wheeler automobile

manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority

stake in the company. It was the first company in India to mass-produce and sell

more than a million cars. It is largely credited for having brought in an automobile

revolution to India. It is the market leader in India. On 17 September 2007, Maruti

Udyog was renamed to Maruti Suzuki India Limited. The company's

headquarters remain in Gurgaon, near Delhi.

.

HISTORY OF THE COMPANY

Maruti Udyog Limited (MUL) was established in February 1981,

though the actual production commenced in 1983. Through 2004, Maruti has

produced over 5 Million vehicles. Maruti are sold in India and various several

other countries, depending upon export orders. Cars similar to Maruti (but not

manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South

Asian countries.

Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime

Minister of India, Indira Gandhi, envisioned the manufacture of an indigenous,

cost-effective, low maintenance compact car for the Indian middle-class. Indira

Gandhi's cabinet passed a unanimous resolution for the development and

production of a "People's Car". Sanjay Gandhi's company was christened Maruti

Limited. The name of the car was chosen as "Maruti", after a Hindu deity named

Maruti.

At that time Hindustan Motors' Ambassador was the chief car, and the company

had come out with a new entrant, the Premier Padmini which was slowly gaining a

part of the market share dominated by the Ambassador. For the next ten years, the

Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the

decade ending 1983.

Sanjay Gandhi was awarded the exclusive contract and license to design, develop

and manufacture the "People's Car". These exclusive rights of production

generated some criticism in certain quarters, which was directly targeted at Indira

Gandhi. Over the next few years, the company was sidelined due to the Bangladesh

Liberation War and emergency. In the early days under the powerful patronage of

Sanjay Gandhi, the company was provided with free land, tax breaks and funds.

Till the end of 1970s, the company had not started the production and a prototype

test model was met with criticism and skepticism. The company went into

liquidation in 1977. The media perceived it to be another area of growing

corruption. [4] Unfortunately, Maruti started to fly only after the death of Sanjay

Gandhi, when Suzuki Motors joined the Government of India as a joint venture

partner with 50% share.[5] .

After his death, Indira Gandhi decided that the project should not be allowed to

die. Maruti entered into this collaboration with Suzuki Motors, The collaboration

heralded a revolution in the Indian car industry by producing the Maruti 800. The

car went on sale on December 14, 1983. It created a record by taking 13 months

time to go from design to rolling out cars from a production line. By the year 1993

the company had sold up to 1, 96,820 cars, mostly by selling its chief product the

Maruti 800s. By March 1994, it produced one million vehicles, becoming the first

Indian company to cross this milestone. It reached the two million mark in

October, 1997 and rolled out its 4 millionth vehicle, an Alto-LX, on April 19,

2003.

Suzuki Motor Company was chosen from seven prospective partners worldwide.

This was due not only to their undisputed leadership in small cars but also to their

commitment to actively bring to MUL contemporary technology and Japanese

management practices (which had catapulted Japan over USA to the status of the

top auto manufacturing country in the world).A license and a Joint Venture

agreement was signed between Govt of India and Suzuki Motor Company (now

Suzuki Motor Corporation of Japan) in Oct 1982. MUL launched its first car

Maruti800 on December 14,1983 at initial price of Rs.47,500.

Structure

Ownership

MUL India's leading automobile manufacturers and the market leader in the car

segment, both in terms of volume of vehicles sold and revenue earned is a public

sector initiative. 18.28% of the company is owned by the Indian government, and

54.2% by Suzuki of Japan. The Indian government held an Initial Public Offering

of 25% of the company in June of 2003.

Ownership

Government

Suzuki

IPOothers

Government

Suzuki

IPO

others

Main divisions (brand equity)

The major services offered are,

Sales of Automobiles

Authorized Service Stations

Maruti is one of the companies in India which has unparalleled service

network. To ensure the vehicles sold by them are serviced properly Maruti

had 1545 listed Authorized service stations and 30 Express Service Stations

on 30 highways across India. Service is a major revenue generator of the

company. Most of the service stations are managed on franchise basis, where

Maruti trains the local staff. Other automobile companies have not been able

to match this benchmark set by Maruti. The Express Service stations help

many stranded vehicles on the highways by sending across their repair man

to the vehicle.

Maruti Insurance

Launched in 2002 Maruti provides vehicle insurance to its customers with

the help of the National Insurance Company, Bajaj Allianz, New India

Assurance and Royal Sundaram. The service was set up the company with

the inception of two subsidiaries Maruti Insurance Distributors Services Pvt.

Ltd and Maruti Insurance Brokers Pvt. Limited. This service started as a

benefit or value addition to customers and was able to ramp up easily. By

December 2005 they were able to sell more than two million insurance

policies since its inception.

Maruti Finance

To promote its bottom line growth, Maruti launched Maruti Finance in

January 2002. Prior to the start of this service Maruti had started two joint

ventures Citicorp Maruti and Maruti Countrywide with City Group and GE

Countrywide respectively to assist its client in securing loan. Maruti tied up

with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,

Standard Chartered Bank, and Sundaram to start this venture including its

strategic partners in car finance. Again the company entered into a strategic

partnership with SBI in March 2003. Since March 2003, Maruti has sold

over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is

currently available in 166 cities across

Maruti True Value

Maruti True Value is a service offered by Maruti Udyog to its customers. It

is a market place for used Maruti Vehicles. One can Buy, Sell or Exchange

used Maruti Vehicles with the help of this service in India.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease

and fleet management solution to corporate. Their impressive lists of clients

who have signed up of this service include Gas Authority of India Ltd,

DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India,

National Stock Exchange and Transworld. This fleet management service

includes end-to-end solutions across the vehicle's life, which includes

Leasing, Maintenance, Convenience services and Remarketing.

Maruti Driving School

As part of its corporate social responsibility Maruti Udyog launched the

Maruti Driving School in Delhi. Later the services were extended to other

cities of India as well. These schools are modeled on international standards,

where learners go through classroom and practical sessions. Many

international practices like road behaviour and attitudes are also taught in

these schools. Before driving actual vehicles participants are trained on

simulators.

Key personnel

Initially R.C.Bhargava was the managing director of the company since the

inception of the joint venture. Till today he is regarded as instrumental for the

success of Maruti Udyog. Joining in 1982 he held several key positions in the

company before heading the company as Managing Director. Currently he is on the

Board of Directors. After completing his five year tenure, Mr. Bhargava later

assumed the office of Part-Time Chairman. The Government nominated Mr.

S.S.L.N. Bhaskarudu as the Manging Director on August 27, 1997. Mr.

Bhaskarudu had joined Maruti in 1983 after spending 21 years in the Public sector

undertaking Bharat Heavy Electricals Limited as General Manager. Later in 1987

he was promoted as Chief General Manager, 1998 as Director, Productions and

Projects, 1989 Director, Materials and in 1993 as Joint Managing Director.

