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A Critical analysis
Of
Hyundai Motors Ltd
And
Ford Motors
From Car automobile Industry
Submitted To:
Prof.
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Industry
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EXECUTIVE SUMMARY
This project seeks to critically analyse the Car Automobile industry with main focus on
Hyundai Motors India Ltd and Ford Motors ltd. However, the specific focus of this
research is on Hyundai Verna and Ford Fiesta which are competitors from the same
industry.
A proper study of the Automobile industry is done viz. Indian automobile Industry,
vehicle production in India, Growth of Indian automobile Industry, future of automobile
industry in India.
A proper study of the Global Car Industry is also done viz. Car industry in India, Sales of
cars in year 2007-08, The Nano revolution, future of car industry in India. Further, an
introduction to Mid Size Car segment, to which both Hyundai Verna & Ford Fiesta
belong.
An overview of both the companies is mentioned in this report with their marketing and
general business information. Also, financial analysis of balance sheets and profit and
Loss Accounts of both the companies is done.
General information about Hyundai Verna & Ford Fiesta is also given in this report.
The research adopts a qualitative methodology by conducting in-depth interviews with
Mr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora,
Manager Sales & Finance, of NCR Ford showroom who provided us with valuable
information such as the sales of their respective showrooms, business models, market
shares of both the cars under study etc.
Recommendations are made in the form of proposed entrant - New Tech Motors India
Ltd in the cars automobile industry.
Finally, this report concludes by making a summary of the findings.
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ACKNOWLEDGEMENT
This project would have been difficult to complete, but for the invaluable contributions
from some important persons. We would like to take this opportunity to thank them.
We wish to put to record the heartfelt gratitude and immense respect to Prof. Subroto
Ganguly (Faculty). We wish to thank him for the valuable time he gave us and the
immense patience he had, in answering even the seemingly trivial queries we had to ask.
His encouragement and patience helped us instill a great degree of self-confidence to
deliver a good research work.
We are also thankful to Mr. Raman Jha, assistant sales manager, of Fx Hyundai
showroom and Mr. Anil Arora, Manager Sales & Finance, of NCR Ford showroom who
provided us with valuable information about their companies which helped us in our
research work.
TABLE OF CONTENTS
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TOPIC
PAGE NO.
I.
METHODOLOGY...7
II.
INDUSTRY8-26
1. INTRODUCTION TO INDIAN
AUTOMOBILE INDUSTRY..8
2. VEHICLE PRODUCTION IN INDIA..11
3. INDIAN AUTOMOBILE COMPANIES..13
4. FUTURE OF AUTOMOBILE INDUSTRY IN INDIA...17
5. GLOBAL CAR INDUSTRY..20
6. CAR INDUSTRY IN INDIA..23
7. FUTURE OF CAR INDUSTRY IN INDIA..24
8. MID SIZE CAR SEGMENT......26
III.
COMPANY.27
COMPANY OVERVIEW.29
PROFILE OF KEY PERSONNELS30
BUSINESS MODEL..32
FORD SERVICES.34
IV.
COMPANY OVERVIEW.37
BUSINESS MODEL..38
COMPANY R&D...42
COMPANY ENVIRONMENT.43
PRODUCT.44-66
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VERNA....68
15. COMPETITION.70
V.
FINANCIAL ANALYSIS.....73-90
VI.
RECOMMENDATIONS94-109
VII.
CONCLUSION..110
VIII.
BIBLIOGRAPHY..112
IX.
ANNEXURE...113
NCR FORD....114
FX HYUNDAI....115
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METHODOLOGY
We have used various sources for our project work.
Qualitative Data collection through in-depth interviews with Mr. Raman Jha,
assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora, Manager
Sales & Finance, of NCR Ford showroom who provided us with valuable
information about their companies.
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INDIAN
AUTOMOBILE
INDUSTRY
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OVERVIEW
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The growth of domestic passenger car market was 7.5 per cent
The two-wheeler segment, the market grew by 13.6 per cent with
70,56,317 units against 62,09,765 units in 2004-05.
Motorcycles had the upward march, 17.1 per cent in domestic market
touching 58,15,417 units against 49,64,753 units in 2004-05.
Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against
9,22,428 units in 2004-05.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units
against 3,18,430 units in 2004-05.
Medium and heavy commercial vehicles managed a growth of 4.5 per cent
against 23 per cent growth in the year ended March 31, 2005.
Light commercial vehicles sales growth was 19.4 per cent at 1,43,237
units against 1,19,924 units in 2004-05.
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Production of 4-Wheelers
Manufacturers
2005-06
(Apr-Mar)
In Nos.
Manufacturers
Japanese OEM
Maruti Udyog Ltd.
2005-06
(Apr-Mar)
In Nos.
Korean OEM
572,097
260,440
American OEM
41,361
30,687
11,946
26,946
Total
670,379
Total
57,633
European OEM
Skoda Auto India Pvt. Ltd.
Indian OEM
Tata Motors Ltd.
449,878
128,601
1,004
65,085
125
35,728
671
24,348
15,458
Total
719,098
Total
9.767
13,347
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Production of 2-Wheelers
2005-06
(Apr-Mar)
In Nos.
Manufacturers
Manufacturers
Japanese
2005-06
(Apr-Mar)
In Nos.
Indian
3,006,486
2,042,289
1,366,866
248,665
LML Ltd.
107,044
2,328
56,819
Total
3,860,915
30,596
Total
3,739,886
During this decade, it is seen that two-wheelers are the most produced in automobile
industry followed by passenger cars and then three wheelers. The following are the
number of units produced in 2003-04 and 2004-05 (April-Sept. 04) of different segment
of vehicles:
Name of the Sector
No. of units
Production
2003-04
2004-05
(April-Sept. 04)
Commercial Vehicles
275224
156815
Cars
12
842437
465983
Multi-Utility Vehicles
146103
114739
2-wheelers
12
5624950
3023805
3-wheelers
340729
177554
Total
42
7229443
3938896
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Tata Motors is the fifth largest medium & heavy commercial vehicle
manufacturer in the world.
OVERVIEW
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entered the Indian market by way of Joint ventures, collaborations or wholly owned
subsidiary.
Two-wheelers
CVs
Companies
Suzuki
Honda
Toyota
Mitsubishi
GM
Daimler-Chrysler
Skoda
Fiat
Hyundai
Tata
Ford
M&M
TVS
Hero Honda
Yamaha
Kinetic
Bajaj Auto
Tata
Ashok Leyland
Tatra
LML
Swaraj Mazda
Mahindra & Mahindra
Volvo
Eicher-Mitsubishi
Escorts
M&M
L&T
New Holland
ITL-Renault
John-Deere
Punjab Tractors
Steyr
Tractors
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Manufacturers are increasingly adopting an outward looking approach and exploring new
markets/territories, ranging from Middle East, Europe, South Africa, Algeria, Latin
America, Russia, etc. Exports have increased immensely from a mere 38,000 units in
1990-91 to 1.01 million units in 2006-07. Some estimates suggest that by 2010, car
exports, alone would reach 1 million.
This will have a huge impact on the economy. For every additional commercial vehicle
produced in the country 13 new jobs are created, every additional car adds five jobs, two
wheelers about 0.5 and three wheelers around 4 jobs.
The growth momentum is witnessed not just by the industry manufacturing vehicles but
also by a large number of other industries like supply chain companies, infrastructure
companies, oil companies, insurance & finance companies, etc.
The automobile is being recognised for what it actually is, a means to promote
Entrepreneurship, Employment and Economic Development.
Companies in India are setting up green field manufacturing facilities, increasing
production capacities and entering into joint ventures. Manufacturers are investing
overseas and establishing footprints across the world. For instance, TVS Motor Company
and Bajaj Auto are investing in Indonesia.
Ashok Leyland and Tata Motors in Thailand, Mahindra and Mahindra and Tata Motors in
South Africa. Almost all major companies, including both domestic players and global
automotive groups are investing heavily in new manufacturing and assembly plants in
automotive hubs across India and have announced massive expansion plans.
Much of the foundations for the future importance of the automotive industry in India are
being laid now. Expansion and investment plans of close to $14 billion have been
announced.
Prime Minister Manmohan Singh has recently launched the Ten Year Plan for the Indian
auto industry, the Automotive Mission Plan 2006-2016; it is a comprehensive document
covering all aspects of the industry with 25 key interventions. The Ministry of Heavy
Industries & Public Enterprises, the nodal ministry for the auto sector, has been
instrumental in making this possible.
The Mission Plan has set a target that by 2016, its output in dollar-terms should have
quadrupled, while GDP is expected to have merely doubled. In other words, aim is to
achieve industry output $145 billion and consequently, make the automotive sectors
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With all these plans, the industry is set to have a major impact on Indias future economic
growth. The industry is entering into a new phase of its development and evolution,
results of which will be visible in over next ten years. Prime Minister, Dr Manmohan
Singh had aptly said that the building of Brand India in the world was powered by the
Indian automotive industry meeting global standards.
A key is the collective execution and implementation of the interventions in the AMP and
a joint Government - Industry effort. The consequence as we could all hope would be a
remarkable transformation of Indias entire economic landscape.
