G.L.

BAJAJ COLLEGE OF TECHNOLOGY AND MANAGEMENT

RESEARCH PROJECT REPORT ON

“A STUDY OF AUTOMOBILE INDUSTRY AND COMPARATIVE

ANALYSIS OF HYUNDAI AND MARUTI”

TOWARDS THE PARTIAL FULLFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

(Dr. A.P.J. Abdul Kalam Technical University, Lucknow, Uttar Pradesh)

by

SHIVAM SHARMA
Roll No.2212000700165

Session 2023-24

Under the Supervision of

MS. CHITRA JHA

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 DECLARATION

I hereby declare that the work presented in this report entitled “A STUDY OF
AUTOMOBILE INDUSTRY AND COMPARATIVE ANALYSIS OF HYUNDAI AND
MARUTI ", was carried out by me. I have not submitted the matter embodied in this report
for the award of any other degree or diploma of any other University or Institute. I have given
due credit to the original authors/sources for all the words, ideas, diagrams, graphics, computer
programs, experiments, results, that are not my original contribution. I have used quotation
marks to identify verbatim sentences and given credit to the original authors/sources.
I affirm that no portion of my work is plagiarized, and the experiments and results reported in
the report are not manipulated. In the event of a complaint of plagiarism and the manipulation
of the experiments and results, I shall be fully responsible and answerable.

Name: Shivam Sharma

Roll. No.: 2212000700165

Specialization: Marketing, Finance

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 CERTIFICATE

This is to certify that Shivam Sharma, 2212000700165 has undertaken this project titled
“A STUDY OF AUTOMOBILE INDUSTRY AND COMPARATIVE

ANALYSIS OF HYUNDAI AND MARUTI” for the partial fulfillment of the award
of Master of Business Administration degree from Dr. A P J Abdul Kalam Technical
University, Lucknow (U. P.).

I wish him/ her all the best for his/her bright future ahead.

Date: ………….

Project Supervisor
Department of Management Studies

Head of Department
Department of Management Studies

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 ACKNOWLEDGEMENT

The Research Project provided me with an opportunity to learn A STUDY OF AUTOMOBILE

INDUSTRY AND COMPARATIVE ANALYSIS OF HYUNDAI AND MARUTI .

I express my deepest thanks to my mentor CHITRA JHA For taking part in useful decision &
giving necessary advice and guidance to make project easier. I choose this moment to acknowledge
her contribution gratefully.

I am using this opportunity to express my gratitude to Prof. Vikas Tripathi (HOD) who
supported me throughout the course and constantly reviewed my work and provide guidance of
this MBA project

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 Table Of Content

Sr no. Particulars Page

no.
I.
1 Acknowledgement

2 Declaration II.

3 Introduction 1

4 Automobile Company Profiles 5

5 Research Methodology 15

6 Data Analysis and Intrepretation 27

7 Suggestions and Recommendations, 44

Conclusions

8 Annexure 48

9 Bibliography 56

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 CHAPTER WISE PRESENTATIONS

Chapter 1 – Introduction
About Marketing Strategy 7

Chapter 2 – Company Profiles and Theoretical View

Company Profiles 9-43
History of Indian Automobile Industry 44
Evolution of Automobile Industry 48
Common Marketing Strategies of Car Companies 49
Market Share of Automobile Companies 53
Marketing Strategies of Maruti Suzuki 54
Marketing Strategies of Hyundai 56
Chapter 3 – Research Methodology 59
Chapter 4 – Data Analysis and Interpretation 61-76
Charts and Interpretations (Chart 1 to 20)
Observations
Chapter 5 – Suggestions and Recommendations, conclusions77

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 1. Introduction

Comparative Study of Marketing Strategies of Two Automobile Companies :

A marketing 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. Its a written plan which combines product development, promotion, distribution, and

pricing approach, identifies the firm's marketing goals, and explains how they will be achieved

within a stated timeframe. Marketing strategy determines the choice of target market segment,

positioning, marketing mix, and allocation of resources. It is most effective when it is an integral

component of firm strategy, defining how the organization will successfully engage customers,

prospects, and competitors in the market arena.

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill

market needs and reach marketing objectives. Marketing strategies are dynamic and interactive. It

may differ depending on the unique situation of the individual business.

On the Canvas of Indian Economy, Auto Industry occupies a prominent place. Automobile sector

is one of the core of Indian Industry.Continious economic liberalisation over the years by the

Government of India has resulted in making India as one of the prime business destination for

many global automotive players.

One of the largest industries in India, automotive industry has been witnessing impressive growth

during the last two decades. Indian automobile industry has a mix of large domestic private players

7
such as Tata, Mahindra, Bajaj, Ashok Leyland and major international players including GM,

Ford, Toyota, Honda, Hyundai, etc. To remain in this competitve market on has to come up

different ides and strategies.

Various Marketing Strategies enables a firm to expand business activities for market reputation,

to satisfy human wants , to lead to specialisation and efficient performance of production function

climaxing in econimic stability.

After liberalization automobile Industry is growing at very high rate and many new companies

have also entered into market. With offering variety of cars in all segments for everyone. So it is

important to know which company is providing us good quality cars at fair prices and providing

better after sales services. And how they are trying to reach customers.

The most obvious objective marketers have for promotional activities is to convince customers to

make a decision that benefits the marketer (of course the marketer believes the decision will also

benefit the customer). For most for-profit marketers this means getting customers to buy an

organization’s product and, in most cases, to remain a loyal long-term customer.

However, marketers must understand that getting customers to commit to a decision, such as a

purchase decision, is only achievable when a customer is ready to make the decision.

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 2.Company Profile and Theoretical View

In early 1980s Indian Govt decided to produce a small car, which would be within buying reach

of Indian middle class. The obvious place to shop for technology was Japan, which had developed

world class capabilities in small cars by that time.It was not Toyota, or Nissan, or Honda ,three

largest player in Japan, but Suzuki, a much smaller company with strong capcabilities in making

small cars. Suzuki grabbed the opportunity with both hands and formed a joint venture with govt.

called Maruti Udyog.

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 per annum, with a capability

to produce about half a million vehicles.

Maruti rolled out its 1st car, Maruti 800 with 800cc engine in December 1983. This model targeted

at masses and was lanuched as “People’s car”. In early 2003, Maruti Udyog, a joint venture

between Suzuki and Indian Govt. dominated India’s automobile market with 54% market share

9
and with annual production capacity of 5lac cars. The company dominated Indian Small car market

with a share of 100% in A seg, 45% in B seg and 86% overall.

The company has a portfolio of 18 brands, including

800 (Launched 1983)

Omni (Launched 1984)

Gypsy (Launched 1985)

WagonR (Launched 1999)

Alto (Launched 1997)

Swift (Launched 2005)

Estilo (Launched 2007)

SX4 (Launched 2007)

Grand Vitara (Imported) (Launched 2007)

Swift DZire (Launched 2008)

A-star (Launched 2008)

Ritz (Launched 2009)

Eeco (Launched 2010)

Alto K10 (Launched 2010)

Kizashi (Launched 2011)

Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with Toyota

Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012,

Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car.

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Maruti XA Alpha based compact SUV to compete with the Ford EcoSport & Renault Duster will

be launched in the year 2014.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor

Corporation's R and D hub for Asia. 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.

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 (TrueValue),

lease and fleet management service for corporates (N2N), Maruti Insurance and Maruti Finance

are now fully operational.

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Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company,

South Korea and is the second largest car manufacturer and the largest passenger car exporter from

India. HMIL presently markets 54 variants of passenger cars across segments. The Santro in the B

segment, the Getz Prime, i10,Eon and the Premium hatchback i20 in the B+ segment, the Accent

and the Verna in the C segment, the Sonata Embera in the E segment and the Tucson in the SUV

segment.

Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing passenger car

manufacturer, registered total sales of 616,039 units vehicles in the calendar year (CY) 2011, an

increase of 41.6% percent over CY 2010. In the domestic market it clocked a growth of

13.6%percent with 30402 units in 2011, while overseas sales grew by 11.2 percent, with exports

accounting for 240,25 units in 2011.

