Summer Internship in Harsali Hundai

A Project Report on
VEHICAL INSURANCE AND TYPE OF INSTALLMENTS
For Partial
Fulfillment of the
Degree of
Masters of Business
Administration
By
PUNEET SHARMA
(Y14282041-3)
MBA 3rd Semester
Under the Guidance of
Shri Prashant Mehta
General Manager
Sagar Office

Department of Business Management

Dr. Hari Singh GourVishwavidyalaya

(A Central University)
Sagar (M.P.)
Batch of 2014-16

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Declaration

I hereby declare that the project report titled Vehicle Insurance and Type of
Installments is my own work conducted for the esteemed Harsali Hundai for the
period of Summer Internship from 15th May to 30th June 2015, under the guidance
of Shri Prasant Mehta , General Manager, Harshali Hundai A unit of Jainam
Auto Links. Pvt. Ltd. Sagar (M.P.).
To the best of my knowledge this report does not contain any work which has been
submitted for the award of any degree anywhere.

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Puneet Sharma
(Y14282041-3)
MBA 3rd Semester

Preface
The project report on Vehicle Insurance and Type of Installments was allotted to
me by Shri Prasant Mehta , General Manager, Harshali Hundai, Sagar. I am highly
obliged to Shri Kuleep Singh Rajpoot Manager Operation Harshali Hundai Office
for guiding me in various aspects of this project.
The main aim of this project is to know the background of the Customer who are
buying Vehicle in Harshali Hundai in Sagar Branch. Descriptive research and
qualitative survey has been used in this project.
The idea behind this project is to give practical knowledge and to make me face
real life situation. I tried my best to explore the truth and facts in my survey report
and reality regarding the survey and understanding practical experience of the
survey. This project survey is not only with my own efforts but also that of others.

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Puneet Sharma
(Y14282041-3)
MBA 3rd Semester

Acknowledgement
I would like to whole heartily thank and express my sincere gratitude to Shri
Prasant Mehta , General Manager, Harshali Hundai, Sagar for suggesting me this
problem and for giving an insight in dealing with the subject.
I am highly obliged to Shri Kuleep Singh Rajpoot Manager Operation Harshali
Hundai Office for guiding me in various aspects of this project like conducting
field work and designing schedule for interviews and suggesting me the Project
Work and helping me in finalizing the Report. I express my gratitude to all the
small Customer in Sagar, Madhya Pradesh to discuss the various aspects of this
study and provided useful suggestions.
I express my heartfelt indebtedness and owe a deep sense of gratitude to my
teacher and my Faculty guide Dr. Shree Baghwat, Assistant Professor, Dr. Hari
Singh GourVishwavidyalaya, Sagar, Madhya Pradesh and to my Corporate guide
Shri Prasant Mehta , General Manager, Harshali Hundai, Sagar Madhya Pradesh
for their sincere guidance and inspiration in completing this project.
Lastly, I must express my gratitude to all the elders of the family and citizens of the
city who blessed me in course of discussion. I also extend my sincere thanks to my
family and my friends for their encouragement and support.

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Puneet Sharma
(Y14282041-3)
MBA 3rd Semester

Letter of Transmittal
To :
From :Puneet Sharma
Date : Friday 10th June 2015
Subject: VEHICAL INSURANCE AND TYPE OF
INSTALLMENTS
As per the requirement, I am submitting the enclosed Project Report on the topic Vechical
Insurance and types of Installment.
The report is meant to provide a direction to the management about identifying their customer
base in Harshali Hundai and making it more attractive for them. The major findings of the report
are that Customer are a great source for the Automobile in their selling.
There are several expectations that can be fulfilled to meet the needs of the prospective Customer
which can be categorized based on their income, Social Status, and their purpose of buying
Vehicle. A deeper analysis of such features is mentioned in the report.
The Automobile Industry in India is much more prominent today than even before. The future of
sustainable Automobile growth in India depends on the performance of Automobile Industry
with their contribution in sustainable growth in Indian economy.

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I hope, you find this report satisfactory.

