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New Delhi, April 1 (IANS) Maruti Suzuki India Ltd has created a new record by selling 764,942 vehicles

in 2007-08,
the highest ever in its history, marking a 13.3 percent growth over the previous year. However, the entry level
Maruti-800, the popular people’s car, recorded a dip of 12.2 percent in its sales over 2006-2007, according to a
company statement Tuesday

The latest baby to roll out of the Maruti stable, Dzire, launched March 26, sold 5,658 units within just six days.

Alto, the model currently popular among the middle-class, continued to be the country’s top selling car, notching
sales of 227,173 units last year. This is the second consecutive year that Alto sales have crossed the 200,000 mark.

The total Maruti sales figure of 764,942 includes export of 53,024 vehicles, again the highest since it started
production in 1983 and marked a growth of 34.90 percent in its exports.

Buoyed by these developments and terming last year as “the best ever for the company so far”, Maruti said it has
strengthened its leadership in the A2 segment with Alto, Zen, WagonR, Swift models while attaining leadership in
the A3 segment with Baleno, Dzire, Esteem, SX4.

In the upper-end A3 segment, Maruti sold 49,335 units, a 66.10 percent growth as compared to the previous year.

During the last year, the company launched SX4 (May 2007), Grand Vitara (July 2007) and Dzire, making it seven
new models in three years. It also unveiled the Concept A-Star model, created by an in-house team of designers
from Maruti and Suzuki Motor Corporation, at the World Auto Expo in New Delhi earlier this year.

Keen to pursue its ambitious export plans, Maruti has tied up with the Adani Group for a mega car terminal at the
Mundra Port, which will be operational by 2008-end.

Abstract:
The case discusses the marketing strategies of Korea based
Hyundai Motor Company (HMC) in India. HMC entered
India by establishing its wholly owned subsidiary Hyundai
Motors India Limited (HMIL) in 1996. Within a year of
launch of its first product - Santro, HMIL had emerged as
the second largest car company in India.

The case describes in detail the entry, product, pricing,


distribution and promotional strategies of HMIL. The case
briefs the challenges faced by the company and its
marketing plans in future. It also includes a note on the
Indian passenger car industry, the leading player and its
marketing strategy.

Issues:
• Understand the competitive landscape in the Indian passenger car industry and study the marketing strategies of
leading players.

• Study the entry strategies of global car manufacturers in India.


• Examine and analyze the marketing mix of Hyundai Motors in the Indian passenger car industry.

• Compare and contrast the marketing strategy of Hyundai with other leading players in the Indian passenger car
industry

Contents:
Page No.
The Price Cut 1
Background Note 2
Hyundai's Entry in India 2
Marketing Santro 4
Launch of Accent 5
Repositioning Santro 6
Status in 2004 7
The Challenges Ahead 8
Exhibits 10

Keywords:
Case, Hyundai Motors, Indian Passenger Car Industry, Foreign Car Manufacturers in India, Marketing Small Cars
in India, Marketing Mix, Positioning, Customer Value, Pricing, Distribution, Advertising Campaign, Santro

I believe that the primary reason for HMIL's success is that we never allowed ourselves to be complacent. We were
continuously innovating at the marketplace, taking ourselves head on the competition."1

- YS Kim, former Managing Director, Hyundai Motors India Limited in 2002.

"As long as Hyundai keeps giving the Indian customer fresh new products at competitive prices and builds
excitement around them like they have successfully done, they can sustain their good run so far."2

- Vinay Kamath, Journalist with Businessline in 2002.

The Price Cut


In August 2004, a leading business newspaper reported that
Hyundai Motors India Limited (HMIL), an Indian
subsidiary of the South Korea- based Hyundai Motors
Company (HMC)3 was expected to reduce the price of its
flagship car - Santro - by as much as Rs 40,000. Industry
experts were expecting a reduction in Santro's price in
response to the price war being waged by the market leader
in India - Maruti Udyog Limited (MUL),4 which had
reduced the price of its largest selling car in the B segment -
Alto - by Rs 58,000 in two price cuts starting from
September 2003. This move had resulted in Alto replacing
Santro as the largest selling car in the B segment in the
period January to June 2004 (Refer Exhibit I for the market
segmentation of the Indian car industry).