HMIL's manufacturing plant is located near Chennai which has advanced production quality and

testing capabilities in the country. Inorder to provide the Indian customer with global technology,

HMIL started its second plant in February 2008 which produces an additional 300,000 units per

annum, raising HMIL's total production capacity to 600,000 units per annum. Apart from

expansion of production capacity, HMIL currently has 329 strong dealer network across India.

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The production management processes at Hyundai Motor India are overlaid with an organization-

wide implementation of manufacturing best practices like Just-in-time inventory management,

Kaizen, TPM and TQM, that help us in making the world's best cars, right here in India.

Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown into the

Hyundai-Kia Automotive Group which was ranked as the world’s fifth-largest automaker in 2007

and includes over two dozen auto-related subsidiaries and affiliates. Employing over 75,000

people worldwide, Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and

showrooms.

Hyundai Motor Company, S.Korea, the parent of HMI, has been doing considerable work on

sustainable Environment Management . The company has a well defined framework in place for

developing products that reduce pollutant emissions and processes for preservation of natural

resources and energy along all the stages of the product lifecycle from production, sales, use to

disposal and has been awarded the ISO 14001 certification for all its three major plants in Ulsan,

Asan and Jeonju in S.Korea.

Cars of Hyundai

Hyundai deals in wide variety of cars which includes

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Santro

Coupé/Tiburon/Tuscani

Elantra/Avante/Lantra

Eon

Excel

Scoupe

ix20

Genesis

Genesis Coupe

Getz/Click/Getz Prime/TB

i10

i20

i30/i30cw/Elantra Touring

Hyundai i40

Lavita/Matrix

Pony

Santamo

Sonata/i45

Stellar

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 COMPANY’S PROFILE

Former type Chaebol

Industry Conglomerate

Fate Broken up

Founded 1947

Founder Chung Ju-yung

Defunct 2003

Headquarters Seoul, South Korea

Area served Worldwide

Products Automobiles
Heavy industry
Finance and Insurance
Construction
Engineering
Retail
Aerospace
Defense
Steel

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1.1 ABOUT HYUNDAI MOTORS INDIA LIMITED
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 the Santro, i10 and the i20, the A3 segment
includes the Accent and the Verna, the A5 segment includes the Sonata Transform.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the
most advanced production, quality and testing capabilities in the country. To cater to
rising demand, HMIL commissioned its second plant in February 2008, which produces
an additional 300,000 units per annum, raising HMIL’s total production capacity to
600,000 units per annum.

In continuation with its commitment to providing Indian customers with cutting-edge

global technology, HMIL has set up a modern multi-million dollar research and
development facility in the cyber city of Hyderabad. It aims to become a centre of
excellence for automobile engineering and ensure quick turnaround time to changing
consumer needs.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in
India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports
cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and
Australia. It has been the number one exporter of passenger car of the country for the
sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 290 strong dealer
network and 580 strong service points across India, which will see further expansion in
2010.To support its growth and expansion plans, HMIL currently has a 290 strong dealer
network and 580 strong service points across India.

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1.2 COMPANY’S HISTORY

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 India Limited was formed in 6 May 1996 by The Hyundai Motor
Company of Korea. The first production plant was established in Irrungattukotai
near Chennai, India.

HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was
a runaway success. Within a few months of its inception HMIL became the second
largest automobile manufacturer and the largest automobile exporter in India.

Hyundai sells several models in India, The most popular being The Santro
Xing, i10 and The i20.OTheR models Include Getz Prime, Accent, Verna
TRANSFORM, Tucson, and The Sonata Transform.

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1.3 COMPANY’S VISION

The company’s motto is "Innovation for Customers". The company’s vision is five
core strategies: global orientation, respect for human values, customer
satisfaction, technology innovation, and cultural creation. They have a desire to
create an automobile culture of putting customer first via developing human–
centered and environment–friendly technological innovation.

The company’s strive to create a more affluent lifestyle for humanity, and contribute
to the harmony and co-prosperity with shareholders, customers, employees and other
stakeholders in the automobile industry.

The spirit of creative challenge of the company has been a driving force in leading
HMIL to where it is today. It is the permanent key factor for HMIL to actively
respond to change in the company’s the management system and seek creative and
self–innovative system. The spirit of creative challenge, creates profits, are the
primary objective of a private enterprise. Furthermore, the company’s takes
responsibility for the environment and society and provide benefits to all
stakeholders including shareholders, customers, executives, employees, suppliers,
and community.

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Management Philosophy

With the spirit of creative challenge, we will strive to create a more affluent lifestyle
for humanity, and contribute to the harmony and co-prosperity with shareholders,
customers, employees and other stakeholders in the automobile industry.

The spirit of creative challenge has been a driving force in leading HMC to where it
is today.

It is the permanent key factor for HMC to actively respond to change in the
management system and seek creative and self–innovative system. With the spirit of
creative challenge, we create profits, as the primary objective of a private enterprise.
Furthermore, we take responsibility for the environment and society we belong to,
and offer sustainable mobility in order to implement our corporate philosophy and
provide benefits to all stakeholders including shareholders, customers, executives,
employees, suppliers, and communities.

Based on a respect for human dignity, we make efforts to meet the expectations of
all stakeholders including customers and business partners by building a constructive
relationship amongst management, labor, executives and employees. Also, we focus
on communicating our corporate values both internally and externally, and gaining
confidence stakeholders.

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Mid-and Long-term Strategies. We developed five mid–and long–term strategies:
global management, higher brand values, business innovation, environmental
management, and strengthening product competitiveness. Especially, we selected
environmental management as one of our strategies to meet the needs of our
stakeholders and the society we belong to. We also intend to promote sustainability
development and preservation of the environment.

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1.4 COMPANY’S MISSION

At a time when India was awakening to the call of freedom, MGF was taking a
revolutionary step that would help hasten the country's development. Today, the
MGF Developments portfolio spans the entire spectrum of small, medium and large-
scale equipment finance as well as big ticket leasing, vehicle financing, Automobiles
dealerships, factoring services, consumer finance, and infrastructural development.
The MGF Developments brings international expertise, cutting-edge technology and
global scale of operations to deliver 100 percent satisfaction to its customers, clients
and employees. The MGF Developments vision is to be recognized as:

 The preferred provider of services and integrated solutions in all its areas of
operation

 A diverse team of talented professionals with expertise in selected segments

 An employer of choice, fostering a culture that values Dedication, Respect

and Continuous Improvement

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Operation

By the mid-1990s Hyundai comprised over 60 subsidiary companies and was active
in a diverse range of activities including automobile manufacturing, construction,
chemicals, electronics, financial services, heavy industry and shipbuilding. In the
same period it had total annual revenues of around US$90 billion and over 200,000
employees.

BUSINESS

Assembly line at Hyundai Motor Company’s car factory in Ulsan, South Korea

Hyundai

In 1998, after a shake-up in the Korean auto industry caused by overambitious

expansion and the Asian financial crisis, Hyundai acquired rival Kia Motors.

In 2000, the company established a strategic alliance with DaimlerChrysler and

severed its partnership with the Hyundai Group.

In 2001, the Daimler-Hyundai Truck Corporation was formed.

In 2004, however, DaimlerChrysler divested its interest in the company by selling

its 10.5 percent stake for $900 million.

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Hyundai has invested in manufacturing plants in the North America, China,
Pakistan, India, and Turkey as well as research and development centers in Europe,
North America, and Japan.

In 2004, Hyundai Motor Company had $57.2 billion in sales in South Korea making
it the country’s second largest corporation, or chaebol. Worldwide sales in 2005
reached 2,533,695 units, an 11 percent increase over the previous year. Hyundai has
set as its 2006 target worldwide sales of 2.7 million units (excluding exports of CKD
kits).

Hyundai motor vehicles are sold in 193 countries through some 5,000 dealerships
and showrooms. After a recent survey of global automotive sales by Automotive
News, Hyundai is now the tenth largest automaker in the world in 2007.