Executive Summary
A PROJECT REPORTON VEHICAL INSURANCE AND TYPE
OF INSTALLMENTS
PUNEET SHARMA
30 JUNE 2015
History of The Indian Automobile Industry
The Indian automobile industry can be viewed in terms of the pre-1991 (before
liberalization) and post-1991 (after liberalization) phase.
Before Liberalization (Before 1991) 1880
About hundred years ago the first motorcar was imported and Import duty on vehicles
was introduced. Indian Great Royal Road (Predecessor of the Grand Trunk Road) was
conceived. First car brought in India by a princely ruler in 1898. Simpson & Co established in
1840. They were the first to build a steam car and a steam bus, to attempt
motorcar manufacture, to build and operate petrol driven passenger service and to import
American Chassis in India. Railways first came to India in 1850's. In 1865 Col. Rookes
Crompton introduced public transport wagons strapped to and pulled by imported steam road
rollers called streamers. The maximum speed of these buses was
33kms/hr.
1920 to 1950
In 1919 at the end of the war, a large number of military vehicles came on the roads. In 1928
assembly of CKD trucks and cars was started by the wholly owned Indian subsidiary of
American General Motors in Bombay and in 1930-31 by Canadian Ford
Motors in Madras, Bombay and Calcutta. In 1935 the proposals of Sir M Visvesvaraya to
set up an Automobile Industry were disallowed. 1942 Hindustan Motors Ltd. incorporated and
the first vehicle was made in 1950. In 1944 Premier Automobiles Ltd.
incorporated and in 1947 the first vehicle was produced. In 1947 the Government of
assembly started in a couple of years under a license from Piaggio. Manufacturing
Program for the auto and scooter was submitted in 1953 to the Tariff Commission

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Bombay accepted a scheme of Bajaj Auto to replace the cycle rickshaw by the auto and

and approved by the Government in 1959. In 1953 the Government decreed that only
firms having a manufacturing program should be allowed to operate and mere
assemblers of imported CKD units be asked to terminate operations in three years.
Only seven firms namely Hindustan Motors Limited, Automobile Products of India
Limited, Ashok Leyland Limited, Standard Motors Products of India Limited, Premier
Automobiles Limited, Mahindra & Mahindra and TELCO received approval.
M&M was manufacturing jeeps. Few more companies came up later. Government
continued with its protectionism policies towards the industry.
Emerging Trends In Indian Automobile
Sector
Globalization is pushing auto majors to consolidate, to upgrade technology, enlarge
product range, access new markets and cut costs. They have resorted to common
platforms, modular assemblies and systems integration of component suppliers and
ecommerce.The component industry is undergoing vertical integration resulting into
emergence of systems and assembly suppliers rather than individual component suppliers. Thus,
while most component suppliers are integrating into tier 2 and tier 3
suppliers, larger manufacturers and multinational corporations (MNCs) are
being transformed into tier 1 companies. Environmental and safety concerns are
leading to higher safety and emission norms in the country. India has already charted out
a road-map for reaching EURO-II norms across the country by the year 2005. Seven
metropolitan cities of India would simultaneously move to EURO-III norms in
2005. Most vehicle manufacturers are already producing EURO-II compliant
vehicles in the country to meet special requirements of capital city of New Delhi
where the Supreme Court verdict has already necessitated this.

Declaration

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Table of Contents

Preface
Acknowledgement
Letter of Transmittal
Executive Summary

Sr.
Title
No.
1.Introduction: Company Profile

Page no.

Overview
History
Competitors
SWOT Analysis of Hundai India Ltd.
Different Products of Hundai India Ltd.

2.Objectives of the Study

Scope of the Study

3.Research methodology

Research Design
Data collection
Sampling method
Sample size
Research tools
Research Area

4.Automobile Sector in India

Indian Economy and Automobile
History of Automobile Industry
Automobile In India

5.Findings
6.Suggestions
7.Limitations
8.Conclusion
9.Annexure
Bibliography

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CHAPTER-1
VEHICLE INSURANCE - GENERAL INFORMATION

Auto Insurance in India deals with the insurance covers for the loss or damage caused to the
automobile or its parts due to natural and man-made calamities. It provides accident cover for
individual owners of the vehicle while driving and also forpassengers and third party legal
liability. There are certain general insurance companies who also offer online insurance service
for the vehicle.
Auto Insurance in India is a compulsory requirement for all new vehicles used whether for
commercial or personal use. The insurance companies have tie-ups with leading automobile
manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a
number of factors and the amount of premium increases with the rise in the price of the vehicle.
The claims of the Auto Insurance in India can be accidental, theft claims or third party claims.
Certain documents are required for claiming Auto Insurance in India, like duly signed claim
form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy.
There are different types of Auto Insurance in India :
Private Car Insurance In the Auto Insurance in India, Private Car Insurance is the fastest
growing sector as it is compulsory for all the new cars. The amount of premium depends on the
make and value of the car, state where the car is registered and the year of manufacture.
Two Wheeler Insurance The Two Wheeler Insurance under the Auto Insurance in India covers
accidental insurance for the drivers of the vehicle. The amount of premium depends on the
current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory
Committee at the time of the beginning of policy period.
Commercial Vehicle Insurance Commercial Vehicle Insurance under the Auto Insurance in
India provides cover for all the vehicles which are not used for personal purposes, like the Trucks
and HMVs. The amount of premium depends on the showroom price of the vehicle at the
commencement of the insurance period, make of the vehicle and the place of registration of the
vehicle. The auto insurance generally includes:

Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary,
housebreaking or theft, malicious act.
Liability for third party injury/death, third party property and liability to paid driver
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On payment of appropriate additional premium, loss/damage to electrical/electronic

accessories

The auto insurance does not include:

Consequential loss, depreciation, mechanical and electrical breakdown, failure or

breakage

When vehicle is used outside the geographical area

War or nuclear perils and drunken driving.

