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INDUSTRY PROFILE

The Indian automotive industry has witnessed an unprecedented boom in recent year owing the
improvement in living standards of the middle class, and a significant increase in their disposable
incomes. The industry is expected to touch the 10 million mark, to which the commercial vehicle
segment will be a major contributor. Industry experts peg the Indian Automobile Sales growth at
a compounded annual growth rate (CAGR) of 9.5 % by end of 2010.

India is the second largest two-wheeler market in the world.


Fourth largest commercial vehicle market in the world.
Eleventh largest passenger car market in the world.
Fifth largest bus and truck market in the world (by volume).
Envisaged to be the seventh largest automobile market by 2016, and worlds third largest
by 2030 (behind only China and the US).

Domestic Sales
The Society of Indian Automobiles Manufacturers Association (SIAM) estimates the sales
figures of 7.5 million motorcycles, 2 million cars (including MPVs, SUVs & MUVs) and 9
million two-wheeler For year 2008-09 fiscal. Consequently, India should be able to contribute
about 6 % to the total global automotive industry output by end 2010.

Automobile Domestic Sales Trends


(Number of Vehicle)

Category

2003-04

Total passenger 902,096

2004-05

2005-06

2006-07

2007-08

2008-09

1,061,572

1,143,076

1,379,698

1,549,882

1,551,880

318,430

351,041

467,882

490,494

384,122

307,862
6,209,765

359,920
7,052,391

403,909
7,857,548

364,781
7,249,278

349,719
7,437,670

vehicles
Total

260,114

commercial
vehicles
Three wheelers
284,078
Total
Two 5,364,249

Wheelers

GRAND

6,810,537

7,897,629

8,906,428

10,109,037

9,654,435

9,723,391

TOTAL

Passenger Vehicles
Commercial Vehicles
Three Wheelers
Two Wheelers

15.96%
3.95%
3.6%
76.49%

Growth and Development of the Industry


Auto sales in 2008 and 2009:

Company

December

December

Maruti Suzuki
Hyundai
Mahindra

2008
52,029
15,602
7,726

2009
71,000
22,252
16,999

change
37
43
120

&

Mahindra
General Motors
Skoda
Mahindra Renault
Total

4,041
732
272
80,402

8,258
1,113
308
119,930

101
52
13
49

Leading Players
Profile of key Domestic Players:
Name of the

Parent company

Output

Models

Plants

company
Tata Motors Ltd

Largest

Capacity

Sierra, Sumo,

Pune

commercial

160000 units pa

Safari, Indica,

(Maharashtra)

vehicle player in

Volumes

Indigo

the country and

171870 units in

one of the largest

2004

in the

Operating

passenger

income-

vehicles

US$ 3.8

Mahindra &

segment.
Flagship

billion in 2005
Capacity

Armada, Bolero,

Mumbai, Nashik

Mahindra Ltd

company

125000

Commander,

(Maharashtra)

of the Mahindra

units pa

Marshall, Maxx,

Group; largest

Volumes

Voyager, Scorpio

player in the

69737

tractor segment

units in 2004

in India

Operating
incomeUS$ 1.47 billion

Hindustan

A C.K Birla

in 2005
Capacity

Lancer,

Uttarpara (West

Motors

group flagship

64000

Ambassador,

Bengal),

Ltd.

and one of the

units pa

Contessa,

Pithampur

oldest auto

Volumes

Trekker,

(Madhya

companies in

15782

RTV, Pushpak,

Pradesh),

India.

units

Pajero

Trivellore (Tamil

Operating

Nadu)

incomeUS$ 159.7
million
Ashok Leyland

TVS Motor

Hinduja group

TVS Group

in 2004
Operating

Multiaxle

Ennore, two

Income

vehicles,

plants

- US$ 952.9

tractor, ecomet,

at Hosur, the

million in 2005

engines, Viking

assembly plants

BSI,

at

Viking BS-II,

Alwar, Bhandara,

Vestibule Bus,

castings plant at

222

Hyderabad

Operating

CNG bus etc


Mopeds - Excel,

Hosur, Mysore

Income

Champ, TVS

- US$ 641.9

50Scooterettes -

million in 2005

Scooty
Motorcycles
- Max 100,
Victor,

Bajaj Auto

Bajaj Group

Capacity - 2.52

Centra, Fiero
Motorcycles -

3 Plants at

million units

Boxer, CT 100,

Akurdi,

pa Operating

Discover, Wind,

Waluj, Chakan.

