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CONTENTS:

➢ OBJECTVE TO THE STUDY

➢ ABSTARCT

➢ INTRODUCTION TO THE INDUSTRY

➢ INTRODUCTION TO THE COMPANY

➢ METHODOLOGY

➢ FACTS AND FINDING

➢ CONCLUSION

➢ SUGGESTION

➢ BIBLOGRAPY

➢ FAQ (Frequently Asked Question)

OBJECTIVE OF THE STUDY


1. To know about Hyundai motor in India.
2. How promotion schemes affecting market.
3. How promotion scheme affecting sale.
4. How promotion scheme affect buying behaviour.

ABSTRACT
In this research I have survey about Hyundai company and how its promotional
schemes affecting sales. During this research I have interact with layout of
Hyundai motor in Sri Ganganagar. After this research I came to know how
promotional schemes affecting sales and I also know about Hyundai
promotional strategy to attracting people of Sri Ganganagar. In this report I
have tried to explain entire research and facts.

INTRODUCTION TO AUTOMOBILE INDUSTRY


With five thousand years of history behind it, a five-decade young nation and
the largest democracy in the world, India today has the second largest volume of
human resource in the universe. It has no more than 2.5 per cent of global land
but is the home of one sixth of the world's population of more than 1.1 billion.
India possesses one of the richest reserves of biodiversity, minerals and metals,
soils and water, flora and fauna in this part of the globe and has climatic
conditions suitable for round the year economic activity in any part of the
nation.
More than five decades of sustained and planned developmental initiative in
India has yielded substantive results on social and economic fronts. Assisted by
a comprehensive reforms programme since early 1990s, GDP growth in the post
reforms period has improved from an average of about 5.7 per cent in the 1980s
to an average of 6.1 per cent in the last decade, making India one of the fastest
growing developing countries. Indeed, in the current year, India is amongst five
fastest growing economies of the world. In terms of purchasing power parity
(PPP), India is world’s fourth largest economy. The incidence of poverty has
continued to decline and population growth has also decelerated below 2 per
cent for the first time in four decades. Literacy has increased from 52 per cent in
1991 to 65 per cent in 2001. From agriculture to biotechnology and from base
engineering to space, India’s rapid strides into various sectors have facilitated
greater economic, social well-being.
India has an independent legal system and a strong institutional network arising
from the Constitution, which cherishes pluralism and liberalism and has federal
democratic set up at its core. The country has a large pool of skilled manpower
of which about 50 million Indians English speaking Indians are capable of
handling IT (information technology)-enabled services. A 1 billion populace
registering a 4.3 per cent growth in per capita income during the 1990s
constitutes a rapidly growing consumer market. A robust private sector in India
is now contributing 75 per cent of industrial GDP. Decade-long reforms and
impressive forays into IT and IT-enabled sectors such as telecommunications,
etc. in recent decades, stand testimony to versatile growth pattern nation is
following. India is the third largest car market in Asia with 600,000 vehicles
transacted in 1999. It has one of the world’s most elaborate cable-TV networks,
with 33 million connections. Cellular telephony has increased from zero to
around 4 million users in the last few years. In the last decade, the number of
telephone lines has increased seven fold, surpassing the figure of lines added in
45 years of independent India. While a very comfortable foreign exchange
reserve now touches US$ 45 billion, inflation has been going down in recent
years almost continuously with 3.3 per cent growth recorded in 1999-2000
fiscal. It has one of the lowest external debt to GDP ratio among comparable
countries.

Automobiles

The growth of the Indian middle class along with the growth of the economy
over the past few years has attracted global auto majors to the Indian market.
Moreover, India provides trained manpower at competitive costs making India a
favoured global manufacturing hub. The attractiveness of the Indian markets on
one hand and the stagnation of the auto sector in markets such as Europe, US
and Japan on the other have resulted in shifting of new capacities and flow of
capital to the Indian automobile industry.

According to the International Yearbook of Industrial Statistics 2008 released


by United Nations Industrial Development Organisation (UNIDO), India ranks
12th in the list of the world’s top 15 automakers.