Hyundai Motor Company’s brand power continues to rise as it was ranked 72nd in
the 2007 Best Global Brands by inter brand and Business Week survey. Brand value
estimated at $4.5 billion. Public perception of the Hyundai brand has been
transformed as a result of dramatic improvements in the quality of Hyundai vehicles.

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24
Hyundai in the United States

Hyundai Azera

Hyundai Genesis

Hyundai entered the United States market in 1986 with a single model, the Hyundai
Excel. The Excel was offered in a variety of trims and body styles. That year,
Hyundai set a record of selling the most automobiles in its first year of business in
the United States compared to any other car brand (c. 126,000 vehicles).

Initially well received, the Excel’s faults soon became apparent; cost-cutting
measures caused reliability to suffer. With an increasingly poor reputation for

25
quality, Hyundai sales plummeted, and many dealerships either earned their profits
on repairs or abandoned the product. At one point, Hyundai became the butt of many
jokes (i.e. Hyundai stands for "Hope you understand nothing's drivable and
inexpensive") and even made David Letterman's Top Ten Hilarious Mischief Night
Pranks To Play In Space: #8 - Paste a "Hyundai" logo on the main control panel.

In response, the parent company of Hyundai began investing 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) powertrain warranty (known as the Hyundai challenge)
to its vehicles sold in the United States. By 2004, sales had dramatically increased,
and the reputation of Hyundai cars improved. In 2004, Hyundai tied with Honda for
initial brand quality in a survey/study from J.D. Power and Associates, for having
102 problems per 100 vehicles. This made Hyundai second in the industry, only
behind Toyota, for initial vehicle quality. The company continued this tradition by
placing third overall in J.D. Power’s 2006 Initial Quality Survey, behind only
Porsche and Lexus.

Hyundai continues to invest heavily in its American operations as its cars grow in
popularity. In 1990, Hyundai established the Hyundai Design Center in Fountain
Valley, California. The center moved to a new $30 million facility in Irvine,
California in 2003, and was renamed the Hyundai Kia Design and Technical Center.
Besides the design studio, the facility also housed Hyundai America Technical
Center, Inc. (HATCI, established in 1986), a subsidiary responsible for all
engineering activities in the U.S. for Hyundai. Hyundai America Technical Center
moved to its new 200,000-square-foot (19,000 m2), $117 million headquarters in
Superior Township, Michigan (near Ann Arbor) in 2005. Later that same year,
HATCI announced that it would be expanding its technical operations in Michigan

26
and hiring 600 additional engineers and other technical employees over a period of
five years. The center also has employees in California and Alabama.

Hyundai America Technical Center completed construction of its Hyundai/Kia

proving ground in California City, California in 2004. The 4,300-acre (17 km2)
facility is located in the Mojave Desert and features a 6.4-mile (10.3 km) oval track,
a Vehicle Dynamics Area, a vehicle-handling course inside the oval track, a paved
hill road, and several special surface roads. A 30,000-square-foot (2,800 m2)
complex featuring offices and indoor testing areas is located on the premises as well.
The facility was built at a cost of $50 million. An aerial view can be found here.

Hyundai completed an assembly plant just outside Montgomery, Alabama in 2004,

with a grand opening on May 20, 2005, at a cost of $1.1 billion. At full capacity, the
plant will employ 2,000 workers. Currently, the plant assembles the Hyundai Sonata
and the Hyundai Santa Fe. It is Hyundai’s second attempt at producing cars in North
America, as the Hyundai Auto Canada Inc. plant in Quebec closed down in 1993.

In 2003, According to Consumer Reports, Hyundai’s reliability rankings tied

Honda’s.

In 2005, Hyundai allowed Ed Voyles Hyundai in Smyrna, Georgia to become the

first "deaf friendly" dealership in the entire world. The staff in this dealership are
able to accommodate deaf customers with the use of American Sign Language and
video conferencing phones.

In 2006 JD Power and associates quality ranking, overall the Hyundai brand ranked
3rd, just behind Porsche and Lexus, and beating long time rival Toyota.[12] The brand
overall is ranked much higher than the average industry and resale value continues
to improve; a comparable 2003 Hyundai Sonata sedan ranks just $2200 below a
similarly equipped Honda Accord, according to Kelley Blue Book Pricing 2006.

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In 2006, Hyundai’s minivan Entourage earned a five-star safety rating – the highest
honor the National Highway Traffic Safety Administration bestows – for all seating
positions in frontal and side-impact crashes. The Insurance Institute for Highway
Safety also rates “Good” – its highest rating – in front, side and rear impacts. The
IIHS (Insurance Institute for Highway Safety, United States), in fact, named the
2006 Hyundai Entourage and Kia Sedona a “Gold Top Safety Pick,” making the
safest minivan ever tested.

In 2006, Hyundai was awarded 'Top-rated 2006 Ideal Vehicle' by Auto pacific,
Marketing research and consultancy firm for the automobile industry

In 2007 Strategic Vision Total Quality Awards, Hyundai Motors leads the most
vehicle segments in Strategic Vision’s Total Quality Index, measuring the ownership
experience. They attempt to measure more than just the number of problems per
vehicle. Hyundai tops in Strategic Vision Total Quality Awards. For the first time
ever, Hyundai has risen to share the position of having the most models leading a
segment. three models with the top Total Quality Index (TQI) score in their
segments, including the Hyundai Azera, Entourage, Santa Fe.

In 2007, Hyundai’s midsize SUV Santa Fe earns 2007 TOP SAFETY PICK award
by IIHS.

In 2007 at the New York International Auto Show, Hyundai unveiled its V8 rear-
drive luxury sedan called Concept Genesis to be slotted above the Azera in the
Hyundai line-up. This concept will make its American debut in mid 2008. [21]

In 2007 at the Los Angeles International Auto Show, Hyundai unveiled its second
rear-drive concept car, this car, called Concept Genesis Coupe, will be Hyundai’s
first sports car due to make its debut in early 2009.

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In 2008, Hyundai Santa Fe and Hyundai Elantra awarded 2008 Consumer Reports
"top pick" which was among the top 10 vehicles for 2008 unveiled in the magazine's
issue. The magazine's annual ratings, based on road tests and predicted safety and
[23]
reliability are considered highly influential among consumers. and Hyundai
Elantra earned Consumer Reports' 'excellent' rating in predicted reliability. Hyundai
Elantra is Consumer Reports top-ranked 2008 vehicle amongst 19 other compacts
and small family cars. Beating out such high-quality stalwarts as the Honda Civic,
Toyota Corolla and Toyota Prius.]

In 2008, at the North American International Auto Show, the production version of
the luxury & performance-oriented Hyundai Genesis sedan made its debut,
dealerships will have the Genesis as soon as Summer 2008.

In 2008, at the New York International Auto Show, Hyundai debuted it's production
version of the performance-oriented rear-drive Hyundai Genesis Coupe, slated to hit
dealerships in early 2009.

2009, Hyundai has announced the five-door hatchback variant of the Elantra
compact sedan will carry the name Elantra Touring when it goes on sale in the spring
as a 2009 model.[25]

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US sales

Calendar
Sales
Year

2008 244,391

2009 346,235

2010 375,119

2011 400,221

2012 418,615

2013 455,012

2014 455,520

2015 467,009

2016 401,742

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Electric vehicles

Hyundai plans to begin producing hybrid electric vehicles in 2009. The Avante will
be the first vehicle to be produced.

Since 2004, Hyundai has supplied about 3,000 hybrid versions of its Getz and
Accent small cars to government fleets as part of a testing program. The automaker
cites a lack of local tax benefits for purchasing hybrids as a barrier to its hybrid
development program. But Hyundai expects the tax situation to change in 2009 [30].

The new hybrid electric Sonata will make its debut at the Los Angeles International
Auto Show in November 2008. Hyundai expects to release it in the U.S. market in
2010, featuring lithium-ion battery technology [31].

