Project Report on “A STUDY of CONSUMER BEHAVIOURS and SATISFACTION with HYUNDAI MOTORS”

Project Report ON “A STUDY OF CONSUMER BEHAVIOURS AND SATISFACTION WITH HYUNDAI MOTORS”

Submitted for the partial fulfilment for the award Of Bachelor of Business Administration from Chaudhary Charan Singh University, Meerut 2012-15 Submitted To: SHANTI INSTITUTE OF TECHNOLOGY MEERUT

Under The supervision of: - Submitted By:- Mr. RAHUL SHARMA PAWAN KUMAR (H.O.D, of BBA, Dept ) BBA VI SEM Roll No. 3396526 DEPARTMENT OF MANAGEMENT SHANTI INSTITUTE OF TECHNOLOGY MEERUT BATCH-2012-15

DECLARATION

I, PAWAN KUMAR under signed hereby declare that the project report on “A STUDY OF

CONSUMER BEHAVIOURS AND SATISFACTION WITH HYUNDAI MOTORS” .

The empirical finding in this reports are based on the annual reports of the company. While preparing this report submitted to Project Guide Mr. Rahul Sharma H.O.D., BBA

Department , SIT Meerut, , I have not copied material from any report.

PAWAN KUMAR BBA VI SEM Roll No. 3396526

ACKNOWLEDGEMENT

I would sincerely thank our all faculty members because without whose guidance this project would not have been possible. I would also like to thank them for giving an opportunity to conduct this summer training and extending me full support and co-operation towards the completion to this Project

I express my gratitude Project Guide Mr. Rahul Sharma H.O.D., BBA Department , SIT Meerut to all those mentioned above and also the senior functionaries of the organization, who helped me directly and indirectly to make this project a success.

Once again I express my gratitude to Hyundai for their kind co-operation and having given me an opportunity to associate myself with the major producers of commercial vehicles in the country.

With sincere regards, PAWAN KUMAR

PREFACE

I had to undergone for the project work after completing the second semester. The attractive feature of the M.B.A. course is that along with theory we also get to have the exposure of the practical environment.

The summer training Report is based on “ A STUDY OF CONSUMER BEHAVIOURS AND SATISFACTION WITH HYUNDAI MOTORS”.

The topic for my research report is:

The Research Report revolves around the Hyundai tried to explore the various aspects of car. The certain objectives were predefined and the task was to accomplish them. This report also provides the survey analysis about the nature of retailer prescription and the key factors over which a company should have a strong hold to survive with a long-term view.

The study was confined geographically to Meerut. The data source was collected from the regular visits of customer and target prospects.

A special task was also assigned to me to analyze the market opportunities in different regions of MEERUT. It under that different dealer has been visited. A set of questionnaire was prepared & scrutinized before going for market analysis.

The whole process during the entire training program is well planned and the data was initially collected about the reputed customers the respective executives of concerned areas. The task was divided into small goals which to be accomplished on the daily basis.

Finally it was a great experience at the corporate level being interacted with different reputed personalities and it makes practically aware about the strategies development process and their break up in goals and defining policies to achieve them and handle different difficult situations

EXECUTIVE SUMMARY

Present world is the world of competition. There is huge competition in each and every sector. Every one wants to be ahead of their competitors. The competitive landscape, rapidly changing technologies, increased complexity of products and services and more aware and demanding customers are all pushing the Organization to adopt the customer centric focus.

In the present dynamic business environment customer play a vital role and is of centric value to the Organization. Hence satisfying a customer by providing excellent services is of prime importance to the company.

First of all a proper outline of the entire survey work was decided like research objectives, research approach. The main objective of the research was to find out the satisfaction level of the customers from products offered by the company in the market. The next step was decide upon other areas of research design. To meet the main objectives of the research program me a proper sample size was decide upon, which represents the entire population and help in getting results. Structured questionnaire was used as research instrument and personal interview method was used for data collection in the whole survey. Analysis and interpretation were drawn from the entire data so as to focus on the major problems. Analysis and interpretation were further used to reach the results and findings of the survey and were also helpful in making the suggestions.

TABLE OF CONTENTS

OBJECTIVES OF STUDY………………………………………………..…..7-8

COMPANY PROFILE..…………………………………………………..….9-24

PRODUCTS PROFILE……………………………………………………....25-42

INDUSTRY PROFILE…………………………………………..……………43-58

RESEARCHMETHODOLOGY…………………………...…………………...59-69

RESEARCH REPORT

PROCEDURE

RESEARCH DESIGN.

DATA COLLECTION METHOD

SAMPLING

DATA ANALYSIS………………………………………………………..…70-85

FINDINGS…………………………………………………………..………86-87

CONCLUSIONS……………………………………………………...……….88-89

SUGGESTIONS……………………………………………………..…...……90-91

LIMITATIONS…………………………………………………………...... …92-93

ANNEXURE………………………………………………………………….94-102

QUESTIONAIRE

BIBLIOGRAPHY

OBJECTIVES OF THE STUDY

(I) To introspect into the satisfaction level of customers with respect to Hyundai motors.

(II) To find out the satisfaction level of customers about services provided by Hyundai motors.

(III) To find out why customers preferred Hyundai motors Product in that Category of other cars.

The topic has been already given by the company to collect information about Current happening in the market. It also helps to makes improvements in service and quality of the product, for their long time existence in the market and getting profit. Simultaneously, it was also helpful for me to learn the channel of Distribution and observe the demand of particular products.

COMPANY PROFILE

Public (KRX: 005380, Type LSE: HYUD) Founded 1967 Founder(s) Chung Ju-Yung Headquarters Seoul, South Korea Area served International Chung Mong-Koo, Chairman and Key people CEO Industry Automobile manufacturer Products Automobiles Revenue ▲ ₩62.1 billion (2014)[1] Net income ▲ ₩ 2.4 billion (2014)[1] Employees 150,000 (as of March 31, 2014) Parent Hyundai Kia Automotive Group Website Hyundai-Motor.com

Hyundai Motor Company

A Korean: division of the Hyundai Kia Automotive Group, is the world’s fourth largest automaker in terms of units sold[2] and one of the Big Asian Four (with Toyota, Honda and Nissan).[3] Headquartered in Seoul, South Korea, Hyundai operates the world’s largest integrated automobile manufacturing facility in Ulsan, which is capable of producing 1.6

million units annually. The Hyundai logo, a slanted, stylized 'H', is said to be symbolic of two people (the company and customer) shaking hands. Hyundai means "modernity" in Korean. The company’s success is driven by the commitment of approximately 150,000 employees in more than assembly plants, Hyundai vehicles are sold in 198 countries through some 8,000 dealerships and showrooms worldwide.

History

Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. Hyundai Motor Company was later established in 1967. The company’s first model, the Cortina, was released in cooperation with Ford Motor Company in 1968. In 1975, the Pony, the first Korean car, was released, with styling by Giorgio Giugiaro of ItalDesign and power train technology provided by Japan’s Mitsubishi Motors. Exports began in the following year to Ecuador and soon thereafter to the Benelux countries. In 1991, the company succeeded in developing its first proprietary gasoline engine, the four-cylinder Alpha, and transmission, thus paving the way for technological independence.

In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as "Best Product #10" by Fortune magazine, largely because of its affordability. The company began to produce models with its own technology in 1988, beginning with the midsize Sonata.

In 1996, Hyundai Motors India Limited was established with a production plant in Irrungattukatoi near Chennai, India.[4]

In 1998, Hyundai began to overhaul its image in an attempt to establish itself as a world-class brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung Mong Koo, in 1999.[5] Hyundai's parent company, Hyundai Motor Group, invested heavily in the quality, design, manufacturing, and long-term research of its vehicles. It added a 10-year or 100,000- mile (160,000 km) warranty to cars sold in the United States and launched an aggressive marketing campaign.

In 2004, Hyundai was ranked second in "initial quality" in a survey/study by J.D. Power and Associates. Hyundai is now one of the top 100 most valuable brands worldwide. Since 2002, Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup.

In 2006, the South Korean government initiated an investigation of Chung Mong Koo's practices as head of Hyundai, suspecting him of corruption. On April 28, 2006, Chung was arrested, and charged for embezzlement of 100 billion South Korean won (US$106 million), [6] with Hyundai Vice Chairman and CEO, Kim Dong-jin, taking over as head of the company.

Business

Assembly line at Hyundai Motor Company’s car factory in Ulsan, South Korea See also: Hyundai

In 1998, after a shake-up in the Korean auto industry caused by overambitious expansion and the Asian financial crisis, Hyundai acquired rival Kia Motors. In 2000, the company established a strategic alliance with DaimlerChrysler and severed its partnership with the Hyundai Group. In 2001, the Daimler-Hyundai Truck Corporation was formed. In 2004, however, DaimlerChrysler divested its interest in the company by selling its 10.5% stake for $900 million.