Rebutting the report on price cuts, HMIL's managing director, BVR Subbu (Subbu) said, "We are not cutting prices
on the Santro. We have allowed our competitors the prerogative of cutting prices."5 Several dealers of HMIL also
felt that the company would not reduce Santro's price as it had not adopted such tactics earlier.

Santro had been the most successful product of HMIL and


was also the largest selling car in the B segment till the
fiscal year 2003-04.

Introduced in late 1998, Santro had emerged as the second


largest selling car in India after MUL's M800 and had
retained its position till March 2004 (Refer Exhibit II for the
total units and value sales of the top eleven car models in
India).

In mid 2004, HMIL with its four models, Santro, Accent,


Sonata and Elantra, was the second largest car company in
India with 19% market share in the industry. The company
was planning to launch another model, 'Getz', in September
2004.

The Price Cut Contd...


Analysts attributed HMIL's success to its ability to launch
technologically superior products and its innovative
marketing strategies.

However, they expressed concerns that the company relied


heavily on Santro and any fall in demand for that model
would hit the company.

It was felt that the introduction of new cars by the


competitors and upgrading & price reduction of existing
cars in the B segment would affect Santro's sales.

This would lead to a loss in Santro's market share. (Refer


Exhibit III for the comparison of features of various models
in the B segment).

Background Note
For a long time after India became independent in 1947, the car market had just two models to offer
- the sturdy 'Ambassador' from Hindustan Motors (HM) and the sleek 'Fiat' from Premier Automobiles
(PA). This was the result of Government of India's (GOI) decision to keep the car industry tightly
protected.
For HM and PA, the GOI dictated as to what type of vehicle
the two companies should manufacture. No other domestic
or foreign car manufacturer was allowed to enter the Indian
car industry.

The restriction on foreign collaboration led to poor


technological improvements in Indian cars. As a result, car
prices remained high while quality was inferior.

This affected the growth of the industry. The demand for


cars in 1960 was 15,714 units and in the next two decades,
this rose to 30,989 units, which meant that the Compound
Annual Growth Rate (AGR) was just 3.5 per cent.

In the 1980s, the GOI felt the need to introduce an affordable small car, targeting the Indian middle class. As
manufacturing a small and affordable car required better technology than was available indigenously, the
government tied up with the noted Japanese company, Suzuki. The government formed a joint venture with Suzuki
and founded Maruti Udyog Limited (MUL). It held 74% and Suzuki got 26% equity stake in MUL. In 1983, MUL
launched the ‘Maruti 800', priced at Rs 40,000...

Hyundai's Entry in India


One of the major players that entered the Indian car market was HMC through its subsidiary HMIL. Before making
its move, the company closely studied the industry for a year. The company's officials talked to vendors, dealers and
customers to get a thorough knowledge of the industry...

Marketing Santro
Santro received an encouraging feedback from customers
who appreciated its unique design that gave more headroom
and facilitated easy entry and exit...

Launch of Accent
By mid 1999, the major players realized that the 'B' segment
would be the fastest growing in the car industry. To cash in,
Telco re-launched its 'Indica' by introducing several new
features and solving the glitches in the original model...

Repositioning Santro
By late 2002, the competition in the B segment had increased significantly. MUL's Alto which was
launched in October 2000 had received a good response. Although HMIL's Santro remained the
largest selling car in the B segment, MUL commanded the largest market share in this segment due
to the combined sale of its three cars - Zen, Wagon R and Alto...

Status in 2004
The financial year 2003-04 ended on a positive note for
HMIL. The company achieved revenues of Rs 50 bn and
profit after tax (PAT) of Rs. 1.90 bn in the financial year
2003-04 compared to Rs 43 bn revenues and PAT of Rs 1.65
bn in the fiscal 2002-03...

The Challenges Ahead


During the period January to June 2004, Santro lost its
leadership status in the B segment...

There was little to celebrate in the March report for domestic auto sales -- despite the fact that March sales were up
industrywide 25 percent from February's figures.

Compared with sales in March 2008, however, sales last month were down 45 percent at General Motors Corp., 41
percent at Ford Motor Co. and 39 percent at Chrysler LLC from a year ago. In fact, no manufacturer reported a
sales increase for the month.

So Hyundai Motor Co.'s 4.8 percent drop in sales stood out from a crowd largely reporting double-digit declines.