Environmental record

On April 23, 2008 Hyundai Motor announced the beginning of a five-year project to
turn 50 km² of infertile land into grassland by 2012. Hyundai is doing so with the
help of the Korean Federation for Environmental Movement (KFEM). The project,
named Hyundai Green Zone, is located 660 km north of Beijing. The goal of the
project is to end the recurring dust storms in Beijing, block desertification and
protect the local ecosystem. Local weeds will be planted in the region that have the
ability to endure sterile alkaline soil. This is the first environmental project of the
company’s social contribution program.

Hyundai Motor plans to aid Chevron Corporation in the construction of up to six

hydrogen fueling stations that will be located in California, including locations at
the University of California-Davis and the Hyundai America Technical Center in

31
Chino. Hyundai is going to provide a collection of 32 Tucson fuel cell vehicles,
which are powered by UTC Fuel Cell power plants.

Motorsport

Alister McRae driving an Accent WRC at the 2001 Rally Finland.

Hyundai entered motorsport by competing in the F2 class of the World Rally

Championship in 1998 and 1999. In September 1999, Hyundai unveiled the Accent
WRC, a World Rally Car based on the Hyundai Accent. The Hyundai World Rally
Team debuted the car at the 2000 Swedish Rally and achieved their first top-ten
result at that year's Rally Argentina, when Alister McRae and Kenneth Eriksson
finished seventh and eighth, respectively. Eriksson later drove the car to fifth place
in New Zealand and fourth in Australia. In 2001, Hyundai debuted a new evolution
of the Accent WRC, which was intended to improve reliability, but the performance
of the car was still not good enough to challenge the four big teams (Ford,

32
Mitsubishi, Peugeot and Subaru). However, at the season-ending Rally GB, the team
achieved their best result with McRae finishing fourth and Eriksson sixth.

For the 2002 season, Hyundai hired the four-time world champion Juha Kankkunen,
along with Freddy Loix and Armin Schwarz. Kankkunen's fifth place in New
Zealand was the team's best result, but they managed to edge out Škoda and
Mitsubishi by one point in the battle for fourth place in the manufacturers' world
championship. In September 2003, after a season hampered by budget constraints,
Hyundai announced withdrawal from the WRC and a plan to return in 2006.

Electric propulsion

Hyundai plans begin producing hybrid electric vehicles in 2009. They are going to
use Hybrid Blue Drive, that includes lithium polymer batteries, instead of lithium-
ion.

The Avante will be the first vehicle to be produced.. Other are the Santa Fe Hybrid,
the Elantra, Sonata Hybrid (to the U.S. market in 2010) and the Hyundai i20 (this
last, replaces the Getz)

33
 PRODUCT RANGE
 Accent

 Atos/Santro

 Azera

 Dynasty

 Elantra

 Equus/Centennial (joint project of Hyundai and Mitsubishi)

 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

34
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

35
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

36
 HD170

 Mega Truck

 New Power Truck

 Mighty (Rebadged Mitsubishi Fuso Canter)

 Mighty II

 Hyundai RB

 Super Truck Medium

 Super Truck

 Trago

 Universe

37
Hyundai ix20

The Hyundai ix20 is a mini MPV produced by the South

Korean manufacturer Hyundai, which debuted at the 2010 Paris Auto Show.[3] The
car is built on the same platform as the Hyundai i20, Kia Venga, and Kia Soul. The
ix20 employs Hyundai's new "Fluidic Sculpture" design language. It is currently sold
exclusively in Europe and it is the replacement for the Matrix.

Hyundai i40

The Hyundai i40 is a large family car designed for the European market by South
Korean manufacturer Hyundai. Sharing its platform with the US marketed Hyundai
Sonata, the i40 sedan was unveiled at the 2011 Barcelona Motor Show.

38
In some markets the Sonata remains on sale as a separate model, such as the USA,
where the i40 is not available.

The estate variant of the i40 was released in Europe and South Korea in September
2011, followed by the sedan variant in January 2012, and it is also available in
Australia and New Zealand. For Malaysia, Hyundai launched the i40 at the 2013
Kuala Lumpur International Motor Show, in both sedan and tourer specifications. It
is placed above the Hyundai Sonata. The engine is the 2 litre GDI motor which is
linked to a paddle shifted six-speed automatic gearbox.

39
 COMPETITORS

. MARUTI SUZUKI

. HONDA

. TATA

. TOYOTA

. FORD

. NISSAN

40
Comparison Between HYUNDAI and MARUTI

Hyundai Eon

The wraps are off the much-awaited entry-level small car from Hyundai India. The
car, to be called Eon, is the South Korean car maker's challenge to Maruti's Alto, the
current bestseller in the segment in India. It has enter the Indian roads between
October 10 and 15, days ahead of Diwali at a starting price of Rs 2.50 lakh to Rs
2.60 lakh.

Although Eon is positioned against Alto, the car promises a lot more than what the
latter offers. "There is no car that is comparable with Eon. Yes, it is an entry-level
car but with no compromise. It is a very spacious car with a large boot - something
that you get only in bigger cars. And most importantly it doesn't compromise on
style," said Arvind Saxena, Hyundai India sales & marketing director.

Eon sports the 'Fluidic' design characteristic of the restyled Verna that threw a
serious challenge to its rivals like Honda City and Volkswagen Vento after its
makeover. Although the company officials refused to divulge the price of the car
other than saying that it would be "competitively priced and finalised only closer to
the launch in October", ET has learnt from its sources at two Hyundai dealerships
that the base version of the car is being priced between Rs 2.50 lakh and Rs 2.60
lakh. The upper end of the car will cost less than the base variant of Hyundai's bigger
sibling i10. Rival Alto sells at Rs 2.32 lakh (base variant ex-showroom price Delhi).

41
Alto 800

While Alto may be the nearest rival to Eon, the company said the comparison is not
really oranges to oranges as Eon comes with a number of high-end features. With an
814 cc engine, Eon promises a mileage of 21.1 km. Eon compares with Alto in length
(3.5 meter), but is wider and taller by 75 mm and 40 mm, respectively.

Asked if it would not cannibalize its successful and only slightly higher priced
Santro (Santro base price is Rs 2.80 lakh in Delhi), Saxena said, "The Eon will
expand our market share by cannibalizing into our competitors' products. Santro is

42
positioned very differently from the Eon. We have no plans of withdrawing the
Santro when it is doing so well."

Eon appears to score over its rivals with features that one sees only in bigger cars,
like keyless entry, driver air bags, front power windows, fog lamps, central locking,
two-tone interiors. "Eon is targeted at the first time buyer who is young, who has
just started earning. It is also targeted at the young family that is looking for its first
car," Saxena told ET.

Hyundai said Eon was conceived, designed and produced exclusively for the Indian
market. The Eon project director YH Song said that the car, the smallest ever
produced by the company, was in the making for the past four years. The sporty
design and the functional interiors of the final product were the result of a series of
interactions the company's global R&D officials have had with National Institute of
Design, Indian auto journalists, renowned Indian auto designer Dilip Chhabria and
a number of other designers. "The company's R&D centre at Hyderabad was totally
involved with the project, especially in developing important components for the
car," Saxena said. Eon, however, will have to brace for competition from the
country's largest car maker Maruti when it launches its latest version of the earlier
800. But that would be at least a year away.

43
ORGANIZATION STRUCTURE

44
HISTORY OF INDIAN AUTOMOBILE INDUSTRY

PRE- LIBERALIZATION PERIOD

Since Independence The Car Industry was closely monitored and controlled by the government till

1981. Limited choices were available to the car buyers due to the limited manufacturers and tight

supply. Hindustan Motors (HM) and Premier Automobile (PAL) that were set up in 1940's

dominated the vehicle market and industry. In the 1950s, the arrival of Tata Motors, Bajaj Auto,

and Mahindra & Mahindra led to steadily increasing vehicle production in India, while the 1960s

witnessed the establishment of the two- and three-wheeler industry in India.