Hyundai has invested in manufacturing plants in the North America, China, Czech Republic, Pakistan, India, and Turkey as well as research and development centers in Europe, India, North America, and Japan. In 2004, Hyundai Motor Company had $57.2 billion in sales in South Korea making it the country’s second largest corporation, or chaebol. Worldwide sales in 2005 reached 2,533,695 units, an 11 percent increase over the previous year. Hyundai has set as its 2006 target worldwide sales of 2.7 million units (excluding exports of CKD kits).

Hyundai motor vehicles are sold in 198 countries through some 8,000 dealerships and showrooms. After a recent survey of global automotive sales by Automotive News, Hyundai is now the tenth largest automaker in the world as of 2007.[7]

Hyundai Motor Company’s brand power continues to rise as it was ranked 72nd in the 2007 Best Global Brands by Interbrand and BusinessWeek survey. brand value estimated at $4.5 billion. Public perception of the Hyundai brand has been transformed as a result of dramatic improvements in the quality of Hyundai vehicles.

Hyundai in the United States

Hyundai Genesis

Hyundai entered the United States market in 1986 with a single model, the Hyundai Excel. The Excel was offered in a variety of trims and body styles. That year, Hyundai set a record of selling the most automobiles in its first year of business in the United States compared to any other car brand (c. 126,000 vehicles).

Initially well received, the Excel’s faults soon became apparent; cost-cutting measures caused reliability to suffer. With an increasingly poor reputation for quality, Hyundai sales plummeted, and many dealerships either earned their profits on repairs or abandoned the product. At one point, Hyundai became the butt of many jokes (i.e. Hyundai stands for "Hope you understand nothing's drivable and inexpensive") and even made David Letterman's Top Ten Hilarious Mischief Night Pranks To Play In Space: #8 - Paste a "Hyundai" logo on the main control panel.

In response, the parent company of Hyundai began investing heavily in the quality, design, manufacturing, and long-term research of its vehicles. It added a 10-year or 100,000-mile (160,000 km) powertrain warranty (known as the Hyundai challenge) to its vehicles sold in the United States. By 2004, sales had dramatically increased, and the reputation of Hyundai cars improved. In 2004, Hyundai tied with Honda for initial brand quality in a survey/study from J.D. Power and Associates, for having 102 problems per 100 vehicles. This made Hyundai second in the industry, only behind Toyota, for initial vehicle quality. The company continued this tradition by placing third overall in J.D. Power's 2006 Initial Quality Survey, behind only Porsche and Lexus.

Hyundai continues to invest heavily in its American operations as its cars grow in popularity. In 1990, Hyundai established the Hyundai Design Center in Fountain Valley, California. The center moved to a new $30 million facility in Irvine, California in 2003, and was renamed the

Hyundai Kia Motors Design and Technical Center. Besides the design studio, the facility also housed Hyundai America Technical Center, Inc. (HATCI, established in 1986), a subsidiary responsible for all engineering activities in the U.S. for Hyundai. Hyundai America Technical Center moved to its new 200,000-square-foot (19,000 m2), $117 million headquarters in Superior Township, Michigan (near Ann Arbor) in 2005. Later that same year, HATCI announced that it would be expanding its technical operations in Michigan and hiring 600 additional engineers and other technical employees over a period of five years. The center also has employees in California and Alabama.

Hyundai America Technical Center completed construction of its Hyundai/Kia proving ground in California City, California in 2004. The 4,300-acre (17 km2) facility is located in the Mojave Desert and features a 6.4-mile (10.3 km) oval track, a Vehicle Dynamics Area, a vehicle-handling course inside the oval track, a paved hill road, and several special surface roads. A 30,000-square-foot (2,800 m2) complex featuring offices and indoor testing areas is located on the premises as well. The facility was built at a cost of $50 million. An aerial view can be found here.[12] Hyundai completed an assembly plant just outside Montgomery, Alabama in 2004, with a grand opening on May 20, 2005, at a cost of $1.1 billion. At full capacity, the plant will employ 2,000 workers. Currently, the plant assembles the Hyundai Sonata and the Hyundai Santa Fe. It is Hyundai's second attempt at producing cars in North America since Hyundai Auto Canada Inc.'s plant in Quebec closed in 1993.

In 2003, according to Consumer Reports, Hyundai’s reliability rankings tied Honda's.

In 2005, Hyundai authorized Ed Voyles' Hyundai dealership in Smyrna, Georgia to become the first "deaf friendly" dealership in the entire world. The staff in this dealership are able to accommodate deaf customers with the use of American Sign Language and video conferencing phones.

In 2006, J.D. Power and Associates' quality ranking, overall the Hyundai brand ranked 3rd, just behind Porsche and Lexus, and beating long time rival Toyota.[14] The brand overall is ranked much higher than the average industry and resale value continues to improve; a comparable 2003 Hyundai Sonata sedan ranks just $2200 below a similarly equipped Honda Accord, according to Kelley Blue Book Pricing 2006.

In 2006, the Hyundai Entourage minivan earned a five-star safety rating – the highest honor the National Highway Traffic Safety Administration bestows – for all seating positions in frontal and side-impact crashes. The Insurance Institute for Highway Safety also rates “Good” – its highest rating – in front, side and rear impacts. The IIHS (Insurance Institute for Highway Safety, United States), in fact, named the 2006 Hyundai Entourage and Kia Sedona a “Gold Top Safety Pick,” making the safest minivan ever tested.

In 2006, Hyundai was awarded 'Top-rated 2006 Ideal Vehicle' by Autopacific, Marketing research and consultancy firm for the automobile industry.

In 2007 Strategic Vision Total Quality Awards, Hyundai Motors leads the most vehicle segments in Strategic Vision’s Total Quality Index, measuring the ownership experience. They attempt to measure more than just the number of problems per vehicle. Hyundai tops in Strategic Vision Total Quality Awards. For the first time ever, Hyundai has risen to share the position of having the most models leading a segment. three models with the top Total Quality Index (TQI) score in their segments, including the Hyundai Azera, Entourage, Santa Fe.[19][20]

In 2007, Hyundai's midsize SUV Santa Fe earns 2007 TOP SAFETY PICK award by IIHS.

[21][22]

In 2007 at the New York International Auto Show, Hyundai unveiled its V8 rear-drive luxury sedan called Concept Genesis to be slotted above the Azera in the Hyundai line-up. This concept will make its American debut in mid 2008. The Genesis reintroduced rear-wheel drive to the Hyundai range following a long period of only producing front-wheel drive cars.

[23]

In 2007 at the Los Angeles International Auto Show, Hyundai unveiled its second rear-drive concept car, this car, called Concept Genesis Coupe, will be Hyundai’s first sports car due to make its debut in early 2009.[24]

In 2008, Hyundai Santa Fe and Hyundai Elantra were awarded 2008 Consumer Reports "top picks". The magazine's annual ratings, based on road tests and predicted safety and reliability are considered highly influential among consumers. [25] Hyundai Elantra was Consumer

Reports' top-ranked 2008 vehicle among 19 other compacts and small family cars, beating out Honda Civic, Toyota Corolla and Toyota Prius.[26]

In 2008, at the North American International Auto Show, the production version of the luxury & performance-oriented Hyundai Genesis sedan made its debut, dealerships will have the Genesis as soon as Summer 2008. In 2008, at the New York International Auto Show, Hyundai debuted its production version of the performance-oriented rear-drive Hyundai Genesis Coupe, slated to hit dealerships in early 2009.

In 2009 Hyundai announced the five-door hatchback variant of the Elantra compact sedan will carry the name Elantra Touring when it goes on sale in the spring as a 2009 model. [27]

In 2009, The Hyundai Genesis, Luxury Sedan, has been named 2009 North American Car of the Year, the first for Hyundai.[28] The Genesis has received a number of well-recognized automobile awards worldwide. It also won the 2009 Canadian Car of the Year after winning its category of Best New Luxury Car under $50,000.[29] The Hyundai's V8 Tau engine in the Genesis, which develops 375 hp (280 kW) on premium fuel and 368 hp (274 kW) on regular fuel, received 2009 Ward's 10 Best Engines award.[30]

In 2009, 6 models of Hyundai/Kia cars earned Top Safety Award by IIHS, better than Nissan/Infiniti. [31]

In 2009, Hyundai/Kia vehicles were named as “least expensive vehicles to insure”. Hyundai/Kia vehicles were the least expensive to insure and occupied the 'top five' least expensive slots, said Insure.com. Low rates tend to reflect a vehicle’s safety.

US sales

Calendar Year Sales 2006[33] 244,391 2007 346,235 2008[34] 375,119 2009 400,221 2010[35] 418,615 2011 455,012 2012 455,520

2013[36] 467,009 2014 401,742

Hyundai In India

Hyundai is currently the second largest carmaker and largest auto exporter in India.[37] It is making India the global manufacturing base for small cars. Hyundai sells several models in India as of the 2009 model year, one of the most popular being the i10 and the i20. Other models include Santro, Getz, Accent, second generation Verna, Tucson, Elantra, and the Sonata.