Production Milestones

➢ 1st vehicle produced, December 1983

➢ 1, 00,000 vehicles produced by August, 1986

➢ 5, 00,000 vehicles produced by June, 1990

➢ 10, 00,000 vehicles produced by March, 1994

➢ 15, 00,000 vehicles produced by April, 1996

➢ 20, 00,000 vehicles produced by October, 1997

➢ 25, 00,000 vehicles produced by March, 1999

➢ 30, 00,000 vehicles produced by June, 2000

➢ 35, 00,000 vehicles produced by December 2001

➢ 40, 00,000 vehicles produced by April, 2003

➢ 45, 00,000 vehicles produced by April, 2009-10

OTHER PRODUCTS OF MARUTI SUZUKI

Maruti

Maruti 800 STD BS III

Maruti 800 AC BS III

Omni

5 seater Maruti Omni

8 seater Maruti Omni

LPG Maruti Omni

Maruti Alto

Alto

Alto Lx

Alto Lxi

Maruti Zen

Maruti Zen Lx

Maruti Zen Lxi

Maruti Zen Vxi

Wagon R

WagonR Lx

WagonR Lxi

WagonR Vxi

WagonR Ax

Versa

5 seater

8 seater (DX & DX2)

Maruti Esteem

Maruti Esteem Lx

Maruti Esteem Lxi

Maruti Esteem Vxi

Baleno

Baleno Sedan VXi

Baleno Sedan Lxi

Brands and models

Till recently whenever we think of Maruti we think of it as 800 due to the huge

sales it achieved. It was like a symbol of luxury for the middle class. Now

situations are changing and people are looking at Maruti stable for the wide range

of products they are offering. The various models and brands that are sold by

Maruti in the order of their launch are,

• Maruti 800: Launched 1983. India’s largest selling car till 2004.

• Maruti Omni: Launched 1984.

• Maruti Gypsy: Launched 1985.

• Maruti 1000: Launched 1990

• Maruti Zen: Launched 1993.

• Maruti Esteem: Launched 1994

• Maruti Wagon- R: Launched 1999 Modified 2006

• Maruti Baleno: Launched 1999

• Maruti Alto: Launched 2000. Currently the largest selling car in India

• Maruti Grand Vitara: Launched 2003

• Maruti Grand Vitara XL-7

• Maruti Versa: Launched 2004

• Maruti Swift: Launched 2005

BRAND PORTFOLIO OF THE COMPANY

CLASS BRAND NAMEYEAR

INTRODUCEDSLOGAN

City Car

Maruti 800 1983Change your life

Maruti Alto 2000Let's go

Maruti Zen Estilo 2005Shape your world

Suzuki Alto (A-star) 2008Stop @ nothing

Suzuki SplashUpcoming model in

2009

Super mini

Car

Maruti Wagon-R 1999 For the smarter race

Maruti Suzuki Swift 2005 You're the fuel

Compact Car Maruti Suzuki SX4 2007 Men are back

Maruti DZiRE 2008 The heart car

Sports Utility

Vehicle

Suzuki Grand Vitara 2007Play it your way

Maruti Gypsy 1985King

Microvan

Maruti Omni 1984 Fits all

Maruti Versa 2003The joy of travelling

together

BRAND HIERARCHY OF THE COMPANY

Bundle of competencies

Technology

Maruti always introduces the best technology into its product line, in addition to all

its features which are almost standard in most cars. They introduced 16* 4

Hypertech engines across the entire Maruti Suzuki range. These are 4 valve

engines powered by 16 bit chip. This gives an ideal combination of power and

performance. They also introduced electronic power steering system (EPS) which

gives better maneuverability. Their latest introduction Swift has all the technology

like surround protection (SSP). This includes ABS, dual front airbags, collapsible

steering column, crashworthy structure etc. They also has additional features like

brake force distribution, key less entry system. The six microprocessors are

connected in a high speed canbus. This controls engine, EBS, EPS, Auto AC,

Security and dead lock and air bag. Automatic climate control, rally based

suspension system and above all the dynamic design is what the latest entrant

offers its customers. Maruti also uses latest in IT for its operations. It uses the

oracle based packages for CRM and employee feed back. Maruti also uses oracles

ERP packages for its operations. ATFCAN and Maruti are collaborating on

Canadian CNG conversion technology.

Design and development

Maruti Suzuki is outsourcing its design and development activities to India. They

are looking towards India as their design hub. Among the company's product

development challenges, the need for shorter cycle times is always at the top.

Management wants to be able to launch new models faster and reduce the time

required for minor changes and development of product variants. Another

challenge is co-development. Maruti's goal is to collaborate closely with its global

teams and suppliers on the development of new platforms and product freshening.

Other challenges include streamlining the process of vehicle localization and

enhancing quality and reliability.

These challenges pointed directly to a product lifecycle management (PLM)

solution with capabilities for information management, process management,

knowledge capture and support for global collaboration; a PLM solution directly

addressing Maruti's business challenges. For example, PLM's information

management capabilities address the issue of the many platforms, local variants

and export destinations. Process management permits concurrent development and

faster change management and provides a platform for other process improvements

- for faster vehicle development. Knowledge capture increases innovation and also

reduces costs by increasing part re-use. PLM's collaboration capabilities permit

global development by ensuring fast and accurate dissemination of product

information. For this Maruti uses one of the leading PLM software package by

UGS.

At Maruti, styling is a cross-discipline function that requires designers, engineers

and model makers to pool their resources in a multitude of activities that have to be

performed in order to transform creative ideas into finished products. These

styling-related activities include storyboarding, conceptualizing, rendering, tape

drawing, model making, feasibility analysis, CAD data generation and Class-A

surfacing. In addition, Maruti designs new accessories and adds value to its

products’ interiors and exteriors

by designing/developing fabrics, colors and graphics. Some of the most recent

examples of Maruti styling are seen in change programs for the Zen, Wagon R and

Esteem product lines. Other Maruti styling efforts are in various stages of

development. Maruti used to employ a variety of software for its styling programs,

including SCAD (Suzuki CAD), Alias, Unigraphics and Catia. However, today

Maruti’s styling and engineering functions are doing almost all their work in UGS’

NX solutions.

Markets

Maruti has a strong domestic market presence in India. It has a market share of

47% in the domestic market. The current market share of Indian car industry is

given below, Maruti Exports Limited is the subsidiary of Maruti Udyog Limited

with its major focus on exports and it does not operate in the domestic Indian

market. The first commercial consignments of 480 cars were sent to Hungary. By

sending a consignment of 571 cars to the same country Maruti crossed the

benchmark of 3, 00,000 cars. Since its inception export was one of the aspects

government was keen to encourage. Angola, Benin, Djibouti, Ethiopia, Europe,

Kenya, Morocco, Sri Lanka, Uganda, Chile, Costa Rica and El Salvador are some

of the markets served by Maruti Exports.

46%

14%

17%

23%MUL

Hyundai

Tata

Others

Maruti also has markets in other countries depending on export demand. Suzuki is

selling cars similar to Maruti in Pakistan and South Asian countries. They have a

major non European market which grew 78% in 05- 06. Loss of sales in Europe is

due to stoppage of Alto which accounted for 80% of their exports and introduction

of Swift. Algeria has emerged as Maruti's largest overseas market with sales

growing from a few hundred in FY02 to over 6,500 (FY06). The company says it

may cross 9,800 this year.