income - US$ 1.3

Caliber, Pulsar,

billion in 2005

Eliminator
Scooters
- Spirit, Saffire,

Wave
Source: www.osec.ch

Profile of key Foreign Players:


Name of the

Parent

Output

Models

Models Plants

company
Maruti

Company
Suzuki of

Capacity -

800, Omni, Alto,

Gurgaon

Udyog Ltd

Japan holds

500000 units

WagonR, Zen,

(Haryana)

a 54.2 per

pa

Baleno, Esteem,

cent stake in

Volumes -

Gypsy, Vitara,

the company

472122 units

Versa

including
exports in
2004
Operating
iIncomeUS$ 2.4 billion
Hyundai

Wholly

in 2005
Capacity -

Motors India

owned

150000 units

Sonata, Terracan,

Ltd

subsidiary of

pa

i-10, i-20,

Hyundai

Volumes -

Motor

171905 units

Santro, Accent,

Irrungattukottai
(Tamil Nadu)

Company, S.
Daimler

Korea
100 per cent

Capacity -

E class, S class,

Pune

Chrysler

subsidiary of

10000 units pa

C class

(Maharashtra)

India

Daimler

Volumes -

Chrysler

1640 units

Group
Subsidiary of

Capacity -

Uno, Siena,

Mumbai

Fiat Auto SpA

50000 units pa

Palio,

(Maharashtra)

Fiat Motors

Volumes -

Palio Adventure
Ikon, Mondeo

Ford Motors

Ford Motor

10428 units
Capacity -

Ltd

Company, the

100000 units

world's second

pa

largest

Volumes -

General Motors

automaker
Collaboration

45723 units
Capacity

Astra, Corsa,

Ltd

between

25000

Swing, Forrester,

General Motors

units pa

Vectra, Sail,

Corporation and

Volumes

Optra,

C.K. Birla Group

17986

Chevrolet Optra

Honda Siel Cars

of companies
Established in

units
Capacity

Volumes - 20,550

India (HSCI)

1995, with

30000

units

Honda

units pa

City, Accord,

Motor Company,

Chengaipattu
(Tamil Nadu)

Halol (Gujarat)

Noida (UP)

CR V

(Japan) and Siel


Ltd (India) being
the key
Toyota

promoters.
Joint venture

Capacity

Volumes - 42,549

Bidadi

Kirloskar

between

50000

units

(Karnataka)

Kirloskar

units pa

Qualis, Camry,

Group and

Corolla

Toyota Motor
Skoda Auto

Corp
Skoda Auto,

Capacity

India

based in Czech

10000

Republic, is a

units pa

part

Volumes

of Volkswagen

3712 units

Octavia, Laura

Aurangabad
(Maharashtra)

group

Hero Honda

Joint venture

Capacity - 2.8

Motorcycles -

2 plants at

between Hero

million

CD

Daruhera and

Group, the

units pa

Dawn, CD

Gurgaon

world's largest

Operating

Deluxe,

bicycle

income - US$

Splendour,

manufacturers

1.66 billion

Passion,

and

in 2005

Karizma, CBZ,

the Honda Motor

AmbitionStep

Company of

Through - Street

Honda

Japan
Wholly owned

Capacity-

Scooters -

Motorcycle &

subsidiary of

200000 vehicles

Activa,

Scooters India

Honda Motor

per

Dio, Eterno

Pvt. Ltd

Company Ltd.,

annum

Motorcycles -

(HMSI)

Japan

Manesar

Unicorn

COMPANY PROFILE
A. Background and Inception of the company:
Shree Hyundai is one of the dealership of Hyundai Motors India Limited in BOKARO. It
was established in the year 2007. With the opening of this venture, customers may feel ease as
they are having options to take the view from either of the show room. It seems Mr. B.D.Mishra
decided to open this showroom in Chas (Bokaro) area as there is no any passenger vehicle
showroom in this area and it is going to be the future business area of the Bokaro.
Shree Hyundai working philosophy is particularly based on Prepare employees for the future
developments with developments in their personality. As competition is very much intense
hence the management is working hard for customer relationship to achieve future business
growth.