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GLOBAL CAR
INDUSTRY
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INTRODUCTION
In early 2000s, the car industry occupied a position of strategic importance in many
countries. However, with increasing maturity, the industry's average profit margins had
declined from 20% or more in the 1920s to around 10% in the 1960s and less than 5% in
2004. The car industry represented just 1.6% of Europe's stockmarket capitalization and
0.6% of USA's . About 20 years back, the corresponding figures had been 3.6% and 4.0%
respectively.
In recent times, the automobile market in America, Europe and Japan, where over 80% of
the world's cars and trucks were sold, had stagnated. Supply had increased vis--vis
demand for several reasons. In countries like Germany and France, rigid labour laws had
inhibited the closure of redundant factories. In America, the arrival of European,
Japanese and South Korean makers and their aggressive plans to expand market share
had also created overcapacity. Effective capacity had increased slowly but steadily as
carmakers continued to improve their productivity. The car industry also seemed to be
undergoing a structural transformation in the early 2000s.
Many players were trying to move towards a build-to-order model that could serve niche
segments efficiently. As new electronic control devices emerged and concern for the
environment grew, new players with new competencies were likely to enter and
challenge the incumbents. Under these circumstances, the leading car makers wondered
what they had to do to revitalize themselves and strengthen their competitive position.
BACKGROUND
The car industry was born in Germany more than 100 years ago. Early development of
the industry began in France in the 1900s. It was in America that the industry came of age
thanks to Henry Ford, who introduced the assembly line production system.
The car industry pioneered many innovative business practices. For example, the industry
introduced the concept of "planned obsolescence," i.e. frequent changes in design to
induce customers to switch to a new model every other year. At the same time, by virtue
of its sheer size and ubiquity, the industry attracted wide public attention. In the 1960s,
consumer activist Ralph Nader attacked the safety record of the 'Big Three' Detroit
manufacturers, General Motor, Ford and Chrysler.
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In the 1970s, as oil prices quadrupled, the industry found itself under attack from
environmentalists. The industry also attracted government scrutiny on account of safety
concerns, antitrust worries (in the days when General Motors had 60% share of the US
market) and pollution. But in view of its size and the number of jobs it created, the
industry continued to receive strong government support. When small, fuel efficient and
reliable Japanese cars started to eat into the market share of the Big Three, the American
government resorted to protectionism.
The global car industry had been consolidating almost since its birth. In the late 1920s,
there were 270 car companies in the world, most of which were based in America. From
these, the Big Three - G M, Ford and Chrysler emerged.
In 2004, the global car industry comprised seven big groups and three smaller ones. In
volume terms, six groups - GM, Toyota, Ford, Renault/Nissan, Volkswagen and
DaimlerChrysler and their affiliates accounted for about 70% of global sales.
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Maruti Suzuki India, the countrys biggest car maker, recorded its highest ever
annual sales (7,64,842 vehicles), registering a growth of 13.3 per cent in 2007-08
over 2006-07.
Mahindra & Mahindra Limited (M&M) cumulative sales grew by 30 per cent in
2007-08- 2,31,355 units compared to 1,78,201 units in the corresponding period
last fiscal.
Hyundai Motors India Limited (HMIL) has shown a robust growth at 16.13 per
cent with 360,934 units during 2007-08, against 310,787 units sold in 2006-07.
SkodaAuto has sold 14,187 vehicles in 2007-08 against 12,444 in 2006-07, a
growth rate of 14.06 per cent.
General Motors India (GM), the wholly owned subsidiary of US-based General
Motors Corporation, reported 71 per cent increase in domestic sales in 2007-08 at 66,543 units against 38,857units in 2006-07.
Mercedes-Benz India recorded a 59 per cent sales growth during the first quarter
of 2008.
Honda sold 62,802 cars in 2007-08, higher than the 61,325 units sold in 2006-07.
The new fiscal year (2007-08) has started on a robust note with domestic sales of
several segments witnessing robust growth rates in April 2008.
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in Singur in West Bengal has a maximum capacity of 2,50,00; at full capacity the Nano
has the potential to become the largest selling model in India. The first truly original
automobile product from India, Nano is powered by a 623 cc, four-speed manual
transmission engine. Despite the small size it is a modern car capable of meeting BharatIII and Euro-4 emission norms and safety standards.
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Currently, there is high demand for cars across all these segments. With the growing
economy, people left with a lot of disposable income spend it towards meeting their
mobility needs such as cars. Banks and other financial institutions have an assortment of
vehicle loan schemes with attractive rates of interest and convenient instalments.
These schemes encourage people to go in for loans to purchase cars of their choice.
Additionally, a convenient union budget in the current financial year (2008-09) has
worked in favour of the automobile sector, which has seen an uptrend in sales across
various segments.
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COMPANY
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Founder
Henry Ford
Country
USA
Year of Establishment
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Industry
Automotive
NYSE: F
Website
www.india.ford.com
Global Website
www.ford.com
Endeavour
Fiesta
Focus
Fusion
Ikon
Mondeo
COMPANY FLASHBACK
Ford Motor Company, an American company, manufactures and sells automobiles
worldwide. The company was launched from a converted wagon factory with Rs. 28,000
cash from twelve invesors. Henry Ford, the founder, was 40 years old when the company
was founded. Today, it is the largest family-controlled company in the world. It has been
in continuous family control for over 100 years.
Ford introduced itself in India in 1988 with its Ford Escort model. Later in 2001 it was
replaced by locally produced Ford Ikon. Since then it has added Fusion, Fiesta, Mondeo
and Endeavour to its product line.
The company has invested heavily in India to give the finest in automobiles. Rs. 1700
crore has been invested in integrated manufacturing plant at Maraimalai Nagar, 45 kms
from Chennai. The plant is equipped with state-of-the-art Ford technology in an area of
350 acres. It has a capacity of 100,000 vehicles per annum.
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Lucy is the Vice President of Finance and IT at Ford India. She took up this position in
May 2005. She reports to Arvind Mathew, President and Managing Director, Ford India.
Scott McCormack is the Vice President, Marketing, Sales and Service at Ford India. He
took this position in July 2006. Scott reports to Arvind Mathew, President and Managing
Director, Ford India.
Nancy Reisig is Vice President, Human Resources at Ford India. She took this position in
March 2005. Nancy reports to Arvind Mathew, President and Managing Director, Ford
India.
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Sandip Sanyal is the Vice President, Supply and Total Value Management (TVM) at Ford
India. He took this position in September 2005. Sandip reports to Arvind Mathew,
President and Managing Director, Ford India.
Steve Bridgman is the Country Manager for Ford Credit, a Division of Ford India that
provides wholesale funding to the Indian Ford dealer network. Steve reports to Arvind
Mathew, President and Managing Director, Ford India.
BUSINESS MODEL
VIRTUAL PLANT TOUR:
All cars spring to life at Ford's Rs. 1700 crore integrated manufacturing plant at
Maraimalai Nagar, 45 kms. from Chennai. The plant, equipped with advanced
manufacturing technology from Ford, covers 350 acres, provides employment to about
2,000 people directly and many more thousands indirectly and has a capacity to
manufacture upto 100,000 vehicles per annum. Ford is a 6-Sigma company. Every step of
every process is planned to perfection.
Step 1: STAMPING
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Semi-automatic press line moulds blank sheets into various body parts.
Thorough checks for perfection in dimensions and surface quality.
Step 4: T C F
Interiors taken care of, before doors and seats come on in Trim zone.
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Stringent testing ensures every car is at its best, even in trying conditions.
All Ford cars complies with Bharat III emission standards, notified by the
Government of India.
FORD SERVICE
Thank you for choosing a Ford. It is our endeavour to give you complete satisfaction in
all our services.
As a Ford owner, you have access to a whole range of top-notch services, from productrelated assistance to allied automobile services. Fords commitment is to give its
customers all the help and support to get the most from owning a Ford.
A dedicated Customer Relationship centre is at your service in every Ford dealer outlet.
You can call them for any assistance.
However for any further support you can contact Ford India Customer Relationship
Centre (0800 to 1800 hrs Monday to Saturday)
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FORD SOLUTION
Ford solutions aims to provide quality, peace-of-mind products for the customer and
embodies a brand synonymous with its ability to provide products that can be tailored to
suit one's individual needs. Ford Solutions serve to develop products for Ford and the
Dealer body that enhance customer satisfaction.
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Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the
world. Hyundai Motor India Limited (HMIL) is the second largest and the fastest
growing car manufacturer in India. Santro, Getz, Accent, Elantra, Sonata Embera and
Tuscon are the most successful brands of HMIL. HMIL presently markets 34 variants of
passenger cars in six segments.
The company is an ISO 14001 for its sustainable environment management practices.
Country
South Korea
Year of Establishment
1967
Contact Details
Website
www.hyundai-motor.com
www.global.hyundai-motor.com
Accent
Elantra
Getz
Hyundai i10
Santro Xing
Sonata Embera
Tucson
AWARDS
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2003
2002
Hyundai Accent topped the 'JD Power Asia Pacific IQS' for
2002 and the APEAL study for 2001 & 2002.
COMPANY FLASHBACK
Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is
South Korea's largest car maker. It is headquartered in Yangjae-Dong Seocho-Gu Seoul.
HMC is also the world's sixth largest car maker and operates the world's largest
integrated automobile manufacturing facility in Ulsan, South Korea.