Hyundai in Europe

On November 2008, Hyundai opened its European plant in Nošovice, Czech Republic, following an investment of over 1 billion euros and over two years of construction.[38][39] The plant, which mainly manufactures the i30 for the European market, has an annual capacity of 200,000 cars.[40] The new Hyundai plant is 90 kilometers north of Kia Motors' plant in Žilina, Slovakia.

Hyundai in China

Hyundai and Kia Motors are currently ranked second in the passenger car market in China, just behind Volkswagen. To meet the increasing demand for their cars in the country, Hyundai will spend US$800 million on a third plant, which will be located in Beijing. Expected to open by 2011, the new plant will have an annual capacity of 300,000 units.[41]

Hyundai in Japan

Despite having growing sales worldwide, Hyundai struggled in Japan, having sold only 15,000 passenger cars from 2001 to 2009. As a result of poor sales, Hyundai announced on November 2009 that they will pull their passenger car division out of the Japanese market and focus on their commercial vehicle division instead.[42]

Electric vehicles

Main article: Electric vehicle

Hyundai plans to begin producing hybrid electric vehicles in 2009. The Avante will be the first vehicle to be produced.[43]

Since 2004, Hyundai has supplied about 3,000 hybrid versions of its Getz and Accent small cars to government fleets as part of a testing program. The automaker cites a lack of local tax benefits for purchasing hybrids as a barrier to its hybrid development program. But Hyundai expects the tax situation to change in 2009.[43]

The new hybrid electric Sonata will make its debut at the Los Angeles International Auto Show in November 2008. Hyundai expects to release it in the U.S. market in 2010, featuring lithium-ion battery technology.[44]

Environmental record

On April 23, 2008 Hyundai Motor announced the beginning of a five-year project to turn 50 km² of infertile land into grassland by 2012. Hyundai is doing so with the help of the Korean Federation for Environmental Movement (KFEM). The project, named Hyundai Green Zone, is located 660 km north of Beijing. The goal of the project is to end the recurring dust storms in Beijing, block desertification and protect the local ecosystem. Local weeds will be planted in the region that have the ability to endure sterile alkaline soil. This is the first environmental project of the company’s social contribution program.[45][46]

Hyundai Motor plans to aid Chevron Corporation in the construction of up to six hydrogen fueling stations that will be located in California, including locations at the University of California-Davis and the Hyundai America Technical Center in Chino. Hyundai is going to provide a collection of 32 Tucson fuel cell vehicles, which are powered by UTC Fuel Cell power plants.

Motorsport

Alister McRae driving an Accent WRC at the 2001 Rally Finland.

Hyundai entered motorsport by competing in the F2 class of the World Rally Championship in 1998 and 1999. In September 1999, Hyundai unveiled the Accent WRC, a World Rally Car based on the Hyundai Accent. The Hyundai World Rally Team debuted the car at the 2000 Swedish Rally and achieved their first top-ten result at that year's Rally Argentina, when Alister McRae and Kenneth Eriksson finished seventh and eighth, respectively. Eriksson later drove the car to fifth place in New Zealand and fourth in Australia. In 2001, Hyundai debuted a new evolution of the Accent WRC, which was intended to improve reliability, but the performance of the car was still not good enough to challenge the four big teams (Ford World Rally Team, Mitsubishi, Peugeot and Subaru). However, at the season-ending Rally GB, the team achieved their best result with McRae finishing fourth and Eriksson sixth.

For the 2002 season, Hyundai hired the four-time world champion Juha Kankkunen, along with Freddy Loix and Armin Schwarz. Kankkunen's fifth place in New Zealand was the team's best result, but they managed to edge out Škoda and Mitsubishi by one point in the battle for fourth place in the manufacturers' world championship. In September 2003, after a season hampered by budget constraints, Hyundai announced withdrawal from the WRC and planned to return in 2006, this has never happened though.[48]

In 2006, following the announcement that Korea was scheduled to earn a Formula 1 Grand Prix race, Hyundai announced that they plan to enter the sport.

Electric propulsion

Hyundai plans begin producing hybrid electric vehicles in 2009. They are going to use Hybrid Blue Drive, that includes lithium polymer batteries, instead of lithium-ion. The Avante will be the first vehicle to be produced. Other are the Santa Fe Hybrid, the Elantra,

Sonata Hybrid (to the U.S. market in 2010) and the Hyundai i20, which will replace the Hyundai Getz. Hyundai BLUE-WILL is a plug-in hybrid.

Hyundai Motor India Limited (HMIL)

Hyundai's 6th manufacturing unit outside the parent country, is also the group's largest overseas production base. Even as the project was being conceptualized, Hyundai Motors India Ltd.(HMIL) was always going to play an important role in Hyundai Motors Company's international operations.

That the company is fully owned by the parent group and the integrated unit at

Sriperambudur can today roll out cars with almost 85% localized content, bears testimony that the Indian operations have been put down to play an important role in Hyundai's goal for the 21st century - to be joint the ranks of the GT-10 (Group 10) Companies.

The Infrastructure

The Hyundai India plant located in Irungattukottai, 30 kilometers from Chennai was built in record time. The plant is first self-sufficient manufacturing unit in India to be independently invested by an overseas automobile company. Incorporated in May 1996, the groundbreaking ceremony for the Chennai plant was held in December in the same year, and the first pilot Santro was ready in a record-breaking 17 months.

The plant which stands on a 500+acre plot has been built with an initial investment of more than Rs. 2500 crores. It has a capacity to make 120,000 cars and 130,000 engine transmission units per annum and is the largest overseas investment made by the Korean Company.

HMIL commenced operations with 70%-localized content, which is one of the highest amongst all car manufacturers. The entire powertrain and the body panels are made in-house and the integrated manufacturing setup at the Hyundai Motors Chennai plants consists of:

Hitachi Zosen 2500 ton presses for the body panels State-of-the-art Paint shop Final assembly line Engine and transmission lines Aluminium foundry Plastic extrusion unit In-house R&D Centre

Hyundai has brought in 14 Korean companies and helped them setup base in India for sourcing components. The total vendor base consists of 60 companies located at the plant site itself. HMIL aims to increase localized content to over 90% in the millennium.

Present

Although the HMIL is said to have initially planned to launch their Indian operation with a car for the mid-sized segment, the company changed policies and introduced the Santro for the small car market. A decision which in hindsight, seems to have paid handsome dividends.

A formal study was commissioned by Hyundai prior to the launch of the Santro, to gauge the - as Mr. BVR Subbu, Director Marketing & Sales says - "stated and not-so-stated" needs of the Indian small car buyer. Several factors right from the design of the car, the cooling of the AC, and the dealer network have been on the basis of the study so as to present to the people the kind of car that they want and need. The Santro has been designed by in-house Hyundai expertise.

Modeled on the Hyundai Atos, the Mercedes A140 and Suzuki's Wagon R, and then customized to Indian tastes, the Santro takes the best of all the cars viz. the driveability of the Atos, the safety & design of the Mercedes A140, and roominess of the Wagon R.

The Santro (which is available in three variants - the L2, GLS1 and GLS2) was launched in September 1998, and the company has targeted a production of 60,000 Santros per year. With sales of 30,000 vehicles in the last eight months HMIL seems to be fairly on target.

The monthly sales of the Santro (from October 98 to August '99 are given below)

MonthOct Nov Dec Jan Feb Mar Apr May June Units 1123 3444 3881 2753 2157 4290 3531 4519 4634 MonthJuly AugustHyundai Santro has captured 30%of the market share in the small car Units 4,9497002 segment and 10% in the overall auto industy

PRODUCT PROFILE

SANTRO Xing

Key Technical Specification and Features

SANTRO 1.1 L Petrol

Overall Length (mm) 3,565 Overall Width (mm) 1,525 Overall Height (mm) 1,590 Wheelbase (mm) 2,380 Front Track (mm) 1,315 DIMENSIONS Rear Track (mm) 1,300 Min. Turning Radius (m) 4.4 Seating Capacity 5 Persons Fuel Tank capacity (litre) 35

Displacement (cc) 1,086 ENGINE Maximum Power (ps / rpm) 63 / 5,500 Maximum Torque (Kgm / rpm) 9.8 / 3000

5-Speed Manual with overdrive in 4th TRANSMISSION Type and 5th

Front Mc Pherson Strut with Coil Spring SUSPENSION Rear Torsion Beam Axle with Coil Spring

Front Ventilated Disc BRAKES Rear Self Adjusting Drum

TYRE Size 155/70 R13, Tubeless Radial

HYUNDAI GETZ

Key Technical Specification

Getz Prime 1.1 L PL 1.3 L PL Overall Length (mm) 3825 Overall Width (mm) 1665 Overall Height (mm) 1515 Wheelbase (mm) 2455 DIMENSIONS Ground Clearance (mm) 160 Front Track (mm) 1450 Rear Track (mm) 1440 Kerb Weight (Kg) 995 1012-1033 Fuel Tank Capacity (L) 45