"We are satisfied with our overall performance in this difficult business climate," said Dave Zuchowski, Hyundai
Motor America vice president of national sales. "The fact that we experienced only a nominal decline from an all-
time March sales record in 2008 is acceptable to us. Even with continued economic stress and industry uncertainty,
this performance is a clear indication that the Hyundai brand is sustaining its momentum and expanding its
relevance."

How is Hyundai keeping from being swept away in the recession? By sticking to its formula: Offer more value than
your competitors at a lower price.

But perhaps most importantly, Hyundai understood consumers' concerns and was the first automaker to offer them a
break if they lost their jobs. GM and Ford have since followed suit.

"Obviously, the Hyundai story is likely to be a case study for future business schools. It's the turnaround story, a
company that had struggled in this marketplace, pulled out and essentially redefined (itself)," said Jeff Schultz,
executive director of forecasting for J.D. Power and Associates. "If you look at what they have been able to do as
part of a rebirth in a relatively short period of time, it's quite a story."

The Santa Fe, introduced for the 2001 model year, was a watershed product at the time, making Hyundai a player in
the U.S. market, analysts say.

Then, in 2006, Hyundai unveiled a completely new Sonata in the important family car segment. Its styling and
quality made it a strong competitor to the Toyota Camry and Honda Accord.

That was followed by other noteworthy models, such as the redesigned Santa Fe, the Accent and the Genesis.
But what really put Hyundai on the map was its 100,000-mile, 10-year, limited powertrain warranty and 60,000
bumper-to-bumper warranty, Schultz said.

"When we offered those warranties, we knew we would have to have great quality or we could have gone out of
business from the warranty claims from a financial standpoint," Hyundai Motor America CEO John Krafcik said.

He said Hyundai researchers ripped apart the best cars in the world, "seeing what they did right and wrong, and in
every case, designing the best possible system at a reasonable price that people could afford."

More recently, Hyundai introduced the AssurancePlus program, in which jittery customers concerned about losing
their job could feel better about buying a new Hyundai because if they lost their job during the year, the company
would take the car back without affecting a customer's credit ratings. The only exceptions are if there is excessive
mileage or if there is damage or abuse to the car.

CAR SALES in India is witnessing a dip and the reason is rising inflation. The competition to position strongly in
the Indian car market segment is getting very tough.

During this period of high inflation, Indian auto leader, Maruti Suzuki Motors is amending its marketing strategies.
The company is turning to 15-20-year-old cars to drive new car sales.
The company is working out many plans to increase the car sales and has tied up with different car dealers across
the country. And as a part of the strategy, the car dealers have been asked to dispose old cars that they get in
exchange of new cars.

The company is also providing an exchange discount of about Rs 40,000.

The old car will be placed for occasion to scrap car dealers. The company feels that this bidding of old cars will
benefit their pre-owned car business popularly known as True Value.

The exchange offer has churned out positive results in Maruti car sales. The sales figure revealed a hike of 12 per
cent to 20 per cent, resulting in promotion of entry level car models like Alto.

Maruti is now completely relaying on the ‘old for new exchange’ scheme for the sales. May be we would soon see
other car makers joining the race.
Report based on research done by students

Comments by people:

Santro Xing XS full option car is with me since four years crossed around 27000kms, other than
regular service with the company service center in chennai, no money spend on maintenance

By rameshan

I own it since last one year. Have no problems with it. milage 10-12 with AC in city conditions. got
15-16 on Vijayawada Highway with AC. Hence, I do not find any reason not to recommend it to
anyone

By qadeerabdul

Introduction
Hyundai refers to a group of companies and related organizations founded by Chung Ju-yung in South Korea. The
first Hyundai company was founded in 1947 as a construction company, and the Hyundai Group eventually became
South Korea's largest conglomerate company.

The best well-known Hyundai organization is the Hyundai Motor Company, the world's 5th largest automaker
selling mid-sized sedans, coupes, SUVs and large vans like the Sonata, Genesis, Genesis Coupe, Santa Fe, and
the Grand Starex (Starex or H-1). Hyundai Heavy Industries is the world's largest shipbuilder, and Hynix is a top
semiconductor producer. Other companies currently or formerly controlled by members of Chung's extended family
may be loosely referred to as a part of the Hyundai chaebol.

