NAME: PRANAY.G.

MANE
CLASS : SY BMS
DIV : A
R.N : 67
SUB : STRATEGIC MANAGEMENT
TOPIC : AUTOMOBILE SECTOR (HYUNDAI AND HERO MOTOCORP)
SWOT ANALYSIS
Chung Ju-yung Founded 19 January 1984
 Founded: 1947 Brijmohan Lall
Founder Munjal
 HISTORY

HYUNDAI:

Chung ju-Yung  founded the Hyundai Engineering and Construction in 1947. Hyundai Motor Company was later
established in 1967, and the company's first model, the Cortina, was released in cooperation with Ford Motor
Company in 1968. When Hyundai wanted to develop their own car, they hired George Turnbull in February
1974, the former Managing Director of Austin Morris at British Leyland . He in turn hired five other top British car
engineers. They were body designer Kenneth Barnett, engineers John Simpson and Edward Chapman, Jhon
Crosthwaite formerly of BRM, as chassis engineer and Peter Slater as chief development engineer In 1975,
the Pony, the first South 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. Hyundai entered the British market in 1982, selling 2993 cars in their first
year there.
In 1984, Hyundai began exporting the Pony  to Canada, but not to the United States, as the Pony would not pass
emissions standards there. Canadian sales greatly exceeded expectations, and it was at one point the top-selling
car on the Canadian market. In 1985, the one millionth Hyundai car was built] Until the 1986 introduction of the
larger Hyundai Grandeur , Hyundai offered a locally assembled Ford Granada  for the South Korean executive
market. The import of these knocked down kits was permitted as long as Hyundai exported five cars for every
single Granada brought in the same demands were placed on Kia.
HERO MOTOCORP:
• Hero Honda started its operations in 1984 as a joint venture between HERO CYCLES
 (sometimes called Hero Group, not to be confused with the Hero Group food company of
Switzerland) of India and Honda  of Japan. In June 2012, Hero MotoCorp approved a
proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. with the
automaker. This decision came 18 months after its split from Hero Honda. "Hero" is the
brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A
joint venture between the Hero Group and Honda Motor Company was established in
1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda
group both owned 26% stake in the Company.
• Hero Moto Corp earlier also known as “Hero Honda” is one of India’s first motorcycle
manufacturers. The company has seen many ups and downs throughout their life span up
till now. It is clear that the motorcycles by Hero are built to last. They are majorly known
for their fuel economy and cost.
• The company owns a market share of about 46% in India in the two-wheeler category.
Lt.Briaj Mohal Lal Munjal the founder of Hero Moto Corp took the company to new
heights. The company has never failed with their promises of fuel efficiency. How did
they achieve and what went into the company? Let’s have a glimpse of India’s most
successful motorcycle brand.
HYUNDAI: HERO MOTOCORP:
VISION
MISSION:
Our Team provides value for your future.
CREATE
MISSION:
COLLABORATE
To create exceptional automotive value for our
customers by harmoniously blending safety, INSPIRE
quality and efficiency. With our diverse team,
we will provide responsible stewardship to our
VISION:
community and environment while achieving BE THE FUTURE OF MOBILITY
stability and security now and for future VALUES:
generations.
VALUES: PASSION
• Customer. INTEGRITY
• Challenge. RESPECT
• Collaboration.
• People.
• Globality.
SWOT ANALYSIS:
STRENGTH:
HYUNDAI:
• Excellence in vehicle safety and design
proven by many awards
• The 6th highest automotive brand
reputation in the world
• Effective research and development
(R&D) spending resulting in new
innovative cars
• Low cost to drive and durable cars
• Strong presence in China’s market.
HERO MOTOCORP:
• Huge brand Equity– This is one of the
biggest strengths of Hero Motocorp. The
company is one of the biggest players in
the two-wheeler market.
• Strong brand image– Being in business
for many years has created a distinct
brand image of reliability and
affordability in the minds of the
customers. This has proven to be an
advantage as Hero is hence a recognized
and sought-after brand.
WEAKNESS:
HYUNDAI:
• Poor brand portfolio, leading to fewer
sales
• Low presence in the strongest U.S.
vehicle market and no presence in
Japan’s vehicle market
• Declining quality of company’s
management
• Product recalls damaging brand
reputation
HERO MOTOCORP:
• Strong Competition– There are lots of national
and international players in the market who
give tough competition to Hero Motocorp.
• Lack of Innovation– Most of the products of
the company come with almost similar
features, whether it is in terms of design or
functions.
• Poor Gender Diversification: As of late
2018, Hero MotoCorp had only 256 female
employees out of 8266. Although the figure
has tripled from a mere 1% in 2014, much
more still can be done to address the
gender inequality and diversification.
OPPORTUNITIES:
HYUNDAI:
• SIAM – Indian car manufacturers’
company has announced that car sales are
steadily growing, both domestic and
Indian, contributing a valuable share of
India’s GDP.
• The rate of growth in export markets is
22.30 per cent compared to the previous
fiscal year
HERO MOTOCORP:
• Growing Industry– The demand for two-
wheelers is increasing a lot, especially
during the pandemic, and that brings the
opportunity for the company to grow.
• Expansion of product line- The company
can introduce a new product category of
bikes targeting the premium segment.
THREATS:
HYUNDAI:
• While Hyundai claims to have no other
direct competitors than MUL, there are
Indian players such as Tata, Mahindra
posing a major threat to Hyundai Motors
India to broaden its product category
• Foreign direct investment pouring into
Indian automotive space is not good signs
for giants like MUL and Hyundai who
already exist.
HERO MOTOCORP:
• Strong Competition– There are tons of
other companies which are emerging
rapidly.
• Betterment of Public Transport– As other
modes of transportation have undergone
and are currently undergoing
development, the use of private vehicles
could be threatened.
 COMPARISON
HYUNDAI:
• Shares: Hyundai holds a 17% market
share as of January 2021, in India, as per
Federation of Automobile Dealers
Associations of India. It is also the largest
car exporter in the country.
• Sales:
Hyundai saw its sales cut in half due to the
lockdown restrictions in India. Domestic
sales for Hyundai stood at 25,001 units in
May 2021. The second wave of the covid-
19 pandemic hit India hard and unprepared.
HERO MOTOCORP:
• In the financial year 2021, Hero MotoCorp
was the leading two-wheeler manufacturer
in India, with a market share of 37.04
percent. The volume of two-wheelers sold
across India during the same period
reached 15.12 million units, which was a
decrease from the previous year's 17.42
million units.
• Month-on-month analysis reveals the
company posted 175 percent growth over
May 2021, when it sold 1,59,561 units at a
time when many states were in lockdown.
In the April-June 2021 quarter, Hero sold a
total of 10,24,507 motorcycles and
scooters