TYPE OF INSTALLMENT GENERAL INFORMATION

Paying auto insurance premiums is not something most of us look forward to. It is a necessary
part of being a responsible driver though. Most insurance companies will allow you to pay your
premiums in installments. Here's what you need to know about doing that.
Easier Monthly Payments
For many people coming up with the full amount of a 6 month or one year policy at one time can
be troublesome. This is especially so if you have several vehicles on a policy. Paying your auto
insurance payments in installments will make it easier for you to pay your insurance without
having a huge gap in your checking account up front. It's a popular option for most people which
is why most insurance companies now offer the option of paying over time.
Pay 8 Months for 1-Year Policy
Most insurance companies will be able to split up the payments so that you pay for 8 months,
then not pay anything for the last 4 months of your policy. This can feel like a benefit since you
will have several months payment free. Some companies will offer something similar to this on
shorter policies as well. It's not uncommon to pay for 4 months on a 6 month policy.
More Money out of Pocket
If you are paying your insurance on monthly installments you need to be aware that most
insurance companies will tack on a fee to do this. It can be as much as $10 a month additional for
up costing you $480 total after these fees are applied. If your policy is low enough for you to
comfortably afford paying it at one time, this is a good money saving option.

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the privilege of paying over time. So a policy that would only cost $360 for a full year could end

Chance of Cancellation
With an installment plan the insurance companies don't show a lot of leniency if you are late or
miss a payment. If you pay your premiums in advance you can be assured of having coverage for
the full amount of time. With an installment plan your policy can be cancelled after just one
missed payment. Some companies will cancel the policy as early as 5 days after the payment due
date.
Down Payments
Most insurance companies will require a down payment if you are making installment payments.
This is the case even after you've established yourself with the company. You could have had 3
policies with them in the past and the first payment on the renewal policy will still require a
down payment.
Automatic Drafts
This can be seen as a pro or a con depending on your situation and how you generally pay your
bills. When you make installment payments most insurance companies will require you to pay
your monthly premiums by automatic debit. This means that the money comes out of your
checking account each month on the same day. If you keep your account at the bare minimum
and the payment comes out, you can easily overdraw your account. Automatic payments are
great for those who can keep up with their bills and plan properly, not so great for those who
have a hard time remembering or writing down their other purchases.
Whichever method you choose is up to you. You need car insurance to drive. Having the option
of paying the policy over time can be a great benefit to many people.

Research Methodology

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CHAPTER -2

Research is an art of scientific investigation through search for new facts in any branch of
knowledge. It is a moment from known to unknown. In this research the research method used
was the Descriptive research.
Research design
Descriptive research design
Descriptive Research Design
Sometimes an individual wants to know something about a group of people. Maybe the
individual is a would-be senator and wants to know who they're representing or a surveyor who
is looking to see if there is a need for a mental health program.
Descriptive research is a study designed to depict the participants in an accurate way. More
simply put, descriptive research is all about describing people who take part in the study.
There are three ways a researcher can go about doing a descriptive research project, and they are:

Observational, defined as a method of viewing and recording the participants

Case study, defined as an in-depth study of an individual or group of individuals

Survey, defined as a brief interview or discussion with an individual about a specific

topic

Data collection
In this project report used both primary and secondary data collection method.
Primary data
These data were collected by personal interview with Customer and the GM of the Harshali
Hundai Sagar region.
Secondary data
These data were collected from various sources of the internet, magazines and newspapers.

