SKODA HISTORY

The origins of Škoda go back to the early 1890s where, like many long-
established car manufacturers, the company started out manufacturing
bicycles. It was 1894, and 26-year old Václav Klement, who was a bookseller
in Mladá Boleslav, in today's Czech Republic, which was then part
of Austria-Hungary, was unable to obtain spare parts to repair his German
bicycle. Klement returned his bicycle to the manufacturers, Seidel and
Naumann, with a letter, in Czech, asking for them to carry out repairs, only to
receive a reply, in German, stating: "If you would like an answer to your
inquiry, you should try writing in a language we can understand". A disgusted
Klement, despite not having technical experience, decided to start a bicycle
repair shop, which he and Václav Laurin opened in 1895 in Mladá Boleslav.
Before going into business partnership with Klement, Laurin was an already
established bicycle manufacturer from the nearby town of Turnov.
1905 Laurin & Klement at Škoda Auto Museum, Mladá Boleslav, Czech
Republic
In 1898, after moving to their newly-built factory, the pair bought a Werner
"motorcyclette",[nb 1] which was produced by French manufacturer Werner
Brothers. Laurin & Klement's first motorcyclette (which was powered by an
engine mounted on the handlebars driving the front wheels) proved
dangerous and unreliable — an early incident on it cost Laurin a front tooth.
To design a safer machine with its structure around the engine, the pair
wrote to German ignition specialist Robert Bosch for advice on a different
electromagnetic system. The pair's new Slavia motorcycle made its debut in
1899.
In 1900, when the company had a workforce of 32, Slavia exports began,
with 150 machines shipped to London for the Hewtson firm. Shortly
afterwards, the press credited them as makers of the first motorcycle. [2] The
first model, Voiturette A, was a success and the company was established
both within Austria-Hungary and internationally. By 1905, automobiles were
being produced by the firm. During the First World War Škoda was engaged
in war production.
After WWI it began producing trucks, but in 1924, after running into problems
and being hit by a fire, the company sought a partner. As a result, it merged
with Škoda Works, the biggest industrial enterprise in Czechoslovakia. Most
later production was under the Škoda name. After a decline during the
economic depression, Škoda was again successful with models such as
the Popular in the late 1930s.
VEHICLES BY SKODA IN INDIA

NOW NEXT HISTORY OF HYUNDAI MOTORS

Hyundai Motor Company (Korean: 현대 자동차 주식회사, Hanja: 現代自動
車株式會社 Hyeondae Jadongcha Jusik-hoesa) (KRX: 005380), a division of
theHyundai Kia Automotive Group, is the world’s fourth largest automaker in
terms of units sold[2] and one of the Big Asian Four
(with Toyota, Honda andNissan).[3] 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. The company employs about 75,000 persons around the world,
Hyundai vehicles are sold in 193 countries through some 6,000 dealerships
and showrooms worldwide.
History

The world's largest automobile manufacturing plant in Ulsan, South Korea,

produces over 1.6 million vehicles annually.
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 1983, Hyundai exported the Pony to Canada, but not to the United States
because the Pony didn't pass emissions 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 "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 Irrungattukotai near Chennai, India.[4]
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.[5] 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 South Korean won (US$106 million).[6] As a result, Hyundai Vice
Chairman and CEO, Kim Dong-jin, replaced him as head of the company

VEHICLES BY HYUNDAI IN INDIA

koda sales in 2009
SkodaAuto India record sales growth of 183% in
November 2009

~ Considering a Price hike between Rs.10,000/- to

Rs.20,000/- ~

Mumbai, December 01, 2009: SkodaAuto India, a fully owned

subsidiary of SkodaAuto a.s., Czech Republic, today announced a
record growth of 183 % in sales for the month of November 2009
over November 2008. SkodaAuto India’s total sales for November
2009 stood at 1425 units as against
504 units in
November,
2008.

Speaking on the increase in sales figures for the month of

November, Mr. Thomas Kuehl, Board
Member, Sales and Marketing, SkodaAuto India said “We have
witnessed a record growth of

183% in sales for the month of November 2009 over 2008 and a
double-digit jump of 93% in sales in the last 3 months (September –
November) over the same period last year. The launch of the all new
Skoda Superb and the new Laura in the Indian markets has been the
main drivers behind SkodaAuto India’s record increase in sales.
The all new Superb, in particular,
continues to outperform expectations.

Adding on Mr. Thomas Kuehl said “We are considering a price

hike between Rs.10,000/- to Rs.20,000/-on all our cars in the
coming month. This rise is being considered due to various
 Inflationary pressures and increase in raw material costs.”