In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly
owned subsidiary of Hyundai Motor Company and is the second largest and the fastest
growing car manufacturer in India.
HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over previous year. It is the country's fastest growing car company having rolledA Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile
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out 10,00,000 cars in just 90 months since its inception and is the largest exporter of
passenger cars with exports of over Rs. 1,800 crores. The company has recorded a growth
of 27.2% in exports over the year 2004.
Hyundai Motor India, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an
increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of
19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4
percent, with exports of 113,339 units.
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of
the most advanced production, quality and testing capabilities in the country. In
continuation of its investment in providing the Indian customer global technology, HMIL
is setting up its second plant, which will produce an additional 300,000 units per annum,
raising HMILs total production capacity to 600,000 units per annum by end of 2007.
HMIL is investing to expand capacity in line with its positioning as HMCs global export
hub for compact cars. Apart from expansion of production capacity, HMIL plans to
expand its dealer network, which will be increased from 183 to 250 this year. And with
the companys greater focus on the quality of its after-sales service, HMILs service
network will be expanded to around 1,000 in 2007.
The year 2006 has been a significant year for Hyundai Motor India. It achieved a
significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to
over 65 countries globally; even as it plans to continue its thrust in existing export
markets, it is gearing up to step up its foray into new markets. The year just ended also
saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet
another path-breaking record in its young journey by rolling out the fastest 10,00,000th
car.
The company has been awarded the benchmark ISO 14001 certification for its sustainable
environment management practices.
BUSINESS MODEL
COMPANY PRODUCTION:
Modern automobile engineering practices require a holistic approach to production
management, which cannot be accomplished in a non-integrated manufacturing and
assembly setup.
The production management processes at Hyundai Motor India are overlaid with an
organization-wide implementation of manufacturing best practices like Just-in-time
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inventory management, Kaizen, TPM and TQM, that helps in making the world's best
cars, right here in India.
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Assembly Line
Assembly Line
Administration Block
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COMPANY R&D
Hyundai and Kia together have R&D centres in the United States, Europe, Japan apart
from the global R&D headquarters at Ulsan, Korea.
The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$
2 Billion, up from US$ 1.2 Billion to enhance its thrust on new product development and
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achieve global quality benchmarks by year 2005. This includes the $30 Mn Hyundai-Kia
Design and Technical Center in Irvive, California.
FOCUS
The R&D team focuses on the development of new products and technologies that
include interior and exterior design changes, development of new generation engines and
alternate fuel systems, concept vehicles and advanced passenger safety and comfort
systems, in line with evolving customer preferences across the globe. Recent successes of
the team include the development of the Hyundai patented Common Rail Direct Injection
(CRDi) engine in association with Detroit Diesel and the award winning Fuel Cell Santa
FE.
EFFORTS
Some of the ongoing projects that the Hyundai R&D team is involved in include the
development of the 'World Engine' in association with Daimler Chrysler and Mitsubishi
and the development of Automotive Telematics in association with IBM.
That the efforts of the Hyundai R&D team has paid great dividends to the company is
evident from the fact that the company's newly engineered products like the Santa Fe and
the Getz have made waves in the global automotive markets and the 'US Consumer
Reports' magazine has ranked Hyundai cars in level with that of Honda in its recent
quality rankings
COMPANY ENVIRONMENT
Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its
sustainable environment management practices. Living up to its commitment of
providing global standards of quality and process management in India, Hyundai had put
in place an Environment Management System (EMS)at its manufacturing plant in
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Chennai right from its project stage. The certification process was completed in a record
time of 10 months with 'Zero NCRs'. The assessment was done by TUV
SUDDEUTSCHLAND and covered areas like Awareness Training, Technology
Upgradation, Recycling, Waste Management and fulfilling Government Regulations.
HMI is also working on a backward integration strategy that will support vendors of the
company in implementing EMS.
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. The company has also been in the forefront of
development of environment friendly technologies like Hybrid Electric Vehicles (HEVs),
and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001
certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.
PRODUCT
Hyundai Verna & Ford Fiesta
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HYUNDAI VERNA
Big, refined and comfortable, Verna comes across as a good all rounder. Styling may not
excite everyone and neither will the petrol engine which though quiet, is not punchy. The
diesel is the ace in the Verna's pack and delivers a wallop that redefines the meaning of
performance diesel.
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PRICING
Ex-Showroom Prices for DELHI
Ex-Showroom
Prices (Rs.)
Model
Verna i
Verna Xi
Verna Xxi
Verna XXi_ABS
Verna CRDi
Verna CRDi_ABS
Verna CRDiSX
Verna CRDiSX_ABS
626519
645051
703168
723205
755241
777283
805204
827249
STANDARD FEATURES
i Xi
Body ColorOuter Door handles, Rear view
S S
mirror, Waistline Mldg
Rear Defogger with Timer
S S
Exterior
Interior
Verna
XXi VGT VGT SX
S
S S
Alloy Wheels
- S
- S
Hub Cap
S -
- S
2 Tone Interiors
S S
S S
- S
S S
- S
S S
S S
- S
S
S
S
-
S
S
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Seating
Comfort &
Convenience
I 296
- S
- S
S S
S S
- S
- S
S S
S
S
S
S
Digital Clock
2 speed Variable intermittent wipers
Luggage Net
Ticket holder
Air conditioner with Cabin Heater
Automatic Climate Control
Electrically Adjustable Rear View Mirror
S
S
S
S
-
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
S
-
S
S
S
S
S
S
S
S
S
-
S
S
S
S
S
S
S
S
Trip
S S
Computer
S
S
S
-
S
S
S
Trip
Computer
Power Outlet
S S
S
S
S
S
S
S
S
S
S
S
S S
S S
S S
Battery Saver
S S
S S
S S
Audio
Comfort
Safety
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S S
S S
S S
S S
- S
S S
S S
S S
RR Disc brakes
ABS
S Standard
O Optional
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Dealer
Name
Deep
Hyundai
Hans
Hyundai
Himgiri
Hyundai
HMP
MGF
Hyundai
Samara
Hyundai
Suhrit
Hyundai
Sunrise
Hyundai
I 296
Address
25275051 /
25275052 /
011
26542474 /
25275053
Fax
25275053
51010123 /
51427101 / 5
51427115
011 27376001 - 2
27376001
011
29818288,
29818495,
29819289
011 42421222
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EXTERIOR
Based on the universally accepted design philosophy of safety and compactness, the
Hyundai Verna is essentially inspired by the concept of large on the inside and compact
outside. This design treatment is simple. Clean exterior lines with well-proportioned
looks. A balanced front end with integrated full width lower intake, moderately flared
wheel arches and optional 14" alloy wheels which lends it a sportier look. The strong
shoulder lines and confident stance at the same time gives it a strong and well defined
character. The overall impression it creates is of a well made car with a dynamic
character which ensures that no matter where you go, the Verna, will be an eye-catcher
and a stare-grabber par excellence. You just cant miss it on the roads.
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RADIATOR
GRILLE
The radiator grille shows the tasteful, restrained
use of bright metal work to full advantage. It adds
a welcoming traditional aspect while blending
perfectly into the hood/bumper configuration.
ELECTRIC
OUTSIDE
REAR
VIEW
MIRROR
Aerodynamic exterior mirrors are electrically
operated. The ovoid shape of the mirrors perfectly
inherit the dynamic headlamp treatment.
GRIP
TYPE
DOOR
HANDLES
The door handle summarizes what the Verna
brings to its customers-refined yet fascinating car
that rises above its class.
MICRO ANTENNA
The rear roof-mounted micro antenna is compact
and efficient. It is aerodynamic, stylish and
robustly flexible allowing both improved signal
reception and outstanding look.
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INTERIOR
The well-balanced exterior of the Verna doesn't flatter to deceive. Its world-class interior
design matches up on all fronts and impresses even the most fastidious critics. While the
wraparound driver and passenger environment exudes comfort and style, the optimized
seating and storage options provide practicality.
Verna'sALLOY
two-tone colour
scheme
5.5J
X The14
WHEEL
provides an element of class to the entire
dynamic
betweenR14
the
The cabin.
5.5J xA14"
Alloybalance
Wheel created
with 185/65
exterior and the interior of this sedantyres.
makes it a masterpiece of design. A car you would
love to flaunt and love to drive at the same time.
5.0J CLUSTER
X
14 & TRIP
STEEL
WHEEL
GAUGE
COMPUTER
The
5.0J cluster
x 14" Steel
Wheel
175/70
R14
tyres.
The
gauge
boasts
new,with
easier
to read,
green
LED lit instruments.
SUNGLASSES HOLDER
No more frantic searching for the sunglasses.
TALENTED SUNVISOR
A ticket holder is on the back of the sun visor.
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STORAGE SPACE
The illuminated glove box in the facia has large
capacity.
SEAT POCKETS
There can never be enough storage. Pockets in the
back of the front seat are part of the Vernas array.
SEAT ARMREST
Drivers seat has an armrest for convenience.
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STURDY
DOOR
MAP
POCKET
Not only maps, but beverages, mobile phones and
other journey necessities fit snugly and safely in the
easy to access and sturdy door pockets.
COMFORT:
KEYLESS
ENTRY
The remote control key effortlessly unlocks and
locks the doors at the touch of a button.