No. of Cylinders 4 Displacement (cc) 1086 1341 ENGINE Maximum Power (ps/rpm) 66.6/5500 82.9/5500 Max. Torque (kgm/rpm) 10.4/3200 11.8/3200

Mc Pherson Strut with Torsion Front Suspension bar & coil spring SUSPENSION Dependent Torsion beam axle & Rear Suspension coil spring

Front Discs BRAKES Rear Drum

155/80R13 175/70R13 (GLE, GVS)(GLS) TYRES Size 175/70R13(GVS175/65R14 Option) (GLX)

Hyundai Verna

PETROL Transmission Type Manual Manual Automatic

Overall 4,310 Length (mm) Overall 1,695 Width (mm) Overall 1,490

Height (mm) Wheelbase 2,500 (mm) Fuel Tank 45 Capacity (L) Min. Ground Clearance 170 (mm) 175/70 175/70 185/65 R14 (1.6R14 (1.5R14 VTVT) CRDi 185/65 VGT) Tyres R14 (1.6185/65 SX R14 (1.5 VTVT) SX CRDi VGT)

Displacement1,599 1,493 Max. Power103.2 / 110 / 4,000 (ps / rpm) 5,500 Engine Max. Torque14.9 / 24 / 1,900~2,750 (kgm / rpm) 3,000 Max. Power5 Speed5 Speed4 Speed (ps / rpm) Manual Manual Automatic

Steering Type Power assisted Rack & Pinion

Front MacPherson Strut with Coil Spring and Anti Roll Bar Suspension Rear Couple Torsion Beam Axle Shock Gas Type Absorbers

Hyundai Sonata

2.4 2.0 CRDi M/T .0 CRDi A/T VTVT Overall Length (mm) 4800 Overall Width (mm) 1832 Overall Height (mm) 1485 Wheelbase (mm) 2730 Front Track (mm) 1565 Rear Track (mm) 1550 Ground Clearance (mm) 170 Fuel Tank Capacity (Litre) 70 Seating Capacity (No.s) 5

2.4 Model Designation 2.0 CRDi VGT 2.0 CRDi VGT VTVT No. of Cylinders 4-Cylinder Fuel system MPFI CRDi CRDi Displacement (cc) 2359 1991 1991 5 - Speed Transmission 6 - Speed Manual 4 - Speed H-Matic Manual

Max. Horsepower (ps/rpm) 175/6000 150/3850 150/3850

Max. Torque (kg m/rpm) 23.8/400032.1/2000 32.1/2000

Independent Double Wishbone with coil spring and Front Suspension gas shock absorber and antiroll bar Fully independent Multi-link with coil springs, Gas Rear Suspension shock absorber and anti-roll bar

Steering System Rack & Pinion

Hydraulic Power Assisted Standard

Front / Rear Brakes Ventilated Disc / Solid Disc

ABS with EBD Yes

Type Alloy Wheels 6.5 J X 16 Tyres 215/60 R16 (Tubeless)

HYUNDAI TUCSON

Hyundai Tucson Overall Length(mm) 4325 Overall Width(mm) 1830 Overall Height(mm) 1730 Wheel Base(mm) 2630 Tyre Size 215/65R16

Type Turbocharged CDI Fuel Diesel Power 112@4000

Max. Torque (Kg-m@rpm) 25@1800-2800

Transmission Drive System Full time 4-WD Front Macpherson strut with Coil Spring Rear Dual Link Pneumatic assisted hydraulic double Shock Absorbers acting type Ventilated Disc, Front S

Disc, Rear S

Hyundai Accent

Accent

Executive

Overall Length (mm) 4250

Overall Width (mm) 1670 Overall Height (mm) 1370 Wheelbase (mm) 2440 Ground Clearance (mm) 172 Front Track (mm) 1435 Rear Track (mm) 1425

Fuel tank Capacity (L) 45

No. of Cylinder 4 Displacement (CC) 1495

Max. Power (ps/rpm) 95/5500 Max. Torque (Kgf-m / rpm) 12.7/3500

Transmission 5 Speed Manual

Mac pherson strut with coil spring Front Suspension & stabilizer bar Dual link with coil spring & anti Rear Suspension roll bar

Type Power assisted rack & pinion

Front Ventilated Disc Rear self adjusting drums

Type 175/70 R 13

HYUNDAI-I20

KEY COMPETITORS

Tata Motors

Maruti Suzuki

Ford India

Fiat India

General Motors India

Honda India

HISTORY OF AUTOMOBILE INDUSTRY The automobile as we know it was not invented in a single day by a single inventor. The history of the automobile reflects an evolution that took place worldwide. It is estimated that over 100,000 patents created the modern automobile. However, we can point to the many firsts that occurred along the way. Starting with the first theoretical plans for a motor vehicle that had been drawn up by both Leonardo da Vinci and Isaac Newton In 1769, the very first self-propelled road vehicle was a military tractor invented by French engineer and mechanic, Nicolas Joseph Cugnot (1725 - 1804). Cugnot used a steam engine to power his vehicle, built under his instructions at the Paris Arsenal by mechanic Brezin. It was used by the French Army to haul artillery at a whopping speed of 2 1/2 mph on only three wheels. The vehicle had to stop every ten to fifteen minutes to build up steam power. The steam engine and boiler were separate from the rest of the vehicle and placed in the front (see engraving above). The following year (1770), Cugnot built a steam-powered tricycle that carried four passengers. In 1771, Cugnot drove one of his road vehicles into a stone wall, making Cugnot the first person to get into a motor vehicle accident. This was the beginning of bad luck for the inventor. After one of Cugnot's patrons died and the other was exiled, the money for Cugnot's road vehicle experiments ended.

1880's & early 1900's

 About hundred years ago -The first motor car was imported -Import duty on vehicles was introduced. -Indian Great Royal Road (Predecessor of the Grand Trunk Road) was conceived.

 First car brought in India by a princely ruler in 1898.

 Simpson & Co established in 1840. -They were the first to build a steam car and a steam bus, to attempt motor car manufacture, to build and operate petrol driven passenger service and to import American Chassis in India.

 Railways first came to India in 1850's

 In 1865 Col. Rookes Crompton introduced public transport wagons strapped to and pulled by imported steam road rollers called streamers. The maximum speed of these buses was 33 kms/hr.

 From 1888 Motors Spirit attracted a substantial import duty.

 In 1919 at the end of the war, a large number of military vehicles came on the roads.

 In 1928 assembly of CKD Trucks and Cars was started by the wholly owned Indian subsidiary of American General Motors in Bombay and in 1930-31 by Canadian Ford Motors in Madras, Bombay and Calcutta In 1935 the proposals of Sir M Visvesvaraya to set up an Automobile Industry were disallowed.

 1942 Hindustan Motors Ltd incorporated and their first vehicle was made in 1950.

 In 1944 Premier Automobiles Ltd incorporated and in 1947 their first vehicle was produced.

 In 1947 the Government of Bombay accepted a scheme of Bajaj Auto to replace the cycle rickshaw by the auto and assembly started in a couple of years under a license from Piaggio. Manufacturing Programme for the auto and scooter was submitted in 1953 to the Tariff Commission and approved by the Government in 1959.

 In 1953 the Government decreed that only firms having a manufacturing programme should be allowed to operate and mere assemblers of imported CKD units be asked to terminate operations in three years.

 Only seven firms namely Hindustan Motors Limited, Automobile Products of India Limited, Ashok Leyland Limited, Standard Motors Products of India Limited., Premier Automobiles Limited, Mahindra & Mahindra and TELCO received approval. M&M was manufacturing jeeps. Few more companies came up later.

 Government continued with its protectionism policies towards the industry.

 In 1956, Bajaj Tempo Ltd entered the Indian market with a programme of manufacturing Commercial Vehicles, and Simpson for making engines.

1960's

 In sixties 2 and 3 Wheeler segment established a foothold in the industry.

 Escorts and Ideal Jawa entered the field in the beginning of sixties.

 Association of Indian Automobile Manufacturers formally established in 1960.

 Standard Motors Products of India Ltd. moved over to the manufacture of Light Commercial Vehicles in 1965.

1970's

 Major factors affecting the industry's structure were the implementation of MRTP Act, FERA and Oil Shocks of 1973 and 1979.

 During this decade there was not much change in the four wheeler industry except the entry of Sipani Automobiles in the small car market.

 Oil Shock of 1973 quickened the process of dieselization of the Commercial Vehicle segment.

 Three other companies, namely, Kirloskar Ghatge Patil Auto Ltd, Indian Automotive Ltd and Sen & Pandit Engg products Ltd entered the market during 1971-75. They ultimately withdrew in early eighties.

 During the seventies the economy was in bad shape. This and many specific problems affected the Automobile Industry adversely.

1980's - The period of liberalized policy and intense competition

 First phase of liberalisation announced.

