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Hyundai
Motors
New Thinking, New Possibilities

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Automotive Industry in India

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Trends
Click having
to edita huge impact
Master on style
title Indian
Automotive Industry

Global Disruptive Changing face of Dynamic


Demanding mobility
Interconnected impact of regulatory
Customer infrastructure
Industry technology environment
Indian companies Increasing spend
capacity Rapid adoption of
going global Regular but
technology in Electric vehicle uncertain regulatory
vehicles, industry infrastructure
High level of product interventions
Next wave of supply chain and
awareness business models
investments from
Investments in road Increasing
global companies
Rapidly evolving and highways investments for
customer expectations Disruption through
regulatory
Shift in economic innovative products
Smart cities compliance for
power to countries and services e.g.
Increasing bargaining industry players
like India shared mobility
power of customers

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Click Hyundai
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Parent company-
Ab Hyundai Motor Company, commonly known as Hyundai Motors is a South
Korean multinational automotive manufacturer headquartered in Seoul. It was

out
founded in the year 1967. It operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea which has an annual production
capacity of 1.6 million units and falls under Hyundai Group.

Hyundai Motor India Limited-


HMIL is the second largest car manufacturer and the number one car exporter since inception in
India. It currently has nine car models across segments – SANTRO, GRAND i10, GRAND i10
NIOS, ELITE i20, AURA, XCENT, VERNA, ELANTRA, VENUE, CRETA, TUCSON and
KONA Electric. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai
boasts advanced production, quality and testing capabilities.

Research & Development-


Hyundai has six research and development centers, located in South Korea (three
offices), Germany, Japan and India. Additionally, a center in California develops designs
for the United States.
Hyundai has made an app with augmented reality, showing users how to operate and
maintain vehicles.
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Indian Car of the Year


The name Hyundai was chosen Founder, Hyundai Hyundai Motors India Sales & Service Network
for its meaning which in English Motors 2008 — Hyundai i10
Limited
translates to “modern”. 730 dealers, more than
2014 — Hyundai Grand i10
CEO & MD 1,600 service points
The slanted & stylized ‘H’ Chung Ju- Yung across India 2015 — Hyundai Elite i20
symbolizes the company shaking On December 4, 2018 Seon
hand with its customers. Seob Kim took the Operates its own dealerships 2016 — Hyundai Creta
responsibilities as Hyundai Motor Plazas in
large metros 2018 — Hyundai Verna

2020 — Hyundai Venue

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4 P’s Analysis of Hyundai Motors, India

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Product Offering
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Production
Name of Year Facelift Production
Exterior of current Generation Name of Year Facelift
car Introduced
model
(Update) Exterior of current Generation
car Introduced (Update)
model

Santro 1998 2018 2003 3rd Gen


Verna 2006 2017 3rd Gen

Grand i10 2013 2013 2017 2nd Gen


Elantra 2004 2016 2019 3rd Gen

Grand i10
2019 2019 3rd Gen
Nios
Venue 2019 2019 1st Gen

Elite i20 2008 2008 2018 2nd Gen


Kona Ev 2019 2019 1st Gen
Xcent
(Discontin
2014 2014 2017 1st Gen
ued in Creta 2014 2018 2020 2ND Gen
2020)

Aura 2020 2020 2nd Gen Tucson 2005 2017 2019 3rd Gen

Hyundai discontinued its four models, namely- Eon, Getz, Sonata, Terracan

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Hyundai car price starts at Rs 4.57 Lakh, the top line
model starts at Rs 17.60 Lakh.

Hyundai offers 12 car models in India, including 4 new car


models in SUV/MUV category, 4 in Sedan category, 4 in
Hatchback category.

Hyundai has 4 upcoming cars in India, New Elite i20,


Creta Seven-Seater, New Kona and New Elantra. 8 8
Pricing
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Uses competitive and value based pricing strategy globally

Hyundai Compact size cars Hyundai Mid range Cars Hyundai Premium range Cars
1. Grand i10, i10 Nios- 1. Verna- 1. Elantra-
Rs. 4.97 -Rs.8.04 lakhs Rs. 9.30- Rs. 15.10 lakh Rs. 15.89- Rs. 20.39 lakhs
2. Santro- 2. Aura & Xcent- 2. Kona Ev
Rs. 4.57- Rs. 6.20 lakhs Rs. 5.50- Rs. 9.23 lakh Rs. 23.71- 23.91 lakhs
3. Elite i20 & Venue- 3. Creta- 3. Tucson-
Rs. 6.50- Rs. 11.40 lakhs Rs. 9.99- Rs. 17.2 lakh Rs. 22.3- Rs. 27.30 lakhs
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Place &edit
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Regional Headquarters Manufacturing Facilities Sales & Service Network Exports