Maruti is quite bullish on markets like, Chile, Morocco, Egypt and Sudan apart

from the neighboring countries. The auto major expects its exports to Chile and

Morocco to go above 5,900 and 2,300, respectively, this year. Its volumes from

there have moved from under 700 in FY02 to 3,115 (FY06) and exports to Sudan

was nil two years back. "In Egypt, our numbers are estimated to grow to over

2,000 and 2,700 this year," according to Mr. Khattar. In FY07 it was under 200

few years back.

Meanwhile, Maruti is also reporting a high on current year exports to the

neighboring countries is on a high too. The company expects to export 9,200 units

to Sri Lanka this year, a growth of over 50%, 1,200 units to Nepal, over 1,175 to

Bhutan and 700 to Bangladesh. Maruti, which saw exports dip by 29% last fiscal,

also plans to launch a new export model during '08-09, which will target the

European market. The company targets to export 1, 00,000 units of the model

annually.

Overall passenger car market registered 24.86% growth

Sales of compact cars jumped by 31.2%

Mid-size car segment grew slower at 14.7%.

The Government's small car policy seems to be yielding results, with the share of

compact cars increasing to 68.25 per cent in the April-July 2006 period compared

with 64.9 per cent in the same period last year.

Not surprisingly, compact cars emerged as the main driver of passenger car growth

in the period. While the overall passenger car market increased by 24.86 per cent

to 3,24,671 units, sales of compact cars jumped by 31.2 per cent to 2,21,598 units

in the April-July 2006 period. In fact, all the three major carmakers (Maruti

Udyog, Hyundai Motor, and Tata Motors) saw a sizeable jump in their compact car

sales in the period.

Customer segmentation and value proposition

Segmentation

Under Rs. 3

Lakhs

Maruti 800, Alto, Omni

Reva

Rs. 3-5 Lakhs

Ambassador

Fiat Palio

Hyundai Santro, Getz

Chevrolet Opel Corsa

Maruti Zen, Wagon R, Versa, Esteem, Gypsy

Ford Icon & Fiesta

Tata Indica, Indigo

Mahindra Bolero

INTRODUCTION TO MARUTI WAGON R

COMFORT AND CONVENIENCE

AC:AC 

without Climate Control

Power Windows:

Central Locking: Remote

Remote Boot:

Remote Fuel Filler:

Rear Wiper:

Rear Defogger:

Rear Armrest:

Streeing Adjustment 

(Rake/Reach):/

Driver Seat Adjustment: Manual

Music System: No

Leather Seats:

Door Mirror: Both Side Manual

Tinted Glass:

Rear AC Vent:

Folding Rear Seats:

Sun Roof:

Buttons/Controls 

on Steering:

Auto Viper:

Auto Headlamp:

Maruti WagonR

VEHICLE SUMMARY

Name: WagonR

Model: LXi

Car Body Type: Hatchback

Segment: B Segment

Fuel Consumption: 

Highway19.00 kmpl.

Fuel Consumption: 

City15.00 kmpl.

Warranty: NA

VERDICT

FOR

Spacious Interiors

Reasonable Price

Feature Rich

AGAINSTNo Alloy Wheels even in top model

Panel Gaps - Fit & Finish not up to the mark

Comfort:

ENGINE SPECIFICATIONS

Displacement: 998cc , KB-Series, Aluminum

Engine Type: Petrol

Maximum Power: 67 Bhp @ 6200 rpm

Maximum Torque: 90 Nm @ 3500 rpm

DIMENSIONS

Length: 3595 mm

Width: 1475 mm

Height: 1700 mm

OTHER SPECIFICATIONS

Seating Capacity: 5

Tyre Size: 145/80 R13

Suspension: McPherson Strut, Isolated Trailing Link

Turning Circle: 4.60 mtrs.

Steering: Power

Brakes: Front Disk, Rear Drum

Gears: 5 Manual

Ground Clearance: 165.00 mm

Kerb Weight: 870.00 kgs.

Fuel Tank: 35.00

Body Color Bumpers:

Tachometer:

Alloys:

ORVM Indicator:

Xenon Headlamps:

Trip Meter: 2

Headlamp Washer:

ACTIVE AND PASSIVE SAFETY

Airbag: yes

Parking Sensors: yes

Fog Lamp: yes

Traction Control: yes

EBD:

ABS:

ESP:

+ FIND CARS SIMILAR TO MARUTI WAGONR LXI

  

Overview of New Maruti WagonR

Maruti Suzuki India has launched the all new WagonR in India. The new model

features a big smile shaped front grille with all new clear lens head lamps and new

round shaped fog lamps. The makeover is almost same like we have seen recently

in the New Estilo. New WagonR also gets new headlamps, new tail lamps, new

front/rear bumpers, new design for alloys/wheel covers and all new interiors.

Variants of New Maruti WagonR

- New WagonR Lx

- New WagonR Lxi

- New WagonR Vxi

Price of New Maruti WagonR

Maruti Suzuki India has launched the New WagonR between Rs. 3.28 lakhs to Rs.

3.81 lakhs. These prices are ex-showroom New Delhi.

- New WagonR Lx - Rs. 3,28,000.00

- New WagonR Lxi - Rs. 3,57,000.00

- New WagonR Vxi - Rs. 3,81,000.00

- New WagonR Vxi ABS - Rs. 4,12,000.00

Design of New Maruti WagonR

The new model of WagonR looks much better than the current generation

WagonR. New WagonR is based on the very Japanese way of creating cars, gone

are the boxy looks, the shape of New WagonR is more rounded. Maruti Suzuki

India has christened the New WagonR as ‘The Blue-Eyed-Boy’ as it features smart

looking blue tinge in the big headlamps. This time the facelift is quite major as

Maruti engineers has used all new chassis which is wider that the last generation

one and hence the new WagonR looks wide and more proportionate than the old

WagonR.

The grille of new WagonR looks very sleek with a chrome strip on top with big

Suzuki logo in centre. The front and rear bumpers are also new with a big air dam

in front bumpers which also features integrated round fog lamps. The side of new

WagonR is more or less same like the old model with side strips on the doors. The

top model of new WagonR features body colored bumpers, door handles and

outside rear view mirrors. At the rear new WagonR gets all new tail lamps which

are slightly bigger in size and resembles the tail lamps of 2010 Suzuki WagonR

model recently launched in Japan. New WagonR also features a horizontal chrome

strip which gives it a up market look. The third stop lamp is well integrated in the

hatch and the top model of new WagonR also comes with roof rails. All in all new

WagonR looks better in terms of design and styling than the 2009 model of

WagonR.

Shades Available in New Maruti WagonR

- Superior white, Midnight black, Silky silver, Firebrick red

- Breeze blue, Baker’s chocolate, Blistering grey

Changes in the New Maruti WagonR:

All New 1000cc K-series engine to meet the emission norms

All New Front Grille With Chrome Inserts.

New Bigger & Stylish Headlamps, New Tail Lamps.

New Front & Rear Bumpers, New Wheel Covers Design.

New Interiors including new door trims and new upholstery.

All New Centre Console With Dash Integrated Music System.

Improved Rear Visibility, All New Steering Wheel.

New Instrument Cluster, All New Design For Gear Knob.