The Hyundai Group underwent massive restructuring following the 1997 East Asian financial crisis and the
founder's death in 2001. Today, many companies bearing the Hyundai name are legally unrelated, with each
company having a different chairman. Former components include Hyundai Group, Hyundai Kia Automotive
Group, Hyundai Department Store Group, Hyundai Heavy Industries Group, and Hyundai Development Group.
After the separation, Hyundai Group focuses on elevators, container services, and tourism to Mount Kumgang.

Starting
The Hyundai Motor Company, a division of the Hyundai Kia Automotive Group, is the world’s fifth
largest automaker in terms of units sold per year.[2] Headquartered in Seoul, South Korea, Hyundai
operates the world’s largest integrated automobile manufacturing facility in Ulsan, which is capable
of producing 1.6 million units annually. The Hyundai logo, a slanted, stylized 'H', is said to be
symbolic of two people (the company and customer) shaking hands. Hyundai means "modernity" in
Korean.

History
Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. Hyundai Motor Company
was later established in 1967. The company’s first model, the Cortina, was released in cooperation with Ford Motor
Company in 1968. In 1975, the Pony, the first Korean car, was released, with styling 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 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as "Best 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 Irrungattukatoi near Chennai,
India.[3]

In 1998, 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.[4] 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.

In 2004, Hyundai was ranked second in "initial 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.

In 2006, the South Korean government initiated an investigation of Chung Mong Koo's practices as head of
Hyundai, suspecting him of corruption. On April 28, 2006, Chung was arrested, and charged for embezzlement of
100 billion won (US$106 million), [5] with Hyundai Vice Chairman and CEO, Kim Dong-jin, taking over as head of
the company.
A relative newcomer to the American marketplace, Hyundai is a Korean automaker with a product line that has
improved considerably over the past few years. Hyundai cars and SUVs provide a high level of content for an
affordable price, and are currently backed by one of the industry's longest warranties.

In 1947, Chung Ju Yung founded the Hyundai Civil Engineering Company. Mere months later, the outfit was
bombed in the Korean War. However, the company regained its footing to distinguish itself as one of Korea's
leading construction enterprises during the 1950s.

By the late 1960s, Chung had turned his attention to the automobile industry. The Korean government at that time
believed that it made more sense to import vehicles than produce them domestically, and had made its opinion
known. Still, Chung opted to follow his own convictions, and in 1967, he founded the Hyundai Motor Company.

The company quickly established an alliance with one of the industry's oldest automakers, signing a two-year
contract with Ford in 1968 to share assembly technology. Hyundai's first car, the Cortina, was created from that
partnership. The manufacturer's first car to be built and designed in Korea was the compact Pony (although the car
was based on Japanese technology courtesy of Mitsubishi). The vehicle made its debut in 1974, and the following
year, Hyundai began exporting it to overseas markets.

Hyundai entered the U.S. market in 1986 with the introduction of its subcompact Excel. The car was an immediate
hit, with its supreme affordability being a primary selling point; more than 100,000 Excels were sold stateside in the
first seven months. By 1988, Hyundai had begun to produce cars using its own technology. The midsize Sonata was
the first fruit borne of this endeavor.

Unfortunately, Hyundai's nascent image was soon tarnished by the poor durability and reliability of its vehicles.
Sales tanked. However, rather than abandon the American market in the '90s, Hyundai chose to invest heavily in
new product designs and improvements in overall quality and reliability.

The decision started to pay off by the start of the new millennium as the quality, performance and overall
desirability of Hyundai cars increased sharply. The company has also smoothed over any lingering doubts about
quality by enacting an extraordinarily long warranty period. Though Hyundai's product lineup is smaller than those
of most other manufacturers, it gains economies of scale through Kia, another Korean auto brand, which it
purchased in 1998. These days, Hyundai is known for producing vehicles that offer great value at low prices.