But between 1970 to the economic liberalization of 1991, the automobile industry continued to

grow at a slow pace due to the many government restrictions. However, the automotive industry

witnessed tremendous growth after the entry of Maruti Udyog in the 1980s.

In 1981 the government decided to review their car industry policy and found that the segment

was neglected and there was a big market available for cars. The existing cars available in the

market were costly and technically less sound with compare to international standard. Then

government initiated dialogues with Suzuki Motors, a Japanese car manufacturing company,

finalized a joint venture, and formed a company named Maruti Udyog Limited (MUL). The initial

venture was between Government of India with a share of 74% and Suzuki Motor with a share of

26%.

45
That was a revolutionary step taken for the car industry in India. In 1983 MUL launched its first

car in India (Maruti 800) with a price tag of Rs.40,000/-.

This development was a big shock to the existing car manufacturers and they also rushed to

improve and increase their product line.

After the lifting of licensing in 1993 by government, 17 new ventures came up, of which 16 are

for manufacture of cars.

Today, almost all of the major global players are present in India. The automotive industry is today

a key sector of the Indian economy and a major

foreign exchange earner for the country.

46
Government

1981 was the year when government taken a revolutionary initiative to review and reform its policy

related to car industry. Now getting permission to produce cars in India is easier and new entrants

are coming almost every year. Government has also imposed heavy imposed heavy import duties

on imported vehicles to safeguard the car manufactured locally.

POST- LIBERALIZATION PERIOD

Following the economic reforms of 1991, the automobile section underwent delicensing and

opened up for 100 percent Foreign Direct Investment. A surge in economic growth rate and

purchasing power led to growth in the Indian automobile industry, which grew at a rate of 17% on

an average since the economic reforms of 1991.

India's automotive components industry is being urged by the government to partner with overseas

firms with the aim of making India a platform for outsourcing as well as a global R&D hub. As

the Indian vehicle production industry has grown, so has the domestic supplier industry. But the

global auto industry's search for lower cost and more international outsourcing has led to a sharp

growth in component output and exports in recent years.

The positive demographic factors, stable macro-economic environment and pro-reform policies of

the government, low manufacturing costs, availability of skilled labor has attracted almost all

major global auto players making their way into India like GM, Ford, Daewoo, Honda and Toyota

47
The intense competition has compelled the manufacturers to launch the latest global offering in

India as early as possible. It has also enabled to keep the prices of the vehicles under check. The

consumers, in turn, have benefited from wide choice of models, technologically advanced cars and

better service from the car manufacturers.

Major Manufacturers in Automobile Industry and their Cars

Maruti Udyog Ltd.

Cars:-

800,Omni,Gypsy,WagonR,Alto,Swift,Estilo,SX4,Grand Vitara,Swift DZire,A-

star,Ritz,Eeco,Alto K10,Kizashi,Maruti Ertiga

Tata Motors.

Cars:-

Aria,IndicaV2,IndicavistaIndigo,IndigoCS,IndigoManza,IndigoMarina,

Indigo V series,Indigo XL,Nano,Safari,sumo,Sumo Grand MK II,

Sumo Victa,

Hyundai Motor India Ltd.

Cars:-

Atos/Atoz/SantroCoupé/Tiburon/Tuscani,Dynasty, Elantra/Avante/Lantra,

Eon,Equus/Centennial,Excel,Scoupe,ix20,

48
Genesis,GenesisCoupe,Getz/Click/Getz,i10,i20,i30/i30cw/Elantra

Lavita/Matrix,Pony,Santamo,Sonata/i45, Stellar,Veloste

Honda

Cars:- Honda Brio,Jazz, City, Civic, Accord,CR-V

BMW

Cars:- 1 series,3 Series, 5 Series, 6 Series, 7 Series,X1, X3,X5,X6 and Z4 .

Other Automobile Companies are:-

Skoda

Toyota

Hindustan Motors

Ford

Toyota

Mahindra and Mahindra

EVOLUTION OF AUTOMOBILE INDUSTRY

Initial Years Early to mid 90s Mid 90s- 2011

Manufacturing was Licensed Seller’s market and Long waiting Buyers Market
periods

High customs duty on import Delicensing in 1993 Increase in Indigenization

Steep excise duties & sales tax Removal of Capacity restrictions. Easy Auto Finance

49
2 Major Players Decrease in customs & excise. Manufacturers diversifying into
related activities:

Premier Automobiles Ltd & Auto finance boom-more players Finance lease, fleet management,
Hindustan Motors (foreign banks & non banking insurance and
companies, better schemes).

1980s Used car market.

Entry of MUL, better product, Variety of Options available to

with Govt support. choose from.

Seller’s Market.

Long waiting periods.

fig:- 1

COMMON MARKETING STRATEGIES OF AUTOMOBILE COMPANIES

Advertising in News papers and Magazines:-

50
In this companies advertise about the car in various local
newspapers like Economic times and they give detail
explanation about the feature of the cars, keeping
customer’s requirement. They also provide various dealers
addresses and contact numbers for reference. Company
also tries to advertise through various magazines like Auto
Cars, Overdrive, etc.

Grand Launch :-

Recently Tata Nano car was grandly launched and created a buzz in market. After the launch media
aggressively took interest in providing the minute details about the car to the customer by showing
test drives, etc.

51
Once the car is launched they give adds in every possible newspaper, car magazines, put hoardings,
display car models in the malls.

Company provides exchange offers to customers :-

This is one of the most effective ways adopted by the companies and very successful marketing
strategy, which has helped company increase their sales.
In this method, companies provide option to buy a new car of your choice in exchange of their old
cars, but the price of old car is decided by the dealer by looking at its condition. It helps customers,
as they don’t need to go anywhere else to sell their old car. This also helps companies to increase
their sale of new cars.

Adding Star Value to product- Brand Ambassador :-

Companies choose brand ambassadors for their cars to reach wide masses. For e.g. Shahrukh Khan
promotes Hyundai, Abhishek Bachan promoted Ford Fiesta, Saif Ali Khan and Rani Mukherjee
promoted Chevrolet Aveo and Amir Khan promoted Toyota Innova. Ambassadors give a special
identity to the products.

Companies have started sponsoring reality shows for better visibility :-

As we all know reality shows are making all time big in television and entertainment industry.
This is really a smart move by automobile companies to gain visibility through reality shows. The
reality shows are aired all over the world and huge number of people watch it. So companies
sponsor such shows and get noticed.E.g. Maruti sponsored India’s Got Talent show on Colors
channel and gifted Ritz to the winner. Indian Idol winner was also gifted with Maruti SX4.

Mall Displays

52
Various companies display their cars in Malls so as to get prime attention. People go in Malls for
shopping and hangouts with their friends and family. They conduct small contests and give gift
hampers as prize. Thus they try to attract crowd towards them.

Companies enter market with help of Films

53
In terms of marketing strategies Hyundai I10 found a unique way of advertising by way of a Karan
Johar Film production, Rab Ne Bana Di Jodi. The main motive behind this was to popularize and
promote the product in youth.

Companies Sponsor Go- Karting events

Go-karting events are really booming up among young crowd. And that’s the reason we see craze
for participating in go-karting events is on high. People have started taking interest in the sport and
huge crowds turn up for such events. But for sure car companies would to not like to miss chance
of visibility they get in such competitions.Few years before Maruti Suzuki sponsored Autocross
rally. Similarly Tata Engenieering has sponsored Narayan Kartikeyan as India’s Entry in to the
World Series motorcar racing.

Personal selling
Personal Selling largely takes place at the Dealers’ End. The way customer is attended depends
mainly on the Dealer as he acts as an interface between the company and the Consumer. The
various cases in which Personal Selling takes place is Individual Sales, Corporate Sales, Sales
Presentations, Fair and trade Shows. Mostly in case of Individual Sales the Customer goes to the
showroom and takes a look at the product. There he is attended to by the Sales Personnel of the
Dealership. Sometimes the Senior Sales Executive has to make Sales Presentation to Corporate
Buyers. Personal Selling is also practiced at Trade Fairs and Auto Shows wherein the Company
appointed Sales Personnel attend prospective customers and also book their orders.