Mr. Ashutosh Dixit, Sr. General Manager, Sales & Marketing,

SkodaAuto India said “We are pleased to see such robust
growth for all our products, which reflects the customer’s
growing confidence in Skoda. We are expecting a much stronger
response to our products and services and help drive growth in our
sales in the coming months.”

Hyundai Motor Reports November Global Sales

(Seoul, Korea) Hyundai Motor Company, South Korea's largest automaker,

reports its domestic and overseas sales results for November 2009 and the
January to November period of 2009.

November 2009
Unit = one
Results NOV 2009 Y-o-Y (%) vehicle
NOV 2008

Passenger Cars 42,878 112.9 20,137

Domestic
SUVs 13,363 134.3 5,704
Sales
1
CVs 13,115 30.4 10,061
Total 69,356 93.2 35,902

Overseas Exports 94,321 -12.4 107,621

Sales 2
145,196 64.5 88,257
Overseas Plants
Total 239,517 22.3 195,878

Global Sales Total 308,873 33.3 231,780

November 2009 Highlights (year-on-year)

Domestic Sales
▶ Up 93.2%, due to a base effect from a year earlier when the
consumer sentiment deteriorated rapidly and the credit
screening for customers was tighter.
▶ The best-selling model in Korea last month was again the Sonata, selling
19,202 units.
Of this figure, 17,464 units were the all-new Sonata model,
which was launched in the domestic market in September.

Overseas Sales
▶ Up 22.3%
▶ Exports down -12.4% Y-o-Y, but 11.2% up from last month showing a
sign of slow recovery
▶ Sales of overseas plant increased by 64.5%.

YEAR TO DATE
Unit = one vehicle
JAN~NOV 2009 Y-o-Y (%) JAN~NOV 2008
Passenger Cars 388,887 16.3 334,352
Domestic
SUVs 97,674 35.7 71,963
Sales
1
CVs 140,402 14.1 123,085
Total 626,963 18.4 529,400

Overseas Exports 823,524 -18.2 1,006,915

Sales 2
1,358,030 32.4 1,026,016
Overseas Plants
Total 2,181,554 7.3 2,032,931

Global Sales Total 2,808,517 9.6 2,562,331

SkodaAuto India

Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia
Automotive Group which was ranked as the world’s fifth-largest
automaker since 2007 and includes over two dozen auto-related
subsidiaries and affiliates. Employing over 75,000 people worldwide,
Hyundai Motor sold approximately 2.8 million vehicles globally in 2008,
posting sales of US$25.6 billion on a non-consolidated basis (using the
average currency exchange of 1257.5 won per US dollar). Hyundai
vehicles are sold in 193 countries through some 6,000 dealerships and
showrooms. Further information about Hyundai Motor and its products
are available at www.hyundai.com.

Hyundai India’s sales up 41.6% in Jan 2010 YoY

Tucson might well be replaced by IX35; Not even a single unit was sold in
Jan
India’s second largest car manufacturer Hyundai, posted a massive
increase in sales in Jan 2010. Beginning the new year on a bright note,
Hyundai sold as many as 52,635 units in Jan 2010 compared to the 37,171
sold in the same period last year. Domestic sales recorded a 40.8% growth
while exports soared by 42.6% resulting in a net growth of 41.6%.
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SkodaAuto India

Domestic sales only accounted for 29,601 units while exports stood at
23,034. Commenting on HMIL’s performance Arvind Saxena, Director –
Marketing and Sales, HMIL commented, “We have started the year on a
right note and we hope the momentum will continue with the help of the
stimulus package offered by the government.”
The segment-wise cumulative sales for the month of January, 2010 are as
follows:
A2 Segment (Santro, i10, Getz & i20) 47,104 units
A3 Segment (Accent & Verna) 5,502 units
A5 Segment (Sonata Transform) 29 units
SUV Segment (Tucson) 0 unit

Hyundai In India
Hyundai Motor India Limited is currently the second largest carmaker
after Maruti Suzuki and largest auto exporter in India.[41] It is making India
the global manufacturing base for small cars. Hyundai sells several models
in India, the most popular being the Santro Xing, i10 and the i20. Other
models include Getz Prime, Accent, second generation Verna, Tucson, and
the Sonata Transform. Hyundai has two manufacturing plants in India
located at Sriperumbudur in the Indian state of Tamil Nadu. Both plants
have a combined annual capacity of 600,000 units.In the year 2007
Hyundai opened its R&D facilty in Hyderabad Andhra pradesh , employing
now nearly 450 engineers from different parts of the country.Basically the
Hyundai Motors India Engineering (HMIE) gives technical support in CAD
and CAE to Hyundai's main R&D center in Namyang Korea.