Electrically Adjustable Outside Rear View Mirror (ORVM)

Interiors of New Maruti WagonR

The interiors of new WagonR also get new combination for door trims and new

upholstery for the seats. The interiors have been improved and now sport dual

tone combination with aluminum touches all around. The steering wheel has

been borrowed from the Swift and the centre console is rectangular in shape and

the top variants are going to feature dash integrated music system with factory

fitted speakers.

The overall length of the car is now increased to 3,595 mm with a wheelbase of

2,400 mm - the longest in its class. The width and height of the new WagonR has

also gone up 1,495 mm and 1,700 mm, respectively. The new WagonR is thus

roomier with a larger cabin space and increased leg-room for all passengers. The

steering wheel comes with a new design and can be tilted, while the ergonomically

designed gear shift knob snugly fits into the palm to ensure driving comfort. Other

features include electrical outside rear view mirror and superior culling due to the

new HVAC design. New WagonR has:

- Best in class wheel base, 2400mm, +40 mm more than previous wagonR.

- Huge leg-space. Best in segment tandem distance, 100 mm more than previous

WagonR.

- Best in class front seat travel, 240mm, 33% more than previous WagonR.

- Best in segment front and rear headroom.

All this clubbed with the gigantic boot space makes the New WagonR a perfect

smart-family vehicle. While the rear parcel tray improves storage and keeps your

valuables hidden from prying eyes, a smart integrated tool box in the boot leads to

the overall charm. Storage space gets special attention in the new WagonR. As a

unique feature, a handy shopping tray is fitted under front passenger seat. To

safeguard the cell-phone camera unit, a soft insert has been introduced to the floor

console. These apart, there are useful alcoves on the front console and door sides, a

utility hook on the IP, and a 60:40 split rear seat add to user convenience. Two

retractable cup/can holders on the driver's and the co-driver's side, and a bottle

holder in the centre console add convenience and lead to user delight.

Top model Vxi ABS of New WagonR comes fully loaded with following

features:

HVAC - Heating, Ventilation and Air Conditioner

Power steering, Power Windows

Rear Defogger, Rear Washer/Wiper

Dash Integrated Music System

Roof rails, High mounted stop lamp

Electronic multi trip meter

Collapsible steering column

Remote central door locking

ABS with EBD, Dual airbags

Driver Seat Belt Indicator

Security System i-CATS

Engine & Fuel Efficiency of New Maruti WagonR

New Maruti Suzuki WagonR is powered by Bharat Stage IV compliant 998cc KB

series engine which develops maximum power of 67 Bhp at 6200 rpm

with maximum torque of 90 Nm at 3500 rpm. The new KB series is exactly the

same engine which powers the Maruti Suzuki A-star. It is produced at the

company's Gurgaon facility. The new WagonR is based on a completely new

platform and it has a new transmission also. According to Automotive Research

Association of India (ARAI) standards, the car will give a mileage of 18.9 km per

litre of petrol.

Transmission Technology of New Maruti WagonR

The New WagonR comes with a new 5-speed synchromesh transmission

technology that incorporates numerous innovations to enhance the power and

pleasure combination. The new transmission is equipped with precise gear shift

mechanism. This reduces the gear shifting effort due to minimal mechanical losses.

The gear ratios in the transmission in the New WagonR are optimized to enhance

drivability and improved fuel economy. A reduced clutch-pedal peak-load helps to

improve the city driving experience.

Suspension of New Maruti WagonR

The new WagonR has a new cable-type transmission, a superior suspension

technology. It is equipped with a new L-shaped front suspension frame to improve

ride comfort. This fine-tuned 3-point suspension is congruous to Indian roads and

driving conditions, providing soft relaxed rides along with dynamic handling and

NVH.

Safety Features in New Maruti WagonR 

The New WagonR is high on occupant safety. A rigid cage structure technology

along with increased frontal impact absorbing area, thanks to greater distance

between steering wheel and front bumper, keep the passengers safe. The Vxi

variant in the new WagonR is equipped with front and rear fog lamps, rear wiper

and washer, rear defogger, dual horn and comes with safety features such as

Airbag and ABS as options which come in VXi ABS model. A driver-side seat belt

indicator is on the dash panel a standard feature on Lxi and Vxi variants. The New

WagonR keys are integrated with i-CATS, 4-door central locking and anti-theft

alarm system.

COMPANY PROFILE

HISTORY OF HYUNDAI

 

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-

Yung Chung  established Hyundai Auto Service in Seoul, South Korea at the age

of 31 years.   The name Hyundai was chosen for its meaning which in English

translates to “modern.”  The Hyundai logo is symbolic of the company's desire to

expand. The oval shape represents the company's global expansion and the stylized

"H" is symbolic of two people (the company and customer) shaking hands.

 

Hyundai Motor Company was founded by Ju-Yung Chung  and younger

brother Se-Yung Chung  in December 1967.  In 1968 the company entered into a

contract with Ford motor company to assemble the Ford Cortina and Granada for

the South Korean market and continued to produce them until 1976.  Hyundai

completed construction of the Ulsan plant in six months and achieved the shortest

groundbreaking to first commercial production of any of Ford’s 118 plants.  The

eight year journey provided Hyundai with assembly knowledge, blueprints,

technical specifications, production manuals, and trained Hyundai engineers.

Hyundai founder, Ju-Yung Chung

The leader of the Hyundai-Kia Automotive Group was changed by founder, Ju-

Yung Chung in 1999 after the Asian financial crisis and government mandated

breakup of the Hyundai Group.  Previously the automotive group was being

managed by the founder's brother.  His son, Mong-Koo Chung had performed well

managing Hyundai's after-sale service and dealerships.  Mong-Koo was the

catalyst of an extreme turnaround for the company.  During the 80s and 90s, his

uncle focused on Hyundai Automotive's growth and producing as many cars as

possible.  Product quality and customer satisfaction suffered.  From his experience

working with dealerships and angry Hyundai customers, Mong-Koo knew well the

damage to the Hyundai reputation and the high cost of warranty repairs.

When Mong-Koo began broadcasting his intention to turn Hyundai into a top-five

automaker, few outside the company took him seriously. Hyundai, like many

family-controlled Korean companies, was ultra-hierarchical and slow to change. 

Managers rarely cooperated with one another and division chiefs ran their

operations as personal fiefdoms.  "When a problem occurred, each division would

blame other divisions," says Lee Hyun Soon, Korean head of R&D.

Mong-Koo's first step was to replace members of top management with engineers. 

He formulated a strategy to challenge Toyota for quality.  Extensive work with

consultants, J.D. Powers, and benchmarking of the world's best automotive

companies followed.  He also sent teams to America to study weather, road

conditions, and driver habits.  Quality control staff increased tenfold to 1,000 and

they reported directly to him.  Employees were encouraged and rewarded to offer

suggestions.  One example that is told is that a worker reported the Sonata and

XG350 sedans had differently shaped spare tire covers.  Sharing the cover saved

Hyundai about $100,000 per year.

There are reports that the Korean government requested that Mong-Koo step down

as Hyundai Automotive's chairman in 2000 so that it could be led by a non-family

member.  Mong-Koo refused, arguing that he was best qualified to lead the

company.

