News Reader (New:
Show short preview
Login via Facebook?
You are currently logged in to Facebook. Would you like to autologin to the network?
Remember my choice
» Automobile industries
This is a research report on
section of our research repository.
3486 views, 0 comments, Last Update: Jul 3, 2011.
AUTOMOBILE INDUSTRY IN INDIA
Industry Overview Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles. Snippets
• • • • • • • • • • • • •
The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.
Segment Knowhow Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country.
Page No. 1
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the threewheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. Miscellaneous Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches.
Page No. 2
INDIAN AUTOMOBILE HISTORY During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes.
In Brief The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernisation process since the first car was shipped to India. We will start automotive history from this point of time. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century truned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the
In the begining of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internalcombustion motor car of America, and it was followed by Henry Ford's first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style rather than speed. During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. This was the Indian automobile history, and today modern cars are generally light, aerodynamically shaped, and compact.
Page No. 3
According to Commerce Minister Kamal Nath, India is an attractive destination for global auto giants like, BMW General Motors, Ford and Hyundai who were setting base in India, despite the absence of specific trade agreements.
On the cost front of Indian automobile industry, OEMs are eyeing India in a big way, investing to source products and components at significant discounts to home market. On the revenue side, OEMs are active in the booming passenger car market in India.
• • • • • •
By 2010, India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore and Ford about Rs 350 crore. Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment.
Why India The economy of India is emerging. The following table show the ranking of India in the past four years.
Rank 1 2 3 4 5 6 7 China India
2004 China Thailand India Vietnam USA Russia Indonesia
2003 China Thailand USA Vietnam India Indonesia Korea
2002 Thailand USA Indonesia Vietnam India Korea
Thailand Vietnam USA Russia Korea
Page No. 4
Scaling costs Optimising resources
Note: Excellent source for IT based engineering solutions - for products & process integration. Facts & Figures The automobile industry in India is on an investment overdrive. Be it passenger car or twowheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000 crore of investment by 2010. Take note of this, Maruti Udyog is coming up with new Zen and the diesel version of Swift during the next few months. Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will be launching a mini and may be a compact car. Most of the companies have made their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing capacity of 2.5 lakh units per annum for an investment of Rs 6,500 crore (Rs 3,200 crore for diesel engines and Rs 2,718 crore for the car plant itself). Hyundai and Tata Motors have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 crore to India, Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore, Ford about Rs 350 crore and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs 3,000 crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. Some new entrants will also taste the water. They are the big names in passenger cars like Citroen, Volkswagen AG, Nissan (separately, apart from its tie-up with Suzuki), Alfa Romeo, Maserati, Land Rover and Aston Martin. Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each announced well over Rs 1,000 crore of investment. In two-wheelers segment, Chinese bike major Lifan Harley-Davidson are expected to enter India soon. Hero Honda is about to establish its fourth manufacturing plant.
Page No. 5
INDIAN AUTOMOBILE INDUSTRY GROWTH The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent. Current Scenario
• • • •
The Indian automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.
• • • • •
India, sourcing base for global auto majors. Passenger car and motorcycle segment is set to grow by 8-9%. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent. Estimated component market size is US$ 6.7 bn.
Facts & Figures India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 200203. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said. Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually. In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per
Page No. 6
cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers. The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.
Indian Auto Market Growth for the year 2005-06
• • • • • • • • • • • •
The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005. Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
• • • •
Fast paced urbanisation to rise from 28% to 40% by 2020. Upward migration of household income levels. Middle class expanding by 30-40 million every year. Growing working population.
Page No. 7
VEHICLE PRODUCTION IN INDIA India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks Automobile Industry is the largest industry in India with an impressive growth in the last two decades. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalisation of the sector. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans. Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors. In 2-Wheelres segment, Hero Honda is leading putting behind Bajaj Auto Ltd. Check the table below to get complete figure. Current Scenario
The growth rate of Passenger Cars in 2004 was 30% in India where as the average growth rate of top 12 Passenger Cars producing countries were just 5.1%. In Heavy Trucks it was 32% and 14.6% respectively. Component industry's growth was only 9% between 1997-2000. But between 20002005 it has grown to 20%. It is projected 17% between 2005-2014.
• • • • •
Largest industry in India. By 2010 there will be 13,008 million cars. Maruti Udyog Ltd. is the leading 4-wheelers manufacturer. Hero Honda is the leading 2-wheelers manufacturer. 2-wheelers are produced most followed by 4-wheelers and 3-wheelers.
