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History and development of Automobiles also marks the dynamism in technological growth men have achieved. From the days of horseless carriages to the modern-age self-guided automobiles that are designed meticulously using cutting-edge technology, we have certainlytraveled too far. Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure, design and development, and marketing. Automobile industry in India is today poised for (he big leap and this segment helps you to be ready for that.

Indian Automobile Industry

The automobile industry is one of the core industries in India economy, whose prospect is reflective of the economic resilience of the economy. With the liberalization of the economy. India has become the playground of major global automobile majors. This industry report of SCOPE MARKETING & INFORMATIONS SOLUTIONS PVT LTD provides extensive information on the Indian Automobile Industry. The automobile industry in India is gradually evolving to replicate those of developed countries. The report focuses on the trends that are emerging in the industry across segments, namely, passenger cars/multi-utility vehicles, commercial vehicles, two-wheelers and tractors. The qualitative analysis of the various trends reveals that the industry offers immense scope even for allied industries and those looking at investing in the auto industrys a background, a brief perspective of the global automobile industry across segments has been provided with

comparisons on Indian scenario wherever needed. It discusses the current scenario in the industry, with detailed look on segmentation, structure, and supply and demand scenarios. A detailed competitive analysis of the industry has been provided backed warn comprehensive details on production, sales, exports and imports over the years, across segments. Sales have increased with the entry of several foreign manufacturers and the introduction of new vehicle models. The report also deals with aggressive marketing strategies undertaken by different manufacturers in India. This highlights key issues influencing the automotive industry in India such as import and excise duties, emission norms etc and it also deals with various government regulations.

The Birth of Automobiles

The history of the automobile actually began about 4,000 years ago when the first wheel was used for transportation in India. Several Italians recorded designs for wind-driven vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels. Vaturio designed a similar vehicle that was also never built. Later Leonardo da Vinci designed clockwork-driven tricycle with tiller steering and a differential mechanism between the rear wheels. In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a full-sized engine-powered vehicle was created. Although by the mid-15th century the idea of a self-propelled vehicle had been put into practice with the development of experimental vehicles powered by means of springs, clockworks, and the wind, Nicolas-Joseph Cugnot of France is considered to have built

the first true automobile 1769. Designed by Cugnot and constructed by M. Brezin, it is also the first vehicle to move under its own power for which there is a record. Cugnot's three-wheeled steam-powered vehicle carried four persons and was meant to move artillery pieces. It had a top speed of a little more than 3.2 km/h (2 mph) and had to stop every 20 minutes to build up a fresh head of steam. Evans was the first American who obtained a patent for "a selfpropelled carriage." He, in fact, attempted to create a two-in-one combination of a steam wagon and a flat-bottomed boat, which didn't receive any attention in those days. During the 1830's, the steam vehicle had made great advances. But stiff competition from railway companies and crude legislations in Britain forced the poor steam vehicle gradually out of use on roads. The early steam-powered vehicles were so heavy that they were only practical on a perfectly flat surface as strong as iron. A road thus made out of iron rails became the norm for the next hundred and twenty-five years. The vehicles got bigger and heavier and more powerful and as such they were eventually capable of pulling a train of many cars filled with freight and passengers.

Carl Benz and Gotttlieb Daimler, both Germans, share the credit of changing the transport habits of the world, for their efforts laid the foundation of the great motor industry, as we know it today. First, Carl Benz invented the petrol engine in 1885 and a year later Daimler made a car driven by motor of his own design and the rest is history.

Daimler's engine proved to be a great success mainly because of its less weight that could deliver 1000 rpm and needed only very small and light vehicles to cany them.

France too had joined the motoring scenario by 1890 when two Frenchmen Pan hard and Levassor began producing vehicles powered by Daimler engine, and Daimler himself, possessed by the automobile spirit, went on adding new features to his engine. He built the first V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest form of sparking plug. The engines were positioned under the seat in most of the Daimler as well as Benz cars. However, the French duo of Pan hard and Levassor made a revolutionary contribution when they mounted the engine in the front of the car under a 'bonnet'.

For many years after the introduction of automobiles, three kinds of power sources were in common use: steam engines, gasoline or petrol engines, and electric motors. In 1900, over 2,300 automobiles were registered in New York, Boston, Massachusetts, and Chicago. Of these, 1,170 were steam cars, 800 were electric cars, and only 400 were gasoline cars. In ten years from the invention of the petrol engine, the motorcar had evolved itself into amazing designs and shapes. By 1898, there were 50 automobilemanufacturing companies in the United States, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the manufacture of automobiles with his assembly-line style of production and brought out the Model T, a car that was inexpensive, versatile, and easy to maintain. The introduction of the Model T transformed the automobile from a plaything of the rich to an item that even people of modest income could afford; by the late 1920s the car was commonplace in modem industrial nations.