 Unfair practices of monopoly, oligopoly etc slowly disappeared.

 Liberalisation of the protectionism policies of the Government.

 Lots of new Foreign Collaborations came up in the eighties. Many companies went in for Japanese collaborations.

 Hindustan Motors Ltd. in collaboration with Isuzu of Japan introduced the Isuzu truck in early eighties.

 ALL entered into collaboration with Leyland Vehicles Ltd. for development of integral buses and with Hino Motors of Japan for the manufacture of W Series of Engines.

 TELCO after the expiry of its contract with Daimler Benz, indigenously improved the same Benz model and introduced it in the market.

 Government approved four new firms in the LCV market, namely, DCM, Eicher, Swaraj and Allwyn. They had collaborations with Japanese companies namely, Toyota, Mitsubishi, Mazda and Nissan respectively.

 In 1983 Maruti Udyog Ltd was started in collaboration with Suzuki, a Japanese firm.

 Other three Car manufacturers namely, Hindustan Motors Ltd., Premier Automobiles Ltd., Standard Motor Production of India Ltd. also introduced new models in the market.

 At the time there were five Passenger Car manufacturers in India - Maruti Udyog Ltd., Hindustan Motors Ltd., Premier Automobiles Ltd., Standard Motor Production of India Ltd. and Sipani Automobiles.

 Ashok Leyland Ltd. and TELCO were strong players in the Commercial Vehicles sector.

 In 1983-84 Bajaj Tempo Ltd. entered into a collaboration with Daimler-Benz of Germany for manufacture of LCVs.

 Important policy changes like relaxation in MRTP and FERA, delicensing of some ancillary products, broad banding of the products, modifications in licensing policy, concessions to private sector (both Indian and Foreign) and foreign collaboration policy etc. resulted in higher growth / better performance of the industry than in the earlier decades.

1990's

 Mass Emission Norms were introduced for in 1991 for Petrol Vehicles and in 1992 for Diesel Vehicles.

 In 1991 new Industrial Policy was announced. It was the death of the License Raj and the Automobile Industry was allowed to expand.

 Further tightening of Emission norms was done in 1996.

 In 1997 National Highway Policy has been announced which will have a positive impact on the Automobile Industry.

 The Indian Automobile market in general and Passenger Cars in particular have witnessed liberalisation. Many multinationals like Daewoo, Peugeot, General Motors, Mercedes-Benz, Honda, Hyundai, Toyota, Volvo and Fiat entered the market.

 Various companies are coming up with state-of-art models of vehicles.

 TELCO has diversified in Passenger Car segment with Indica.

Despite the adverse trend in the growth of the industry, it is resolutely trying to meet the challenges. Various issues of critical importance to the industry are being dealt with forcefully.

Preview of Automobile Industry

The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and globalization. The sector seems to be optimistic of posting strong sales in the next couple of years in view of a reasonable surge in demand. The Indian automobile market is gearing towards having international standards to meet the needs of the global automobile giants and become a global hub. Players are strategizing to consolidate their position and gradually increase market penetration with the launch of new models, targeting different segments. Since the sector is price driven, huge

investment is envisaged to remain competitive through cost advantage, for which indigenization is highly important. The product becomes dearer if it is manufactured using imported parts. IT in the automobile sector plays a crucial role.. Some players are working towards development of efficient production systems that control the entire production process with high precision and accuracy. Such systems working on real time operating systems allow efficient control of different parts of manufacturing and production. It is essential to leverage skills of different engineering disciplines to build these kinds of integrated systems.

1:4 Automobile industry – Wheels of Change

India had its date with this wonderful vehicle first time in 1898. Then for the next fifty years, cars were imported to satisfy domestic demand. Between 1910 and 20's the automobile industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign competitors to enter the Indian car market, Indian roads were ruled by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the initial years.

Apart from strong economic growth in all sectors, low interest rate regime, normal monsoon, continued infrastructure investment, fiscal measures like cut in excise duty (in case of cars), etc provided impetus for the growth. The year also saw a sharp 56% rise in export volumes with all the sectors registering more than 40% growth, signalling the rising international competitiveness of the industry. Profitability improvements were recorded in companies across segments driven by rise in volumes and lower interest costs to some extent, notwithstanding the rise in prices of certain inputs like steel. Though the peak customs duty had been reduced to 20% in January 2004 and Special Additional Duty was abolished, the domestic industry still enjoys adequate protection, with no import threats. The potential borne by the industry is well exhibited by the growing number of international players setting up base in India and increasing competitiveness in the industry.

Many companies have entered the car manufacturing sector, to tap the middle and premium end of car industry.

Auto policy of the Government of India

VISION To establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010.

POLICY OBJECTIVES

This policy aims to promote integrated, phased, enduring and self-sustained growth of the Indian automotive industry. The objectives are to:-

 Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country;

 Promote a globally competitive automotive industry and emerge as a global source for auto components;

 Establish an international hub for manufacturing small, affordable passenger cars and a key center for manufacturing Tractors and Two-wheelers in the world;

 Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry;

 Conduce incessant modernization of the industry and facilitate indigenous design, research and development;

 Steer India's software industry into automotive technology;

 Assist development of vehicles propelled by alternate energy sources;

 Development of domestic safety and environmental standards at par with international standards.

SIAM welcomed the announcement of Auto Policy, and feels that the policy would serve as a reference document for all stake holders and other interested parties.

The Auto Policy has spelt out the direction of growth for the auto sector in India and addresses most concerns of the automobile sector, including-

Promotion of R&D in the automotive sector to ensure continuous technology

 upgradation, building better designing capacities to remain competitive;

 Impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to facilitate their acceptance;

 Emphasis on low emission fuel auto technologies and availability of appropriate auto fuels and encouragement to construction of safer bus/truck bodies - subjecting unorganised sector also to 16% excise duty on body building activity as in case of OEMs

The policy has rightly recognised the need for modernising the parc profile of vehicles to arrest degradation of air quality. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles, are steps in the right direction.

SIAM has always been advocating encouragement of value addition within the country against mere trading activity. However, this aspect has not been fully addressed. The Auto Policy allows automatic approval for foreign equity investment upto 100% in the automotive sector and does not lay down any minimum investment criteria.

The recommendation of promoting passenger cars of length upto 3.8 meters through excise benefits is not in line with the free market concept and may lead to market distortion.

However, with the Auto Policy in place, the automotive industry would get further fillip to become vibrant and globally competitive. The industry would get the required support from other Ministries and departments of Government of India in achieving the goals laid down in the auto policy

INDIAN AUTOMOBILE INDUSTRY

An Indian car as one which has been conceived and designed in India, has at least 85% of its components 'Made in India', by an Indian company. The Indian passenger car industry as we see today is relatively recent in origins. Except the ubiquitous Ambassador and the Premier Padmini there was not much moving around with an Indian tag. Starting with the official one, i.e. Maruti, the company, since its inception has changed the automobile scene in India completely. It's has been the number one manufacturer, churning out close to 300,000 cars last year. At last count it held a 64% market share in the passenger car market with four out of every five cars . on Indian roads being Marutis. Every year it rakes in multi-billion rupee profits, and, yet the company is nothing more than Suzuki India Ltd. Telco is a completely Indian carmaker with no major foreign collaborations. Their Indica was much touted as 'The Indian car', but it was styled by I.D.E.A of Italy. The engine technology had inputs from 'Moteur Modern' of France. In effect it was the case of an Italian body being wrapped around Indian mechanicals. Frankly I would have preferred an Indian body wrapping an Indian platform. India is also the largest manufacturer of agricultural tractors, motor scooters and the world's fifth largest commercial vehicle manufacturer. Each of these sectors experienced rapid growth during the last three years Demand in these sectors is driven by industrial, individual and agricultural consumers respectively. The increases have resulted from improved overall economic trends in India including large doses of foreign investment a more liberalized economy and higher productivity. The fortune of the Auto component industry is inextricably linked with that of the automobile industry which in turn is influenced by the general economic trends of the country the country's economic growth is projected to grow at more than six percent per annum in the coming years. The estimated growth will automatically emphasize the need for better transport infrastructure facilities. This means demand for automobiles and hence for auto components, is bound to grow accordingly. Therefore, good growth prospects are assured for the automobile industry.

World-wide, cars are segmented on the basis of their size. However, in India, price is the main factor determining the choice of car. Hence, cars are segmented on the basis of price into three segments :

Price Approximate Features of Segment Range Main Models Market Share of the segment (Rs. ‘000) the Segment M-800, Omni, Price, Fuel Economy < 250 Uno, 46.9% Efficiency Ambassador Zen, Uno, 118- NE,Ambassador Price, 1800 ISZ,Performance, Medium 250-500 43.1% Contessa, Diesel Indica, Santro,Option Matiz Lancer, Esteem, Status Value, 500 &Cielo, Accent, Premium Performance, 10.1% above City, Opel Features. Astra, Ikon Sources : various sources

Absence of adequate mass transportation system and rising income levels have resulted in personal vehicles becoming an important mode of transportation in the urban and semi-urban areas. By international standards however, the Indian car volumes remain small at just over 1% of the world market with penetration rates of approximately 3.7 cars per thousand people as against 24 in Thailand, 144 in Malaysia, 204 in Poland and 90 in Brazil. Cars currently constitute approximately 12% of the total stock of personal vehicles in India.