Mong-Koo Chung has earned a reputation for an obsession with quality.  The new

Sonata's launch in Korea was delayed for two months for 50 items management

wanted fixed.  Employees in the Asan factory worked feverishly to correct items

such as a tiny error in the size of the gap between two pieces of sheet metal near

the headlight.  The problem was not visible to the human eye and was narrower

than 0.1 millimeter.  Numerous managers and employees worked on the problem

for 25 days before it was solved.

The Hyundai Group spent most of its history operating as one of South Korea's

largest chaebols, or conglomerates. The group displayed spectacular growth since

its founding in 1947 and its rapid expansion--to a point where its interests included

car manufacturing, construction, shipbuilding, electronics, and financial services--

reflected the achievements attained during South Korea's economic miracle. The

South Korean economy took a turn for the worse during the late 1990s, however,

which prompted President Kim Dae Jung to launch a series of reforms aimed at

dismantled large, often corrupt, chaebols. By 2001, much of the Hyundai Group

had been dismantled. Roh Moo Hyun, elected President in 2002, continues to

reform the South Korean business sector.

Hyundai's growth was linked inextricably to South Korea's reconstruction

programs following World War II and the Korean War as well as to the state-led

capitalism that resulted in a polarization of the country's corporate structure and the

domination of the economy by a number of conglomerates. World War II left the

country devastated, and the small recovery Korea had been able to make following

this conflict was reversed during the Korean War, which lasted from 1950 to 1953.

The chaebols, which are similar to Japan's zaibatsu, worked with the government

in rebuilding the economy and formed an integral part of Korea's economic

strategy and its drive to build up its industrial base.

One man, Chung Ju Yung, stood at the center of Hyundai's progress from 1950

until he died in 2001. Chung, considered a founding father of the Korean chaebol

structure, left school at an early age and developed what has been described as an

autocratic and unconventional management style. He noted those areas of industry

that the government had selected as crucial to economic development and

structured the group accordingly.

HYUNDAI MOTOR COMPANY

Founded in 1967

Brand value of US $ 4.45 billion- 2007 ( Business Week)

Hyundai’s brand ranking improves by 3 places in best Global Brands Survey

2007( 75 to 72)

Sale of 3.7 million units world wide- 2005 (including the Kia brand)

6th largest auto manufacturer in the world- Hyundai- Kia Automotive Group

Sold in 193 countries through a network of over 5000 dealership

2006 Ideal Vehicle Brand- Hyundai- Auto Pacific USA

Official sponsor and vehicle supplier- FIFA World Cup, Germany- 2006

Challenges for Hyundai Motor in the 1980s

The 1980s were to prove equally eventful for Hyundai Motor Company. After the

oil shock of 1979, the government took steps to protect the industry, which had by

then made large investments in plants and equipment. It kept a tight grip on the

development of this sector and in 1981 divided the market, restricting Hyundai to

car and large commercial vehicle manufacture. These regulations were revised in

1986 following the recovery of the market, and Hyundai was able to resume

manufacture of light commercial vehicles.

By the middle of the decade, Hyundai had taken Canada by storm. Its Pony

subcompact vehicle became Canada's top-selling car less than two years after

entering the market. Hyundai's sales in Canada, where it was also selling the

Stellar, shot from none in December of 1983 to 57,500 units in the first nine

months of 1985, topping those of Honda and Nissan combined. Total production in

1985 had risen to 450,000.

In 1985, the company announced plans to build a car assembly plant at Bromont,

near Montreal, and at the same time decided to enter the U.S. market. The entry

into the U.S. market, begun in 1986, proved an immediate success. Its low-priced

Excel model was well received, and of the 302,000 cars exported in that year,

168,000 were sold in the United States, where sales were to increase to 263,000 the

following year. Hyundai's initial success in the United States, though, faded before

the end of the decade when sales began to flag. Problems in the company's key

overseas market were attributed to the lack of new models, increasing competition

in the weakened U.S. car market, and the severe strikes that hit the company in the

latter part of the 1980s and in 1990.

Hyundai decided to move up market with the introduction of the Sonata, a four-

door sedan, in late 1988; initial sales, though, proved disappointing. A year later,

this car was being manufactured at the Bromont plant, following the opening of the

factory in 1989. In the same year, Hyundai signed a deal with Chrysler Corp. to

build 30,000 midsize, four-door cars for the U.S. company, starting in 1991.

Chrysler was linked to Mitsubishi Corporation, which in turn was affiliated with

Hyundai, in which it held a 15 percent stake.

Hyundai planned to increase production at the Canadian plant to 100,000 by the

time the Chrysler deal came into effect. Export sales, which were also hit by the

appreciation of the won and the depreciation of the yen, remained sluggish.

Increased wage costs also affected the group but had the advantage of boosting

domestic sales that, for the industry as a whole, increased 50 percent to 356,000

units in 1989.

Hyundai in the Early 1990s

The group became intent on reducing its dependence on the U.S. markets. By

1990, the domestic market was proving increasingly important to the essentially

export-oriented group. Both the car and construction markets were enjoying strong

demand at the end of the decade. This situation helped Hyundai Engineering &

Construction, like the vehicle operations, to take up the slack created by declining

markets abroad, particularly in the Middle East. The group had accumulated

experience in a broad range of plant construction, including Korea's first nuclear

power plant. Meanwhile exports in the shipbuilding sector were showing a marked

improvement.

Following the creation in 1983 of Hyundai Electronics, Hyundai stepped up its

presence in the electronics field and produced semiconductors, telecommunication

equipment, and industrial electronic systems. The company, which focused on

industrial markets, sought to increase its presence in consumer electronics, despite

formidable competition from domestic companies such as Samsung and Goldstar.

The group as a whole had proved itself capable of taking diverse markets by storm

and was determined to maintain and expand its markets by stepping up research-

and-development spending. However, the country's drive towards democracy

brought new uncertainties. In the changing economic and political environment,

the group faced a labor force seeking higher wages, a less competitive currency,

and increasing competition in the all-important overseas markets.

Faced with this changing political scene and a less favorable international rate of

exchange, Hyundai shifted gears in the early 1990s. In automaking, its largest

enterprise, it worked to regain lost ground in the United States, where demand for

its low-priced Excel and somewhat higher-priced Sonata models slumped in the

wake of widespread consumer complaints and a depressed entry-level market.

Hyundai's new Elantra sedan, selling for $9,000, was to be its lead item in the U.S.

market. The group's chairman at that time, Chung Ju Yung's younger brother,

Chung Se-yung, was expecting a new day for the group, as Korea itself matured

with new labor and political freedoms.

As Korea's second-largest conglomerate, with 1990 revenues estimated at $35

billion, Hyundai Group was clearly to play an important role in the new Korea.