Škoda Auto India Private Limited

More commonly referred to as Škoda Auto India, established November
2001,[1] is a fully owned subsidiary of theCzech automotive
manufacturer Škoda Auto,[2]
According to an official release, Škoda Auto India sold more than 16,000
units in 2008,[2] a 28.5% increase from 2007 sales totals.[2] Furthermore,
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SkodaAuto India

SAIPL is aiming to become the strategic hub in South and Eastern Asian
markets for the Škoda Auto marque, by exporting its locally produced
products to Nepal,Sri Lanka and Thailand.[3] As of April 2009, it has sold
over 61,000 units since operations began in November 2001. [1]

COMPARED MODELS SKODA FABIA V/S

HYUNDAI I 20

1 . SKODA FABIA 1.4 TDI ELEGENCE PRICE-

7,69,000, ONLY

2. I 20 1.4 ASTA (O)

7,21,200, ONLY (LESS PRICE THAN FABIA)

3. FABIA SAFETY-

TWO AIRBAGS FRONT

4. I 20 SAFETY (MORE THAN FABIA)

SIX AIRBAGS (FRONT, REAR , SIDE)

5. ENGINE POWER FABIA-

3CYLINDER ,1426 CC 1.4LTR

With 70 bhp @4000 rpm

6. MORE POWER THAN FABIA

4CYLINDER, 1396 CC, 1.4LTR

With 90 bhp@4000rpm

7. FABIA s ABS + EBD

TWO CHANNEL , REAR DRUM,

FRONT DISC BRAKES

8. MORE EFFECTIVE BRAKES

ABS+ EBD FOUR CHANNEL,

CONCLUSION - TODAY S I20 IS BEETER THAN FROM FABIA BECAUSE IT HAVE A

UNIQUE OR ADDITIONAL FEATURE THAN FABIA ENHANCE SAFETY, MORE POWER
MORE PICK- UP AND GOOD STYLISH DESIGN.

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SkodaAuto India

SWOT ANALYSIS FOR SKODA

Strengths
To identify its strengths, Škoda UK carried out research. It asked customers
directly for their
opinions about its cars. It also used reliable independent surveys that tested
customers’
feelings. For example, the annual JD Power customer satisfaction survey asks
owners what
they feel about cars they have owned for at least six months. JD Power surveys
almost 20,000
car owners using detailed questionnaires. Škoda has been in the top five
manufacturers in this
survey for the past 13 years. In Top Gear’s 2007 customer satisfaction survey,
56,000 viewers
gave their opinions on 152 models and voted Škoda the ‘number 1 car maker’.
Škoda’s
Octavia model has also won the 2008 Auto Express Driver Power ‘Best Car’.
133

Weaknesses
A SWOT analysis identifies areas of weakness inside the business. Škoda
UK’s analysis
showed that in order to grow it needed to address key questions about the brand
position.
Škoda has only 1.7% market share. This made it a very small player in the market
for cars.
The main issue it needed to address was: how did Škoda fit into this highly
competitive,
fragmented market?
This weakness was partly due to out-dated perceptions of the brand. These related
to Škoda’s
eastern European origins. In the past the cars had an image of poor vehicle quality,
design,
assembly, and materials. Crucially, this poor perception also affected Škoda
owners. For

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SkodaAuto India

many people, car ownership is all about image. If you are a Škoda driver, what do
other
people think?
From 1999 onwards, under Volkswagen AG ownership, Škoda changed this
negative image.
Škoda cars were no longer seen as low-budget or low quality. However, a brand
‘health check’
in 2006 showed that Škoda still had a weak and neutral image in the mid-market
range it
occupies, compared to other players in this area, for example, Ford, Peugeot and
Renault. This
meant that whilst the brand no longer had a poor image, it did not have a strong
appeal either.
This understanding showed Škoda in which direction it needed to go. It needed to
stop being
defensive in promotional campaigns. The company had sought to correct old
perceptions
and demonstrate what Škoda cars were not. It realised it was now time to say what
the brand
does stand for. The marketing message for the change was simple. Škoda owners
were
known to be happy and contented with their cars. The car-buying public and the
car industry
as a whole needed convincing that Škoda cars were great to own and drive

Opportunities
Opportunities occur in the external environment of a business. These include for
example,
gaps in the market for new products or services. In analysing the external market,
Škoda
noted that its competitors’ marketing approaches focused on the product itself.
GLOSSARY
Brand image: how a particular
brand name is perceived within the
market by potential buyers.
Fragmented market: a market
containing many sellers and many
products.
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www.thetimes100.co.uk