CLEVER
STORAGE
TRAY
The clever idea to bring about maximum use of
minimum room for storing maps, snacks etc.,
right under the steering wheel.
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SAFETY:
ABS
Sure handling and anti-lock brakes help to keep the
Verna on-line.
Pros
Space, comfort, performance
(CRDi).
Cons
Petrol motor lacks punch.
Verdict
Another value for money all rounder from Hyundai.
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PARTNERS
FORD FIESTA
If you need matchless performance from an exhilarating car, the Fiesta is the car for you.
Engineered to excite your senses, the Fiesta, powered by Dura Technology, gives you
unmatched driving experience, exceptional safety and fuel economy.
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PERFORMANCE
Whether youre driving on city roads or highways the Fiestas performance is spirited
and responsive. The way the car hugs curves and takes off at traffic signals will set your
pulse racing.
STYLING
Contemporary automotive design that perfectly combines style and solidarity. Thats the
Ford Fiesta.
OWNING A FIESTA HAS NEVER BEEN EASIER
Finance options:
Low down payment of Rs. 36,000/-*
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You won't fall in love with the Ford Fiesta. Youll Go Fida over it. Youll long to be
within the sophisticated confines of this car built to induce sheer obsession, with its
raring to go spirit and powerful styling. With design, engineering and technology inputs
from around the world and over 700,000 kms of testing in 9 countries, this is a car built to
make you Go Fida.
Key Features:
Engine :
The 1.4 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC
engine with drive-by-wire electronic throttle control for very smooth and most responsive
driving experience imaginable. It also comes with an advanced knock sensing technology
and twin hole injectors that ensure performance and fuel efficiency.
This high value petrol packs in 82 ps power with powerful head-turning Fiesta styling.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Safety
Structurally engineered to withstand severe collisions, the Fiesta's crash worthiness is
verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision. So when you
drive the Ford Fiesta you can be sure things are as safe as can be.
The car with a brain
The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a
computer managing the cars engine diagnostics and electrical functions. It comes with
GEM sensors that oversee all critical functions.
Technology
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Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiestas petrol and diesel engines are so refined, they are guaranteed to
leave you speechless.
DuraSave: Thanks to a combination of unmatched economy and exciting performance,
you save on every drop of fuel.
Styling
Contemporary automotive design that perfectly combines style and solidity. That's the
Fiesta for you. With a powerful grille, a muscular bonnet, flared wheel arches, meaty side
panels and ornamental headlamps and tail-lamps, the Fiesta effortlessly mixes brawn with
beauty. Get used to heads turning in your direction.
Go Fida without worries
Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty"
that covers the car against all electrical and mechanical failures for an additional period.
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engine that puts out over 101 PS, and raring to go with instant response Drive-by-wire
technology, there's simply no argument that when it comes to setting your pulse racing,
nothing can keep up with the Ford Fiesta
Key Features:
Engine :
The 1.6 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC
engine with drive-by-wire electronic throttle control for very smooth and most responsive
driving experience imaginable. It also comes with an advanced knock sensing technology
and twin hole injectors that ensure performance and fuel efficiency.
A high performance petrol that delivers 101 Ps power & 146 Nm torque packing in all the
excitement you'll ever need.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing. Its powerful acceleration (0 100 kmph in 11.43 seconds) will leave you
breathless.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Electrically operated rear view mirrors ensures that you have the best view from every
angle. Keyless entry opens up the Fiesta to you at the touch of a button and height
adjustable seats gives you the freedom to decide your seating posture.
Safety
Structurally engineered to withstand severe collisions, the Fiesta's crash worthiness is
verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision.
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engine that puts out over 101 PS, and raring to go with instant response Drive-by-wire
technology, there's simply no argument that when it comes to setting your pulse racing,
nothing can keep up with the Ford Fiesta. This version also comes with Anti-lock brake
system (ABS) and Electronic brake distribution (EBD) and Driver Air bag that inflate on
impact. So when you drive the Ford Fiesta, you can be sure things are as safe as they can
be.
Key Features:
Engine :
The 1.6 Duratec petrol engine is an all-aluminum alloy construction, 16 Valve DOHC
engine with drive-by-wire electronic throttle control for very smooth and most responsive
driving experience imaginable. It also comes with an advanced knock sensing technology
and twin hole injectors that ensure performance and fuel efficiency.
This high value petrol packs in 101 ps power with powerful head-turning Fiesta styling.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing. Its powerful acceleration (0 100 kmph in 11.43 seconds) will leave you
breathless.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Electrically operated rear view mirrors ensures that you have the best view from every
angle. Keyless entry opens up the Fiesta to you at the touch of a button and height
adjustable seats gives you the freedom to decide your seating posture.
Safety
Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and
your Fiesta are forever on track. Structurally engineered to withstand severe collisions,
the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision. So when you
drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love
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with the Ford Fiesta. Youll Go Fida over it. Youll long to be within the sophisticated
confines of this car built to induce sheer obsession, with its raring to go spirit and
powerful styling. With design, engineering and technology inputs from around the world
and over 700,000 kms of testing in 9 countries, this is a car built to make you Go Fida.
The car with a brain
The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a
computer managing the cars engine diagnostics and electrical functions. It comes with
GEM sensors that oversee all critical functions.
Luxury
The Fiesta is quite unmatched when it comes to delivering luxury. Apart from best-inclass front and rear room space, the Fiesta also comes with luxuries that include leather
upholstery, 6 CD changer with speakers, power mirrors, hydrographic finish, silver
accents on AC vents and steering, leather steering, reading lights and climate control with
a variable displacement AC compressor, to name a few. Its a ride worthy of royalty.
Technology
Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiestas engine is so refined, they are guaranteed to leave you
speechless. DuraSave: Thanks to a combination of unmatched economy and exciting
performance, you save on every drop of fuel.
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The Ford Fiesta is a car engineered globally for India. Take a close look at what makes
the Fiesta unmatched in driving dynamics, technology, comfort and styling.
You won't fall in love with the Ford Fiesta. Youll Go Fida over it. Youll long to be
within the sophisticated confines of this car built to induce sheer obsession, with its
raring to go spirit and powerful styling. With design, engineering and technology inputs
from around the world and over 700,000 kms of testing in 9 countries, this is a car built to
make you Go Fida.
Key Features:
Engine
The more you drive the 1.4 Duratorq TDCi,the more you will doubt it's a diesel.All
thanks to the drive-by-wire technology,the compact lightweight all aluminium alloy
engine,and the compact lightweight all aluminium alloy engine, and the two-stage fuel
injection sysytem with APC(Accelerometer Pilot Control).Which makes the car
smoother, more responsive and refined.
Performance
Whether you're driving on city roads or highways, the Fiesta's performance is spirited and
responsive. The way this car hugs curves and takes off at traffic signals will set your
pulse racing.
Comfortable ride
Engineered specifically to adapt to demanding Indian road conditions, the Fiesta
combines its high stability with exceptional driving comfort. The suspension is specially
tuned to better absorb road surface disturbances and minimize discomfort to passengers.
Electrically operated rear view mirrors ensures that you have the best view from every
angle, keyless entry opens up the Fiesta to you at the touch of a button and height
adjustable seats gives you the freedom to decide your seating posture.
Safety
Driver Side airbag to ensure total safety Anti-lock braking systems ensure that you and
your Fiesta are forever on track. Structurally engineered to withstand severe collisions,
the Fiesta's crash worthiness is verified with over 400 virtual crash simulations.
Optimised steel strength in critical areas along with structural reinforcement, ensures
passengers and the driver are unscathed even in a frontal offset collision. So when you
drive the Ford Fiesta you can be sure things are as safe as can be. You won't fall in love
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with the Ford Fiesta. Youll Go Fida over it. Youll long to be within the sophisticated
confines of this car built to induce sheer obsession, with its raring to go spirit and
powerful styling. With design, engineering and technology inputs from around the world
and over 700,000 kms of testing in 9 countries, this is a car built to make you Go Fida.
The car with a brain
The Fiesta's GEM module (Generic Electronic Module) is the equivalent of having a
computer managing the cars engine diagnostics and electrical functions. It comes with
GEM sensors that oversee all critical functions.
Luxury
The Fiesta is quite unmatched when it comes to delivering luxury. Apart from best-inclass front and rear room space, the Fiesta also comes with luxuries that include leather
upholstery, 6 CD changer with speakers, power mirrors, hydrographic finish, silver
accents on AC vents and steering, leather steering, reading lights and climate control with
a variable displacement AC compressor, to name a few. Its a ride worthy of royalty.
Technology
Dura Technology, at the heart of the Fiesta, ensures every drive is exciting, smooth and
economical...or DuraVrooom, DuraSmooth and DuraSave, as we call it.
DuraVrooom: A driving experience that's so exciting, it will move you faster than
anything else has before.
DuraSmooth: The Fiestas petrol and diesel engines are so refined, they are guaranteed to
leave you speechless.
DuraSave: Thanks to a combination of unmatched economy and exciting performance,
you save on every drop of fuel.