Models
• Accent
• Atos/Santro
• Azera
• Dynasty
• Elantra
• Equus/Centennial (joint project of Hyundai and Mitsubishi)[40]
• Genesis
• Genesis Coupe
• Click/Getz
• Grandeur (joint project of Hyundai and Mitsubishi)
• Grandeur XG/XG300/XG350
• Grandeur/Azera
• Matrix/Lavita
• Santamo (Rebadged Mitsubishi Chariot) (Originally produced by Hyundai Precision Industry)
• Sonata/i40
• Tiburon/Coupé/Tuscani
• i30
• i20
• i10

SUVs and vans

• Entourage (Similar to the Kia Sedona)


• Galloper (Rebadged Mitsubishi Pajero) (Originally produced by Hyundai Precision Industry)
• Grace (1st generation was a rebadged Mitsubishi Delica)
• H-1/Satellite/Starex/Libero/H-200
• Hyundai H-1/iMax/i800
• Hyundai H-100 Grace / Porter
• HD1000 (Minibus/Porter)
• Porter (1st generation was a rebadged Mitsubishi Delica)
• Santa Fe
• Starex
• Terracan
• Trajet
• Tucson
• Veracruz

Commercial vehicles

• Ford D Series
• Ford DK Series
• Ford R Series
• O303 Benz Bus
• HM 1620 urban bus
• HM 1630 suburban bus
• Hyundai 4.5 to 5-ton truck (Rebadged Mitsubishi Fuso Fighter)
• Hyundai 8 to 25-ton truck (Rebadged Mitsubishi Fuso Super Great)
• Aero (Rebadged Mitsubishi Fuso Aero Bus)
• Aero City
• Aero Town (e-Aero Town)
• Hyundai DQ-7
• Bison & 3ton Truck
• Chorus
• County (e-County)
• e-Mighty
• Hyundai FB
• HD160
• HD170
• Mega Truck
• New Power Truck
• Mighty (Rebadged Mitsubishi Fuso Canter)
• Mighty II
• Hyundai RB
• Super Truck Medium
• Super Truck
• Trago
• Universe

Latest News
Hyundai enters taxi segment in Mumbai

Bestselling car:

Santro

First car of Hyundai

Cortina

Latest car I20 review


Hyundai i10 is doing great after its debut in India, now Hyundai India is coming up with another small car called
"Hyundai i20". Hyundai i10 targets A segment customer, all new Hyundai i20 will target B or B+ segment
customers. Hyundai i20 has been developer under codename "PB" which will replace current Hyundai Getz
globally but not in india. Hyundai i20 will positioned above Hyundai Getz.

Hyundai i20 had been designed especially to meet the european cunsumers. Since Hyundai India is shifting its
small car plant from Korea to India, Hyundai India will offer all new Hyundai i20 as a bonus to the Indian
Customers. Hyundai India already introduced Hyundai Santro which is known as Hyundai Atos globally followed
by i10 and Getz. All new Hyundai i20 will line up the series soon. 30% of the Hyundai production will be done
from Chennai plant only by 2009.

Hyundai i20 is a hatchback which is inspired by premium hatchback Hyundai i30 which is launched in korea and
europe and doing great. Hyundai i20 front is designed with a low slung grille, good large headlamps and cool sporty
round fog lamps. The steep raked wind screen which flows smoothly and then it merges with a novel tail section.
Hyundai i20 have a upright tailgate which means more boot space for luggage too. Interiors are really of the top
notch with really high quality plastics used in it. Hyundai i20 is very much flexible seating very much similar to
Hyundai i10. Hyundai i20 will offer more space than from the spacious Hyundai Getz.

Hyundai is also developer a new small 1.1L CRDi engine. Hyundai i20 will be launched in 2008 with CRDi VGT
i.e Diesel Engine and DOHC Petrol Refined Engine in India along with specifications, reviews, price and features.

Features Maruti Suzuki Swift VXi Hyundai Getz GLS

Air Conditioner yes yes

Power Windows yes yes

Power Steering yes yes


Anti-Lock Braking System Optional no

Air-Bags (Driver | Passenger) | no | no

Leather Seats yes yes

CD Player yes yes

Specs Maruti Suzuki Swift VXi Hyundai Getz GLS

Overall Length (mm) 3695 3810

Overall Width (mm) 1690 1665

Overall Height (mm) 1530 1515

Kerb Weight (kg) 1000 1095

Mileage Overall 12.4 11.6

Seating Capacity 5 5

No of Doors 5 5

Displacement (cc) 1298 1341

Power (PS@rpm) 87@6000 83@5500

Torque ( Nm@rpm) 113@4500 115@3200

Transmission Type Manual Manual

Gears 5 5

Minimum Turning Radius (meter) 4.7 5 Tyres 165/80 R14 / 185/70 R14 (tubeless) 175/70 R13

A car that I for one believed would simply bomb at the box office, but a car that has in its various forms made sense
to so many small car buyers and captured the imagination of so many others. A Korean beauty that pioneered the
Tall boy era in India. Although we had driven the santro many a times on pleasure trips, we hadn't yet done a
complete test that could be used for a review and thus the delay. Nonetheless, we wish not to leave any stone
unturned and what follows aims at penetrating from the silhouette lines of the exterior all the way to the very
core of this little car.