Page No. 8
Production of 4-Wheelers 2005-06 (Apr-Mar) In Nos. 572,097 41,361 11,946 670,379 European OEM Skoda Auto India Pvt. Ltd. Daimler Chrysler India Pvt. Ltd. Volvo India Pvt. Ltd. Tatra Trucks India Ltd. Fiat India Pvt. Ltd. Total Production of 2-Wheelers 2005-06 (AprMar) In Nos. 2005-06 (Apr-Mar) In Nos. 9.767 1,780 1,004 125 671 13,347 2005-06 (Apr-Mar) In Nos. 260,440
Manufacturers Japanese OEM Maruti Udyog Ltd. Honda Siel Cars India Ltd. Swaraj Mazda Ltd. Total
Manufacturers Korean OEM Hyundai Motor India Ltd. American OEM
Toyota Kirloskar Motor Pvt. Ltd. 44,975
General Motors India Pvt. Ltd. 30,687 Ford India Pvt. Ltd. Total Indian OEM Tata Motors Ltd. Mahindra & Mahindra Ltd. Ashok Leyland Ltd. Force Motors Ltd. Eicher Motors Ltd. Hindustan Motors Ltd. Total 449,878 128,601 65,085 35,728 24,348 15,458 719,098 26,946 57,633
Manufacturers Japanese Hero Honda Motors Ltd. Honda Motorcycle & Scooter India (Pvt.) Ltd. Yamaha Motors India Pvt. Ltd. Suzuki Motorcycle India Pvt. Ltd.
3,006,486 Bajaj Auto Ltd. 603,436 248,665 2,328 TVS Motor Company Ltd. LML Ltd. Kinetic Engineering Ltd. Majestic Auto Ltd.
2,042,289 1,366,866 107,044 82,392 56,819
Kinetic Motor Company Ltd. 53,880 Royal Enfield (Unit of Eicher 30,596 Ltd.)
Page No. 9
If we take a quick look of almost a decade, it is seen that two-wheelers are the most produced in automobile industry followed by passenger cars and then three wheelers. The following are the number of units produced in 2003-04 and 2004-05 (April-Sept. 04) of different segment of vehicles: Name of the Sector No. of units 2003-04 Commercial Vehicles Cars Multi-Utility Vehicles 2-wheelers 3-wheelers Total 9 12 5 12 4 42 275224 842437 146103 5624950 340729 7229443 Production 2004-05 (April-Sept. 04) 156815 465983 114739 3023805 177554 3938896
Page No. 10
AUTO EXPORT INDIA In auto export, passenger vehicle exports have grown over five times from the start of the decade and two-wheeler exports have reached more than double.
Foreign auto makers, including Ford Motor Co. , General Motors Corp., Honda Motor Co. Ltd., Toyota Motor Corp., DaimlerChrysler AG and Hyundai Motor Co. Ltd., are looking to increase their presence in India and use it as an export hub. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.
• • • •
In 2003-04 the export of the industry was 55.98%. Two-wheelers are mostly exported from India. The reason behind the export is cost competitiveness in terms of labor and raw material. The export of auto components has grown to 19% from the start of the decade.
Facts & Figures The Indian automotive export industry presently is finding a good recognition globally. The auto industry along with the component industry is contributing to the export effort of the country. In 2002-03, the export of the automobile industry had registered a growth rate of 65.35%. In 2003-04, it was 55.98%. The following table briefs about the 2003-04 and 200405 (upto April-Dec. 2004) automobile export in numbers. Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Percentage Growth 1998-99 25468 2654 10108 100002 21138 -16.6 2004-05 (Apr-Dec) 121478 3892 19931 256765 51535 32.8
Page No. 11
Export of Auto Components: Investments in the auto ancillary sector are rising rapidly. In 1997, the size of the auto component industry was US$ 2.4 billion and now in 2004-05 it has become US$ 8.7 billion industry. The export of auto components has grown at a compounded growth rate of 19 per cent over the past six years. Jai Parabolic Springs (JPSL) is a leading manufacturer of parabolic springs in India and has bagged two major orders from international auto majors, General Motors (GE) and Ford. Robert Bosch, auto parts maker of Germany has relocated manufacture of certain products to MICO, India. Crosslink International Wheels, Malaysia's leading automobile security provider Wheels Electronic SDN, is setting up its manufacturing unit at Baddi to make India the export hub for the SAARC region. PSA Peugeot Citroën, French automobile group has placed orders for components worth US$ 10 million with Indian companies. Fiat India exported components worth US$ 8.3 million in 2004-05 to its operations in South Africa. GKN Driveline and Dubai based auto ancilliary major Parts International plans for an investments in India.