As it is newly opened organization hence as every other organization it is also facing some
management problems. Management is trying to overcome all these problems and achieving
systematic workings here. Each and every department is distinguished for the employees. Every
employee is having its own designation and job profile and he/she has to work under that profile
only. For each segment of the vehicles, Shree Hyundai is having its separate executives.
Departments are connected through local area networks.
The main aim of management here is self development of employees. So that, they can be
empowered for the benefit of the organization and be able to take future responsibilities. It starts
with the joining of the employee in the organization. Initially, they have to work under various
departments till his/her probation period would be over. They have to start their works from the
ground level, so that they can understand the reality of the business here. Daily reporting at the
morning and the evening make them up to date with the objectives and their future targets. The
senior management knows that how they are doing their work and in which way they have to be
directed.

ABOUT HMIL
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the largest passenger car exporter and the second largest car
manufacturer of India. HMIL presently markets 54 variants of passenger cars across segments.
These includes the Santro in the B segment, the i10, the Getz Prime & the premium hatchback
i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E
segment and the Tucson in the SUV segment.
Hyundai Motor India Ltd, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 559,880 vehicles in the calendar year (CY) 2009, an
increase of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1
percent as compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent, with
export of 270,017 units. HMIL currently exports cars to more than 110 countries across EU,
Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger
car of the country for the sixth year in a row.

HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL commissioned its
second plant in February 2008 which produces an additional 300,000 units per annum, raising
HMIL's total production capacity to 600,000 units per annum.
HMIL has invested to expand capacity in line with its positioning as HMC's global export hub
for compact cars. Apart from the expansion of production capacity, HMIL currently has 286
strong dealer network and 540 strong service points across India, which will be further bolstered
in 2010.
In December 2008, HMIL launched the much awaited premium compact the i20 after it had a
global preview at the Paris Motor Show in October, 2008. In 2009, HMIL also launched the new
facelift Sonata Transform and the new Verna which are vastly improved models compared to the
outgoing models. In March, 2009 Hyundai i10 clocked the fastest 3 lakh sales since its launch in
October, 2007. HMIL also became the only car manufacturer to introduce Automatic
transmission across segments with the launch of the i20 1.4 Litre Petrol Automatic. The i20 also
simultaneously got a powerful 1.4 Litre CRDi engine in July 2009. The i20 achieved the highest
safety rating by the European NCAP. In September 2009, HMIL introduced the new refurbished
Santro with luxurious interiors and improved exterior features. The Santro has been the highest
selling model for Hyundai with more than 15 Lakhs units sold since its launch in India in 1998.
Hyundai Motor India in December 2009 also crossed the 25 Lakh car production milestone.
Hyundai Motor India remains one of the fastest growing car manufacturers in the country. The
companys overall performance in the automobile sector was recognized by the media as it was
awarded with the prestigious Manufacturer of the Year award by both UTVi Autocar Car and
NDTV Profit-Car & Bike in 2009
HMIL has invested to expand capacity in line with its positioning as HMC's global export hub

for compact cars. Apart from the expansion of production capacity, HMIL currently has 251
strong dealer network across India, which will be further bolstered in 2009.

B. Nature of Business Carried:


Shree Hyundai is a dealer of cars of Hyundai motors. The business carried by Shree
Hyundai is of dealership. It is an also an authorized service centre and it totally aims in
selling cars both passenger and SUV vehicles as per demand of customers.

C. Vision, Mission and Quality Policy:

MISSION:

The mission of the Shree Hyundai is committed to develop the firm as a big
competitor and service provider in the Jharkhand Passenger car market.

VISION:

The dealer announced "Innovation for Customers" as our midto longterm vision with
five core strategies: global orientation, respect for human values, customer satisfaction,
technology innovation, and cultural creation. They desire to create an automobile culture
of putting customer first via developing humancentered and environmentfriendly
technological innovation.

