Click here to load reader

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

  • View
    692

  • Download
    9

Embed Size (px)

Text of Car Automobile Industry a Critical Analysis of Hyundai Motors Ltd and Ford Motors From Car...

Page |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

Page |3

I 296

EXECUTIVE SUMMARYThis 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.

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

Page |4

I 296

ACKNOWLEDGEMENTThis 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 CONTENTSA Critical analysis of Hyundai Motors Ltd and Ford Motors from Car automobile Industry

Page |5

I 296

TOPICI. II.

PAGE NO.

METHODOLOGY...7 INDUSTRY8-26 AUTOMOBILE INDUSTRY..8

1. INTRODUCTION TO INDIAN 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

Page |6

I 296

12. FORD FIESTA....56 13. COMPARISON...67 14. CUSTOMER SEGMENT FOR FORD FIESTA &HYUNDAI

VERNA....6815. 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. VII. VIII. IX.

RECOMMENDATIONS94-109 CONCLUSION..110 BIBLIOGRAPHY..112 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

Page |7

I 296

METHODOLOGYWe 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

Page |8

I 296

INDIAN AUTOMOBILE INDUSTRY

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

Page |9

I 296

INDIAN AUTOMOBILE INDUSTRY GROWTHAutomobile Industry is the largest industry in India with an impressive growth in the last two 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 Automobile sales 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 Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors. In 2Wheelres 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 FIGURESIndia, 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 couple of 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 country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said. Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement 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 sales would 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

P a g e | 10

I 296

huge opportunities for the two-wheeler makers. The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.

INDIAN AUTO MARKET GROWTH FOR THE YEAR 2005-06The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. 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. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.

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

P a g e | 11

I 296

VEHICLE PRODUCTION IN INDIAIndia is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks.

Production of 4-Wheelers2005-06 (Apr-Mar) In Nos. 572,097 2005-06 (Apr-Mar) In Nos. 260,440

Manufacturers Japanese OEM Maruti Udyog Ltd.

Manufacturers Korean OEM Hyundai Motor India Ltd. General Motors India Pvt. Ltd. Ford India Pvt. Ltd. Total Indian OEM Tata Motors Ltd. Mahindra & Mahindra Ltd. Ashok Leyland Ltd. Force Motors Ltd. Eicher Motors Ltd. Hindustan Motors Ltd. Total

Toyota Kirloskar Motor Pvt. Ltd. 44,975 Honda Siel Cars India Ltd. Swaraj Mazda Ltd. Total European