Page No. 12
Analysis of Indian Exports: • Cost competitiveness in terms of labor and raw material. • Established manufacturing base. Economics of scale due to domestic market. Strengths • Potential to harness global brand image of the parent company.
Global hub policy for small car like Hyundai, Suzuki, etc. Perception about quality. Infrastructure bottlenecks. Huge export markets such as Europe, America, Africa, and others for Indian cars. China, Malaysia, Thailand, etc. Many other countries also have strategies for export promotion.
• • •
Export Imperatives: Internal Factors:
Attaining high quality for global standards. Continuous cost reduction for global competitiveness.
Improve infrastructure (ports, roads, etc). Improve EXIM regulations.
Page No. 13
VEHICLE DISTRIBUTION IN INDIA Maharashtra has maximum number of registered vehicles in India. Overview In this section we will discuss about distribution of vehicles in Indian States and Union Territories. If we look at the graph of vehicle distribution by area, we will learn that in Maharashtra, maximum number of vehicles ply. Check yourself from the following details: Non-Transport Vehicles in States
• • •
Maharashtra has the most number of vehicles followed by Tamil Nadu and Gujarat The figures are are 8133837, 8004982 and 6508397 units respectively. In cars , Maharashtra leads the path with 831261 registerd cars and next to it is Tamil Nadu and Gujarat haveing 690271 and 504801 registered units respectively. In two-wheelers, Tamil Nadu has registered the maximum units, 6260093.
Transport Vehicles in States
• • • •
Maharashtra is the leader once again with a total of 1066610 registered vehicles. In Light Motor Vehicles for goods Maharashtra has registered 228157 vehicles, Tamil Nadu with 195069 vehicles holds the second position. In Light Motor Vehicles for passengers, Maharashtra tops by having 463550 units and Kerala follows with 276244 units. Most number of taxis ply is Tamil Nadu which is followed by Kerala and then by Maharashtra. The figures are 110080, 108503 and 94920 units respectively.
Non Transport Vehicles in Union Territories
Total non-transport vehicles in the Indian Union Territories are 4669433. Delhi has the maximum registered non-transport vehicles plying, 3751582. Next is Chandigarh with 548790 and Pondicherry with 275422 registered vehicles.
Transport Vehicles in Union Territories
Total number of transport vehicles in the Indian Union Territories are 6999998. Delhi has the maximum registered transport vehicles plying, 219288. Next is Pondicherry with 17054 and Chandigarh with 12985 registered vehicles.
Page No. 14
TRANSPORT IN STATE Total transport vehicles in the Indian states are 6735291. Among them Maharashtra has the maximum registered transport vehicles plying. Next is Tamil Nadu with 786568 and Gujarat with 719479 registered vehicles. The following pie-chart and table will give you a complete picture of transport vehicles in different states of the country.
Page No. 15
Transport States Andhra Pradesh Arunachal Pradesh* Assam Bihar Chhatisgarh Goa (c) Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharastra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura** Uttaranchal Uttar Pradesh West Bengal TOTAL STATES (P) Trucks & Light Motor Light Motor Total Buses Taxies Lorries Vehicles(Goods) Vehicles(Passengers) Transport 124691 2323 79743 48212 36785 26586 174062 126109 27445 28099 60601 96144 70668 72267 228198 5812 14028 2742 43516 52301 73741 155932 1486 263221 4499 8584 92863 239166 2159824 1151229 1206 1994 49160 10730 58198 14130 66200 555 12651 14726 665 9702 299 9646 245935 1430 24886 66316 6593 8975 275740 33258 2611 13808 33261 187262 276244 43055 463550 2395 2934 858 11279 19667 34442 59125 509154 5272 136628 167877 78983 47785 719479 229370 59885 81317 123216 436949 639883 221587 1066610 11939 24819 8943 64546 126963 168731 306726 6065 147087 7901 6222 74692 42362 2091888 786568 17036 35949 272867 380144 6735291
16707 15493 21149 1900 18979 4504 7720
188510 44250 36917 8091 12752 5190 13909 8918
9098 20256 87365 29239 36939 122393 62075 10850 3
27421 23895 54949 228157 51785 94920 1017 2358 2827 794 4441 357 5030 3343 3316
25391 14734 14870 31767 17601 11180 10644 53036 27989 228 287 4064 11008 0 1375
195069 71111 1276 4392 1985
50433 25357 29522 35226 63390 53329 79905 2 8
Page No. 16
NON TRANSPORT VEHICLE IN INDIAN STATES Total non-transport vehicles in the Indian states are 55363601. Among them Tamil Nadu has the maximum registered non-transport vehicles plying. Next is Maharashtra with 7067227 and Gujarat with 5788891 registered vehicles. The following pie-chart and table will give you a complete picture of transport vehicles in different states of the country.