As of 2 July 2018, as part of Opened two manufacturing plants in


organizational restructuring, Hyundai Irungattukottai and Sriperumbudur HMIL has 700+ dealers and more than HMIL currently exports vehicles to over
had announced creation of three in Tamil Nadu. 1,600 service points across India. 92 countries across Africa, Middle
regional headquarters- East, Latin America, Asia and Australia.
It has been India's number one exporter
These manufacturing plant claims to HMIL also operates its own dealerships
for the last 10 years consecutively and
Hyundai Motor India have the most advanced production, known as Hyundai Motor Plazas in
has been awarded “Top Exporter of the
Hyundai Motor North America, and quality and testing capabilities in the large metros across India.
Year” by EEPC for 10 years.
Hyundai Motor Europe country. In Feb’10 HMIL achieved a record
HMIL has the second largest sales and export of 1 million units. The highest
Hyundai Motor India led by SS Kim service network in India after Maruti exported volume was 2,70,017 in year
will oversee the operations of the brand Suzuki. 2009.
in the regional market.

Role How it helped HMIL? What’s added? What’s Changed?


The regional headquarters will have Led to rolling out cars in 31 seconds Hyundai Motors launches its Platform Now, it has moved down as fourth
various divisions for planning, finance, resulting in production efficiency Click to BUY, now it’s like online car largest car exporter following Maruti
products and customer experience. increasing to 7,40,000 cars/ p.a. shopping following 6 easy steps Suzuki, Volkswagen and Nissan.

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Promotion
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Hyundai follows aggressive promotional strategy in following ways-


1. Press Releases: Latest news through local news channel
2. Advertisement: TV Commercials for new models and facelift model specially for targeted
audience, digital marketing and print ads. Chooses Celebrity brand ambassadors
3. Media Review: Opinion and reviews are the most common strategies for decision making
in targeted audience
4. Be the Better Guys: Hyundai came up with short and unique films, messages in these films
revolves around creating remarkable content, pressing onto “#BeTheBetterGuy” in an
adverse situation of road safety and behavioural change
5. CSR Campaigns

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• Spare parts of
• AI and • Growing
Hyundai vehicles
are comparatively automated criticism
priced higher
towards
driving
• Hurt image due to environmental
• Focus on technological innovation
product recalls • Growing
• Strong manufacturing capabilities and pollution
distribution network demand
• Hyundai doesn’t created by
• Global Presence globally
have any product
• Hyundai known for its quality products vehicles
match to compete
which has better performance in Corporate • New project • Currency
• Large product portfolio
orders development fluctuations
• Eco friendly • Declining

innovation Economy
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• Heavy
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• The government aims to develop India as a global


manufacturing center. Reforms like GST will • The automobile sector of India accounts for over 7.1% of India's gross
boost the sectors' growth domestic product (GDP) and employs 32 million people in year 2019-20
• Rising investment as FDI inflow in the automobile sector stood at US$ 24.21 billion
• Under the new GST regime, GST on electric between April 2000-march 2020.
vehicles is reduced from 12 percent to 5 percent • India has significant cost advantages. Auto firms save 10-25 percent on operations as
• Government has launched scheme FAME-II compare with Europe and Latin America
(Faster Adoption and Manufacturing of Hybrid • Cheaper and easier finance schemes
and Electric Vehicles) under which it will provide
the subsidy of Rs. 1.5 lakh to buyer.
• Allows automatic approval for foreign equity
investment up to 100% in the automotive sector • Since changed lifestyle of people, leads to increased purchase of automobiles, so
and does not lay down any minimum investment
automobile sector have a large customer base to serve
criteria
• Increased in population of the country ,also increasing customer base
• The government of India is promoting National • The average family size is 4, which makes it favourable to buy a four wheeler
Automotive testing and R & D infrastructure • Rise in middle class income and young population will result in strong growth
project (NATRIP) to support the growth of the
auto industry in India