Convenience sampling

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Sampling method

Sample size
One Automobile Company Harshali Hundai, Sagar region
Research tools
Interview Schedule
Research area
Sagar

CHAPTER -3
Introduction: Company Profile

The automobile industry today is one of the most lucrative industries. Due to the increase in
disposable income in both rural and urban sector and easy finance being provided by all the

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Overview

financial institutes, the passenger car sales have increased at the rate of 45% per annum in 20102011 over the corresponding period in the previous year. Further competition is heating up in the
sector with a host of new players coming in and other like Porsche, Bentley, Audi, Mercedes, and
BMW all set to venture in the Indian markets. One factor that could help the companies in the
marketing of their product is by knowing and creating a personality for their brands.
Automotive industry in India
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile
Industry of India has come a long way. With HM establishing the first automobile factory way
back in 1948, the Indian passenger vehicle industry was for long dominated by Ambassadors and
the Premier Padminis. Then in the year 1985, following the liberalization and various tax reliefs,
the Government of India in collaboration with Suzuki motor corporation of Japan formed Maruti
Suzuki ; a powerful alliance which changed the face of the Indian roads. The only car with the
latest technology then was the Maruti 800. It became very popular because of the low price, high
fuel efficiency and good reliability. Since then the market has grown with over 20 manufacturers
and hundreds of models and variants.
The Indian automobile industry has matured over the years and is now highly comptetitive with
major Japanese, Korean, American, European and Indian companies all holding significant
market shares. Indian auto industry has become a hot destination for global auto players like
Volvo, General Motors, Daimler-Chrysler, Volkswagen, Toyota and Ford. Global players have
either entered or are eyeing India as a strategic target for future development
A well developed transportation system plays a key role in the development of an economy, and
India is no exception to it. With the growth of transportation system the Automotive Industry of
India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian
economy.
Today Indian automotive industry is fully capable of producing various kinds of vehicles and can

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be divided into 3 broad categories: Two-wheelers, Four-wheelers (Cars) and Heavy vehicles.

Growth Drivers for auto industry in India

Segments of the Indian Auto market

The market for any product is normally made up of several segments. A market after all is the
aggregate of consumers of a given product. And, consumer (the end user), who makes a market,
are of varying characteristics and buying behaviour. There are different factors contributing for
varying mind set of consumers. It is thus natural that many differing segments occur within a
market. In order to capture this heterogeneous market for any product, marketers usually divide
or disintegrate the market into a number of sub-markets/segments. This report attempts to
analyze and understands how Indian carmaker have successfully segmented the market and how
they are leveraging these segmentation to introduce new product and grow their market share.
With proper segmentation carmakers could look at the differences among the customer groups
and decide on appropriate strategies/offers for each group. These strategies then helped them in
dividing the markets for conquering them. Every buyer has individual needs, preferences,
resources and behaviours. Since it is virtually impossible to cater for every customers individual
characteristics, carmakers grouped customers to market segments by variables they have in
common. These common characteristics allowed developing a standardized marketing mix for all
customers in that segment.
This segmentation helped the carmaker to increase their profit by tapping the market through
adapting the offer to that segment. They brought the necessary changes in the product to suit to
the particular segment.

COMPANY ADDRESS:-

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COMPANY NAME: - HYUNDAI MOTORS INDIA LIMITED.

HYUNDAI MOTORS INDIA LIMITED,

A-30, Mohan Cooperative Industrial Estate,
110044.
Tel :(011) 4167-8800 Fax:(011)4167-8811

Mathura Road, New Delhi-

BRANCH SAGAR
HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )
JABALPUR ROAD, SUDGUWAN BAHIRIA SAGAR (M.P.) 470004
MISSION STATEMENT:To create exceptional automotive value for our customers by harmoniously blending safety,
quality and efficiency. With our diverse team, we will provide responsible stewardship to our
community and environment while achieving stability and security now and for future
generation.
VISION STATEMENT:Our team provides value for your future.
SLOGAN:-

DRIVE YOUR WAY.

LOGO:-

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LOGO EXPLANATION:-

ABOUT HMC (Hyundai Motor Company)

Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive Group
which was ranked as the worlds fifth-largest automaker in 2007 and includes over two dozen
auto-related subsidiaries and affiliates. Employing over 75,000 people worldwide, Hyundai
Motor posted sales of US$74.9 billion in 2007 on a consolidated-basis and US$32.8 billion on a
non-consolidated basis (using the average currency exchange of 929 won per US dollar).
Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms
The Hyundai Motor Company, a division of the Hyundai Kia Automotive Group, is
South Koreas largest and the worlds fifth largest automaker in terms of units sold per year.
Headquartered in Seoul, Hyundai operates the worlds 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.
DEALERS SHOWROOM NAME:HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )
JABALPUR ROAD, SUDGUWAN BAHIRIA SAGAR (M.P.) 470004
SHOWROOM ADDRESS:HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )
JABALPUR ROAD, SUDGUWAN BAHIRIA SAGAR (M.P.) 470004
DEALERS NAME:HONOURABLE Mr. GULAB CHAND JAIN

The largest player in the Indian automobile industry and launched new and exciting
products in the Indian markets.