Page No. 17
Non-Transport States Two Wheelers Cars Jeeps Omni Tractors Trailers Others Buses 60325 333 9801 @ 111200 38598 451 358983 23 11763 10149 12381 8702 483 547 10328 44489 155 Total (NonTpt.) Grand Total 5001623 21144 656663 1121398 1076051 397446 6508370 2278489 268345 398482 1101116 3738401 2552171 3458988 8133837 97346 73382 37204 196733 1358586 3307604 3486679 14159 8004982 57428 457454
Andhra Pradesh Arunachal Pradesh* Assam Bihar Chhatisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharastra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura** Uttaranchal
3985049 312096 10605 372825 709213 881248 280787 2340 95063 61832 34365 64735
54631 32394 2260 13861 @ 7127 @ 69692 8777 10579 21756 70864 26793 35111
3485 4492469 179 15872 520035 953521 997068 349661
8572 19913 66497 33861 4779 1869 3688
4702529 504801 104263 1356957 238816 149286 230577 844973 34472 64307 82907
1269 267113 194501 14415 5788891 24671 2049119 3656 1006 5555 208460 317165 977900
2527674 405621 1449154 336540 2600989 134045
40944 36453 119040 119905 51815 3301452 1823 18412 1912288
304760 151529 10967 3237401
5587662 831261 244025 12599 194902 186100 10678 7067227 68975 21050 16941 44401 1074873 6560 14595 4146 36328 59296 7474 9401 6622 35831 28986 29791 2473 53142 19957 1344 6238 388 414 1205 2584 29954 450552 389489 4 88117 143 30563 1050 708 267 1947 450 1186 441 549 2304 213 772 552 1062 11567 404 55865 85407 48563 28261 132187
25176 12133 1231623 3988 3138873 4053 3179953 8094 38946 67888 7218414 40392 421505
2414928 239210 4441 32634 346784 1176 4954 34877
2429892 179969 120685 6260093 690271
Page No. 18
86035 15637 709797 @ 43803
12367 16662 5655528 # 30222 1986272
West Bengal 1429818 482429
TOTAL 528361 107191 32535 44322784 147582 3255134 957221 55363601 62098892 STATES (P) 6 2 2
INDIAN AUTOMOBILE COMPANIES India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks. Current Scenario
• • • •
Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies components to global majors like Ford, General Motors and Land Rover. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world.
• • • • •
In 1980s Hindustan Motors (HM) was leading car manufacturer in India. HM is popular with its Ambassador model. In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car." Maruti Udyog Ltd. was set up to manufacture budget cars. In 1993 foreign auto makers entered the Indian market.
Facts & Figures The onset of automobile industry in India saw companies like Hindustan Motors, Premier Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers. The era, 1950s - early 1990s was known as 'license raj,' when India was closed to the world and imports. Hindustan Motors (HM) was the leader in car manufacturing and sales until the 1980s, when the industry was opened up from protection. HM, joint venture with Mitsubishi produced Lancer and Pajero, but is best known for its own model, Ambassador. Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned the manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian middle-class. The cabinet passed a unanimous resolution for the development and production of a "People's Car." It was christened Maruti Limited. However, the company as Maruti Udyog Ltd. matured only after the death of Sanjay Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to 1,96,820 cars. 1991, the liberalisation of the Indian economy opened the market for foreign automobile makers to venture in India. The license raj ended in 1993 and many foreign players entered
Page No. 19
the Indian market by way of Joint ventures, collaborations or wholly owned subsidiary.