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• Hyundai uses GDI (Gasoline direct injection) technology which improves


fuel efficiency and reduces carbon emissions as blue drive is the philosophy
of Hyundai
• Hyundai is using smart tech technology. For example- Smart traffic Jam
Assist , smart blind spot detection
• It has launched a facility of “click to buy” through online mode which
makes buying a brand-new Hyundai simple, quick and transparent
• Internet makes it easy to collect and analyze customer feedback
• With the development or evolution of alternate fuels , hybrid cars have
made entry into the market

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STPtoANALYSIS
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SEGMENTATION TARGETING POSITIONING

 Automobile  Luxury cars


 Young executives  Affordability
Segment
 Middle- class  Globally recognized
 Includes
 Corporate  Quality
Hatchbacks, sedans  Urban India
& SUV’s  New Thinking, New
Possibilities

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BCG to
Click Matrix
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High

Hyundai Venue Hyundai i20 Elite


Market Growth

KONA EV Hyundai Creta

Hyundai Verna
Hyndai i10
Hyundai Xcent
Santro
Low

Low Market Share High

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Purchasing
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ONLINE PURCHASE OFFLINE PURCHASE

CLICK TO BUY: 6 Easy Steps to buy your favourite 1. Walk into a Hyundai Dealership
Hyundai
2. Choose a Car of choice

1. Log on to Hyundai Click to Buy 3. Selection of model and variant

2. Click on the car of your choice 4. Offers and Discounts on selected model

3. Select Variant 5. Choose mode of payment: all cash or cheque, EMI


Option
4. Choose the colour
6. Pre Delivery inspection
5. Select the dealer of your choice for convenience to
pick up 7. Billing and Documentation

6. Check price and EMI options 8. Delivery

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Factors in consideration while Purchasing a car


• Depreciation: car is a depreciating asset, every year there is some loss in value

• Interest or Finance cost: interest can make car loan expensive

• Frequent Buying & Selling: lots of money wastage

• Fuel type & Life of Car ( Petrol, CNG engine & Diesel Engine): Cost per year and mileage

• Maintenance cost: Parts, servicing cost and spare availability

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Competitor Analysis
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Market
Share (Feb-20)

Maruti 3% 2%
3%
Hyundai 4%
KIA 4%
Tata motors 4%
Mahindra & Mahindra
5%
Toyota
Renault 53%
6%
Honda
Ford
Others 16%

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Continued…..
Top Sold car No. of Models Car models Brand Price (in lakhs) Sales (19-20)
Brand
model Models discontinued
1,90,814
Maruti Alto Maruti Rs.2.99 to Rs.4.41
Maruti 13 20
Maruti Swift Maruti Rs.5.18 to Rs.8.01 1,87,916
Maruti Baleno Maruti Rs 5.63 to 8.96 1,80,413

Maruti Dzire Maruti Rs.5.88 to Rs.8.8 1,79,159


Hyundai 11 4
Maruti Wagon r Maruti Rs.4.5 to Rs.5.99 1,56,724

Maruti Eeco Maruti Rs 3.8 to 4.95 1,17,003


Mahindra 8 4
Maruti Vitara Brezza Maruti Rs 7.34 to 11.4 1,10,641

Hyundai i20 Hyundai Rs 6.49 to 8.30 1,08,091


Hyundai i10 Grand Hyundai Rs 5.89 to 5.99 99,592
Tata 8 4
Hyundai Venue Hyundai Rs 6.75 to 11.63 93,624

2020
JD Power
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Disclaimer- The study measures overall satisfaction in five factors i.e. service
quality, vehicle pick-up, service advisor, service facility and service initiation.
The J.D. Power 2019 India Customer Service Index (Mass Market)  is based
on responses from 7,177 new-vehicle owners who purchased their vehicle. The
study also includes the Net Promoter Score which measures new vehicle
owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale

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Recommendations
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• Hyundai India must focus on making more EV and capture as much market before tesla enters Indian

market, they made a Debut with KONA electric kn India

• The focus of Hyundai must remain on strengthening its competitive advantage in the global

markets and product quality given the falling profits

• More focus needs to be placed on marketing and technological innovation so the brand can find

faster growth in the Asian and European markets

• AI, autonomous driving technology and supply chain digitisation are now more important than

ever, Hyundai should integrate these and increase spending on R&D

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Thank You
Group 01

| Aman Bharadwaj | Nandini Kumari | Ritika


|
| R i y a G u p t a | Ta n v i A g a r w a l |

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