Styling
Contemporary automotive design that perfectly combines style and solidity. That's the
Fiesta for you. With a powerful grille, a muscular bonnet, flared wheel arches, meaty side
panels, turn indicators on outside rear view mirrors and full chrome surround twin jewel
headlamp and tail-lamps, the Fiesta effortlessly mixes brawn with beauty. Get used to
heads turning in your direction.
Go Fida without worries
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Ford Fiesta comes with a 2 year warranty and an option to purchase "Extended warranty"
that covers the car against all electrical and mechanical failures for an additional period.
Rs. 7,91,990
Rs. 7,86,315
Hyundai Verna
VGT CRDi
Air Conditioner
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Power Windows
Power Steering
Specs
Hyundai Verna
VGT CRDi
4310
4282
1695
1686
1490
1468
1173
1150
13.8
14.9
No of Doors
Displacement (cc)
1493
1399
Power (PS@rpm)
110@4000
68@4000
Torque ( Nm@rpm)
235@1900
160@2000
Transmission Type
Manual
Manual
Gears
4.9
CUSTOMERS
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The Ford Fiesta and Hyundai Verna are targeted at the passionate driver who seeks
adventure.
The core target audience for the Ford Fiesta and Hyundai Verna is mainly male in the age
group of 25-35-plus years, who is an achiever and someone who loves control, precision,
is very confident, and drives well. Ford Fiesta and Hyundai Verna are targeted at
customers who may be considering fewer luxury features but a bigger brand name.
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The setting is wild and rugged. A young urban male takes his Ford Fiesta out on an
incredible adventure on the outskirts of his city. Setting up a slalom course of torches, the
driver uses his car to light them at high speed, showcasing the maneuver ability and exact
precision of the vehicle, all the while listening to his favourite old Hindi song. No driving
on wide open roads with a girlfriend in tow and zooming at high speed in this new
television commercial.
Indeed, as Scott McCormack, Vice-President (Marketing, Sales and Service), Ford India
Pvt Ltd, says, the whole idea was to move away from traditional stereotypes that the
Fiesta is not about just speed and acceleration but control and precision as embodied in
the new TVC.
Test drives are an important sales tool, as consumers like to get behind the wheel to make
a more informed decision. Fiesta and Hyundai Verna have strategically used their
advertisements to reiterate and stimulate the buyer to take the patented five-minute testdrive challenge. This feature of the Fiesta and Hyundai Verna ads helped increase the
curiosity in the minds of the prospective buyer. On tracking dealerships, Ford understood
that this element specifically has helped skyrocket enquiries from future buyers.
According to Ford India, the Fiesta has contributed largely to its sales; since the cars
launch in 2005, more than 65,000 Fiestas have hit the road. Fiesta has become a
significant player in the C segment. However, cross shopping does not happen often in
the C segment, even though a premium hatchback customer (B segment) could opt for a
sedan for a little bit more. Fiesta launched itself with Abhishek Bachchan as the brand
ambassador for a one-year period, and his style and panache helped the brand establish
itself early.
COMPETITION
GENERIC COMPETITION
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Small cars
Premium cars
Luxury cars
Sport utility vehicles
Segments
Cars/ SUVs
Companies
Suzuki
Honda
Toyota
Mitsubishi
GM
Daimler-Chrysler
Skoda
Fiat
Hyundai
Tata
Ford
M&M
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Motor cycles
Scooters
Scooterettes/Mopeds
Segments
Two-wheelers
Companies
TVS
Hero Honda
Yamaha
Kinetic
Bajaj Auto
LML
Buses
Trucks
Tractors
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Ambulance
Defence vehicles
Construction equipments
Segment
CVs
Companies
Swaraj Mazda
Mahindra & Mahindra
Volvo
Eicher-Mitsubishi
Escorts
M&M
L&T
New Holland
ITL-Renault
John-Deere
Punjab Tractors
Steyr
Tractors
Tata
Ashok Leyland
Tatra
BRAND COMPETITION
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FINANCIAL
ANALYSIS
Mar 06
Mar 05
Mar
Mar 03
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04
SOURCES OF FUNDS :
Share Capital
Reserves Total
Total Shareholders Funds
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
APPLICATION OF FUNDS :
Gross Block
Less : Accumulated
Depreciation
Net Block
Lease Adjustment
Capital Work in Progress
Investments
Current Assets, Loans &
Advances
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less : Current Liabilities and
Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not
written off
Deferred Tax Assets
Deferred Tax Liability
Net Deferred Tax
Total Assets
Contingent Liabilities
1,097.0
0
-767.8
329.2
392.41
284.55
986.08
-788.41
197.67
408.46
186.24
850
-640.85
209.15
541.62
238.09
676.96
1,006.
16
594.7
779.71
792.37
988.86
850
-628.9
221.1
482.52
175.26
657.7
8
878.8
8
1,359.7
0
1,344.9
9
1,097.2
7
1,035.
51
1,024.8
4
1,025.3
4
535.59
824.11
0
128.03
0
433.19
911.8
0
104.54
0
351.02
746.25
0
301.72
0
278.57
756.94
0
167.43
0
220.71
804.13
0
144.72
0
94.02
931.32
0
0
0
192.53
201.2
53.99
140.09
587.81
230.04
47.51
27.36
93.2
398.11
247.54
52
5.16
59.69
364.39
98.53
52.83
18.98
44.13
214.47
131.48
37.83
0.42
47.88
217.61
114.45
44.33
1.89
238.78
399.45
499.9
34.28
534.18
53.63
601.97
20.23
622.2
-224.09
408.35
15.45
423.8
-59.41
249.06
11.52
260.58
-46.11
176.05
39.49
215.54
2.07
185.34
23.25
208.59
190.86
0.39
0
0
0
1,006.
16
0
0.12
0
0
0
0.3
0
0
0
1.17
0
0
0
792.37
0
988.86
0
0.62
0
0
0
878.8
8
0
3.01
0
0
0
1,125.
19
0
http://www.capitaline.com
A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile
Industry
850
-582.37
267.63
575.55
108.91
850
-467.61
382.39
682.43
60.37
684.46
952.09
742.8
1,125.
19
952.09
0
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(Rs in Crs)
Year
INCOME :
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
EXPENDITURE :
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Administration
Expenses
Miscellaneous Expenses
Less: Pre-operative Expenses
Capitalised
Total Expenditure
Operating Profit
Interest
Gross Profit
Depreciation
Profit Before Tax
Tax
Deferred Tax
Reported Net Profit
Extraordinary Items
Adjusted Net Profit
Adjst. below Net Profit
P & L Balance brought forward
Statutory Appropriations
Appropriations
P & L Balance carried down
Dividend
Preference Dividend
Mar
07(12)
Mar
06(12)
Mar
05(12)
Mar
04(12)
Mar
03(12)
2,722.3
3
0
2,722.3
3
0
0
2,722.
33
1,780.9
6
307.24
1,473.7
2
28.84
-30.69
1,471.
87
1,621.6
2
293.63
1,327.9
9
40.99
82.81
1,451.
79
1,326.0
2
209
1,117.0
2
23.06
-44.8
1,095.
28
928.12
0
0
0
0
1,177.9
0
17.19
52.63
27.3
1,153.6
0
14.64
39.26
21
848.39
12.99
31.6
20.2
674.63
9.75
27.66
17.65
0
2,567.1
5
166.59
102.4
92.1
99.51
32.83
27.38
30.26
28.73
0
2,567.1
5
155.18
30.56
124.62
104.06
20.56
0
0
19.61
0
19.61
0
-788.41
0
0
-768.8
0
0
0
1,474.4
4
-2.57
59.46
-62.03
83.75
-145.78
0
0
-147.57
-1.79
-145.78
0
-640.84
0
0
-788.41
0
0
0
1,358.2
8
93.51
31.37
62.14
74.09
-11.95
0
0
-11.95
-0.79
-11.16
0
-628.9
0
0
-640.85
0
0
0
1,035.5
4
59.74
46.6
13.14
59.67
-46.53
0
0
-46.53
-1.18
-45.35
0
-582.37
0
0
-628.9
0
0
A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile
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1,036.3
7
180.45
855.92
32.85
39.35
857.93
70.19
61.7
8.49
62.73
-54.24
0
0
-54.24
-2.83
-51.41
0
-528.13
0
0
-582.37
0
0
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Equity Dividend %
Earnings Per Share-Unit Curr
Book Value-Unit Curr
0
1.79
30.01
0
0
20.05
0
0
24.61
0
0
26.01
Return on Net Worth (RONW): The ratio measures the net profit earned
on the equity shareholders funds. It is the measure of overall profitability of a
company after discharging cost of borrowed capital and income tax payable to the
government. It is also known as Return on equity or ROE ratio.
RONW (%) =
(PAT Preference dividend)*100
Equity shareholders fund or net worth (equity capital + reserve and surplus
miscellaneous expenditure not written off)
RONW (%)
2007
2006
2005
2004
5.96
-74.7
-5.72
-21.1
Interpretation:
There was a decline in overall profitability of a company from 2004-06. There is an
improvement in 2007.
A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile
Industry
0
0
31.49
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LIQUIDITY RATIO
Current ratio: This ratio measures the ability of a company to discharge its
day-to-day bills, or current liabilities as and when they fall due, out of the cash or
near cash or current assets that it possesses.