Moreover, according to a new study released by global consultancy firm


Deloitte, at least one Indian company will be among the top six carmakers that
would dominate the global auto industry by 2020. According to the study, the
car industry would see a massive capacity building in low-cost locations like
India and China as manufacturers shift base from developed regions.

Production
Although the sector was hit by economic slowdown, overall production
(passenger vehicles, commercial vehicles, two wheelers and three wheelers)
increased from 10.85 million vehicles in 2007-08 to 11.17 million vehicles in
2008-09. Passenger vehicles increased marginally from 1.77 million to 1.83
million while two-wheelers increased from 8.02 million to 8.41 million.

In recent times, India has emerged as one of the favourite investment


destinations for automotive manufacturers.

• Mercedes-Benz is planning to launch over-dimensional-cargo (ODC)


vehicles and long-haulage trucks that can carry up to 240 tonnes in India
soon.

• Japanese major Nissan has decided to shift the entire production of its
small car, Micra, from the UK to India. After production of the Micra
begins here, Nissan plans to manufacture four more models in India,
involving a total investment of over US$ 412.2 million.

• Toyota Motors (TMC) plans to utilise the proposed Indo-Thai free trade
agreement (FTA) to make India a hub for small cars to be exported to its
global markets. Toyota has earmarked US$ 657.1 million for 2008-11 to
set up a second plant in Bangalore to make 200,000 cars from the current
80,000 units.

• Hyundai has made India its global hub for manufacturing small cars. It
will invest US$ 1 billion in its second plant in Chennai by 2013. In
addition, it is also investing US$ 40 million in its research and
development (R&D) facility in Hyderabad.

• General Motors has so far invested about US$ 1 billion into its Indian
operations.
Domestic Market
Sales of cars and commercial vehicles have been impacted due to global
economic slowdown. However, in spite of that there has been a marginal
increase in the number of vehicles sold in 2008-09 as compared to 2007-08.
Total number of vehicles sold including passenger vehicles, commercial
vehicles, two-wheelers and three-wheelers in 2008-09 was 9.72 million as
compared to 9.65 million in 2007-08.

According to an Ernst & Young analysis, passenger vehicle sales in the country
will grow at a CAGR of 12 per cent to touch 3.75 million units by 2014 as
against 1.89 million units at the end of 2008-09. While domestic market is
expected to contribute 2.75 million units to the total tally, the remaining 1
million units would contribute towards exports.

Likewise, as per estimates by CARE Research, the domestic two-wheeler sales


will grow at a CAGR of 8.8 per cent by 2014 at 11.3 million units vis-a-vis 7.43
million units in 2008-09.

German luxury car manufacturer Audi is eyeing higher sales this year than its
earlier target of 1,500 units. This would make Audi India the third largest
luxury car manufacturer in the country after BMW India and Mercedes Benz
India. Audi aims to register a 70 per cent growth vis-à-vis last year by selling
nearly 1,700-1,800 units in 2009.

Exports
According to the Society of Indian Automobile Manufacturers (SIAM),
automobile sales (including passenger vehicles, commercial vehicles, two-
wheelers and three-wheelers) in the overseas markets increased to 1.53 million
units in 2008-09 from 1.23 million units in 2007-08.

Export of passenger vehicles increased from 218,401 in 2007-08 to 335,739


units in 2008-09.

Moreover, growth continued during the first half of the current year. India
exported a total of 230,000 cars, vans, SUVs and trucks between January and
July 2009, a growth of 18 per cent.

India Yamaha Motor Ltd (IYML) plans to double its exports from India to
140,000 units by 2010.

Maruti Suzuki India expects to export 120,000 cars during 2009-10. Of this, a
lakh will be the A-Star, its newest hatchback.

Policy
In order to make India a power to reckon with in the automotive sector the
government launched the Automotive Mission Plan (AMP) 2006-2016.

The vision of the AMP is "to emerge as the destination of choice in the world
for design and manufacture of automobiles and auto components with output
reaching a level of US$ 145 billion accounting for more than 10 per cent of the
GDP and providing additional employment to 25 million people by 2016."