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Key Players in Indian Market

The third largest passenger car manufacturer in India and one of the largest
exporters of vehicles.Has established in India as one of its manufacturing bases in the world.
Has vision of capturing 10 % share of the Indian passenger car market by 2010

Suzukis JV in India and the largest passenger car manufacturer in India

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment. GM entered the
small car segment by re-launching the Matiz

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One of the largest players in the UV / MUV segment

CHAPTER -4
COMPARATIVE ANALYSIS OF AUTOMOBILE INDUSTRIES IN INDIA
Market Share Of Automobile Companies

% Market Share

4.3

3.9

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.

CHAPTER -5

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Others

INTRODUCTION
The introduction of the project is very essential for research purpose. First we study the
demography of customers of Hyundai motors in Sagar region. The Demography of customers is
the overall study of customers related to age, sex, occupation and income. This study helps to
know the prospective customers.

Further the study of customer satisfaction level of Hyundai motors is the study of
satisfaction and delightedness to the Hyundai motors. This study helps to know the likeliness,
brand image, strength & weakness of the product. This determines the sales promotion. This
project would be beneficial to know the feedback of the customers & also the way to provide
better facilities and services to the customers.

Since the four wheelers are generally used by high profile people, they look towards the
luxurious look, safety and the beautiful interior. In this project their satisfaction towards their
demand is checked out.

REASON FOR CHOOSING THIS INDUSTRY:

The automobile sector is very booming sector. There are lots of competitors in this
industry. There is always modifications, innovations and new technology used in automobile
industry.
REASON FOR CHOOSING THIS COMPANY:

The reason behind choosing this company for doing summer project is that, I thought It
will be helpful for my career in automobile sector. I have chosen this company to get the full
knowledge about the demography, satisfaction and prospective customers. Hyundai motor is the
South Koreas largest & Indias largest exporter of cars. Hyundai cars have its own brand image
in the heart of the customers.

high utility and high technology products.

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Todays Hyundai Motors is concentrating on customer satisfaction through high quality,

Hyundai Motors India Limited (HMIL) sales cars through their showrooms and
authorized dealers. Jaya Hyundai is one of the authorized dealers of the Hyundai motors which
look after the sales and services of four districts namely Sagar ,

With the help of this project, I will make it possible to expose myself to the corporate
world and learn the practical knowledge related to my topic and customer feedback about the
Hyundai cars.

LOCATION OF THE PROJECT:

Jaya Hyundai is located near the Reliance petrol pump, Sagar . For doing the project the
location given to me is the Sagar region.

HOW DID I CARRY OUT THE PROJECT?

The research objective is to find out the demography of customers & customer satisfaction level
of Hyundai motors in Sagar region, customer feedback and personal customer visit which
involves feedback of customers. The customer requirement & finding new customer for my
project & I also took their suggestions.in the project, there are many things to learn in the
process& the market knowledge & concrete finding new segment for my products. My project is
to study the demography of customers & customer satisfaction level of Hyundai motors in Sagar
region. The demography study concludes that customers are Businessmen, High Income Group
People, Middle income Group people. The other part concludes that customers are highly
satisfied with the quality, interiors, safety and minimum maintenance & repairing.

HISTORY

Hyundai Motor Company was later established in 1967. The companys first model, the Cortina,
was released in cooperation with Ford Motor Company in 1968. In 1975, the Pony, the first

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Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947.

Korean car, was released, with styling by Giorgio Giugiaro of ItalDesign and powertrain
technology provided by Japans 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 1986, Hyundai began to sell cars in the United States, and the Excel was nominated
"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 1998, Hyundai began to overhaul its image in an attempt to establish itself as a worldclass brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung Mong
Koo, in 1999. Hyundais 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 Koos
practices as head of Hyundai, suspecting him of corruption. On April 28, 2006, Chung was
arrested, and charged for embezzlement of 100 billion won (US$106 million), with Hyundai Vice
Chairman and CEO, Kim Dong-jin taking over as head of the company.
Business
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
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divested its interest in the company by selling its 10.5 percent stake for $900 million.

Hyundai has invested in manufacturing plants in the North America, China, 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
countrys 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 sixth largest automaker in the world, surpassing Nissan, Honda, and many other major
brands, selling 3,715,096 units in 2005.
Hyundai Motor Companys brand power continues to rise as it was ranked 72nd in the 2007 Best
Global Brands by Interbrand and BusinessWeek 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.
Hyundai America Technical Center completed construction of its Hyundai/Kia proving ground in
California City, California in 2004. The 4,300-acre (17 km) 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 30,000square-foot (2,800 m) 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. It is Hyundais second attempt at producing
cars in North America (The Hyundai Auto Canada Inc. plant in Quebec closed down in 1993). At
full capacity, the plant will employ 2,000 workers. Currently, the plant assembles the Hyundai
Sonata and the Hyundai Santa Fe. In 2003, According to Consumer Reports, Hyundais

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reliability rankings tied Hondas.