Indeed, the Hyundai founder and chairman, Chung Ju Yung, chose personally to

play a new, political role in that development, founding a new political party early

in 1992 with a view to promoting open-market policies. Chung's Unification

National Party (UNP) promptly won 10 percent of National Assembly seats;

Chung himself then retired from his Hyundai chairmanship to set his sights on the

Korean presidency. The Hyundai conglomerate, already forced by the government

to pay billions in back taxes, came under even more severe government pressures

after Chung formed his party. Regulators charged illegal political contributions by

one Hyundai company and accused others of tax evasion. In addition, Hyundai's

ability to finance its operations was threatened by other government actions. In

return, Hyundai, at this time headed by Chung Se Yung, threatened to withhold

huge investments planned for the coming year. In 1993, having finished third in

South Korea's presidential election, Chung Ju Yung reportedly said that he would

resume chairmanship of the Hyundai Group and would reorganize the corporation

into many specialized, independently run companies. In 1995, his second-eldest

son, Chung Mong Koo, was named chairman of the group while Chung remained

honorary chairman.

In auto and personal-computer sales, Hyundai companies moved aggressively. In

mid-1992, Hyundai's new Motor America president, Dal Ok Chung, took over in

the Fountain Valley, California, headquarters. Among other marketing devices,

Hyundai offered generous rebates and free two-year service warranties that

covered even windshield wiper blades. By early 1993, Hyundai was offering the

first auto engine it had designed and made itself, as opposed to the Japanese-made

Mitsubishi engines that were used in its earlier models. More than ever committed

to the smaller vehicle, Hyundai was selling autos in more than 100 countries.

In personal computers, Hyundai in mid-1992 took a drastic step when it moved its

entire electronics operation to the United States, the world's largest computer

market. Hyundai Information Systems had already entered the direct personal-

computer market, cutting prices and offering toll-free telephone support and sales.

The new operation, based in San Jose, California, had entirely American

leadership, headed by IBM veteran and former CompuAdd president Edward

Thomas. The California advantage was mainly proximity to the market, which

meant lessened inventory requirements. These developments showed the Hyundai

Group to have the same innovative and energetic approach that had characterized

its earlier ventures.

The Dismantling of Hyundai

The latter years of the 1990s brought with them economic turmoil for South Korea.

In order to restore the nation's financial health, President Kim Dae Jung, who took

office in 1998, launched a series of restructuring programs designed to reform the

chaebols, many of which had become heavily debt-burdened. His reforms included

changing the ownership, business, and financial structures of the region's large

conglomerates. By this time, the Hyundai Group was responsible for

approximately 20 percent of Korea's GDP. As such, its financial health was

directly related to South Korea's overall economic condition.

As a result of government pressures, Hyundai and other South Korean chaebols,

including the Daewoo Group, set plans in motion to sell off many of their

businesses in order to pay down debt and shore up profits. Hyundai's concentration

remained on autos, electronics, heavy industry, construction, and finance. Even as

the group struggled under its debt load, it strengthened its holdings with the

purchase of Kia Motors Co. Ltd. and LG Semiconductor.

Despite the government's involvement, Hyundai was slow to comply with

restructuring demands. Its questionable accounting practices often made it the

target of negative publicity. Rivalries between members of the founder's family

also led to bad press, leaving many investors anxious about the future of the group

and its member companies. Indeed, many Hyundai affiliates, including Hyundai

Engineering & Construction and Hyundai Electronics, were nearing bankruptcy as

debt continued to spiral out of control. By 2001, total group debt reached W35.87

trillion ($25.59 billion).

Hyundai Motor Co., on the other hand, was prospering as Korea's largest car

maker. The auto concern officially separated from the Hyundai Group in

September 2000, signaling the start of sweeping changes that led to the eventual

dismantling of what was once South Korea's largest conglomerate. In August 2001,

nine core Hyundai companies, including Hyundai Engineering & Construction and

Hynix Semiconductor Inc. (formerly known as Hyundai Electronics Industries),

left the chaebol. The separation cut Hyundai Group's assets to just $20.8 billion

and left it in control of 18 member companies. Hyundai continued to be pared

down the following year.

South Korea had bounced back from its economic crisis of 1997 and 1998 to

become a leading global force in the technology sector. By 2003, foreign investors

owned over a third of the shares of companies listed on Seoul's stock exchange.

During 2002, Roh Moo Hyun was elected president of South Korea. Feeling the

pressure from foreign investors, he maintained that harsh reform would continue

within South Korea's chaebols. A May 2003 Business Week article supported the

efforts of the new president, who stated that "slowly and steadily, good governance

has been asserting itself in Korea." Indeed, it appeared as though the powerful,

family-run Korean chaebols were a thing of the past. While this marked an end to

the Hyundai Group's history, it pointed to a fresh start for many companies bearing

the Hyundai name.

HYUNDAI MILESTONES

1967 Hyundai Motor company founded 1968 Licensing agreement signed with Ford 1974 “Pony”- Korea’s first independently designed and manufactured model 1976 First Pony exported to Ecuador

1985 “ Excel” launched 1986 Entered US market with “ Excel” 1988 “Sonata” launched 1991 Developed first proprietary engine 4- cylinder Alpha 1996 Cumulative exports surpass 4 million units, Cumulative production

surpass 10 million units. 1998 “Grandeur XG” launched, Grand opening of Chennai plant in India,

Acquired Kia Motors Corp. 2000 “ Santa Fe” launched 2010 Cumulative exports surpass 10 million units

HYUNDAI’s BRAND COMMUNICATION

Drive your way is corporate slogan which represents our pledge to become a leading Global brand. Our foremost priority is to both inspire and satisfy our customers. Therefore, the customers’ lives (“your way”) become more confident (“Drive”) and that we will always stand by the side.

BENEFITS OF A STRONG HYUNDAI BRAND

A strong brand leads not only the improvement of corporate image, but is also the source of long term profit.

HYUNDAI MOTORS INDIA LIMITED

The Start- 1996

HMIL (Hyundai Motor India Limited) was established in 1996 State of the art plant at Irrungattukottai near Chennai, constructed at a total

cost of $ 614 million. Installed capacity to make 2 lakh 50 thousand cars per annum and 1 lakh 30

thousand engine transmission units per annum. In process to increase capacity to 6 lakh units per annum by 2007

The Start- 1997

Production commences.

Localization of 70%, which is one of the highest, amongst all car manufacturers.

New Horizon 1998

The Santro was launched. Creates history by becoming one of the best selling compact cars. Hyundai becomes India’s second largest car manufacturers in six months.

New horizon 1999

The accent is launched. Santro wins Business Standard Motoring “Car of the year award”.

New horizon 2000

100000th cars roll out. Santro zip drive launched. Export of santro and Accent started. Santro and Accent bag JD Power Asia Pacific Award.

New Horizon 2001

Sonata was launched. Santro wins Business Standard Motoring “Car of the year award” again. 200000th cars roll out. 2001 “IQS” and “APEAL” honours from JD Power.

New Horizon2002

300000th cars rolls out. Accent Viva launched.

New Horizon 2003

HMIL awarded “Manufacturer of the year” by CNBC Auto Car India. HMIL declared car maker of the year at ICICI overdrive awards. 400000th cars roll out. The Santro Xing launched. The Terracan was launched.

New Horizon 2004

1500 exported to Europe under model name Atos. 500000th vehicles roll out. The Getz was launched. The Elantra was launched.

New Horizon 2005

The Tucson was launched. The Sonata Embera was launched.

New Horizon 2006

The all new Hyundai Verna was launched.