As per the AMP, it is estimated that the total turnover of the automotive
industry in India would be in the order of US$ 122 billion - US$ 159 billion in
2016. It is expected that in real terms, India would continue to enjoy its eminent
position of being the largest tractor and three-wheeler manufacturers in the
world and the world's second largest two-wheeler manufacturer. By 2016, India
will emerge as the world's seventh largest car producer (as compared to the
eleventh largest currently) and retain the fourth largest position in world truck
manufacturing sector. Further, by 2016, the automotive sector would double its
contribution to the country's GDP from current levels of five per cent to 10 per
cent.

Exchange rate used: 1 USD = 48.7 INR (as on August 2009)

Table : Projections of India’s automobile industry, 2001-2012(number)


MC
Year Cars MUV LCV Sco Moto 3- T Total
Vs
s s oter rcycl w r
&H
s es he a
CVs
ele ct
rs o
rs
2001- 545 026 131 66 93 906 2 183 23 18 4 351 508
2002 227 679 062 978 785 6 8
42 32
5 6

2002- 588 628 136 69 97 935 2 576 26 20 4 870 892


2003 476 346 715 094 866 2 4
43 33
2 4

2003- 635 718 141 72 102 964 3 040 29 22 5 470 160


2004 935 120 601 082 702 1 1
30 70
0 2

2004- 686 575 147 75 107 993 3 588 32 24 6 162 811


2005 613 005 731 969 029 3 0
34 54
3 7

2005- 741 501 153 78 113 1 4 233 35 26 6 964 699


2006 517 005 117 024 874 8 0
782 91 99
0 3

2006- 800 821 159 81 118 1 4 995 39 28 7 894 465


2007 658 125 773 056 971 8 3
550 39 17
0 7

2007- 864 887 166 84 124 1 5 895 44 30 8 974 022


2008 044 370 712 089 246 2 7
303 21 24
3 7

2008- 934 078 172 87 130 1 6 956 49 33 10 229 137


2009 686 745 948 123 390 0 3
072 85 36
6 3

2009- 1 008 179 91 137 1 8 208 54 36 11 690 123


2010 804 593 255 495 157 540 4 1
887 85 69
0 9

2010- 1 089 186 94 144 1 9 686 60 39 13 392 644


2011 508 777 905 370 193 078 4 2
781 78 44
3 3

2011- 1 176 194 98 151 1 11 429 67 42 15 378 676


2012 669 248 701 588 230 572 1 5
788 30 80
9 1

INTRODUCTION TO INDUSTRY
The Hyundai Motor Company is one if not the most dynamic
automobile producer in any developing country. This is
remarkable considering that the company is closing in on 40
years of existence. To outline its history one must also look into
the life and times of its founder Chung Ju-Yung. It cannot be
told without outlining the founders rise from the rice fields of
Korea to the circumstances that let him to acquire the
knowledge and determination that led to the creation of one of
the fastest growing family owned businesses into a global
competitor. His creation of numerous companies eventually let
to the establishment of the Hyundai Group. The Hyundai Motor
Company was one of these. He created it and transformed it
from a mere assembler of Ford models to a designer and
exporter of its own cars and engines in less than four decades.
It has already become a major global player with plants and
dealerships that span six continents. The company is one of the
largest and most diversified business organizations with 45
affiliated domestic companies and 254 overseas companies in
nearly 200 countries. The Hyundai Motor Company is but one
which the Group is active in such as shipbuilding, steel,
petrochemicals, heavy machinery, aerospace, electronics and
financial services.

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai


Motor Company, South Korea and is the second largest and the fastest growing
car manufacturer in India. HMIL presently markets 30 variants of passenger
cars across segments.

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 has set up its second plant, which produces an
additional 300,000 units per annum, raising HMIL's total production capacity to
600,000 units per year.

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 271 strong dealer network across India, which
will be further bolstered in 2009.

MARKET PLAYERS IN AUTOMOBILE INDUSTRY

Car manufacturing in India first began in late 1940s. Earlier a couple of cars
made by foreign technology were manufactured in India. But now, cars made
my Indian car manufacturers dominate the business.