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. 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 similarly equipped Honda Accord, according to
Kelley Blue Book Pricing 2006.
In 2006, Hyundais 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, US), in
fact, has christened 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 Autopacific, Marketing
research and consultancy firm for the automobile industry. In 2007, Hyundais midsize
SUVSanta 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.
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 Hyundais first sports car due to
make its debut in early 2009.
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 reliability are considered highly

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influential among consumers.

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.
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.

CHAPTER 6
OBJECTIVES OF THE STUDY
In the current scenario of cutthroat competition, every company invest in some new
technology for their expansion & to maintain the quality, reduce the cost & to produce the new
product. My objective in this survey is to study the demography of customers in Sagar region
and determining the satisfaction level of customers in Sagar region.
PRIMARY OBJECTIVES:

To study the demography of customers in Sagar region.

To segment the potential customers in Sagar for Hyundai Motors.

To study the customers choice regarding the finance of Hyundai motors in Sagar region.

SECONDARY OBJECTIVES:

To study / identify the potential customers.

To study the services given by Harshali Hyundai Pvt.Ltd. In terms of servicing, warranty,

To study the factors influencing on the buying behaviour of the customers.

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maintenance and repairing.

To know the grievances of customer, if any.

To study the eagerness to buy Hyundai motors among the customers.

To find out the brand awareness/perception in society about Hyundai motors.

SCOPE OF THE PROJECT

The area of operation is around the Sagar city. The survey is conducted through the
Personal Interview with the customer as well as GM Mr. Prashant Mehta that is having the
information of overall ownership experience of the vehicle & their suggestions.The operations
are performed in & around Sagar city.
For every research work the study may have geographical conceptual scope. As subject to
the products limited to the study to the Sagar district. The survey conducted will give the details
about the customer satisfaction level responding product and services with helping in vehicle
insurance and understanding the procedure of financing the Vehicle.
The study of level of satisfaction is also helpful to the management and marketing head
to decide new policies for well established brand and as well as new product range. The level of
satisfaction for the Hyundai cars' user can be measured in terms of look, speeds, mileage,
maintenance, safety, price and services and post sales services.

of customer's satisfaction and can make new policies to satisfy all the new and current users.

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The benefit of this study to the company and dealer is that they can understand the level

With the help of the conclusion from this study the company can able for the range selling, if the
Customers are very much satisfied with the cars and the services provided by them.

CHAPTER - 7
SOURCE OF FINANCE OF HYUNDAI MOTORS INDIA LIMITED
Prior to the start of this service HUNDAI had started two joint ventures Citicorp
HUNDAI and HUNDAI Countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loan.
HUNDAI tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including
its strategic partners in car finance.
Again the company entered into a strategic partnership with SBI in March 2003
Since March 2003, HUNDAI has sold over 12,000 vehicles through SBI-HUNDAI
Finance.

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SOURCE OF FINANCE OF HARSHALI HUNDAI, SAGAR

 There are mainly 6 companies for insurance in financing Vehicles of Harshali Hundai in
Sagar but main company for insurance the Newly Vechicle is New India Insurance Pvt.
Ltd.
There are two types of Finical Bank which proved loan for Vechicles. :-

1. Private Bank
2. Public Bank
3. Financial Institute. such as Mahindra Finance, Suderam Finance, Cholamandalam
Finance, Shriram Finance for Auto Loans.

CHAPTER 8
COMPANY PROFILE
BRANCH SAGAR
HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )

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JABALPUR ROAD, SUDGUWAN BAHERIA SAGAR (M.P.) 470004

History of Harshali Hyundai

A Unit of Jainam, Established at

26April 2008

Dealership name

Harshali Hyundai

Company Name

Jainam Outolink Pvt. Ltd.

Head Office

Plant is situated at

Delhi, HMIL, also Known as

Coprate Office
Chennai It is an Biggest exporter
manufacturing in Automobiles in
India

COMPANY STAFF
(EMPLOYEES NAME )
1.

CHAIRMAN (DIRECTOR

Mr. Gulab Chand Jain

2.

Managing Director

Mr. Manish Jain

3.

General Manager

Mr. Prashant Mehta

4.

Sales Head

5.

G.M. Service

Mr. L.P. Singh

6.

Insurance Incharge

Mr. Sourabh Nayak

7,

CCM

8.

Account Manager

Mr. Deep Jain

Miss Pratibha Jain

Mr. Pramod Kumar

Vishwakarma

Operation Manager

10

Cashier

Mr. Kuldeep Singh Rajput

-

Mr. Vivek Soni

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9.