54
 Market Share Of Automobile Companies

% Market Share

3.9
4.3 10.1
6.7 46.9

13.5
14.6

Maruti Suzuki Ltd. Tata Motors Ltd.

Hyundai Motor India Ltd. Mahindra & Mahindra Ltd.

General Motors India Pvt Ltd. Honda Siel Cars India Ltd.

Others

fig : 2

Above market share graph shows us that in automobile industry still Maruti Suzuki is enjoying
highest market share. And then comes companies like TATA and Hyundai Motors India Ltd.

55
Marketing Strategies used by Maruti Suzuki

Advertisements
Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts to the people
about its products by marketing through advertisement in television, radio, newspaper, etc.
Through radios they try to promote their product by organizing quiz contests and the person who
wins are offered special discounts, gift vouchers, coupons, etc.
Through television they promote their vehicle by showing the utility value, its comfort level.

Some of the strategies used for cars were:-

Baleno: “Missed the flight catch Baleno” The most comfortable Car even in long drives.
Esteem: “My Daddy’s Big Car” Affordable mid size car

Alto: “Lets Go” The fuel efficient and affordable car

After Sales Service:- “Kya yahan Maruti Service Station hai” Availibility of service
stations even in the remotest place in the country.

Display
If you visit any of the Maruti Dealers showroom what you will notice is one thing very similar,
that is the display. They display only 2-3 cars in the showroom. Well this is the strategy to make
people concentrate on only few choices otherwise they might get distract and get confused. Here
Maruti wins one customer.

56
Tie up with many banks

To promote its bottom line growth, Maruti launched Maruti Finance in Jan 02.
Prior to the start of this service Maruti had started two joint ventures – Citicorp Maruti and Maruti
countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loan.
Today Maruti has tie ups with ABN Amro Bank, HDFC Bank, ICICI Ltd, Kotak Mahindra Bank,
Standard Chartered Bank etc.

Exchange offers

Maruti has also placed its step and progress by marketing through exchange offers. In this it makes
possible to leave and get it replaced for a new one with barely some amount. This is one of the
greatest ways to attract more and more customers and also makes possible to increase sales.

SBI Maruti Car Loans

The country’s largest bank and the largest car maker have joined hands to make affordable car
finance available to more and more people across the country. The mega alliance makes car loans
available at lower interest rates to a wider section of people, with transparent terms and conditions.

The unbeatable advantages of SBI Maruti car loans:-

-Two market leaders in their respective industries with trusted brand names.
-Low interest rates
-No processing fees or hidden costs to ensure transparency.
-Car loans available for diverse categories of customers including govt. employees and
agriculturist.
MARKETING STRATEGIES OF HYUNDAI

57
Advertisements
Hyundai had used Bollywood star Sharukh Khan as Brand Ambassador for promoting their car.
Through this they tried to attract the customers.

To promote their product they organized quiz contests on radio and the person who wins was
offered special discounts, gift vouchers, coupons, etc.
They also advertise in Newspapers. In this companies advertise about the car in various
newspapers and they give detail explanation about the feature of the cars, keeping customer’s
requirement. They also provide various dealers addresses and contact numbers for reference.

Free checkups

58
Hyundai arranges free checkups from time to time in which they check for any problem and advice
to visit the nearest service center for servicing. This helps in maintaining good relationship with
customers and tries to keep good image in market.

Exchange offers
As Hyundai deals in second hand cars also. They offer exchange offers to customers. And by
paying adjusted amount customer can get brand new car in exchange of old once. Exchange offer
makes customer happy as they don’t have to pay full amount also, they get new car also and their
old car gets replaced also with new one.

Cold callings
In this type of strategies old customers are given a relationship call just to know some other
references. This gives a boost to sales and customers also feel a sense of involvement. Hyundai
gets maximum sale through such type of cold callings only.

Events at Corporate Office and Banks

59
Hyundai tries to attract customers by conducting camps, events at corporate offices and bank as
most of the customers are of middle-age group and corporate offices are good source for company
to attract such customers.

Display

Hyundai keeps attractive display so that maximum number of people gets noticed. And they even
keep their own accessories related to cars at special accessories counter. For attractive display they
decorate their showroom as well as all the cars which are displayed.

60
 3.Research Methodology
Title of Study

Comparative Study of Marketing Strategies of Two Automobile Companies

Objective of Study

- To know the various strategies used by Maruti Suzuki and Hyundai Company to attract maximum

number of customers.

- To know which company offers better cars, better after sales services and by which company

cars customers are satisfied most.

- To know the demand of Automobiles.

- Competition from other car manufacturers.

-To know the trend in Market.

- To know which car is more demanded by Customers.

- Through which strategies maximum customers are attracted.

- To know recession effect on sale of cars

Scope of Study

- Company will come to know what attracts Customers.

- Company as well as Dealers of Maruti Suzuki and Hyundai will come to know that which are the

criterias customers look for before buying car.

- Company and Dealers will also come to know the future changes which will be require to satisfy

customer needs and wants.

61
Methodology of Data Collection

Primary Data:-

Visiting various Dealers and asking them about their promotional strategies and requirement of

customers.

Asking to users of Maruti and Hyundai about their preference, criterias while buying car and their

experience with dealers and their expectations from dealers.

Secondary Data:-

Magazines.

Internet.

Friends & seniors

62
 4.INTERPRETATION OF QUESTIONAIRE
Dealers Survey

Relation of Marketing Strategies and sales of product

Maruti’s Survey:-
From the survey of 5 dealers it was found that every dealer positively replied that marketing
strategies had helped them to increase the sales of their product .

Hyundai’s Survey:-
Even 5 Hyundai dealers positively replied that marketing strategies helped them to increase the
sales of their product.

Benefits of Marketing Strategy

Maruti’s Survey:-
Dealers replied that from the various marketing strategies enquiries for the new launches increases
and thus indirectly sales. It also increases references and contacts.
Hyundai’s Survey:-
Dealers replied that strategies created awareness amongst customers and increases walkins.

Promotional Strategies used

Maruti’s Survey:-
Maruti dealers conduct various events at malls, at workshops and at near banks and government
offices. They also give advertisements in local newspapers and distribute pamplets.

Hyundai’s Survey:-
Dealers conduct cold callings i.e. calling old customers. They give advertisement in papers,
conduct roadshows and conduct service checkup camps. Gives exchange offers.

63
Attraction of Customers

Maruti’s Survey:-
Dealers replied that most of the customers are attracted through media advertisements and mouth
publicity and also through old references.
Hyundai’s Survey: -
Dealers replied that most of the customers are attracted through references and walk-ins and mouth
publicity also helps in attracting customers to new product.

Promotion through Media

Maruti’s Survey:-
Most of the dealers felt that media promotions are more attractive than other medium because of
its mass reach.

Hyundai’s Survey:-
Hyundai dealers also had more positive reply for media publicity rather than other mediums.
Effect of Grand Launch of a Car

Maruti’s Survey:-
Dealers replied that grand launch of the car makes selling easy only in initial stage but afterwards
it depends on the product.
Hyundai’s Survey:-
Dealers think that it helps to attract customer’s attention but afterwards it depends on many other
factors like quality, performance, service, etc

64
Most demanded Car model

Maruti’s Survey:-
Most of the dealers replied that swift is the most demanded car amongst all Maruti cars, while next
best alternative is Alto.

Hyundai’s Survey:-
Dealers found i10, i20 and santro as the most demanded cars amongst other Hyundai cars.

Best milage Car

Maruti’s Survey:-
Dealers replied that Ritz and Alto gives best mileage.

Hyundai’s Survey:-
Dealers replied that i10 and santro car’s mileage is best amongst others.

Customer Preference

Maruti’s Survey:-
Dealers replied that customers prefer petrol version more.
Hyundai’s Survey:-
Here also customer demands more petrol version only.