Current ratio =
Current assets, loans & advances + short term investments
Current liabilities + provisions + short term debt
Current ratio
(times)
2007
2006
2005
2004
0.63
0.38
0.377
0.288
Interpretation:
The current ratio of Ford Motors Limited for past 4 years is increasing which means that
the company is capable to meet the current obligations.
Quick ratio: This ratio measures as to how quick is the ability of a company to
discharge its current liabilities net of working capital limits, as and when they fall
due, out of cash, or current assets net of inventories that it possesses.
Quick ratio =
Current assets, loans & advances inventories +short term investments
Current liabilities +provision +short-term debt net of working capital limits
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Quick ratio
(times)
I 296
2007
2006
2005
2004
0.73
0.27
0.27
0.44
Interpretation:
The quick ratio of 1:1 is considered good. But the companys quick ratio of past 4 years
is not equal to 1:1. Therefore, high current ratio and low quick ratio indicates weak
working capital management.
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TURNOVER RATIOS
Fixed assets turnover ratio: This ratio measures the extent of turnover or
volume of gross income generated by the fixed assets of a company or in other
words the efficiency in their utilization.
Fixed assets
turnover ratio
(times)
2007
2006
2005
2004
3.30
1.61
1.77
1.47
Interpretation:
The fixed assets turnover ratio of ford motors limited of past 4 years indicates that there
is a substantially higher growth in the efficiency of fixed assets utilization which further
reflected in a higher RONW.
Net Worth Turnover Ratio: This ratio measures the extent of turnover or
volume of gross income generated by the net worth of the company. In other
words, it is the efficiency in the resource utilization from the angle of the residual
interest, i.e. equity shareholders.
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Net worth
turnover ratio
(times)
2007
2006
2005
2004
8.27
7.459
6.358
5.06
Interpretation:
Increase in RONW in 2007 contributed by improvement in net worth turnover of ford
motors limited for past 4 years. In other words, the increase in RONW has improved due
to higher resource efficiency as well as higher operating margins. Therefore, it is an ideal
situation for a company.
Stock turnover ratio: This ratio measures to discover the possible trouble in
the form of overstocking or over valuation. A low stock turnover ratio results in
blocking of funds in inventory which may ultimately result in heavy losses due to
inventory becoming obsolete or deteriorating in quality.
Cost of sales
Average stock
Stock turnover
ratio (times)
2007
2006
2005
2004
26.98
13.35
10.22
22.42
Interpretation:
The stock turnover ratio of ford motors limited of past 4 years is not efficiently used. As
high stock turnover ratio indicates brisk sales.
PROFITABILITY RATIOS
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Gross profit margin: This ratio measures several intermediate profit margin
indicators and finally the PAT.
Gross profit
margin (%)
2007
2006
2005
2004
4.57
-4.20
4.67
1.17
Interpretation:
The gross profit margin of ford motors limited has been increasing for past 4 years.
Therefore, this indicates that high gross profit margin of ford motors limited reflects the
ability to maintain a low cost of production.
Net profit margin: This ratio indicates net margin earned on a sale of Rs.100.
Net profit
2007
2006
2005
2004
0.72
-10.01
-0.89
-4.16
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margin (%)
Interpretation:
The net profit margin of ford motors limited has increased in 2007 but there was a decline
in net profit margin from 2004-06. Therefore, this indicates that in 2007, company is
capable to return dividends and stock price appreciation to shareholder.
BALANCE SHEET
HYUNDAI MOTORS INDIA LIMITED
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2,576.9
7
74.07
Total Assets
Contingent Liabilities
1,948.0
1
49.96
1,858.
30
115.45
1,592.
47
0
1,759.
96
13.08
http://www.capitaline.com
Mar
06(12)
Mar
05(12)
Mar
04(12)
Mar
03(12)
Mar
02(12)
Mar
01(12)
8,540.1
1
1,123.4
1
7,416.7
0
420.59
62.99
7,900.2
8
7,351.9
0
1,046.0
0
6,305.9
0
349.13
97.77
6,752.8
0
5,713.7
4
3,955.8
6
3,395.2
3
2,994.1
2
913.26
4,800.4
8
191.87
33.96
5,026.3
1
870.72
3,085.1
4
104.6
-3.6
3,186.1
4
785.26
2,609.9
7
71.19
43.4
2,724.5
6
791.65
2,202.4
7
53.59
3.47
2,259.5
3
5,705.9
8
63.86
161.36
4,931.0
9
56.53
133.26
3,531.8
6
42.2
106.83
2,191.1
6
36.75
89.18
1,849.5
9
29.24
58.72
1,582.8
3
26.02
45.29
217.43
163.89
92.71
54.99
51.82
50.11
628.62
562.12
373.96
317.02
151.52
109.17
19.79
31.58
113.37
54.99
56
56.52
0
6,797.0
4
1,103.2
4
3.35
1,099.8
9
295.01
804.88
0
5,878.4
7
0
4,260.9
3
0
2,744.0
9
0
2,196.8
9
0
1,869.9
4
874.33
13.21
765.38
14.71
442.05
16.82
527.67
32.81
389.59
59.38
861.12
250.01
611.11
750.67
178.55
572.12
425.23
168.02
257.21
494.86
198.16
296.7
330.21
142.25
187.96
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82
0
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Tax
Deferred Tax
Reported Net Profit
Extraordinary Items
Adjusted Net Profit
Adjst. below Net Profit
P & L Balance brought
forward
Statutory
Appropriations
Appropriations
P & L Balance carried
down
Dividend
Preference Dividend
Equity Dividend %
Earnings Per Share-Unit
Curr
Book Value-Unit Curr
321.24
-41.46
525.1
0.1
525
0
144.75
59.44
406.92
-0.04
406.96
0
190.05
3.22
378.85
0.03
378.82
0
84.75
7.71
164.75
0.95
163.8
0
22.09
0
274.61
1.19
273.42
0
16
0
171.96
0.11
171.85
0
654.98
407.43
0
0
1,180.0
8
0
0
0
0
159.37
0
378.85
0
164.75
0
274.61
0
171.96
654.98
121.88
0
15
0
121.88
0
15
0
121.88
0
15
0
121.88
0
15
0
0
0
0
646.25
2,529.1
3
479.77
1,882.8
9
446.65
1,553.1
2
202.76
1,256.4
7
337.96
1,405.6
4
211.63
1,216.4
4
Return on Net Worth (RONW): The ratio measures the net profit earned
on the equity shareholders funds. It is the measure of overall profitability of a
company after discharging cost of borrowed capital and income tax payable to the
government. It is also known as Return on equity or ROE ratio.
RONW (%) =
(PAT Preference dividend)*100
Equity shareholders fund or net worth (equity capital + reserve and surplus
miscellaneous expenditure not written off)
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RONW (%)
2006
2005
2004
2003
25.55
26.59
30.02
16.13
Interpretation:
There is decline in overall profitability of a company in past 4 years.
LIQUIDITY RATIO
Current ratio: This ratio measures the ability of a company to discharge its
day-to-day bills, or current liabilities as and when they fall due, out of the cash or
near cash or current assets that it possesses.
Current ratio =
Current assets, loans & advances + short term investments
Current liabilities + provisions + short term debt
Current ratio
(times)
2006
2005
2004
2003
1.54
1.34
1.31
2.07
Interpretation:
The current ratio of Hyundai Motors Limited for past 4 years is increasing from 20042006 but at a slower pace as compared to 2003.
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Quick ratio: This ratio measures as to how quick is the ability of a company to
discharge its current liabilities net of working capital limits, as and when they fall
due, out of cash, or current assets net of inventories that it possesses.
Quick ratio =
Current assets, loans & advances inventories +short term investments
Current liabilities +provision +short-term debt net of working capital limits
Quick ratio
(times)
2006
2005
2004
2003
1.07
0.89
0.83
1.51
Interpretation:
The quick ratio of 1:1 is considered good. But the companys quick ratio of past 4 years
is not equal to 1:1. Therefore, high current ratio and low quick ratio indicates weak
working capital management.
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TURNOVER RATIOS
Fixed assets turnover ratio: This ratio measures the extent of turnover or
volume of gross income generated by the fixed assets of a company or in other
words the efficiency in their utilization.
Fixed assets
turnover ratio
(times)
2006
2005
2004
2003
4.27
3.75
2.80
2.44
Interpretation:
The fixed assets turnover ratio of Hyundai motors limited of past 4 years indicates that
there is a substantially higher growth in the efficiency of fixed assets utilization which
further reflected in a higher RONW.
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Net Worth Turnover Ratio: This ratio measures the extent of turnover or
volume of gross income generated by the net worth of the company. In other
words, it is the efficiency in the resource utilization from the angle of the residual
interest, i.e. equity shareholders.
Net worth
turnover ratio
(times)
2006
2005
2004
2003
3.609
4.12
3.80
3.02
Interpretation:
Decline in RONW resulted in decline in net worth turnover of Hyundai motors limited.
Therefore, it is not an ideal situation for a company.
Stock turnover ratio: This ratio measures to discover the possible trouble in
the form of overstocking or over valuation. A low stock turnover ratio results in
blocking of funds in inventory which may ultimately result in heavy losses due to
inventory becoming obsolete or deteriorating in quality.