PRODUCTS (MODELS) AVALIABLE AT

1.

EON

2.

I-10

3.

GRAND I10

4.

XCENT

5.

ELLITE I20

6.

I20 ACTIVE

7.

FLUDIC VERNA

8.

ELENTRA

9.

SANTA-FE

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HARSHALI HYUNDAI (A UNIT OF JAINAM )

CUSTOMER ANALYSIS
SAMPLE SIZE 1
Customer Name

Mr. Anil Kumar Jain

Address

Banda (Sagar)

Fist Visited

4 June 2015

Sales Consultant

4 June 2015

Interested Model

Xcent

Finance Company

Mahindra Finance

Document Required

Latest Salary Slip 3 Months

Salary Credit Bank Statement 6 Months

ID & Signature Proof (Pan Card / DL / Passport)

Address Proof Telephone Bill / Rental Agreement

Credit Card Statement

Own House Proof

1 Photo

Post dated cheques

Security Cheques (2/4/6/8/10/12)

Loan Repayment Track Record

Finance Company InvestigationLoan Sanction By Mahindra Finance

6 June 2015
7 June 2015

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4. Form No 16/IT Return

Deliver of Vehicle

8 June 2015

FINANCING PROCEDURE OF VEHICLE

1.

X-cent Model Ex Showroom Price

2.

Required Financing amount

3.

+ Finance Charges

xxxxxxx

4.

+ Insurance , RTO

xxxxxx

6,00,984.00

4,00,000.00

Ex Showroom Price

6,00,984.00

(-) Financing Amount

4,00,000.00

Amount to be paid at the time of delivery = 2,00,984.00

of Vehicle
+ Finance Charges (Applied by Mahindra Finance For 3 Yrs :4,00,000 x 6.5 % ( Interest Charged by Company)

= 26,000.00 (one Year)

6.

26,000.00 x 3 Yrs

= 78,000.00

7.

+ 1 % Stamp Duty 4,00,000 x 1%

= 4,000.00

8.

1.5 % of Documentation Charges 4,00,000x 1.5%

= 6000.00

9.

Other Charges (By Mahindra Finance)

10.

Total Amount Paid by the Customer at

= 2,12,984.00

2,000.00

the time of Delivery to the company

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5.

INSTALLMENT AMOUNT PAID BY THE CUSTOMER TO MAHINDRA FINANCE :-

Total Number of EMIs for three yrs

12x3=36

Total Financing Amount

4,00,000.00

(+)

(78,000)

4,78,000.00 ( To pay)

4,78,000.00 / 36

12,278.00 (per Month)

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Per Months Amount Paid by the customer

Interest Charges

CHAPTER 9

SWOT ANALYSIS OF HARSHALI INDIA MOTOR LIMITED

Strengths

Entry Timing
Hyundai entered the U.S. market as a late starter, giving its rivals ranging from 20~50
years of early start in the industry. Although there are downsides to late entry, Hyundai was
successfully able to monitor and follow the strategies of the companies that succeeded prior
to Hyundais arrival, such as Toyota and Honda. Hyundai was able to modify and use the
strategies that these companies used in each step of their growth to ensure similar growth for
itself. Also, Hyundai could also monitor histories of companies that have declined in
American market, such as GM/Ford/Chrysler and ensure that it doesnt follow their path,
such as unmonitored inefficiencies in production and resource management.

Low Cost for Implement Newer Technology

Since other rival firms have invested huge amounts of capital to discover new technology,
Hyundai can implement similar technology with less cost. Combined with being flexible
mentioned above, Hyundai can quickly manufacture cars equipped with newer technology
with less cost, making it more efficient.

Flexibility
Hyundai Motors, compared to BIG 3 or Toyota, is still considered to be small in
American market. Given that, Hyundai can be very flexible, financially and strategically, in
many different situations. Therefore, whenever Hyundai chooses to implement its strategy, it
can be quicker and more efficient than its rivals. For example, if Hyundai chooses to produce
a new line of vehicle, it can produce enough to meet the market requirements, whereas other
bigger firms must produce much more than that. Also,
whenever there is a financial crisis, Hyundai can alter its labor force and production
capacity without causing a huge impact, whereas these larger firms might have to close down
few plants, layoff thousands of workers, etc

Weakness
Low Brand Recognition and Brand Power (Late Entrant) As mentioned above, brand image
is a significant entry barrier in the automobile industry. Many factors, such as target buyers
and used car pricing, are dependent mostly upon the firms brand image. Hyundai Motors

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still have low brand recognition compared to other larger firms, making it harder for Hyundai
to grab a wide range of consumers. Also, since brand recognition is low, price depreciation
rate is very high in comparison to Toyota or Honda, which curbs new car buyers from buying
Hyundai.