The future of car manufacturing in India is bright. Sensing this, foreign car
manufacturers like Ford, Toyota, Hyundai, Suzuki, Honda and Skoda are
spreading their base in the country. Domestic car manufacturers have also
contributed to the growth of the automobile industry in India. The popular car
manufacturers in India are:
Fiat India Private Ltd: The Fiat India that belongs to the Fiat Auto Spa group
of Italy gives world-class cars to the country. This group has entered the motor
vehicle sector more than one hundred years ago and has earned fame not only in
India, but also abroad. Besides 'Uno', which is Europe's favorite car for the last
two decades, the brands like Palio, Petra and Adventure have also become
famous.
Ford India Private Ltd: It was originally an American company. It entered the
Indian market in the year 1988 and launched Ford Escort. The Ford Ikon
launched in 2001 was a successful car in India. Other brands of Ford like Ford
Fusion, Ford Fiesta, Ford Mondeo and Ford Endeavour also gained popularity
in India.
General Motors India: This global leader entered the Indian market as a joint
venture with the C.K. now it is a fully owned subsidiary of the Birla Group.
This group has also introduced cars like Chevrolet Optra and Chevrolet Tavera
(MUV) in India.
Hindustan Motors: This flagship company of the C.K. Birla Group was
established by Mr. B.M. Birla. Some of the most popular brands of this car
manufacturer are Ambassador, Contessa and Mitsubishi Lancer. Other
remarkable brands of this company are Trekker, Porter and Pushpak.
Hyundai Motors: Hyundai Motor India Limited (HMIL) is not only the second
largest car manufacturer in India, but is also the fastest growing among the car
manufacturers in India. The popularity of Santro, Getz, Accent, Elantra, Sonata
Embera and Tuscon is proof of its success. The company is an ISO 14001.
Maruti Udyog: This is the first automobile company in the world to have an
ISO 9000:2000 certificate. It has a joint venture with Suzuki Motor
Corporation. The popular models of this group are Alto, Baleno, Swift, Wagon-
R and Zen.
Tata Motors Limited: It is India's largest automobile company, the largest
commercial vehicle manufacturer, the second largest passenger car
manufacturer in India and the fifth largest medium and heavy commercial
vehicle manufacturer in the world. The popular brands of the company are Tata
Indica, Tata Indigo, Tata Sumo and Tata Safari.
Tata Nano: Recently tata Motor launch india cheapst car Tata nano in One lakh
rupees
Toyota Kirloskar Motor Ltd: With a joint venture with Toyota Motor
Corporation of Japan, the Kirloskar Group of India holds 89% equity of the
company. The most popular brands of this group in India are Camry, Corolla,
Prado and Innova.

The different models of cars that Hyundai Motors India Limited


(HMIL) has launched in the Indian market are:

• Hyundai Santro Zing


• Hyundai Accent

• Hyundai Getz

• Hyundai Elantra

• Hyundai Sonata Embera

• Hyundai Tucson

• Hyundai Terrecan

• Hyundai i10

• Hyundai verna

Cars

Hyundai Santro Hyundai Accent Hyundai Verna

• Santro XK • Accent GLE • Verna i (Petrol)


• Santro XK (Non AC) • Accent GLS • Verna Xi (Petrol)
• Santro XL • Accent Viva • Verna XXi (Petrol)
• Santro XO • Accent Viva CRDi • Verna CRDi VGT
• Santro AT • Accent CRDi
• Santro CNG

Hyundai Elantra Hyundai Sonata Hyundai Getz

• Elantra GT • Embera 2.4 M/T • Getz GLS


• Elantra CRDi • Embera 2.4 A/T • Getz GLX
• Elantra GLS • Embera H-Matic Hyundai Getz Prime