Design and interiors

The Santro that was originally launched got many make overs, mostly the kind we see on the New
maruti wagon R; just few shinier bits here and there(I'm referring to the older 1.1liter model of
click to enlarge course) but, the Santro Xing is an all new car. The makeover gave the car a very suave and
upmarket look. Although I personally continue to believe the designer seemed to lose interest as far
as the rear end of the car goes, as it looks like the car was originally bigger and got a bit chopped off. Save for that
little anomaly, Xing impresses everywhere with light changes in the curvature, small bolstering here and there and
so on which do give make the car look and feel well thought out. Though the headlamps are bright and provide
excellent illumination, the tail lamps almost seem like they are going to outdo the ones in front. One was reminded
of the palace of Mysore when a fully loaded santro owner stepped on the brake pedal! All in all, the exterior is not
just nice, it appeals to a wider audience when compared to slightly more eccentric designs the competition offers.

The interiors of the santro are what I would call a real mixed bag. There are far too many pluses as well as minuses.
For starters, the santro has very high quality plastics used in the dashboard and although these plastics will age a bit
fast, they will definitely not be prone to rattles in the course of time. The texture will also not trap as much dirt.
Then there are the small niches provided in the dash, such as the one on the left bottom of the
steering wheel which is a great place to keep your cds or a shining cloth and so on. The small
holes and coin trays are also very useful. especially useful are the map pockets on the sides of the click to enlarge
door . The limited edition that we drove also has more storage compartments under the seat. These
are quite nice, but the quality of interior plastics did leave much to be desired. The interiors also do not feel as
spacious as the Wagon R and certainly no match for the Indica Xeta. This is felt most in the front 2 seats where you
will find your legs a bit cramped for comfort. The rear seats are firm and comfortable, but support could have been
more both up front and rear.

Apart from the previously mentioned underseat storage, the limited edition santro also has two tone upholstery
along with a tachometer included into the instrument console. The spoiler and the alloys are also
limited to the limited edition and not available as standard on the other models.
click to enlarge
The Santro comes standard with a 1.1 liter petrol Engine that generates 63Bhp. It has an excellent
suspension setup,rides and handles much better than other similar designs.

Hyundai being the underdogs is always the first to offer better features such as MPFI engine and
ABS. They also tend to be more aggressive and Maruti dealers have the take it or leave it attitude.

Hyundai was the first company to offer us ABS in India and CRDi engines with the Accent

Santro vs wagon r

Better Looks (as compared to Wagon-R).


More comfortable to Drive.
Better Service.
Better Pickup.
Provision for 4 speakers, Wagon-R has provision for only 2.
Perceived to be more expensive.
Air conditioning more effective hence cooling is better.
Ability to adjust the side view mirrors from inside.
Seat belts for 5 passengers, Wagon-R has only 4. Santro is also approved for 5 people and Wagon-R has got
approval for only 4 passengers. Not that anyone ever checks but still

Features provided by Hyundai


Hyundai Air Filter
Hyundai Alternator
Hyundai Axle
Hyundai Ball Joints
Hyundai Belts
Hyundai Brake Booster
Hyundai Brake Caliper
Hyundai Brake Hose
Hyundai Brake Pads
Hyundai Brake Rotors
Hyundai CV Boot
Hyundai Clutch
Hyundai Clutch Disc
Hyundai Control Arm
Hyundai Distributor Cap
Hyundai Distributor Rotor
Hyundai Engine Parts
Hyundai Fan Clutch
Hyundai Fuel Filter
Hyundai Fuel Injectors
Hyundai Fuel Pressure Regulator
Hyundai Fuel Pump
Hyundai Head Gasket
Hyundai Heater Core
Hyundai Ignition Coil
Hyundai Master Cylinder
Hyundai Oil Filter
Hyundai Oxygen Sensor
Hyundai Power Steering Pump
Hyundai Pressure Plate
Hyundai Radiator
Hyundai Radiator Fan
Hyundai Radiator Hose
Hyundai Shocks
Hyundai Spark Plug Wires
Hyundai Spark Plugs
Hyundai Starter
Hyundai Steering Rack
Hyundai Strut Mount
Hyundai Struts
Hyundai Thermostat
Hyundai Tie Rods
Hyundai Timing Belt
Hyundai Timing Chain
Hyundai Transmission Mount
Hyundai Tune Up Parts
Hyundai Valve Cover Gasket
Hyundai Water Pump
Hyundai Wheel Bearing
Hyundai Window Motor

Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched
the Indian streets for the first time. At present it holds a promising tenth position in the entire world
with being # 2 in two wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 18%
per annum and an annual production of more than 2 million units, it may not be an exaggeration to
say that this industry in the coming years will soon touch a figure of 10 million units per year.
Reasons of Growth Economic liberalization, increase in per capita income, various tax relief policies,
easy accessibility of finance, launch of new models and exciting discount offers made by dealers all
together have resulted in to a stupendous growth of India automobile industry.

Market Share Automobile industry of India can be broadly classified under passenger vehicles,
commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum
market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a
significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and
large size commercial vehicles, holding more that 60% of the market share. Motorcycles tops the
charts of two wheelers with Hero Honda being the key player. Bajaj by far is the number one
manufacturer of three wheelers in India.

Passenger vehicle section is majorly ruled by the car manufacturers capturing over 82% of the total
market share. Maruti since long has been the biggest car manufacturer and holds more that 50% of
the entire market.

Global recession has impacted, the Indian automobile industry also and can be seen clearly in the
sales figures of the last financial year. Even then this industry has high hopes in 2009-2010, as
banks have reduced loan interest rates and the major chuck of automobile customers belong to the
middle income group who are becoming economically stronger with every passing day.

We Are a bit late to cover the alto, I accept. Its been market leader for a long time now. Maruti seemed to have
finally found an answer to the long time top seller, the maruti 800. Maruti initially bought the alto out with 2 engine
options, the 800cc motor from the Maruti 800 and the 1100cc motor that is also found in the Maruti Suzuki Wagon
R. Currently, the 1.1 liter option is discontinued and the Alto has remained the market leader for the last 24 months.
Sales don't seem like they are going to slump anytime soon neither. Thats the story so far for this small little hatch
that has captured the imagination of the indian consumer. Why? lets see..

Design and Interiors

click to enlarge The Alto is one of the incarnations of the a common platform, designed with the Japanese
principles of kei-ji-dosha which strictly decide the dimensions a car must confirm to in order to be called a small
car, in japan that is. As a matter of fact, it is the elder brother of the maruti 800. At one point of time, maruti was
selling 3 versions of the maruti 800 here; the 800, alto and the Zen.

Cost cutting in the Alto has resulted in the non AC version of the Alto that has significantly lowered the cost of the
car, making it only as expensive as the Air-conditioned 800. trim levels have been vastly changed for the different
versions of the Alto, but the basic car does remain same. A very basic dashboard, with provision for the Stereo
system in a very common position(unlike the 800 in which the stereo sits way down). No clever tricks to maximise
the interior space with cubby holes and so on. The Gear lever sticks out from the lowly floor, with
a truck like rubber boot at the bottom. A rubber gear knob sits at its top making for some a spartan
grey and black combination. The controls for the Air conditioning are the new design rotary type, click to enlarge
with the sliding type controls found on the non-AC model(for the blower of course). Seats are
fabric and the quality is quite good and so are the colors and the graphics used. The doors don't have map pockets at
the side; neither is there a decent enough number of cup holders. Maruti really could provide the costumer with
more than just the bare basics at hardly any significant cost. The meter console has a big white speedometer at the
helm flanked by the fuel gauge and the temperature indicator on either side.
The alto is a very small car in terms of dimensions and this is realised as soon as one gets into the
rear seats, the room is barely enough to support four full size adults and larger people might find it
click to enlarge rather tough fitting in here. With the front seats all the way back, hardly any room is left for the rear
passengers. I happen to think that as far as space is concerned, the 800 does do bit better in comparison. I would
suggest that if you are 6 feet or taller, you look at the Indica Xeta instead. On the flipside of the lack of space here
though is that the car is very easy to drive around town.