Page 3
Audi emphasises the technology through its strapline, ‘Vorsprung Durch Technik’
(‘advantage
through technology’). BMW promotes ‘the ultimate driving machine’. Many
brands place
emphasis on the machine and the driving experience. Škoda UK discovered that its
customers
loved their cars more than owners of competitor brands, such as Renault or Ford.
Information from the SWOT analysis helped Škoda to differentiate its product
range. Having a
complete understanding of the brand’s weaknesses allowed it to develop a strategy
to strengthen

Threats
Threats come from outside of a business. These involve, for example, a competitor
launching
cheaper products. A careful analysis of the nature, source and likelihood of these
threats is a
key part of the SWOT process.
The UK car market includes 50 different car makers selling 200 models. Within
these there
are over 2,000 model derivatives. Škoda UK needed to ensure that its messages
were
powerful enough for customers to hear within such a crowded and competitive
environment.
If not, potential buyers would overlook Škoda. This posed the threat of a further
loss of
market share.
Škoda needed a strong product range to compete in the UK and globally. In the UK
the
Škoda brand is represented by seven different cars. Each one is designed to appeal
to
different market segments. For example:
• the Škoda Fabia is sold as a basic but quality ‘city car’
• the Škoda Superb offers a more luxurious, ‘up-market’ appeal
• the Škoda Octavia Estate provides a family with a fun drive but also a great big
boot.
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Pricing reflects the competitive nature of Škoda’s market. Each model range is
priced to
appeal to different groups within the mainstream car market.

HYUNDAI SWOT ANALYSIS-

Hyundai SWOT analysis.

3.1 Strengths
The Quality Advantage
Hyundai owners experience fewer problems with their vehicles
than any other car manufacturer in India (J.D. Power IQS Study).
The Santro was chosen the best in the premium compact car
segment and the Getz in the entry level mid - size car segment
across several parameters. This study measures owner in terms
of design, content, layout and performance of vehicles across
several parameters.
A Buying Experience Like No Other
Hyundai has a sales network of 250 state-of-the-art showrooms
across 189 cities, with a workforce of over 6000 trained sales
personnel to guide our customers in finding the right car. Our
high sales and customer care standards led us to achieve higher
nameplate in the J.D. Power SSI Study.
Quality Service across 1036 Cities
In the J.D. Power CSI Study Hyundai scored the highest across all
7 parameters: least problems experienced with vehicle serviced,
highest service quality, best in-service experience, best service
delivery, best service advisor experience, most user-friendly
service and best service initiation experience.The 92% of Hyundai
owners feel that work gets done right the first time during
service. The J.D. Power CSI study also reveals that 97% of
Hyundai owners would probably recommend the same make of
vehicle, while 90% owners would probably repurchase the same
make of vehicle.
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3.2 Weaknesses
Commodity Price Risks
Hyundai commodity price risks to higher costs due to changes in
prices of inputs such as steel, aluminum, plastics and rubber,
which go into the production of automobiles.In order to mitigate
these risks, the company continues to attempts to enter into long
term contracts based on its projections of prices. In a volatile
commodity market, where your company gives top priority to
ensuring smooth availability of inputs, long term contracts are
helpful. They also help minimize the impact of growing input
prices. Conversely, long term contracts dilute the benefits, if any
of a decline in input prices.
Exchange Rate Risk
The company is exposed to the risks associated with fluctuations
in foreign exchange rates mainly of import of components & raw
materials and export of vehicles. The company has a well
structured exchange risk management policy. The company
manages the exchange risk by using appropriate hedge
instruments depending on the prevailing market conditions and
the view on the currency.
3.3 Opportunities
Leading Growth
As the market leader, company led the growth in the passenger
car sector last year. Hyundai sales went up 30% to 4,72,000
units. This, as I said earlier, is the highest annual sale since
company began operations 20 years ago. Hyundai also gained
market share, mainly on account of its performance in the
competitive A2 segment where it increased its share from 40.3%
in 2005-06 to 47.7% in 2006-07. The record sales performance
was reflected in the financials. Net Sales (excluding excise) grew
by 31% to Rs 93,456 million. Operating Profit Margin increased
from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax
jumped 270% to Rs 5421 million.
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3.4 Threats
Risk Factors
In the course of its business, Hyundai is exposed to a variety of
market and other risks including the effects of demand dynamics,
commodity prices, currency exchange rates, interest rates, as
well as risk associated with financial issues, hazard events and
specific assets risk. Whenever possible, we use the instrument of
insurance to mitigate the risk.

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