Technological Advancement
Given that Hyundai is smaller in size compared to its rivals, Hyundais investments are
geared toward increasing the market share and larger advertisement schemes, rather than
making drastic technological advancement. When all the rivals have already begun to
produce Hybrid vehicles are looking forward to finding a next-gen alternative to gasoline
vehicles, Hyundai is still a runner-up in these areas. Therefore, Hyundai cannot compete in
some areas of the market where technological advancement is critical.

Small Pool of Previous Buyers

Most consumers to a lot of research prior to purchasing an automobile, and feedbacks
from prior buyers can be a determining factor for many consumers. However, Hyundai does
not have a huge pool of previous buyers to provide feedback, thus many careful consumers
hesitate to buy Hyundai.

Opportunities

Increasing Shares in Targeted Markets Hyundai currently carries a very loyal pool of buyers
in certain specialized markets, such as used car markets, low-income consumers and retired
seniors. Given that the size of these markets have not decreased, but is predicted to increase
in the next few years, Hyundai can find itself with more consumers in its loyal target
markets.

Product Life Cycle Not Reaching Maturity

Unlike other brands that have been in the U.S. market for long periods of time,
Hyundai is fairly new to American consumers. Given that the product life cycle exists for any
product out in the market, automobiles from other incumbent companies have reached or
even passed their maturity phase, tending toward the decline phase. Unlike them, Hyundai
products are far from reaching the maturity cycle, thus there is huge room in the market
where Hyundai can bring from other firms.
Current Financial Crisis Provides Room for Growth
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Due to the current economic crisis, many failing automobile companies are working
toward to decrease in size and trying to reduce their losses. If strategically positioned well,
Hyundai can take advantage of this opportunity and grow.

Threats
Overflow of Used Vehicles Current U.S. used car market is very saturated due to the
huge influx of lease returned vehicles and car owners looking to sell their vehicles. This

causes an overall drop of all used car available. This drives the residual values of Hyundai
vehicles much lower than before. Given that this was Hyundais weakness for a long time,
further losses in the market share from the pool of consumers looking forward to sell their
vehicles are inevitable.

Chinese Automakers

Chinese automakers are presenting the greatest threats for Hyundai, since they plan to arrive at
the American market, threatening many present competing firms. Chinese automakers are
capable of making huge amount of vehicles at very low cost, thus having the capability of taking
a huge market share away from Hyundais target consumers.

Saturated Market with Overflow of Similar Line-Ups

Hyundais main product, Sonata, is a mid-size sedan. However, American auto market is
oversaturated and is still increasing in numbers with mid-size sedan line-ups. Therefore, Hyundai
is threatened by multiple lineups from multiple automakers at once.

FINDINGS

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CHAPTER -10

In this era of tough competition in the market it is compulsory for company to provide some
types of facilities to the customers to acquire the best level of Customer satisfaction.
During this study I came across some points which if consider would surely enhance the
market share and customer satisfaction.
Company should design new and more attractive policies for
a) credit policies
b) cash discounts
c) warranty terms
Company should try to enhance its post sales services as preventive measures.
the preventive maintenance should be monitored on regular basis.
1) Price features: - as Hyundai cars are more costly as compared to other competitors, if
they want to capture the automobile market, they have to reduce the price slightly.
2) For Santro: - four door power windows is needed.
3) For i-10, more power in c.c. is needed
4) For Verna: - inbuilt spoiler is needed.
5) For Accent: - inbuilt LPG gas kit & music system is required.
6) Late service, loose delivery and unavailibity of spare parts should be avoided. The quick,
fast and timely service facility is to be maintained
7) Free check up camps, more free servicing and extended warranty are needed to attract
more customer

LIMITATIONS

several limitations which handicapped the research viz. The research done was purely
convenience based. Therefore, some of the assumptions and results would be biased.

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Although the study was carried out with extreme enthusiasm and careful planning there are

1. Time Constraints:
The time stipulated for the project to be completed is less and thus there are
chances that some information might have been left out, however due care is taken to include all
the relevant information needed.
2. Sample size:
Due to time constraints the sample size was relatively small and would
definitely have been more representative if I had collected information from more respondents.
3. Accuracy:
It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information. Many of the respondents behave artificially

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when they came to know that they are being surveyed.

Page10

WEBSITES
www.hyundai-motors.com
www.hyundai.co.in
www.google.com

MAGAZINES AND OTHERS: Monthly Hyundai Magazine:- ON THE MOVE.

Product Brochures.
Annual reports or magazines of Hyundai Motor India Limited

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Auto India Magazine