Opportunities for the Automobile Industry Global automobile companies are setting up manufacturing facilities in India. Also, many Indian automobile manufacturers have announced their plans to increase the export of vehicles from India. The year 2002-03 has already seen a significant 65% increase in export volumes during the period April to March. This trend is expected to continue with more global OEMs sourcing vehicles from their Indian plants. Additionally, the introduction of newer technologies such as Electronic Diesel Control Systems to reduce emission levels, safety devices such as Air Bags, Anti-lock Braking Systems, etc. augur well for the Company and the automotive sector as a whole. These technologies not only offer increased safety for drivers and passengers, but also result in greater comfort and better drivability. While there exist many opportunities for growth in business, there are also quite a few factors, which act as an impediment. In my last year’s speech I mentioned about the need for a well thought out and clearly defined policy on emission norms. It is now fairly certain that Bharat Stage II norms (equivalent of Euro II norms) will be implemented countrywide starting 2005. It is important that this plan is implemented in time in the interest of a cleaner environment. Technology is available to meet the advanced emission norms using gasoline and diesel fuel; Bosch and many other companies have proved this worldwide. There is no need for the authorities to specify the type of technical solution required for this purpose as long as the end objectives are met. The spurious and reconditioned goods market, which I also dealt with in detail in my speech last year, continues to be a worrying factor as it directly affects our market share. The Company on its part has intensified the anti-spurious operations by conducting several raids across the country with the help of local regulatory authorities. Large quantities of spurious and fake products have been seized and legal action has been taken against those indulging in such activities. The Company believes that continued focus and concerted action against spurious activities would improve safety and fuel efficiency of the vehicles and at the same time help in expanding our market share in the Aftermarket. The Company is also continuously educating the users about the benefits of using genuine spares in place of spurious and reconditioned spares. The lack of any significant change in the labor law reforms also continues to be a matter of concern. It is essential that legal reforms be put in place at the earliest to provide

more flexibility in manufacturing operations and enable the industry to quickly adjust the work force in line with fluctuating market conditions.

Challenges for the Indian automobile industry As we move into the new millennium, the Indian Automobile Industry faces some tremendous opportunities and also great challenges. The growth in automobile sales has been impressive for the past ten years since liberalization began. However, with liberalization, the Indian customer has been presented with a wide range of choices in automobiles, to suit every requirement and budget. The market has turned into a buyers market where the customer is being wooed by the manufacturers and the dealers with a range of freebies unheard of before in India. Financing has become so easy that an automobile is within every aspirant's reach. The industry must focus its R&D efforts in line with the global trends, which is to build vehicles that are considerably more fuel efficient and less polluting. With growing awareness among the public about pollution and the effective campaigns carried out by the NGO's, this will increasingly become an important selling feature. It was surprising to see how the industry kept stalling the introduction of pollution norms for vehicles on the pretext that they needed more time to get the technology. Even Maruti despite its foreign affiliation was caught off guard when the Supreme Court finally ruled that all new vehicles should strictly adhere to the Euro II norms. The inadequacy of road infrastructure in India is well known. This is compounded by the fact that traffic management is very poor or non-existent and the drivers are mostly ill trained and in disciplined. As more vehicles come on the road, this will become a major bottleneck. The industry will need take initiatives firstly to train all drivers in safe driving and proper road discipline and manners. They will also need to assist government agencies in better road design and in building of multilevel parking lots. Training of police personnel in better traffic management and advising them on better equipping themselves to deal with various problems will also have to be done. In terms of the world averages, India's vehicle density is very low and if we have to achieve those density levels, the industry can look forward to a bright future. However in the industry's interest care must be taken to see that we also achieve the safety and convenience levels of using automobiles.

RESEARCH METHODOLOGY

Research Methodology is a systematic way, which consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The marketing research is a process of involves a number of inter-related activities, which overlap and do rigidly follow a particicular sequence. It consists of the following steps 1. Formulating the objective of the study 2. Designing the methods of data collection 3. Selecting the sample plan 4. Collecting the data 5. Processing and analyzing the data Reporting the findings

RESEARCH SCOPE The market survey was conducted on CUSTOMER SATISFACTION in Delhi, NCR & Meerut region, with reference to Das automobiles. This study was done in Delhi NCR & Meerut region. Study aims at relationship between Company employees and customers. The survey covers a wide range of activities and factors, which influence the customer to purchase the HYUNDAI product. The validity of the findings of this survey is limited to the period which the field survey was conducted i.e., in June and July. Therefore, I would say that my first day in the market was more of observing the environment around me than getting into action. It gave me real sense and feeling of market and it gave me a practical knowledge of real things happening in the market.

REASON FOR SELECTING THIS TOPIC

The topic has been already given by the company to collect information about current happening in the market. It also helps to makes improvements in service and quality of the product, for their long time existence in the market and getting profit. Simultaneously, it is also helpful for me to learn the customer satisfaction and demand of particular products.

IMPORTANCE AND RELEVANCE OF THE STUDY

This is very important for a student of MBA. This business administration course is not answer of all problems which arise in practical field. There is no certain formula for any particular problem but the aim of this study is to develop the decision making. Right decision at right time itself helps an organization to run smoothly. The training in any organization gives us an idea of different marketing activities and main emphasis is given on “Customer Satisfaction” aspect and also it is how business is taken tactfully when any problem comes to an executive, so the problem solving, right decision making and knowledge of different types of marketing activities are of much importance to this study.

PROCEDURE:-

Objective of Study

Research Design

Sample Design

Data Collection

Data analysis

Reporting of Findings

RESEARCH DESIGN

Research Design specifies the methods and procedures for conducting a particular study. A Research Design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is broadly classified into three types as

 Exploratory Research Design  Descriptive Research Design  Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with describing the character tics of a particular individual, or of a group of individual under study comes under Descriptive Research Design.

Descriptive Research Design: In this research design the objective of study is clearly defined and has accurate method of measurement with a clear cut definition of population which is to be studied.

Formulating the research problem

Two steps are involved in formulating the research problem:

 Understanding the problem  Rephrasing the problem into meaningful terms from an analytical point of view.

The training sessions are conducted in the beginning of training in order to make us clear about the task provided and how to handle the different situations.

PREPARING THE RESEARCH DESIGN

The research design is developed to collect the relevant information with minimum of efforts, time and money.

 Marketing Research Objectives:  To undertake a prior market study before doing owns research.  To make an analysis on the basis of the results.

 Type of Study: Descriptive.  Research Area: Meerut.  Source of Information: Primary Data.  Data Collection Instrument: Questionnaires & Personal Interview.  Research Approach: Survey Method.

SAMPLING DESIGN A Sample Design is a definite plan for obtaining a sample from a given population. It refers t the technique r the procedure adopted in selecting items for the sample. The main constitution of the sampling design is as below- 1. Sampling Unit 2. Sample Size 3. Sampling Procedure

SAMPLING UNIT A sampling framework i.e. developed for the target population that will be sampled i.e. who is to be surveyed.  Consumers SAMPLE SIZE It is the substantial portion of the target population that are sampled to achieve reliable results. 100------CORPORATE HOUSES/ RESPONDENT/CUSTOMER

SAMPLING PROCEDURE The procedure to choose the respondents to obtain a representative sample, a non-probability sampling technique is applied for the target – market.

Non-Probability Sampling It is a purposive sampling which deliberately chooses the particular units of the universe for constituting a sample on the basis that the small mass that they so select out of a huge one will be typical or representative of the whole.

Judgment sampling: To select population members who are good prospects for accurate information?

DATA COLLECTION

The data collection process is the predefined task that I have to undergo. The data collection process starts right from the first day till the final day on the field. During the whole period a list of different retailers scattered around whole of the South Delhi gets visited on the regular basis. The main task is to analyze the CUSTOMER SATISFACTION, market potential, study of the market share of the company and analyzing the competitor’s strategies.

The survey process is not complete without consulting the Distributor & Retailers. The distributors are the key nodes that make the chain moving effectively. So the response made by them is also an essential criterion to involved and reaching for certain decisions.

There are several ways of collecting appropriate data that differ considerably in the context of money costs, time, and other resources at the disposal of the researcher. The tools used for data collection are as:

PRIMARY DATA

The primary data are those data, which are collected afresh and for the first time. And happen to be original in character. The primary data to be collected for the study are-  Questionnaire – A set of questionnaire is prepared for the cause of collecting different information related to the pre-determined objectives. The questionnaire prepared is in two forms & targeted towards the doctors and chemists differently. The format of questionnaire is structured and non- disguised.  Direct Personal Interview – Under this method of collecting data there is face-to-face context with the person from whom the information is obtained. The data collected are from the respective selected doctors and chemists visited regularly. The pattern used is Structured and Indirect Interview.