The Alto had the typical Maruti cosmetic surgery just a while back and that has given it some fresh
looking head lamps, tail lamps, a different style bumper and a big suzuki emblem on the face. Apart
click to enlarge
from that, the rotary controls are also part of the face lift. All the effort has been to make the car
look a bit chic and also a bit bigger, I sincerely feel that maruti could really give a much bigger helping of their
expertise to their hottest selling model rather than just botox injections.

Maruti Suzuki India Limited (Hindi: मारिि सुजूकी इं ििया िििमटे ि) 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 and on 17 September 2007, Maruti Udyog was renamed
Maruti Suzuki India Limited. The company's headquarters are in Gurgaon, near Delhi.

Profile
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in
terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was 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 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial
institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983
with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India,
its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that
point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several
other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are
sold by Suzuki and manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling
over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was
launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops
the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to
this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800
model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian
car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’s
Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February
2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an
annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability
to produce over 700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation,
Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on
the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti
cars are on Indian roads since the first car was rolled out on December 14, 1983.

Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift
Dzire, SX4, Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported
from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon
Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades.
Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine
that is clean and fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country.
Nearly 75,000 people are employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in
customer satisfaction among all car makers in India for nine years in a row in annual survey by J D Power Asia
Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for
middle class India. Over the years, the product range has widened, ownership has changed hands and the customer
has evolved. What remains unchanged, then and now, is Maruti’s mission to motorise India.

Industrial Relation
For most of its history, Maruti Udyog had relatively few problems with its labour force. Its emphasis of a Japanese
work culture and the modern manufacturing process, first instituted in Japan in the 1970s, was accepted by the
workforce of the company without any difficulty. But with the change in management in 1997, when it became
predominantly government controlled for a while, and the conflict between the United Front Government and
Suzuki may have been the cause of unrest among employees. A major row broke out in September 2000 when
employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among other things, revision of the
incentive scheme offered and implementation of a pension scheme. Employees struck work for six hours in October
2000, irked over the suspension of nine employees, going on a six-hour tools-down strike at its Gurgaon plant,
demanding revision of the incentive-linked pay and threatened to fast to death if the suspended employees were not
reinstated. About this time, the NDA government, following a disinvestments policy, proposed to sell part of its
stake in Maruti in a public offering. The Staff union opposed this sell-off plan on the grounds that the company will
lose a major business advantage of being subsidised by the Government.

The standoff with the management continued to December with a proposal by the management to end the two-
month long agitation rejected with a demand for reinstatement of 92 dismissed workers, with four MUL employees
going on a fast-unto-death. In December the company's shareholders met in New Delhi in an AGM that lasted 30
minutes. At the same time around 1500 plant workers from the MUL's Gurgaon facility were agitating outside the
company's corporate office demanding commencement of production linked incentives, a better pension scheme
and other benefits. The management has refused to pass on the benefits citing increased competition and lower
margins.[11]

Services offered
Current sales of automobiles

Maruti Zen Estilo

1. Maruti 800: Launched - 1983


2. Maruti Omni: Launched - 1984
3. Maruti Gypsy: Launched - 1985
4. Maruti Alto: Launched - 2000
5. Maruti Wagon-R: Launched - 2002
6. Maruti Versa: Launched - 2003
7. Maruti Grand Vitara Launched - 2004
8. Maruti Suzuki Swift: Launched - 2005
9. Maruti Zen Estilo: Launched - 2006
10.Maruti Suzuki SX4: Launched - 2007
11.Maruti Suzuki Dzire: Launched - 2008
12.Maruti A-Star: Launched - 2008

Upcoming models in 2009

1. Suzuki Splash
2. Suzuki Kizashi

Second option
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing
demand of a personal mode of transport caused by the lack of an efficient public transport system. It was
established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to
conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A
license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which
Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management
practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small
cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%, which it exercised in
1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government
ganization managed on the lines of Japanese management practices.
Maruti created history by going into production in a record 13 months. Maruti is the highest volume car
manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is
one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01.
In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new
model launches resulted in a book loss.

COMPANY HISTORY AND BACKGROUND

The Evolution
Maruti’s history of evolution can be examined in four phases: two phases during pre-liberalization period (1983-86,
1986-1992) and two phases during post-liberalization period (1992-97, 1997-2002), followed by the full
privatization of Maruti in June 2003.

Biggest selling car for maruti:


Alto

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