Herbert Austin and William Morris, two different carmakers, introduced mass production methods of assembly in the UK, thus paving the way for *a revolution in the automobile industry. Austin Seven was the world's first practical four-seated "baby car' which brought the pleasures of motoring to many thousands of people who could not buy a larger, more expensive car. Even the 'bull-nose' Morris with front mounted engine became the well-loved model and one of the most popular cars in the 1920s.

Automobile manufacturers in the 1930s and 1940s refined and improved on the principles of Ford and other pioneers. Cars were generally large, and many were still extremely expensive and luxurious; many of the most collectible cars date from this time. The increased affluence of trie United States after World War II led to the development of large, petrol-consuming vehicles, while most companies in Europe made smaller, more fuel-efficient cars. Since the mid-1970s, the rising cost of fuel has increased the demand for these smaller cars, many of which have been produced in Japan as well as in Europe and the United States.

Clearly, the consumer is king in a competitive environment. The automobile sector is just one of several examples of how the consumer as benefited from competition. For decades, the Indian consumer as paid dearly for our policy makers confusion between socialism and capitalism. The thoughtless policy frame as neither allowed no efficient producers or consumers to get optimum value for their effort or money. The recent price was triggered by Telcos Indica is an interesting case study. Let us trace the evolution of the Indian passenger car industry. Since independence till the early 1980s there were only to major Indian players-Hindustan Motors and

Premier auto-in the industry. As new players were barred by licensing, and imports by absurd import duties, these two car manufacturers constituted the oligopoly.

They had neither financial muscle nor any incentive to invest in technology or quality. Little wonder the Indian consumer had the worst quality of cars in the

World Worse than cars available even in countries like Nepal, Srilanka or Bangladesh besides the exorbitant duty structure ensured that ownership was restricted to the super rich the oligopolists were happy with this situation. Until the then prime ministers omnipotent son had brilliant idea! To manufacture a people car at an affordable price. Policies, government machinery, etc were twisted to, cement prices in unofficial markets (make the dream come true. The oligopolists were furious (read premier Autos annual reports of late 1980s/early1990s).but the people are maruti 800 came into existence.

We Indians have been quite happy with its japanees technology. But I realized how poorly it compared to international cars when a well-built foreign guest of mine, unable to fit himself in the front seat, remarked, is this car or a toy? All thought that people car was available at such a low price because of the benevolent pricing our egalitarian government, which holds the majority stake in the company. Then competition arrived even for the people car and behold, the people car is affordable by many more.-it is 10-12 percent cheaper. Some other carmakers have slashed prices by almost25%. The private players plan to sell 10000cars at lower price than the erstwhile Peoples Car has brought down prices of models that together sell about 250000 units every year. In cars, the price reduction is quantifiable and visible. In the past

seven years, there have been hundreds of products where unshackling competition has benefited the consumer.


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. When Hyundai wanted to develop their own car, they hired George Turnbull, the former Managing Director of Austin Morris at British Leyland. He in turn hired five other top British car engineers. They were Kenneth Barnett body design, engineers John Simpson and Edward Chapman, John Crosthwaite ex-BRM as chassis engineer and Peter Slater as chief development engineer. 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 1984, 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. In 1985, the one millionth Hyundai car was built. 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 the spring of 1990, aggregate production of Hyundai automobiles reached the four million mark. In 1991, the company succeeded in developing its first proprietary gasoline engine, the four-cylinder Alpha, and also its own transmission, thus paving the way for technological independence. In 1996, Hyundai Motor India Limited was established with a production plant in Irungattukottai near Chennai, India. 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. 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 28 April 2006, Chung was arrested, and charged for embezzlement of 100 billion South Korean

won (US$106 million). As a result, Hyundai Vice Chairman and CEO, Kim Dong-jin, replaced him as head of the company. On 30 September 2011, Yang Seung Suk announced his retirement as CEO of Hyundai Motor Co. In the interim replacement period, Chung Mong-koo and Kim Eok-jo will divide the duties of the CEO position.

Research and development

Hyundai has 6 centers worldwide, located in Korea (three

offices), Germany, Japan and India. Additionally, there is an American design centre in California that develops designs for US markets.


a) USA b) Canada

2) South America
a) Brazil b) Panama & Dominican Republic

3) Asia a) China
b) Bejing Hyundai c) Hawait partnership d) Commercial vehicle

e) India f) Japan g) Philippines h) Turkey 4) Europe a) Germany b) Czech republic c) Russia

5) Africa
a) Egypt b) Libya

Company Profile
Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Parent Hyundai Motor Company Automotive Worldwide South Korea Chung Mong-koo $ 70.226 billion (2011) $ 6.910 billion (2011) 57,105 (2011) Hyundai Motor Group

Main Competitors

Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Company, General Motors Company, Honda Motor Company, Nissan Motor, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.

Hyundai Motor Company is a South Korean automotive corporation producing mainly passenger cars and commercial vehicles. It is the eighth largest automaker in the world and is a subsidiary of Hyundai Motor Group, the 4th largest automotive company in the world in 2011 by vehicle sales.

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