SECONDARY DATA

Secondary data means data that are already available i.e., they refer the data, which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them, IN this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in:

 Various publications of the central, state and local governments;  Various publications of foreign government or of international bodies and their subsidiary organization;  Technical and trade journals:  Books, magazines and newspapers;  Reports and publications of various associations connected with business and industry, banks, stock, exchanges etc.;  Reports prepared by research scholars, universities, economists etc. In different fields, and  Public records and statistics, historical documents, and other sources of published information. The sources of unpublished data are many; they may be found in diaries, letters, unpublished biographies and autobiographies and also may be available with scholars and research workers, trade associations, labor bureaus and other public/private individuals and organizations.

DATA ANALYSIS

The customer information centre for Delhi the study covered 100 corporate customers who were using cars between july 2014 and August 2014.

It for the first lime over across the globe that any manufacturer with the largest market share has attained the top rank Hyundai Motors. Hyundai boasts of the maximum share and has the maximum number of vehicles on Indian roads which means that great effort and sound planning is required to keep vehicle problems to a minimum going by the result Hyundai has done quite well Hyundai share the top spot with Honda in the problems experienced section of corporate customer. But Honda ciders only the luxury car segment whereas Hyundai keeps nearly 65% vehicles on Indian roads.

According corporate information higher level employees mostly like Hyundai Sonata, Hyundai Santro, santro xing, ,Getz and Accent ,Hyundai–i10,Hyundai-i20 and Elentra.

Table 1. Break-up on the basis of cars using by the respondents

Cars In Numbers In %

Maruti 196 32 Tata 125 21 Toyota 58 9 Honda 46 8 Hyndai 102 17 Ford 78 13 Total 605 100

Out of 15 respondents under the survey, whole are using different companies’ cars. In total they are using 605 cars of different companies. Hyundai have more customers with 196 customers. Tata have 125., Toyota =58 Honda =46, Hyndai =102, Ford=78,

Which Companies’ Cars You Are Using? (In Numbers)

200 180 160 140 Maruti 120 Tata 100 Toyota

S Honda

R 80 A C Hyundai F 60 O

O Ford N 40 20 0 Company

Interpretation: The 15 corporates under the study are using a total of 605 cars. Under this 605 cars 196 cars are of Hyundai’s.32 % of the total cars under the study. 125 cars are of Tata Motors, 21% of the total cars. They are followed by Hyundai with 102 cars. The other companies like Toyota, Honda, Ford have a number of 58, 46, and 78 respectively.

Table 2. Break-up on the basis of cars using by the Top level Employees

Cars In Numbers In % 50 20 Maruti Tata 38 16 Toyota 48 20 Honda 42 17 Hyundai 40 16 Ford 28 11 Total 246 100

Out of 15 corporate higher level employees are using different companies’ cars. In total they are using 246 cars of different companies. Hyundai and Toyota have more customers with 20% customers each. Followed by Honda 17% and Tata and Hyundai equally have 16%

Customer Satisfaction With Cars Used By Top Level Employees (In Numbers)

S R A C

F O

O N

Interpretation: The 15 corporate under the study, the top level employees are using 246 cars. Out of this 246 cars 50 cars are of Hyundai’s.20 % of the total cars and Toyota’s 48 around 20% also.. 42 cars are of Toyota, followed by Hyundai with 40 cars, Tata’s 36 and fords 28. From these data we can analyze that the Toyota and Honda have more preference by the top level employees, because their number compared with the total is very high.

Table 3: Break-up on the basis of cars using by the Medium and Lower level Employees

Cars In Numbers In % 146 41 Maruti Tata 87 24 Toyota 10 3 Honda 4 1 Hyundai 62 17 Ford 50 14 Total 359 100

Out of 15 corporate’ medium and lower level employees are using different companies’ cars. In total they are using 359 cars of different companies. Hyundai and Tata have more customers with 41% and 24% respectively customers each. Followed by Hyundai 17% and Ford 14%.

Customer Satisfaction With Cars Used By Medium/Lower Level Employees (In Numbers)

S R A C

F O

O N

Interpretation: The 15 corporate under the study, the medium and lower level employees are using 359 cars. Out of this 359 cars 146 cars are of Hyundai’s.41 % of the total cars and Tata’s 87 around 24% also.. 62 cars are of Hyundai, 17% of the total cars used by this segment, followed by Ford with 50 cars,(14%). From these data we can analyze that the Hyundai and Tata have more preference by the lower level employees, because their number compared with the total is very high. From it is clear that the medium and lower level employees preference is for Hyundai and Tata. This is mainly due to price afford ness, availability of spare parts and Diesel engine facilities

Table 4. Split up on the basis of the satisfaction level of Hyundai customers about the vehicle. In % Status Number of Customers 12 80 Satisfied 3 20 Unsatisfied 15 100 Total

The above table shows that 12 customers who are using Hyundai cars are satisfied with the vehicle i.e. 80% of the total. At the same time 3 customers are using Hyundai cars are not satisfied, 20% of the total.

Are You Satisfy With The Hyundai cars (15 Customers )

S R E 7 Yes M O

T No S

U 5 C

F O

O 3 N 1

-1 Satisfaction

Interpretation: The above graphical representation of the satisfaction level towards the Hyundai cars shows that around 80% (12 in numbers) of the customers are satisfied. But a 20% of the customers are not satisfied with the performance of the vehicle.

Table 5. Split up on the basis of the satisfaction level of Hyundai cars customers about the service from Hyundai. In % Status Number of Customers 13 87 Satisfied 2 13 Unsatisfied 15 100 Total

The above table shows that 15 customers who are using Hyundai cars are satisfied with the service of Hyundai car i.e. 87% of the total. At the same time 2 customers are using Hyundai cars are not satisfied, 13% of the total.

Are You Satisfy With The Hyundai cars Service

(15 Customers )

S R E 7 Yes M O

T No S

U 5 C

F O

O 3 N 1

-1 Satisfaction

Interpretation: The above graphical representation of the satisfaction level towards the Hyundai cars services shows that around 87% (13 in numbers) of the customers are satisfied. But a 13% of the customers are not satisfied with the performance of the vehicle. . From this it is clear that the service of Hyundai cars is very good.

Table 2. Break-up on the basis of cars using by the Top level Employees

Cars In Numbers In % 50 20 Maruti Tata 38 16 Toyota 48 20 Honda 42 17 Hyundai 40 16 Ford 28 11 Total 246 100

Customer Satisfaction With Cars Used By Top Level Employees (In Numbers)

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SWOT ANALYSIS

This project has thrown a light on the strengths, weaknesses, opportunities & the threats Hyundai is facing in the Indian market. These can be summarized as:

STRENGTHS: The big & small car from Hyundai is the most advanced vehicle technologically as well as aesthetically. Some more strong points that were reflected during the survey are given below.

1. The outlook of the car has a great appeal and almost every body during the survey was found satisfied with the outlook.

2. The safety features of the car are also one of the strong reasons for the customers to buy Hyundai has the best safety features in its range of the car.

3. The customers have accepted this car as the family car and thus car can be targeted for the families now.

4. The exteriors of the car i.e. size shape, space, headlight the tail light are also appealing and most of the customers arc fully satisfied with these features of the car.

5. The legroom & headroom of the car is very good. The customers are praising this feature very much.

6. All the models of Hyundai Motors. are of EURO II .

WEAKNESS Hyundai even with the best car technically as well as aesthetically is not performing very well in the Indian car market the sales & hence the market share of Hyundai is very low the survey also reflected the weakness of the company.

I. Mileage is the first factor of consideration for and buyer of the small car Hyundai. Santro although performance is very well on this aspect but some of the customers are not at all satisfied as their car is not giving them good average, these small customers can cause disloyalty to the company & Hence the company need to remain consistent as well as this factor should be communicated very well to the customers.

2. Pick up of the car especially while the A/C is on, is also not satisfying the customers.

3. A/C is yet another area, which needs a considerable amount of attention from the engineers.

4. The service network and the availability of spares also is in area causing a lot of problems for the customers.

Those are some of the weaknesses of the company as far the Hyundai is concerned these field need it complete reservation of the features and a complete repositioning and is creating good brand loyalty. These are few points that Hyundai has in its accounts as far the customers are concerned overall the car Hyundai can command a good market but it is now the responsibility of the marketing people to position this car.

OPPORTUNITIES The small car market in India is still in its growing stages and there are a lot of opportunities for the companies in this field. Hyundai has the big car market in India is still in its growing stages and there are as lot of opportunities for the companies in this field all the players except Hyundai Motors arc now and Competition is intense the opportunities for Hyundai are also there in the market.

1. Most of the population in India belong to the middle class who prefer to buy small cars therefore Hyundai has also a lot of opportunities in this field.