QUALITY
POLICY:

Based on a
respect for human dignity, it make efforts to meet the expectations of all stakeholders
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including customers and business partners by building a constructive relationship


amongst management, labor, executives and employees. Also, they focus on
communicating their corporate values both internally and externally, and gaining
confidence from all stakeholders.

D. Products Profile:
MODEL

VARIANT

Ex-Showroom Price
(As on 19/02/2010)
(In Rupees)

SANTRO

I-10

Non A/C (S)

2,69,524

Non A/C (M)

2,72,985

GL (S)

3,34,971

GL (M)

3,38,432

GLS (S)

3,22,168

GLS(M)

3,58,628

D-Lite (S)

3,38,276

D-Lite (M)

3,41,757

Era 1.1L (S)

3,73,514

Era 1.1L (M)

3,76,996

Magna 1.1L (S)

3,87,693

Magna 1.1L (M)

3,91,174

Magna 1.2L Kappa (S)

3,99,794

Magna 1.2L Kappa (M)

4,03,275

Magna 1.2L-AT (M)

4,48,874

Sportz GLS1.2L (S)

4,27,061

Sportz GLS1.2L (M)

4,30,543

Sportz GLS1.2L-AT(M)

4,72,967

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Getz

I-20

Accent

Verna

Sonata

TUSCON

Asta GLS 1.2L (S)

4,85,749

Asta GLS 1.2L (M)

4,89,231

GLE 1.1

3,62,281

GVS 1.1

3,92,281

GVS 1.1 (175 tyre+ rear spoiler)

4,02,281

Magna 1.2L

4,83,999

Asta 1.2L

5,63,999

Magna Diesel 1.4L (ABS)

6,23,599

Asta Diesel 1.4L

6,87,199

Executive IMM

5,03,901

GLE

5,24,652

ECO

5,33,900

1.6 VTVT

6,46,038

1.6 SX VTVT

7,20,838

1.5 CRDi VGT

7,69,070

1.5 SX CRDi VGT

8,18,967

Embera MT (Leather)

13,30,067

Embera AT (Fabric)

13,61,639

Embera AT (Leather)

13,92,927

Embera 2.0 CRDi

14,43,917

Embera MT (Fabric)

12,98,786

CRDi

16,96,114

E. Area of Operation:
The firm operates regionally in the Jharkhand circle. The showrooms are situated
in the important markets of Jharkhand that are Bokaro(Head office), Dumka,
Ramgarh, Ranchi and Purulia (Bengal). But the HMIL under which the dealership
situated operates globally in both Passenger cars segments and SUVs segment.

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F. Ownership Pattern:
The firm is private limited firm and the dealership is directly under the HMIL.
Owner Mr. B.D. Mishra
CEO- Mr. Nitesh Kumar Mishra
Branch Manager and Manager Sales Mr. Manish Prasad

G. Competitors Information:
Car segment Maruti Suzuki
M-800 had dominated the Indian car market since it was launched in 1984. The
introduction of new cars by competitors made the M-800 look obsolete as it had not been
changed in any major way for over two decades. Apart from the increased competition,
MUL also had a few other problems on its plate.
There was a delay in setting up of a plant in India for manufacturing diesel engines and
transmission systems for cars. The engines for its diesel variants were imported from other
countries, and there were limits on the quantities it could import. In the market, MUL's
models like the Zen, Alto, WagonR, and Baleno were showing mixed results.

Utility Vehicle segment Mahindra


Marketing Strategy of Mahindra and Mahindra Limited for Scorpio
In June 2003, 'Scorpio,' a sports utility vehicle (SUV) from Mahindra and Mahindra Ltd. (M&M),
a leading Indian automobile company, celebrated the first anniversary of its launch.
This one year journey had been quite fruitful for Scorpio, which had impressed many industry

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observers and customers.


A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers
to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings.
According to company sources, by the time it completed its first birthday, Scorpio had sold
15,000 units across India.
Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely
positive reports. With demand for the vehicle growing steadily, M&M even had to increase its
production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per
month by late 2003.
Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among
consumers. In fact, it was said to be one of the very few automobile brands in India that
successfully boosted the image of their parent companies (in this case M&M) as well.