New Horizon 2010

The sonata Embera CRDi VGT was launched. Santro crosses the 10 lakh mark. Getz Prime was launched. Automatic variant of the Sonata Embers CRDi VGT launched. Santro CNG launched Fastest 15 lakh cars roll out. Hyundai i10 was launched.

Milestone-400,000 th Car Exported

Hyundai Motor India has achieved another significant milestone with the shipment of its 400,000th Atos Prime to its overseas markets in New Delhi on august 6, 2007.

In October 2006 it exported its 300,000th car. The milestone achievement of exporting the next one lakh car in less than a year makes Hyundai’s 400,000 th

overseas sale the fastest export shipment in the industry.

Currently, Hyundai Motor India is exporting Santro, Getz and the Accent model to around 67 countries across Europe, Africa, Latin America and Middle East.The Hyundai logo, a slanted, stylized µH¶, symbolizes the company shaking hands with its customer.Hyundai translates from the word ³modernity´, and is pronounced

as ³Hyon-dae´ in Korean.Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. Hyundai MotorCompany was later established in 1967. The company¶s first model, the Cortina, was released incooperation with Ford Motor Company in 1968. In 1975, Pony, the first Korean car, was released, withstyling by Giorgio Giugiaro of ItalDesign and powertrain technology provided by Japan¶s Mitsubishi Motors.Exports began in the following year to Ecuador and soon thereafter to the Benelux countries. In 1991, the company succeeded in developing its first proprietary gasoline engine, the four-cylinder Alpha, and transmission, thus paving the way for technological independence. In 1983, Hyundai exported the Pony to Canada, but not to the United States because the Pony didn’t¶t passemissions standards there. Canadian sales greatly exceeded expectations, and it was at one point the top-selling car on the Canadian market. The Pony afforded a much higher degree of quality and refinement in the lowest price auto segment than the Eastern-bloc imports of the period then available. In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as ³Best Product#10 by Fortune magazine, largely because of its affordability. 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 Irrungattu kotai near Chennai, India. In 1998, and Hyundai began to overhaul its image in an attempt to establish itself as a world-class brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung Mong Koo, in 1999. Hyundai’ s parent company, Hyundai Motor Group, invested heavily in the quality, design, manufacturing, 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.South Korea's leading carmaker, Hyundai Motor produces compact and luxury cars, SUVs, and mini vans, as well as trucks, buses, and other commercial vehicles. The company re-established itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 34%). Selling cars in the US since 1986, Hyundai started selling its heavy trucks stateside in1998. Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equips. Through its Hyundai WIA subsidiary, it also manufactures machine tools for metalworking applications, such as horizontal machining, turning, and vertical machining. In 2004, Hyundai was ranked second in ³initial quality´ in a survey/study by J.D. Power and Associates. Hyundai is now one of the top 100 most valuable brands worldwide. Since 2002, Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India.

HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes theSantro,i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes Sonata 

 

    

Products of Hyundai motors

1. Hyundai Accent (Launched 1999)2. Hyundai Santro Xing (Launched 2003)3. Hyundai i10 (Launched 2007)4. Hyundai i20 (Launched 2008)5. Hyundai Sonata Transform (Launched 2009)6. Hyundai Verna Transform (Launched 2010)7. Hyundai Santa Fe (Launched 2010)

Comparative study of Hyundai and Maruti Products

General Features

Hyundai Santro

Xing GLS

Maruti Suzuki

Wagon R LX

Price (Ex-

Showroom

Mumbai)

Rs. 3,68,889 Rs. 3,24,769

FeaturesHyundai Santro

Xing GLS

Maruti Suzuki Wagon

R LX

Air Conditioner

Power Windows

Power Steering

Anti-Lock

Braking System

Leather Seats

CD   Player

Specs

Overall Length

(mm)3565 3520

Overall Width 1525 1475

(mm)

Overall Height

(mm)1590 1660

Kerb Weight

(kg)854 825

Mileage Overall 17.6 13

Seating Capacity

(person)5 5

No of Doors 5 5

Displacement

(cc)1086 1061

Power

(PS@rpm)63@5500 64@6200

Torque( Nm@rp

m)89@3000 84@3500

Transmission

TypeManual Manual

Gears 5 5

Minimum

Turning Radius

(meter)

4.4 4.6

Tyres 155/70 R13 155/80 R13

Wheel Base

(mm)2380 2360

Ground

Clearance (mm)165 165

Front Track

(mm)1315 1295

Rear Track(mm) 1300 1290

Front Legroom

(mm)1080 985

Rear Legroom

(mm)800 890

Boot Space

(liter)218

Gross Vehicle

Weight (kg)1250

Mileage

Highway

(km/liter)

20.1 17

Mileage City

(km/liter)16.8 12

Mileage Overall

(km/liter)17.6 13

Capacities

Seating Capacity

(person)5 5

Fuel Tank 35 35

Capacity (liter)

No of Doors 5 5

Performance

Maximum Speed

(kmph)141 145

0-100kmph

(seconds)16.9 17.4

1/4 Mile

(seconds)20.6 21.2

100kmph-0

Braking (meters)72.3

80kmph-0

Braking (meters)55.2

Engine

Engine

Type/Model

Hyundai Epsilon

EngineFC Engine

Displacement

(cc)1086 1061

Valve

MechanismSOHC DOHC

Bore (mm) 66 68.5

Stroke (mm) 77 72

Compression

Ratio8.9 9

No of Cylinders

(cylinder)4 4

Cylinder

ConfigurationInline Inline

Valves per

Cylender (valve)3 4

Ignition Type

Distributorless

Ignition System

(DLI)

Block Head

MaterialAluminium

Fuel Type Petrol Petrol

Fuel System MPFI MPFI

Transmission

Transmission

TypeManual Manual

Gears 5 5

Clutch TypeStick gear shifting

& Frequent clutch

Final Reduction

Gear Ratio

Suspensions

Front

Suspension

McPherson Sturt

with Stabilizer bar

McPherson Sturt with

torsion type roll

control device

Rear Suspension

Torsional Beam

Axle, 3 Link offset

coil spring

Coil spring, gas filled

shock absorber with 3

link rigid axle and

isolated trailing arms

Steering

Steering TypeRack & Pinion with

Power AssistNon-power steering

Power Assisted Standard N/A

Minimum

Turning Radius

(meter)

4.4 4.6

Brakes

Brake Type ABS 8” booster- assisted

Front Brakes Ventilated Disc Discs

Rear Brakes Drum brake Drum

Wheels and Tyres

Wheel Type Tubeless tyres Steel

Wheel Size 13 inch 13 inch

Tyres 155/70 R 13 155/80 R13

Comfort: A/C with Ozone-

friendly R134a gas

Heater 4 Speed Blower

Fan Remote fuel lid

opener Remote tail gate

release Clutch foot rest Power steering Internally

adjustable ORVMs

Front power windows

Low fuel warning

Exterior

Clear headlamps

Twin clear rear combination lamps

Driver & passenger ORVM

All around tinted glass

Body coloured bumper

Detachable black bumper moduling

Waistline modeling

Chrome radiator grille

New body colour

Body colour coordinated seat fabric

Comfort: Air conditioner

with heater Full flat front

seat Remote fuel lid

opener

Exterior Clear

headlamps & tail lamps

Tinted glass Outside rear

view mirror (R & L)

Wheel hub cap Front wiper (2

speed + intermittent)

Radial tyres

Interior Plush

Upholstery Front ash tray Front and rear

door pocket Cup holder Moulded roof

lining Front seat head

rests Reclining and

sliding front

Body colour radiator grille

Rear spoiler Full wheel

cover

Interior 3-spoke steering

wheel A, B & C pillar

trims Rear speaker

grill Ash tray Room lamp Floor console

(deluxe) Front door map

pocket Front door full

size arm rest Door trim with

fabric insert Anti-submarine

front seats Rear seat double

folding Rear seat head

restraints (integrated)

2 tone beige & brown interior key colour

Rear parcel tray Silver finish

centre console & AC vents

Door trim with fabric insert

Beige & brown seat Upholstery.