Global Players in India: Segments Cars/ SUVs
• • • • • •
Companies Suzuki Honda Toyota Mitsubishi GM Ford TVS Hero Honda Bajaj Auto Tata Ashok Leyland Tatra Eicher-Mitsubishi Escorts M&M L&T Punjab Tractors
• • • • • • • • • • • • •
Daimler-Chrysler Skoda Fiat Hyundai Tata M&M Yamaha Kinetic LML Swaraj Mazda Mahindra & Mahindra Volvo New Holland ITL-Renault John-Deere Steyr
• • •
• • •
• • • •
• • • •
Manufacturing Hub in India: Company Hyundai Skoda Ford Maruti Suzuki Honda Export Base for Small Cars.
Hub for exports of cars to neighbouring countries. Exporting CKDs of Ikon to South Africa & other countries. Exports cars to EU. Hub for two-wheelers exports.
Mitsubishi & Yamaha Hub for 125 cc Motorcycles.
Manufacturing Hub for Components:
Page No. 20
Company Toyota Motor Daimier Chrysler Ford Global Hub for Transmission
Particulars Sourcing more than 70 million Euro Full Fledged Component Sourcing Team
Fiat Sourcing Components. AUTO INSURANCE In India, auto insurance is mandatory for all new vehicles, be it commercial or for personal use. Auto insurance, also commonly known as vehicle insurance or motor insurance, is an insurance which consumers can purchase for cars, trucks, and other vehicles. In other words, it is a contract between the owner of a vehicle and the insurance company. According to the contract, the vehicle owner agrees to pay the premium and the insurance company agrees to pay the losses as defined in the policy. Overview Features
• • • • •
The primary use of auto insurance is to provide protection against losses incurred as a result of traffic accidents. The auto insurance provides property, liability and medical coverage. property coverage pays for the damage to or theft of the vehicle. Liability coverage pays for the legal responsibility to others for bodily injury or property damage. Medical coverage reimburses the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Auto Insurance Coverage Levels The basic coverage of auto insurance are cited below:
• • •
The insured party The insured vehicle Third parties
Auto Insurance Claim Procedure The following are the process of claiming for the insurance:
Insured should write the number of the other vehicle in case of an accident or third party claim Names of witness should also be written down
Page No. 21
• • • • •
File an FIR with the nearest police station Insured should then contact the insurance company and get a claim number A surveyor is appointed who reports the approximate value of loss or damage Based on the report of the surveyor, insurance companies try to send the amount to the insured within one to three weeks An individual might have to pay the repair charges himself and later get it reimburse
Documents Required for Auto Insurance Claim Different documents are required for claiming insurance. Here we discuss it under three different types of insurance. For Accident Claims
• • • • • •
Claim form duly signed RC copy of the vehicle Driving license copy FIR on a case-to-case basis Original estimate Original repair invoice, payment receipt from the service center
For Third Party Claims
• • • • • •
Claim form duly signed RC copy of the vehicle Driving license copy Original policy copy Original FIR copy RTO transfer papers duly signed, mentioning that the vehicle cannot be located
Auto Insurance Claim Rejected The claim for auto insurance is rejected under the following circumstances:
If it is a consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage. When the vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in the driver's clause. In case of war perils, nuclear perils and drunken driving.
Page No. 22
CASE STUDY HYUNDAI
Highlights of Hyundai Since the foundation of 1967, Hyundai Motor Company has achieved its position as the leader of the Korean automobile industry through the application of the latest technology and development of its own models. Hyundai cars have succeeded in achieving international competitiveness, thanks to their outstanding performance, quality and safety, as well as Hyundai's high value-for-money ratings. HMC's primary strength lies in new product development. With the belief that it can transform the 'impossible' into the 'possible', HMC is investing in the future by spending heavily in research and development to acquire the high technology needed to develop newer and better products. To accomplish this feat, HMC will be investing a total of 05$6.25 billion by the year 2001 in research and development. HMC is currently investing 5.~/o of its total sales revenues in R&D funds; however, this figure will gradually increase to 8% of its total sales revenue over time. Hyundai has its presence in 168 countries across the globe. The corporate philosophy of the company is to develop mutually beneficial relationships with other nations and communities. The company aims to achieve such goals through organisational restructuring, extensive cost reduction, productivity gains, quality innovations, information technology development, globalisation and corporate image enhancement. With HMC's corporate philosophy of "Customer First, Technology First, Quality First, and People First", the Hyundai spirit will drive its young and motivated workforce towards an exciting future.