H. Infrastructural Facilities:
The firm has good infrastructural facilities these are:
o It is situated in the main market place of the Bokaro Steel City.
o The showroom has good facilities such as Playing area for children who are
coming with the customers,
o Good servicing facilities for cars with advanced technologies,
o Good entertainment facilities available for customers who were wait during the
servicing of their car,
o The showroom uses new technology in their management information
system(MIS).

I. Achievement and Awards:


o Achieved the most car seller dealership in Jharkhand.
o

Win the best car seller award in Bokaro from Chas Chamber of Commerce.

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J. Work flow Model:

CUSTOMER
APPROACH
MODEL

PROCESSING OF
ORDER
Order to
Manufacturer

FEATURES

DELIVERY OF
ORDERS
Customer choose
the payment
option i.e., car
finance or cash.

Supply of cars
from Manufacturer
COLOUR

There are three broad processes at a showroom.


Pre-sales

BOOKING OF
CAR
Sales

Delivery to
Showrooms
Wit in 5 days

After all
Documentation
the car is finally
delivered to
customer

Post sales
All these are inter-related to each other.
The pre-sales process is very important because if a customer has a satisfying experience during
this process, it greatly increases the chances of him purchasing the car from your showroom. At
this stage, the customer is indecisive as to which car to buy and from where to buy.
Walk in Enquiry

Telephonic Enquiry

Product
Demonstration

Test Drive

The pre-sales activities include:

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Cold Calling and Identification of Prospects

Creation of Customer Card

Acquire Knowledge about MUL s range of cars, competitor cars

Knowledge about other allied services like finance, insurance, pre owned cars, extended
warranty etc.

Knowledge about accessories, range offered, prices etc. and about preventive
maintenance of the car.

THE SALES ACTIVITIES INCLUDE:


Visit the prospects
Understanding needs of the prospects
Give a proposition to the customer.
Create interest and preference for MUL
Give a detailed demonstration and test drive
Provide clarification to queries and handle objections
Follow-up with the customer
Secure order from customer
Offer allied services like finance, insurance, accessories etc.
Advice customer on all matters related to his car.
In case there are too many Sales cases, a special focus is required to serve these customers
since ultimately, the customers are also the showrooms customers and there are suggested ways
to handle them.

K. Future growth and prospects:


Shree Hyundais future growth is very bright because it is the newly growing firm in the
Bokaro market. It is the division of Ranju automobiles (Pvt.) Ltd. which is already a well
established Bajaj showroom in the Bokaro market. The customers of Bokaro is already
aware about the Ranju Automobile because this is the very old firm and dealership in

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Jharkhand. Due to this customers are committed toward this dealership and due to this
customers do not go for any other showroom of Hyundai.

1.

McKinseys 7S framework :

STRATEGY
Shree Hyundais marketing strategy is differentiated marketing.

Its primary consumer target is middle to upper income professionals who need true value
for their money and comfortable ride in city conditions. Its primary business target is
midsized to large sized corporates that want to help their managers and employees by
providing them a car for ease of transport.

Its secondary business target is entrepreneurs and small business owners who want to
provide discounts to managers buying a new car

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STRUCTURE
Overall Structure of the Shree Hyundai:
Managing Director

Chief Executive Officer


Branch Manager and Manager sales &
marketing

Corporate
&Exchange ,
Hyundai
Advantage PreOwned Cars

Team
Leader,Sa
les

S.E. 1
S.E. 2
S.E. 3

Sales
Executive
s

S.E. 4

Finance
Dept.

GDMS
and Back
Office

Employee 1
Employee 2
Employee 3

S.E. 5

Accessori
es &
Spares

Service
Dept.

Employee 1
Employee 2
Employee 3

S.E. 6
S.E. 7

Service Employees 01 to 30

SKILL
Shree Hyundai product is Passenger Cars, so they should be handled carefully. So it required
skilled manpower for handling, and skill in the sense testing of cars.
Training will be conducted in Hyundai Jamshedpur (Jharkhand). For newly recruited employees
will be given basic training program for 10 weeks. And 10 weeks training will be given for
employees for junior technical officer, about machines. Training will be given to employees to
know about the total features of cars in Shree Hyundai.