65
Criteria in the Buyers Mind

Maruti’s Survey:-
Dealers replied that most of the customers look out for every criteria i.e. quality, comfort,
performance, mileage and price.
Hyundai’s Survey: -
In Hyundai also customers prefer all the above criteria’s but look for price and comfort more.

Biggest Competitor

Maruti’s Survey:-
Maruti dealers replied Hyundai as the biggest competitors.

Hyundai’s Survey:-
Hyundai dealers found Maruti as their biggest competitor.

Complete Package Car

Maruti’s Survey:-
Dealers rate Swift as a no. 1 car for its complete package.
Hyundai’s Survey:-
Hyundai rate i10 and i20 as their no. 1 car for complete package.

Way of Purchase

Maruti’s Survey:-
According to dealers Maruti cars are sold mostly on EMI basis. 50 -75% customers purchase cars
on installment basis.
Hyundai’s Survey:-

66
As per Hyundai dealers cars are sold on both EMI as well as upfront payment and around 50% of
Hyundai cars are sold on EMI basis.

Purchase on EMI basis

5
No. of dealers

4
7
3

1 1 1 1
0
0 -25% 25-50% 50-75% 75-100%
Percentage of customers

fig.3
Out of 10 dealers 7 dealers replied that 50-75% of their total sales are on installment basis.

Bank tie-ups

Maruti’s Survey:-
For EMI basis Maruti dealers are tied up with banks like ICICI, HDFC, SBI, and many others
banks but they don’t offer any extra discount to customers who purchase cars on cash basis

Hyundai’s Survey:-
Hyundai dealers are also tied up with ICICI, HDFC, SBI, and many other major banks for EMI
purchase and also don’t offer any discount to customers who purchase on cash payment.
Effect of Tata Nano’s entry

Maruti’s Survey:-

67
Dealers don’t think that Tata Nano’s entry in market will effect sale of their cars because they
think that customers not only look for car price while buying car but look out for many other
factors also.
Hyundai’s Survey:-
According to dealers customer look for Quality, Standard and performance which is lacking in
Tata Nano.

Recession effect

Maruti’s Survey:-
Because of recession cars sales were reduced by 10-20%. But now people have started buying cars.
Hyundai’s Survey:-
Most of the dealers replied that recession didn’t affected them at all, but few dealers replied that
there was marginal decline in Cars sales.

Spending huge amount on various marketing strategies during recession

Maruti’s Survey:-
Dealers think that if they don’t spend on various strategies then customer will be unaware of new
launches and sales will get affected.

Hyundai’s Survey:-

Hyundai dealers think that this is right time to attract maximum customers as rate of interest on
car loans have been reduced

Promotion through sponsoring Reality Shows

68
Maruti’s Survey:-
Dealers think that such type of marketing strategies helps to attract customers attention towards
their cars and thus it tries to create awareness amongst customers
Hyundai’s Survey:-
Dealers think that because of such strategies many customers gets aware about their products and
generate enquiries.

Views of dealers on Promotion through sponsoring reality

show

7
6
5
No of dealers

4 7

3
2 3

1
0
yes no

fig 4

It was found out that most of the dealers i.e. 7 dealers replied positively that sponsoring reality
shows and giving car to winners helps in promoting car whereas 3 dealers were not agreed to this.

Reason for loyalty

Maruti’s Survey:-

69
Dealers think that customers are loyal to Maruti is because of its service, Quality, range of cars
and Brand Name
Hyundai’s Survey:-
According to them because of its offerings of variety of cars in all segment and its quality
customers are loyal to Hyundai.

Believe in Customer Satisfaction and After Sales Service?

Both Maruti and Hyundai dealers believe 100% in Customer satisfaction and after sales service
because they think that if customer is fully satisfied with its service then only he will return to
same company for purchase otherwise he will shift to another car companies product. And better
sales service will create good image in mind of customers.

Conduct Marketing Research activity

Some dealers replied that they conduct research activity for knowing which marketing strategy
had attracted maximum number of customers, so that they can try to promote more through that
strategy. Otherwise they don’t conduct research activity. It is normally conducted at companies
level and not at dealers level.
Festive season boost

Increase in sales during Festive Season

4
3.5
3
No. of Dealers

2.5
4
2
3
1.5
2
1
1
0.5
0
0-20% 20-40% 40-60% 60-80%

Increase in Sales %

fig 5

70
Maruti’s Survey:-
According to dealers car sales increases by 40-50% during festive season like Diwali.
Hyundai’s Survey:-
Hyundai dealers also replied that there is almost increase of 30-40% of cars during festive season.

Company support to Dealers

Both companies dealers replied that company makes selling of car easy by doing promotion
through various ways. Company also motivates employees to sale more cars by providing
incentives, and special schemes are introduced for dealers. Company gives them training so that
they can easily communicate with customers and can solve their doubts.

71
 Customers survey

Users
Below graph shows us that 63.75 % are Maruti users i.e 51 users out of 80 where as remaining 29
users i.e 36.25% are Hyundai customers .
Users

70
63.75

60

50
Percentage users

40 36.25

30

20

10

0
Maruti Hyundai
Company

fig 6

72
Most preferred cars
After the survey it was found that Santro from Hyundai and Swift from Maruti from the various
range available are the most preferred cars amongst the customers. Also Zen is more in demand.

Car Users

16
14
12
No. of users

10
8 16
13 13
6
9 8
4 7 6 5
2 3
0
Santro i10 Getz i20 Alto Swift Ritz Zen Others
Cars

fig 7

Loyal towards brand

It is found that customers stay loyal to Maruti and Hyundai rather than other brand. They have
faith in this brands due to their goodwill, good service, complete package and reasonable prices

Reasons for Using Maruti & Hyundai Car

40 36.25
35
30 26.25
Percentage

25
20 15
13.75
15
8.75
10
5
0
Brand Quality Price Range of Complete
Cars Package
Criterias

fig.8

73
Rating to car performance
It was found that most of the customers were satisfied with the performance of the cars whereas
very few found it as not up to their mark.

Customer's Rating to Car Performance

45
40
35
30
Percentage

25 43.75
20
31.25
15
10 17.5
5 7.5
0
Excellent Very Good Good Poor

fig.9

Customer’s expectation
Below graph clearly states that 86 percent customer’s expectations were met through these brands
where as few were unsatisfied..

Expectations Met

90
80
70
60
Percentage

50 86
40
30
20
14
10
0
Yes No

fig 10

74
Criteria’s in buyer’s mind while purchasing

Criterias in Buyers Mind

30

25
Percentage

20

15 28.75 27.5

10 17.5
15
11.25
5

0
Looks Performance Comfort Milage All of Them
Criterias

fig 11

It was found that while purchasing the car customer’s look for the complete car of their choice
which gives them good performance, looks, mileage and also it should be reasonable in price.

Pricing
Most customers found that prices of these cars are affordable for their pockets whereas few
customers found that price is little higher.

Reasonable Pricing

80

70

60

50
Percentage

77.5
40

30

20
22.5
10

0
Yes No

fig 12

75
Preference of customers
Maximum customers still prefer to buy petrol version cars rather than diesel or LPG version. Even
though LPG and diesel versions are economical in usage.

Preference Of Customers

80
Percentage

60

40 62.5
20 26.25
11.25
0
Petrol Diesel L.P.G

fig. 13

Strategies used to attract customers

Most of the customers prefer to buy after seeing some one else’s experience. Thus word of mouth
publicity acts as the marketing strategy for company whereas others are attracted to T.V ads, brand
ambassadors, etc .

Strategies through which Customers Attracted

50

40
Percentage

30
47.5
20
21.25
10 13.75
11.25
6.25
0
T.V Ads Launch Of Newspapers Word of Others
Car Mouth
Publicity

fig.14

76
Dealer’s Service
About 37.5 percent customers were satisfied with service provided by the dealers. Some were not
satisfied as they faced problems like delay in delivering the cars,etc

Dealers Service

40

35

30

25
Percentage

20 37.5
31.25
15
23.75
10

5 7.5

0
Exceelent Very Good Good Poor

fig.15

77
 Findings

 It was found that dealers agree that Marketing Strategies helps to increase sale of product.

