44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile Industry Thesis 116p

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

1/117

P a g e | 2 I 296

A Critical analysis

Of

Hyundai Motors Ltd

And

Ford Motors

From Car automobile Industry

Submitted To:

Prof.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

2/117

P a g e | 3 I 296

EXECUTIVE SUMMARY

This project seeks to critically analyse the Car Automobile industry with main focus onHyundai 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 sameindustry.

A proper study of the Automobile industry is done viz. Indian automobile Industry,vehicle production in India, Growth of Indian automobile Industry, future of automobileindustry 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, anintroduction 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 andgeneral business information. Also, financial analysis of balance sheets and profit andLoss 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 withMr. Raman Jha, assistant sales manager, of Fx Hyundai showroom and Mr. Anil Arora,Manager Sales & Finance, of NCR Ford showroom who provided us with valuableinformation such as the sales of their respective showrooms, business models, marketshares of both the cars under study etc.

Recommendations are made in the form of proposed entrant - New Tech Motors IndiaLtd in the cars automobile industry.

Finally, this report concludes by making a summary of the findings .

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

3/117

P a g e | 4 I 296

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. SubrotoGanguly (Faculty). We wish to thank him for the valuable time he gave us and theimmense 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 todeliver a good research work.

We are also thankful to Mr. Raman Jha, assistant sales manager, of Fx Hyundaishowroom 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

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

4/117

P a g e | 5 I 296

TOPIC PAGE NO.

I. METHODOLOGY...7

II. INDUSTRY8-26

1. INTRODUCTION TO INDIANAUTOMOBILE 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

9. ABOUT FORD INDIA LTD....28-34

COMPANY OVERVIEW.29 PROFILE OF KEY PERSONNELS30 BUSINESS MODEL..32 FORD SERVICES.34

10. ABOUT HYUNDAI MOTORS INDIA LTD..35-43

COMPANY OVERVIEW.37 BUSINESS MODEL..38 COMPANY R&D...42 COMPANY ENVIRONMENT.43

IV. PRODUCT.44-66

11. HYUNDAI VERNA45

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

5/117

P a g e | 6 I 296

12. FORD FIESTA....56

13. COMPARISON...67

14. CUSTOMER SEGMENT FOR FORD FIESTA &HYUNDAIVERNA....68

15. COMPETITION.70

V. FINANCIAL ANALYSIS.....73-90

FORD MOTORS LTD.74 HYUNDAI MOTORS INDIA LTD.83 FINANCIAL COMPARISON BETWEEN FORD

MOTORS LTD & HYUNDAI MOTORS LTD.92

VI. RECOMMENDATIONS94-109

VII. CONCLUSION..110

VIII. BIBLIOGRAPHY..112

IX. ANNEXURE...113

16. INFORMATION GATHERED FROM THE

CONVERSATION WITH SALES MANAGERS

NCR FORD....114

FX HYUNDAI....115

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

6/117

P a g e | 7 I 296

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. Secondary research through various search engines, company websites , car

magazines.

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

7/117

P a g e | 8 I 296

INDIANAUTOMOBILE

INDUSTRY

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry

8/8/2019 44586726 Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car Automobile I

8/117

P a g e | 9 I 296

INDIAN AUTOMOBILE INDUSTRY GROWTH

Automobile Industry is the largest industry in India with an impressive growth in the lasttwo decades. The reason behind the growth was abolition of licensing in 1991 and

permitting automatic approval and successive liberalisation of the sector.

According to estimation the compound annual growth rate (CAGR) of Indian Automobilesales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans.

Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by TataMotors . Hyundai did well but the difference was nearly half of Tata Motors. In 2-Wheelres segment, Hero Honda is leading putting behind Bajaj Auto Ltd.

OVERVIEW

India, sourcing base for global auto majors. Passenger car and motorcycle segment is set to grow by 8-9%. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent. Estimated component market size is US$ 6.7 bn.

FACTS AND FIGURES

India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming coupleof years, says the ICRA report. The industry is likely to maintain the growth momentum

picked up in 2002-03.

The ICRA's analysis points on the auto sector that the passenger car market in the countrywas inching towards cars with higher displacements. The sports-utility-vehicle (SUV)that was getting crowded everyday, would witness intense competition as many SUVshad been competitively priced, the report said.

Honda , Suzuki , General Motors and Hyundai , the global automakers had alreadylaunched their premium SUVs in the market to broaden their portfolio and create productexcitement in the segment estimated at about 10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters saleswould decelerate and mopeds would also see the same. Overseas market would present

A Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile

Industry