Safety

Dual member side protection beams

Engine sub-

seats Luggage

compartment carpet

Door trim fabric

Front door arm rest

Cabin lamp (3-positions)

Lower console box

Assist grip (3 nos.)

Front seat back pocket (driver side)

Equipments Electronic

multi trip meter

Safety Side-impact

beam Collapsible

steering column

8” booster- assisted brakes

Child proof rear door locks

Halogen head lamps

Front and rear seat belts

Ability to diagnose breakdown

High mount stop lamp

Head lamp leveling device

frame Energy

absorbing steering column

Cross bar under dash panel

Child safety rear door locks

Front & rear seat belts

High mounted stop lamp (HMSL)

Dual horns Day and night

inside rear view mirror

Central door locking

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research objective. It may be understood as a science of studying how research is done scientifically.

In it we study the various steps that are generally adopted by researcher in studying his research objective along with logic behind it. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology. Researcher not only need to know how to apply particular research technique, but also need to know which of these methods or techniques are relevant and which are

not and what would they mean and indicate and why. All this means that it is necessary for the researcher to design his methodology for his objective under study as the same may differ objective to objective.

Thus when we talk of research methodology we not only talk of the research method but also consider the logic behind the methods we use in the context of a research study and explain why we are using a particular method or techniques and so that research results are capable of being evaluated.

OBJECTIVE OF THE STUDY

To get overview of sales scenario of the Indian car industry

To know how much customers are satisfied with the services provided to them by Hyundai and Maruti Bareilly.

To give suggestions for improvements on the points where they are lacking on the basis of feedback from the customer.

These objectives were achieved by following a well thought out plan and defining the problem for each objective separately.

SOURCES OF DATA COLLECTION

Data collection methods are credible with validated surveys and/or other

methods are clearly described such as observational strategies, the data or

information is current. The data collection is focused on a limited sample of

population and has minimal application in terms of generalizing the findings.

Primary data: It refers to direct communication with the people

through surveys, interviews etc

Secondary Data: It refers to data which have been collected and

analyzed by someone else. It consists of internet and books etc.

Secondary data has also been collected through the Hyundai Sales

training handout.

Literature review

‘‘A sales promotion strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage’’.David promotion Strategic Management

Your sales promotion strategy of reliance communication is the way you make sure you’re getting the maximum impact from your limited marketing budget and time.

The picture on the right is the simplest way to think about it, starting at the bottom:

Start with your business goals: these are the highest-level objectives of the business, or mission statement.

Next comes the sales promotion strategy: the high-level rules that will govern what marketing efforts you focus on.

After you’ve defined your sales promotion strategy, you will define the marketing mix: plans for Product, Pricing, Place (Distribution), and Promotion.

Then the final step is writing a marketing plan, which will describe the specific, detailed marketing activities that you plan on engaging in to achieve the sales promotion strategies and business goals.

Your first step in developing a sales promotion strategy that drives significant business results is to make sure you fully understand your market by doing some research: market size and growth, competitors, complementary, and customers.

Sales promotion strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

\

TYPES OF STRATEGIES BAKER, MICHAEL THE STRATEGIC OF SALES PROMOTIONEvery promotion strategy is unique, but can be reduced into a generic sales promotion strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below:

* Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies:o Leadero Challengero Follower

* Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage.o Cost leadershipo Product differentiationo Market segmentation* Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:o Pioneerso Close followerso Late followers* Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:o Horizontal integrationo Vertical integrationo Diversificationo Intensification

A more detailed scheme uses the categories:

* Prospector* Analyzer* Defender* Reactor

DATA ANALYSIS

HYUNDAI SANTRO

Sales in 2010

1st Half2nd Half

MARUTI SUZUKI WAGON-R

Sales in 2010

1ST Half2nd Half

SALES ANALYSIS OF SANTRO & WAGON-R

Sales

SANTROWAGON-R

LIMITATIONS

Although both companies provide better features in small car segments but some features should be improved according to the feedbacks of current customers. Indian customers are having mindset of fuel efficiency of their vehicle; if they work on it then they can improve their sales figures. Recently Tata motors has launched Indica Ev2 having mileage of 25 Kmpl keeping in mind of their Indian market.

QUESTIONNAIRE

Please fill out the following survey, answering the questions as accurately as possible.

PERSONAL DETAILS:-

Name: ------------------------------------------------------------------------

Occupation: -------------------------------------------------------------

Contact No. : -----------------------------------------------------------

1. What age group are you in? 18-25 36-45 26-35 Above 45

2. What category of income do you fit into? Below Rs.50,000 Rs.1,00,000-Rs.2,50,000 Rs.50,000-Rs.1,00,000 Above Rs.2,50,000.

3. Which kind or segment of Car do you have? Premium / Performance Segment Utility / Medium Segment Entry / Economy Segment

4. Which company’s Car do you have? Maruti Hyundai Honda Others

5. Which brand will u prefer? Hyundai santro Maruti wagon-R

6. Which factor would you consider the most while buying a Car? Fuel Efficiency Look & Style Image & Brand Maintenance Resale Value Availability of the product

7. Loyality towards your brand? satisfied excellent

8. Which facilities would you expect while buying? Low Price After Sale’s Service

Incentives Others _______________

9. Which mode of payment would you prefer while buying a Car? Lump-sum Installment

10. Do you get the spare-parts of your Car easily from the market? Yes No

11. Are you Brand Loyal? Yes No

12. Would you like to buy more premium Car in future? Yes No

13. Does Celebrity Endorsement of a Car gives it more appeal?1 2 3 4 5

Strongly Agree Agree Don’t Know Disagree Strongly Disagree

14. Are you satisfy with the after sales service by dealer?

Yes No

Thank you for your time.

RECOMMENDATIONS

Reception is the first point where customer will get the first impression about Hyundai showroom and there need to be some improvements at reception as customers are not properly attended over there.

Maruti showroom at Bareilly should arrange more space for display

Customers are not satisfied with the after sales services so there should be some improvements in order to engage more customers.

By improving their rest of the services they can convert their unsatisfied customers into satisfied customers.

BIBLIOGRAPHY

Hyundai Sales Training Handout www. Google.com Www. Indianautomobileindustry.com www. Hyundai.co.in www.maruti.co.in