Cost of sales
Average stock
Stock turnover
ratio (times)
2006
2005
2004
2003
17.037
17.17
17.34
20.94
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Interpretation:
The stock turnover ratio of Hyundai motors limited of past 4 years is not efficiently used.
As high stock turnover ratio indicates brisk sales.
PROFITABILITY RATIO
Gross profit margin: This ratio measures several intermediate profit margin
indicators and finally the PAT.
Gross profit
margin (%)
2006
2005
2004
2003
14.8
13.6
15.6
13.7
Interpretation:
The gross profit margin of Hyundai motors limited has been increasing at a slower pace
for a past 4 years. Therefore, this indicates that low gross profit margin of Hyundai
motors limited reflects the less ability to maintain a low cost of production.
Net profit margin: This ratio indicates net margin earned on a sale of Rs.100.
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Net profit
margin (%)
2006
2005
2004
2003
7.079
6.45
7.89
5.30
Interpretation:
The net profit margin of Hyundai motors limited has increased in 2006 as compared to
2005. Therefore, this indicates that company is capable to return dividends and stock
price appreciation to shareholder.
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FORD
MOTORS
Return on Net
Worth (RONW)
The overall
profitability of a
company has
declined from
2003-06.
HYUNDAI
MOTORS
Companys
overall
profitability has
also declined
from 2003-06.
CONCLUSION
Both the company shows a decline
in overall profitability for past 4
years but the efficiency of Hyundai
Motors is better as compared to the
Ford Motors.
LIQUIDITY RATIO
RATIOS
Current ratio
Quick ratio
FORD
MOTORS
The companys
current ratio has
been increasing
consistently from
2003-06.
HYUNDAI
MOTORS
The companys
current ratio has
been increasing
but at a slower
pace from 200306.
The companys
The companys
quick ratio for past quick ratio for
4 years is not
2006 is 1.07 times
equal to 1:1.
which is
considered to be
CONCLUSION
The ford Motors is more capable
to meet its short term liabilities
as compared to Hyundai Motors.
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TURNOVER RATIOS
RATIOS
Fixed assets
turnover ratio
FORD
MOTORS
The efficiency of
fixed asset
utilization of
company has been
substantially
growing from 200306.
There is an increase
in net worth
turnover ratio for
past 4 years.
The companys
stock turnover for
past 4 years has not
been efficiently
used.
HYUNDAI
MOTORS
CONCLUSION
Due to an increase in
RONW, Ford Motors is in
an ideal situation as
compared to Hyundai
Motors
Both the companies has a
decline in stock turnover
ratio which means that
none of the company has
efficiently used its
inventories.
HYUNDAI
MOTORS
CONCLUSION
PROFITABILITY RATIO
RATIOS
Gross Profit Margin
FORD
MOTORS
Due to low sales,
the gross profit
margin of a
company has
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declined in 2006.
RECOMMENDATION
PROPOSED ENTRANT
Founder
Tawseef Ahmad
Country
INDIA
Year of Establishment
2008
Industry
Automotive
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Website
www.newtechindia.com
Factory Location
Faridabad, Haryana
CORPORATE STRUCTURE
New Tech Motors India Ltd was founded by Mr. Tawseef Ahmad as a separate legal
entity. The company is registered under the Companies Act,1956.
BUSINESS GOALS
Our goal is to provide value to our customers. This goal is established in order to
help fulfill our vision -- to become a company that society wants to exist. Our
goal is to establish New Tech as a brand that people trust and identify, by
strengthening New Techs spirit of innovation and creativity.
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Come this June and New Tech brings to its Indian customers New Tech Comfy which is
all set to put Indian roads on fire. A car that combines luxury, endurance, operational
excellence and comfort in such a way that it could create a sensation amongst every
generation. Rich in style and swift in movement, Comfy is a symbol of elegance and
luxury.
COMPETITIVE ADVANTAGE
What makes New Tech unique is its ability to provide everything under one roof
that is sale, service & spares.
Also, we are using Chrome plated wheels in our Comfy Cars. For chromium
plating, each individual wheel is polished with superior care and cleaned in
special baths. Prior to chrome plating, all wheels are buffed to bring out luster and
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to obtain mirror finish, this triple chromium process gives superior looks without
sacrificing corrosion protection. Main advantages of using chrome plated wheels
are:
Better grip
Leather Upholstery
Luxurious dual tone interiors
Interior space offers numerous storage features
Attractive Styling
o
o
o
EXTERIORS
Flamboyant Exterior
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The New Tech Comfy is an ingenious mix of dynamic styling, advanced technology,
versatility and economy. Look at it from the front, the back or the side - and it will leave
you speechless!
The design elements of Comfy makes it so unbelievably stylish.
Front Styling
o
o
o
Colors
Nighthawk Black
Heather Mist
Bluish Silver
Alabaster Silver
Tafeta White
INTERIORS
Crafted for Comfort
Comfy has marvelous interiors luxurious and relaxing. Whether you are in the drivers
seat or just along for the ride, your experience in the Comfy can only be unbelievable.
Indulge yourself in the sumptuous interiors, where every detail is crafted with precision
engineering for immaculate perfection.
Style
o
o
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o
o
o
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Comfort
o
o
o
o
o
o
o
o
Convenience
o
o
o
o
o
MODELS
We are launching two models of New Tech Comfy initially:
PRICING
As New Tech Comfy is being launched in Mid Size Car segment, it will provide the
customers luxury at a much affordable price. Also keeping in mind our competitors,
Hyundai Verna and Ford Fiesta, we are launching Comfy at a competitive price.
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Comfy OL
Rs. 720000
(Showroom price)
Comfy EL
Rs. 810000
(Showroom price)
PLACE
We are planning launch of New Tech Comfy initially in India only, covering all major
cities like Delhi, Mumbai, Bangalore, Kolkata, Chandigarh, Hyderabad, Ahmedabad,
Pune, Chennai, Lucknow etc.
In the next financial year we are planning to cater to international markets also with
Comfy petrol and Comfy diesel and many more new variants of the same.
PROMOTION
We are planning to use various advertising media like television, newspapers, magazines
etc to penetrate into the Indian Car Industry.
SONY
STAR PLUS
ZEE CINEMA
SET MAX
CNN-IBN
ZEE TV
Around 70% of the amount allocated for promotional purpose is to be used for television
advertising.
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Print Advertisements: Hoardings and billboards will be placed across all major
cities all over India. Also, Prints adds will be there in daily newspapers and
selected magazines.
NEWSPAPERS
TIMES OF INDIA
HINDUSTAN TIMES
MAGAZINES
MOTORING
OVERDRIVE
INDIA TODAY
BUSINESS TODAY
Around 20% of the amount allocated for promotional purpose is to be used for print
advertising.
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In all we have allocated 10% of the promotional amount to campaigns and road
shows.
CREDIT TERMS
PARTNERS:
We will provide our cars at 3, 4 & 5 year credit plans with minimum down payment of
15% & remaining amount at EMI with the interest rate of 6%.
TARGET SEGMENT
New Tech Comfy is having sporty looks so we are mainly targeting male youngsters in
the age group of 20-30 who are passionate drivers and seek adventure.
We are also targeting the age group of 30-35 because of its comfort and luxury.
Sporty looks of New Tech Comfy make it a car for youngsters and its comfort and space
makes it a car for family!!
INVESTMENT PLAN
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New Techs initial investment was Rs.1500 Crores for the first financial year. This
investment was made on factory land, machinery, employees hired, constructions,
promotion and 18 showrooms opened in six metros.
In the next financial year 2009-10, New Tech is planning to open up six more showrooms
in states other than metros which will require an investment of around Rs.300 Crores.
Furthermore in year 2010-11, New Tech is planning to increase number of showrooms
which would require an investment of around Rs.200 Crores.
PRODUCTION
Production Process of New Tech Motors India:
1. Stamping
2.Welding
3.Paint
4.General Assembly
5.Quality
6.Production Control
Stamping:
In the Stamping Shop, the vehicle begins to take shape. Housed in the shop are large
rolls of steel, each weighing between 20,000 and 40,000 pounds. Cranes are used to lift
the rolls and put them into the blanking machine, where rectangular pieces, thin as a
dime, are cut and stored in racks. The pieces are automatically moved to one of two
large, stamping presses with dies moulded into various shapes. Over 5,400 tons of
pressure transforms the steel blank into a specific body part.
Welding:
The Welding Shop containing robots capable of manoeuvring and welding body parts.
These amazing automated machines position stamped body parts and accurately weld
them together to form the vehicle body, called a body-in-white.Team Members attach
hinges, doors, hood and trunk, then check the quality of each car body to confirm the
welding process is perfect.
Paint:
The completed body-in-white moves from the Welding Shop, along a trestle into the
Paint Shop for the nine-hour painting process. The vehicle first rotates 360 degrees in a
unique electro coat bath to prepare the entire body for paint. Since the Paint Shop is an
environmentally-controlled area, Team Members must wear special overalls and gloves
to protect themselves and the paints finish. A single particle of dust can affect the overall
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quality of a vehicles paint finish. After drying, the freshly-painted vehicle body heads to
General Assembly.