 Most of the customers are attracted through media publicity and mouth publicity.

 Swift from Maruti and i10, i20, and Santro from Hyundai are most demanded cars by
customers.

 Customer prefers Petrol Version cars rather than Diesel or L.P.G. version.

 Most of the Customers were found satisfied with cars performance.

 Around 50-75% of customers purchase cars on installment basis.

 From survey, it was found that around 64% were Maruti users.

 Pricing of cars was found reasonable by most of the customers.

 Customers were satisfied with dealer’s service.

78
 Conclusion,Suggestions and Recommendations

Suggestions and Recommendations

To Dealers

 As dealers directly interact with customers, they should maintain proper Customer
Relationship Strategy.

 They should differ service benefits and offerings according to the various customers
segments. Which may include classification on the basis of
- income group
- Age group

 Dealers should help customers in taking right decision for buying car and should give
complete information about car before customer purchase car.

 The customers purchasing car on installment basis, should also be provided with additional
accessories as there is in case of cash purchase.

 Dealers should provide good after sales service and should maintain good relations with
customers so that reference can be get and goodwill is created.

79
To Company

 Maruti should more frequently come with mid-size models like sx4 and swift as this sedan
model is doing very good in market.

 Maruti and Hyundai should come up with diesel model of mid-size cars as market survey
says that the use of diesel cars will increase by 50% by 2011.

 Hyundai should try to increase their number of dealers and service stations so that
customers can get better service.

 Both companies should try to build trust in customers as competition is increasing day by
day.

 Company should try to give some good schemes and offers and discounts for old and new
customers.

 Maruti should try to expand its range of cars from small car and hatchbacks to more mid-
size cars like sx4 and swift mid size version.

80
 Conclusion

Maruti suzuki is good in its marketing strategy and shows good results. And as Maruti has its vast
network of dealers and service centers they are able to provide good after sales services and are
able to maintain good relationship with customers which is their strongest point. Maruti is also
benefited with its goodwill and Brand name which is already there in market. So Maruti can use
these as an opportunity to bring new and innovative car models in market and try to attract more
and more customers. It can be seen that Maruti is trying to attract customers from all segments by
launching cars like sx4, Swift, Ritz but their main preference is “A” segment cars only

Hyundai strategies of endorsing their products with celebrities has got a very good response but
Hyundai should advertise better to create a good picture of its products by transferring the key
good things about its cars. Hyundai has a good tract record of having successful diesel mid size
cars in its portfolio and it should encash the same opportunity to launch the diesel versions of small
car before Maruti too have competitive advantage. And Hyundai should also try to increase their
service centers so that customers can find it convenient.

81
 List of Charts/ Graph

Chart no. Name Page no.

1 Evolution of Automobile Industry 20

2 Market share of Automobile Industry 21
3 Way of Purchase 26
4 Views of dealers on Promotion through 39
sponsoring reality show
5 Increase in sales during Festive Season 41
6 Users of Maruti/ Hyundai 42
7 Most Preferred car 43
8 Reasons for Using Maruti & Hyundai Car 44
9 Customers Rating to cars performance 45
10 Expectations Met 46
11 Criteria’s in Buyers Mind 47
12 Reasonable Pricing 48
13 Preference of Customers 49
14 Strategies through which Customers Attracted 50
15 Dealers Service 51

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 Annexure

QUESTIONAIRRE TO MARUTI/ HYUNDAI DEALERS

Q.1) Do you think Marketing Strategies helps to increase sales of product?

a) Yes b) No

Q.2) Do you think Promotion through Media is more effective than any other medium?
a) Yes b) No

Q.3) Does a Grand Launch of a Car makes Selling of a car easy?

a) Yes b) No

Q.4) Which of the Car model of your company is demanded by customer, the most?
a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata
g) Any Othera

Q.5) Which car of your company gives best milage?

a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata g) Any Other

Q.6) What is the Customer Preference?

a) Petrol version b) Diesel version c) L.P.G version

Q.7) While Buying the Car, what are the criteria in the Buyers Mind?
a) Quality b) Comfort c) Performance d) Milage e) Price

Q.8) Which other Automobile Company do you think is Biggest Competitor for Maruti Udyog?
a) Maruti / Hyundai, b) General Motors, c) Honda, d) Tata
e) Mahindra and Mahindra

Q.9) Which car will you Rate as No.1 for its Complete Package?

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a) Santro b) i10 c) Getz d) i20 e) Acccent f) Sonata g) Any Other

Q.10) Most of the Sale takes place on which Basis?

a) Cash b) E.M.I c) Cheque d) Any other

Q.11) How many % of Customers purchase car on installment basis?

a) 0-25 b) 25-50 c) 50-75 d) 75-100

Q.12) With which Bank you are tied up for E.M.I system?
a) I.C.I.C.I b) HDFC c) IDBI d) HSBC e) SBI f) Any other

Q.13) Do you offer discount to customer on Cash Purchase? If yes then how much?
a) 1% b) 2% c) 3% d) 4 e) 5% f) more than 5%

Q.14) Do you think in this recession time also, spending huge amount on various marketing
strategies is wise decision?
a) Yes b) No

Q.15) What do you think is the reason behind customer being loyal to Maruti / Hyundai or have
faith in Maruti/ Hyundai?
a) Brand Name b) Quality c) Service d) Reasonable price
e) range of cars

Q.16) Do you think sponsoring Reality Shows and Giving cars to Winner helps Promoting car and
increases profitability in return?
a) Yes b) No

Q.17) In the initial stage which pricing strategy you will prefer?
a) Skimming b) Penetration

Q.18) Do you deal in Second Hand Cars also?

84
a) Yes b) No

Q.19) Do you conduct Marketing Research activity?

a) Yes b) No

Q.20) Do they arrange seminars for giving information about Future Plans and Car Launches?
a) Yes b) NO

85
 QUESTIONAIRRE TO CUSTOMERS

Q.1) Which companies car you are using now Maruti / Hyundai?
a) Maruti b) Hyundai

Q.2) Which car you are using?

a) Santro, b) i10, c) Getz, d) i20, e) Alto, f) Swift, g) Ritz, h) Zen, I) other

Q.3) Why you choose Maruti/ Hyundai car, and not others company car?
a) Brand, b) Quality, c) Price, d) Range of cars, e) Complete package

Q.4) How did you find the car’s performance?

a) Excellent, b) Good, c) Average, d) Poor

Q.5) Has it met your expectations?

a) yes, b) No.

Q.6) What was the main criteria in your mind while purchasing car?
a) looks, b) performance, c) comfort, d) milage, e) all of them

Q.7) If you have used Maruti/ Hyundai car before also, what reasons has forced you to buy Maruti/
Hyundai again?
a) Brand, b) Quality, c) Price, d) Range of cars, e) all of them

Q.8) Do you think prices are reasonable?

a) Yes, b) No

Q.9) Which version would you like to purchase?

a) Petrol, b) Diesel, c) L.P.G

86
Q.10) Which Marketing strategy have attracted you to buy car?
a) T.V ads,
b) Launch of car,
c) Newspapers,
d) Word of Mouth publicity.
e) Other

Q.11) How did you find dealers services while buying car?
a) Excellent, b) Good, c) Average, d) Poor

Q.12) What are your expectations from dealers side?

a) On time delivery
b) Good Service
c) Giving detailed information about car before purchase
d) Solving complaints/ queries immediately
e) All of above
Q. 13) Out of following which Hatchback car would you like to purchase?
a) Ritz, b) Getz, c) i20 d) Spark, e) Fabia

87
 Bibliography

Books
 Marketing
Kotler, P. (Year). Marketing Management. New Delhi: Publisher.

Marketing Management –Sharma Arun

Magazines
 Auto Drive
 Indian Auto
 Over Drive

Websites
 www.marutisuzuki.com
 www.hyundai.com
 www.google.com
 www.autoindia.com
 www.overdrive.com
 www.wikipedia.com
 www.netmba.com

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