Upper Class - Sonata, Tucson Upper Middle Class - Accent, Elentra Getz,Hyundai-i20 Lower Middle Class - Santro, Getz ,Hyundai-i10 2. Spare availability needs a complete exploration from every company this factor is one of the most important for the customers.

3. The service network and the customer care is also the taken.

“These are the Field which needs a complete exploration not only by Hyundai but from every company.

THREATS Every enterprise with its evolution is bound to get certain threats and they need a careful analysis and action. The chief threat to Hyundai is the competition itself. The entry of four major competitors at almost same price has evolved major threats from the customers side the following threats coming in light.

1. The pricing policy of the company is not good the Company some time increases and some time decreases so that customer make uncertainly which make the customers felt exploited.

2. The communication with the customers about the availability and the feature is good but workshop attitudes are not good for owner.

3. With the intense competition to provide the best quality at cheapest price must also be the attention of the top management.

4. , It is the responsibility of the marketing people now to communicate it as the small car to the potential customers.

5. The strong points need more perfection the weak points need more care, the opportunities, need more attention and the threats need a complete change of vision.

FINDINGS 1) Firm wants to know that customer are satisfied or not about the company product and according to Questionnaires Company know that more of people satisfy from the company’s product.

2) The satisfaction level towards the Hyundai cars shows that around 80% (12 in numbers) of the customers are satisfied

3) The customers who are using Hyundai cars are satisfied with the service of Hyundai car i.e. 87% of the total.

4) Firm uses company brochures, leaflets, and people adequate for giving the knowledge about the Hyundai Vehicle's product.

5) Here is a question that does customer satisfy with guarantee and warranty with the product? And firm knew that more than 95% customers are satisfy with the guarantee and warrantee of the product.

6) It is very necessary that customers know about the new product and services from time to time.

7) From where customer go for service and according to survey many customers go to authorized service station and they also want to purchase spare parts from authorized service station because they are satisfy with the service of authorized service station.

8) Hyundai cars were mostly liked by corporate employees.

CONCLUSION

The customer information under the study covered 100 corporate houses/respondents/ customers, who brought cars between June2014 and August2014 in Meerut, Delhi & NCR..

Hyundai has second largest share and has the second largest number of vehicles on the Indian Roads. It means that great effort and sound planning is required to keep vehicle problems to the minimum.. I observe that there is a great demand of skilled & talented employees. There must be a procedure to make the customer aware about different product of the company which is suitable for him. Hyundai has done quiet well regarding customer satisfaction. Hyundai share is the First Top among higher income corporate customer According to corporate information, high level employees mostly like luxury cars Accent, Sonata, Elentra. Etc. and lower level employees preferring Hyundai santro, Hyundai-i10 ,& i20.

Lastly, I must say that this training was very knowledgeable & interesting for me.

SUGGESTIONS

1. MILEAGE: The company is not consistent as for the mileage is concerned. Some of the people are quite satisfied while some are not at all satisfied, extensive communication is thus needed to overcome this problem.

2. PICK UP: Hyundai Santro engine car is very poor especially while the A/C is on. The improvement on the technical aspects should be performed.

3. COST OF SPARE PARTS: The spares Parts of Hyundai are more expensive as compared to the competitor’s. People are not too much aware of the outlets. An effective advertising in this respect is needed.

4. COMMUNICATION: Communication improves customers and dealer relation & interaction. Ineffective communication is creating a big too gap between the customers and the company. Thus it must be improved.

5. ADVERTISING: The advertising policy of the company is not very good. So that improvement should be done to build brand image. These are the suggestions which throws light on the weaknesses of the company and where the company needs to give attention .The marketing department needs to give more attention and position the car again. So that the customer loyalty towards the company can be ascertained.

LIMITATIONS

This project may not fulfill all the expectations of the reader because it faced certain limitations which are as follows:

1) In so many cases the respondents may be biased, this is a frequently occurring error in market research. Adequate sale guards have been provided for the same so as to minimize such errors.

2) The information provided by the various corporate offices are limited, subject to the information revealed ..so many points may be Missing. 3) This study was continued from Meerut to Delhi city with comparatively high living standard in summer scorching heat & busy road. Hence care must be taken while applying these results to other cities.

4) The details of the recommended pattern of the corporate customer behaviour have not been worked out.

5)customers ware not willing Answers properly

6)corporate customer were too busy in his work they were very difficult to be contacted.

DEMOGRAPHIC INFORMATION

Q1.What is your age? …….Years

Q2.For how many years have you been driving? …….Years

Q3. What is your occupation? ……………………………………………..

Q4.Which of the following groups' best describes your household's total monthly income? Rs.10, 000 or less………………………….. Rs.10, 001-30,000…………………………. Rs.30, 001-50,000…………………………. Rs.50, 001 or more………………………….

CUSTOMER CONTACT INFORMATION Name of the Customer: ______Designation ______

Contact Details: a) Village ______b) District ______c) State ______Customers Signature d) Pin no. ______e) Phone no.______f) Mobile ______

Name of the Representatives ______Remarks, if any ______Representatives Signature ______

Q1.Personal Information Name : Address : Gender: Occupation : Age ______a. 20-24 [ ] b. 24-30 [ ] c. 30-40 [ ] d. Above 40 [ ] Income (per month) a. 15000-20000 [ ] b. 20000-30000 [ ] d. 30000-50000 [ ] d. Above 50000 [ ]

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Q2.What kind of vehicle/ four wheeler you are currently using a. Hyundai Santro [ ] b. Hyundai Getz [ ] c. Hyundai Accent [ ] d. Hyundai-i10 [ ] e. Hyundai-i20 [ ] Q3. Which cars you owe? a. Hyundai Santro [ ] b. Hyundai Getz [ ] b. Hyundai Accent [ ] d. Hyundai elentra [ ] e. Hyundai Sonata [ ] f. Hyundai Tuscan [ ] g. Hyundai-i10 [ ] h. Hyundai-i20 [ ] Q4. How did you come to know about the vehicle you on owing? a. Family [ ] b. Friends [ ] c. Office [ ] d. T.V. [ ] e. Newspapers [ ] f. Magazines [ ]

Q5. What according to you are the factors that influence a purchase decision? a. Exterior style [ ] b. Comfort [ ] c. Safety [ ] d. Price [ ] e. Mileage [ ] f. Pickup [ ] g. Technology[ ] h. Powerful Engine [ ] i. Interiors [ ] j. Brand Name [ ]

Q6. How long you have been using the vehicle a. More than three years [ ] b. Two to three years [ ] c. One to two years [ ] d. Less than one years [ ]

Q7. Any area of dissatisfaction with your car a. Exterior style [ ] b. Interior [ ] c. Mileage [ ] d. Pickup [ ] e. Safety [ ] f. Engine problem [ ]

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Q8. How much you satisfied with the services of Hyundai service stations? (Not for non users ) a. Highly Satisfied [ ] b. Some what satisfied [ ] c. Can’t say [ ] d. Some what dissatisfied [ ] e. High Dissatisfied [ ]

Q9. Rating the following factors of: Hyundai Santro Hyundai Getz a. Exterior style [ ] [ ] b. Comfort [ ] [ ] c. Safety [ ] [ ] d. Price [ ] [ ] e. Mileage [ ] [ ] f. Pickup [ ] [ ] g. Technology [ ] [ ] h. Powerful Engine [ ] [ ] i. Interiors [ ] [ ] j. Brand Name [ ] [ ] Q10. How you used mostly your cars a. Business work [ ] b. Family work [ ] c. Sports racing [ ] d. General work [ ] e. Just leave impression [ ] Q11. After having a drive on your Hyundai car how do you feel? a. Exciting [ ] b. Safe drive [ ] c. Can’t say [ ] d. Facing some problem [ ] Q12. Do you recommending your relatives or others to go for purchasing your car. a. Yes [ ] b. No [ ]

Q13. Which factors do you like in Hyundai car?

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a. Mileage [ ] b. Interior/ Exterior [ ] c. Low Maintenance [ ] d. Safety [ ] e. Powerful Engine [ ] Q14. Any promotional scheme offering by Hyundai at purchase time? a. Yes [ ] b. No [ ]

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BIBLIOGRAPHY

 Marketing Research (Author- G C Beri) (Publish by Tata McGraw Hill Publishing Co. LTD., New Delhi) Third Edition (2002)

 Marketing Management (Author- Rajan Sexana) (Publish by Tata McGraw Hill Publishing Co. LTD, New Delhi) Second Edition (2001)

 Marketing Management (Author- R S Sexana) (Publish by Himalaya Publication, New Delhi) Ninth Edition (2000)

 Marketing Management (Author- Philip Kotler) (Publish by Pren Tice-hall of India PVT. LTD., New Delhi) Ninth Edition (2002)

 Research Methodology (Author- Bhandrai) Print 2004, second edition

WEB SITES: www.Hyundai.com www.indiancar.com www.google.co.in

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