General Assembly:
General Assembly houses approximately 700 Team Members who install a variety of
parts to complete the vehicle. The painted vehicle body moves through the trim area
where wires, brake controls, and other parts are quickly connected inside the vehicle,
under the hood, and in the trunk. The doors are taken off early in the process and sent to
another area where speakers, power windows, door seals and other parts are installed. In
the chassis area, the underside of the vehicle is completed and the engine and drive train
are connected to the body. After the tires, battery, front and rear glass, and seats are
installed, the doors are reattached to the vehicle. Oil, engine coolant, gasoline and other
vital fluids are added, and then the vehicle is started for the first time. A roll booth tests
the braking system and then the vehicle is driven on a two-mile test track to check for
rattles or other issues.
Quality:
Quality checks are built into each step in the production process. Each vehicle has to pass
a series of stringent tests, including satisfactory performance on a two-mile test track.
Production Control:
In the production control department, NMIL manages whole supply chain activities and
the network, beginning with our customer order, moving from suppliers to manufacturers,
then through its own distribution network to its own showrooms, and then to customers.
PROCUREMENT
New Tech Motors India Limited has around 1000 workers working in its factory outlet
which is located in Faridabad, for its current (1st) year of production. The company has
got its own 18 3S-showrooms in different states with around 40 employees working in
each showroom. Company has its own distribution network and does not rely on
dealerships due to which the company maintains a huge control on production & sales as
the cars are made on demand.
So the total number of employees working at NMIL is approximately equal to 1700.
RESULTS EXPECTED
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YEAR
NO. OF
SHOWROOMS
AVERAGE NO.
OF CARS
SOLD/MONTH/
SHOWROOM
TOTAL NO. OF
CARS SOLD
PER YEAR
PROFIT
PER CAR
TOTAL PROFIT
2008-09
2009-10
2010-11
2011-12
2012-13
TOTAL
18
24
30
30
30
60
80
100
120
110
470
12,960
23,040
36,000
43,200
39,600
1,54,800
2,00,000
1,75,000
1,50,000
1,30,000
1,30,000
259.2 Crores
403.2 Crores
540.0 Crores
561.6 Crores
514.8 Crores
Rs.2278.8 Crores
We are expecting total profit of Rs.2278.8 Crores in five financial years. Our planned
total investment for these 5 years is Rs.2000 Crores. Out of this, we are expecting that
Rs.1764 Crores will be recovered in financial year 2011-12. Remaining Rs.236 Crores
will be recovered in year 2012-13.
Therefore, pay back period will be
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MACRO ENVIRONMENT
Politically:
The excise and customs duties on cars and auto-components have been
continuously declining over the past five years. These factors have
contributed in providing the impetus to the auto sector.
Economically:
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Socio-demographically:
Generally, preferences head towards smaller and mid size cars for
environmental, economical and convenience reasons.
Technologically:
Huge Financial resources are required to keep up with the fast pace of
changes.
Environmentally:
Legislative situation:
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MICRO ENVIRONMENT
1. HORIZONTAL COMPETITION
Rivalry is high since the high growth rate of the mid size car segment
naturally attracts many existing competitors aiming to cover it.
Additionally, low differentiation of products (image and brand-identity
main differentiators), heterogeneity of competitors (BMW vs.
DaimlerChrysler, Toyota vs. Honda), similarly high financial backing by
parent companies and high exit barriers (manufacturers forced to carry on,
hence competition does not cease) intensify rivalry.
Switching from mid size cars to large/luxury cars bears instead a greater
substitute threat; however, increasing congestions and running costs
impact adversely on the consideration to buy a larger vehicle.
2. VERTICAL COMPEITION
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Switching costs are moderate, since cars are usually kept for at least three
years. Internet price comparisons increase the bargaining power, but this
mainly affects dealers.
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CONCLUSION
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Automobile Industry is the largest industry in India which is currently contributing about
5% of the Indias GDP and it is targeted to grow five fold by 2016.
The onset of automobile industry in India saw companies like Hindustan Motors, Premier
Automobiles and Standard Motors catering to the manufacture of automobiles for Indian
customers. Hindustan Motors (HM) was the leader in car manufacturing and sales until
the 1980s. The policy reforms in 1991 opened up the sector for many foreign auto makers
who entered the Indian markets and the competition levels in the Automobile Industry
intensified.
India, in auto sector, is turning to be a sourcing base for the global auto majors. It is
expected that automobile industry will touch a mark of 13,008 million by 2010. Even the
commercial vehicles are likely to grow at 5.2 per cent. To tap this large opportunity, the
Indian Auto Companies along with the global giants have announced huge expansion
plans.
India is the 11th largest Passenger Cars producing countries in the world. Hyundai
Motors India is the second largest player in passenger car market. The passenger car and
the motorcycle segment is set to grow by 8-9 per cent in coming couple of years.
Although the Indian automobile industry recorded a de growth in the financial year ended
2007-08, Hyundai Motor India Ltd recorded the highest growth with an increase of 52
per cent.
Automobile industry has a huge potential to grow and prosper in future as manufacturers
are investing heavily in new manufacturing and assembly plants in automotive hubs
across India and have announced massive expansion plans. Manufacturers are investing
overseas and establishing footprints across the world.
The industry is set to have a major impact on Indias future economic growth. The
industry is entering into a new phase of its development and evolution, results of which
will be visible in over next ten years
Car industry occupies a strategic position in many countries. Currently, there is high
demand for cars across all the segments. With the growing economy, people left with a
lot of disposable income spend it towards meeting their mobility needs such as cars.
Additionally, a convenient union budget in the current financial year (2008-09) has
worked in favour of the automobile sector, which has seen an uptrend in sales across
various segments. Indian car industry is about to take a new shape altogether with the
launch of TATA NANO. Nano is expected to bring about a revolutionary change in the
Indian Car Industry.
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Ford motors Ltd, which introduced itself in India in 1988, has invested heavily in India to
give the finest in automobiles. Ford is having the world class manufacturing capabilities
and is always there to provide services and solutions to its customers.
Hyundai Motor is the sixth largest car maker in the world. Hyundai Motor India Limited
(HMIL) is the second largest and the fastest growing car manufacturer in India with its
presence in almost all the segments. The company is investing heavily in R&D in order to
develop new products and technologies. Hyundai Motor India is following management
practices and focusing on developing products that are environment friendly .The
company has been awarded various times and achieved another milestone with the launch
of Hyundai Verna.
As far as our research is concerned, HMIL is far ahead of Ford India. This difference is
on the basis of market share, number of cars sold per year & number of showrooms.
HMIL is highly penetrated into the B, B+ segment with huge sale of cars like Santro &
now i10. Another reason for HMIL being ahead of Ford India is that Hyundai has been
able to better understand the tastes & preferences of Indian customers.
As far as the comparison of Hyundai Verna & Ford Fiesta is concerned, Hyundai Verna
is better in Style & Comfort whereas Ford Fiesta is better in Mileage & its prices are less
as compared to Hyundai Verna.
Now another car, New Tech Comfy, being launched by NMIL this month is going to
make the competition more intense & it will try its best to make the life hard for cars like
Hyundai Verna & Ford Fiesta.
The positive demographic factors, pro-reform policies of the government and fast pace of
growth of the automobile industry made almost all major global auto players making
their way into India. 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.
BIBLIOGRAPHY
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www.india.ford.com
www.hyundai.co.in
www.hondacarindia.com
http://auto.indiamart.com/cars/mid-size-cars.html
http://auto.indiamart.com/cars/hyundai-verna/
http://auto.indiamart.com/cars/ford-fiesta/
www.thehindubusinessline.com
http://readers-choice.org
http://www.fadaweb.com/indian_auto_scenario.htm
www.economictimes.indiatimes.com
www.thehindubusinessline.com
www.icmrindia.org
www.ibef.org
www.capitaline.com
http://www.jagsharma.com/files/Coursework%20Strategy.pdf
http://www.surfindia.com/automobile/industry-growth.html
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http://www.surfindia.com/automobile/vehicle-production.html
http://www.surfindia.com/automobile/auto-companies.html
http://www.surfindia.com/automobile/ford-india-limited.html
http://www.surfindia.com/automobile/hyundai-motor.html
ANNEXURES
Visit to
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ANNEXURE 1
NCR FORD
Information gathered from the conversation with Mr. Anil
Arora, Manager Sales & Finance
Ford is having six showrooms in NCR region.
Ford sells around 300 cars per month from all the 6 showrooms out of which 5060% are Ford Fiesta.
Customer segment for Ford Fiesta: C segment
Generic Competition for Ford Fiesta: Honda City and Maruti Suzuki SX4 in petrol
Hyundai Verna and Swift Dezire in diesel
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transportation
Showroom
customers
Competitive Advantage:- Mileage, luxury, interior. Ford is the only car in its
segment which gets 0-100 kms in 11.43 seconds.
ANNEXURE 2
Fx Hyundai
Information gathered from the conversation with Mr. Raman
Jha, assistant sales manager.
Verna launched for the segment which is above the A2 segment, also called as Csegment.
Hyundai does most of its business with brand loyal customers so New Verna is
for those who have already used Hyundai Santro & Getz.
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Hyundai is the only car manufacturer in Indian market who launches same
designs in all the 65 countries, not even a single feature is changed.
Hyundai is the 6th largest in World & 2nd largest in India, credit goes to cars like
Santro.
Distribution channel:-
Transportation
Showrooms
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