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STYLE
Top down Approach

The management acts with autonomy and independence in excercising strategic


supervision, discharging its fiduciary responsibilities, and in ensuring that the company observes
the highest standards of ethics, transparency and disclosure.
Participating Approach

At Shree Hyundai the management is participating in nature. Anyone in the company can
put in their view points before the management for any improvement in the prospects of the
company, manpower, working environment,etc.
SYSTEM
The marketing department is divided into 5 Teams. For all the different marketing teams, one
Team Leader is assigned. The team leaders take care of their teams activities and report to the
marketing manager that is further reported to the CEO. The marketing is totally target based and
based on targets given by HMIL, the task is distributed to different teams.
The customers are handled by the same personnel from the beginning to the end. Spot incentive
Schemes etc is placed in the system to motivate the employees. The conversion and Target
fulfillment is traced out via the software.

STAFF
CATEGORY

NO. OF STAFF

TYPE OF WORK

Sales Consultants

10

Generate sales from market

Back Office

02

Maintain the data of customers

Finance Dept.

06

Maintain the financial data

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Spares And Accessories

04

Maintain the data and Stock of


parts and spares

Corporate and Exchange

03

Deal in all the pre-owned cars


of Hyundai

Service Dept.

40

Servicing of cars and data


maintenance of Serviced cars
in service station of Shree
Hyundai.

EDP

06

Maintain Showroom data and


customers complaints, etc

DUTIES AND RESPONSIBILITIES OF STAFF

To report him/ her to duty at the place to which he/she posted.


To undergo the prescribed probation under specify period and undergo such training and
for a period has may be arranged for him/her and acquit him/her self creditably in the
training imported to him/her.
To obey and abide the rules, regulations, service conditions and standing orders which the
may adopt, prescribe, frame are issue from time to time to govern its employees.

SHARED VALUES
Review of Customer Care Activities.
The review of customer care activities is done through morning meetings and weekly meetings
on customer care. The documents that are necessary during the weekly review are: PSR related,
Internal SSI forms related,HMIL related and other information related.
Customers for Life

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A week after the delivery, the concerned sales person must fix an appointment with the customer
and visit him along with the service advisor. He should personally hand over the photographs
clicked also the vehicles registration certificate and try to become the customers car advisor for
life and never lose touch with the customer.
Show Room Ambience
The hours of operation, outside and insides of the showroom along with reception, car display
area, selling area, customer lounge and delivery area should be taken care of.
Customer Meets
Organizing customer meets helps in improving SSI, helps in introducing the workshop staff to
the customers and in getting referrals and there are guidelines for the same.

2.

SWOT ANALYSIS

STRENGTH:
Second largest manufacturer of Passenger vehicles in India due to this customers
are attracted towards the company in Bokaro..
Ranju Automobiles Pvt. Ltd. is very old firm in Bokaro due to this customers of
Bokaro area and its surroundings aware about this.
WEAKNESS:

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SUV car has only two model i.e., TUCSON and TERRACAN which is fewer
available in India due to uneconomic and out of reach for middle class Families.
Manufacture only Passenger vehicles but some models are not economic such as
Verna, Accent, etc
OPPORTUNITY:
Shree Hyundai has opportunity to grow as a big competitor in Jharkhand
automobile sector.
If the cars are more economic then the sales will be more boom and the company
turn into first position in Indian automobile sector and win from their competitors
i.e., Maruti Suzuki, Tata Motors, GM and M&M.
THREATS:
Risk Factors

In the course of its business, Hyundai is exposed to a variety of market and other
risks including the effects of demand dynamics, commodity prices, currency
exchange rates, interest rates, as well as risk associated with financial issues,
hazard events and specific assets risk. Whenever possible, we use the instrument
of insurance to mitigate the risk.
o

Threats from Competitors : Maruti Udyog Limited

Maruti Suzukis is also the old car showroom in Bokaro due to this the
competition is high with Shree Hyundai

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