• Getz Prime 1.1 GLE


• Getz Prime 1.1 GVS

• Getz Prime 1.3 GLS


• Getz Prime 1.3 GLX tz
GVS

Hyundai Terracan Hyundai Tucson


• Hyundai i10
ACHIEVEMENTS OF HYUNDAI

Hyundai`s new model i10 made a clean sweep of all the `Car of the Year 2008`
awards from the leading automotive magazines and TV channels like BS
Motoring, CNBC-TV18 AutoCar, NDTV Profit Car & Bike India and
Overdrive magazine. The i10 was also the choice of the discerning automotive
media of the country as they conferred the prestigious `Indian Car of the Year`
(ICOTY) award to the i10 as well.
The Santro and the Accent also received the `TNS Voice of the Customer -
2008` award for the Premium Compact Car (Santro) and the Entry Mid size Car
(Accent). In March 2008 it achieved yet another milestone by rolling out the
fastest 500,000th export car.
In 2007, the Hyundai Verna had also bagged some of the most prestigious
awards starting with the Overdrive magazine`s `Car of the Year 2007`, the `Best
Mid-size Car of the Year` award from NDTV Profit Car & Bike India, the `Best
Value for Money Car`from CNBC Autocar and `Performance Car of the Year`
from Business Standard Motoring.
Hyundai cars have been a favorite at all awards ceremonies and has won many
awards. The Sonata Embera won the `Executive Car of The Year 2006` award
from Business Standard Motoring magazine and NDTV Profit Car & Bike India
had declared the Tucson as the `SUV of The Year 2006`.

Not only this, HMIL has also been awarded the benchmark ISO 14001
certification for its sustainable environment management practices.
PROMOTION ADOPTED BY HYUNDAI

• Print Media.
• Electronic Media
• Road shows
• Live Demonstration.
• Canopies etc.

STRATITEGES ADOPTED BY HYUNDAI

• Free service
• Customer relation
• Parts delivery centre
• Warranty
• 24*7 days service.

SALE

Hyundai Motor India Ltd, the country’s second largest car manufacturer and the
largest passenger car exporter ended the year on a high note with domestic sales
growing by a healthy 42.6% while exports grew by 9%. Cumulative growth
stood at 22.6% for the month ending December, 2009.

HMIL’s total sales for December, 2009 stood at 47,217 units as against 38,502
units in December, 2008 registering 22.6% cumulative growth. The domestic
sales growth accounted for 22,252 units as against 15,602 units in December,
2008 while the exports grew from 22,900 units in December, 2008 to 24,965
units in December, 2009.

In calendar year 2009 (Jan – Dec) HMIL grew by 14.4% cumulatively


registering total sales of 559,880 units as against 489,343 units of 2008 with
domestic sales jumping by 18.1% over 2008. Domestic sales accounted for
289,863 units in 2009 as against 245,397 in the year 2008. Overseas sales
accounted for 270,017 units as against 243,946 units in 2008 which reflects in a
growth of 10.7% for the entire year.

Commenting on HMIL’s performance Arvind Saxena, Director - Marketing and


Sales, HMIL commented, “With the overall economic scenario improving the
Indian automotive market seems to have stabilized but we must thank the Indian
government for the timely intervention last year. The stimulus package certainly
helped the automotive industry and we hope the government will continue with
this at least for some more time. For HMIL particularly introduction of new
products like the i20 helped as in the last few months it has become an
important contributor to our sales.”

The segment-wise cumulative sales in the month of December, 2009 are as


follows: A2 Segment (Santro, i10, Getz & i20) 44,129 units; A3 Segment
(Accent & Verna) 3,068 units; A5 Segment (Sonata Transform) 20 units; and
SUV Segment (Tucson) 0 unit

METHODOLOGY

Primary data: From Hyundai motor outlet in sri ganganagar,NEWS papers.

Secondary data: From internet portals.

FACT AND FINDINGS

In this research we find that the promotion schemes affecting the sale. Time to
time company promotes it product by many ways to attract people, for buying
its product and to create its good repo in the market. We also find that
promotion by the company greatly affect the sale number of cars. Occasionally
company provide different kind of schemes according to customer perception
and wants. Company provide time to time service before launching any product
in market to know the result of product

SUGGESTION

We found that promotion greatly affect the market, so in my opinion company


should promote its product regularly by making new and people attracting
promotional strategies to increase its sale.
FAQ

1. When will company bought by new schemes?


2. Is schemes conducted by companey or outlets owners?
3. In which form you will do promotion?
4. How much effect of advertisement is on sale?
5. Is a promotional scheme come on all cars manufactured by Hyundai or it
comes on its latest versions?
6. What’s the budget?
7. Is advertisement only comes in festival seasons?
8. Will you provide me the data of past six months?
9. Will you tell me the number and working mode of your staff?
10.How will you maintain customer relation?
11.Is there any effect of seasons on sale?

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