Page No. 23
Hyundai Motor Company recorded a record net profit of 414 billion Korean Won or $362.37 million (at prevailing exchange rates) for year ended December 31,1999. With total vehicle sales for 1999 amounting to 1,268,354 units, earnings topped 14.2 trillion Korean Won or about $12.43 billion -a 63 % increase over 1998. Sales of passenger cars stood at 989,046 units and of commercial vehicles at 279,308 units for the year. Total production in 1999 reached 1,269,542 vehicles, comprising 996,634 passenger cars and 272,908 commercial vehicles. Hyundai Motor Company is aiming to achieve total sales of 1.67 million units during the year 2000, with 720,000 sales in the domestic market and 950,000 sales in export markets. The Ulsan plant in Korea is the world's single largest integrated automotive production facility, with annual production capacity of 1.48 million units of a range of vehicles including passenger cars and light & heavy commercial vehicles. The Chonju plant has an annual production capacity for 60,000 units for heavy-duty commercial vehicles. An additional 260,000 units of passenger cars such as EF Sonata and XG Grandeur are produced in the Asian plant. The Namyang Research & Development Centre in Korea is the hub of HMC's R&D efforts worldwide. With five research centres in Korea and abroad, HMC’s research efforts are well organised by function and purpose. In 1999, HMC established the integrated R&D headquarters, bringing together newlyacquired Kai’s R&D with Hyundai’s R&D. following the acquisition of Kai Motor Company, HMC sought to maximize its technological competitiveness by integrating eight R&D centres. The result is six R&D centres located at Ulsan, Namyang, Sohari, Sonaeng as well as the combined car design centre and commercial Vehicle R&D centre. Overseas, HMC maintains, R&D offices in Detroit, Los Angeles, Frankfurt and Japan. With respect to Kai, HMC is maintaining the dual model design relationship, which allows Kai to retain brand identity and enables customers a wider range of selection.
Page No. 24
Hyundai Motor Company, the top automobile manufacture of Korea, entered India through wholly owned subsidiary Hyundai Motor India Ltd in 1996.HMC, Korea, has constructed its largest overseas manufacturing plant in India. The groundbreaking ceremony of the stateof-art plant in Irrungattukottai near Chennai took place in December 1996. With the long term goal of meeting the dreams and aspirations of the Indian people and revolutionizing the concept of driving in the country by launching cars that bring the latest automobile technology to the Indian roads. As a result, Hyundai Motor India has been able to achieve many firsts in the Indian market -Second largest auto-manufacturer in the Indian passenger car industry within one year of operations; Fastest to cross first 50,000 units in the Indian automobile industry; Fastest to achieve the 100000 -unit milestone in the Indian auto-industry, and many others. Milestones • May 6, 1996 -Government of India's approval for 100% subsidiary; Company incorporated • December 10, 1996 -Ground-breaking ceremony at the Irrungattukottai plant near Chennai December 1996 -Santro first developed in Ulsan, Korea • May 27, 1998 -Pilot production of Santro at plant begins within a record 17 months of ground breaking September 9, 1998 -Commercial production at plant begins • September 23, 1998 -Hyundai Santro makes its world debut in India October 14, 1998 -National delivery of Santro commences • • December 31, 1998 -Company completes 8,447 sales for year 1998 March 5, 1999 -The Hyundai Santro advertising campaign starring Shah Rukh Khan wins the best ad campaign award from Advertising Club, Calcutta • March 31,1999. HMIL ends the financial year 1998-99 with total sales of 17,647 units of Santro; Becomes second largest auto-manufacturer in the country.
Page No. 25
August 2, 1999 -Chennai plant goes into 2nd shift production to step up Production volumes and reduce customer-waiting period
September 22, 1999 -First automobile company to announce a two year warranty on Santro October 14, 1999 -Launch of Hyundai Accent
• • •
December 22, 1999 -Hyundai Motor India closes calendar year sales Notches total sales of 60,321 units of both the Santro and the Accent in 1999. January 31,2000 -Hyundai Motor India, achieves its highest sales ever by selling 7402 units of Santro and 1243 units of Accent in January 2000;
February 15, 2000 -Hyundai Santro launch campaign starring Shah Rukh Khan awarded the global Advertising Marketing Effectiveness Award by New York Festivals.
March 31, 2000 -Hyundai Motor India posts As 2310 crore turnover for 1999-2000; Cumulative sales crossed 93,312 units
April 27, 2000 -100,000" Car roll-out from the Chennai plant Assembly-Line in just 19 months of its operations
• • • •
May 8, 2000 -Launch of Santro zip drive June 12, 2000 -Hyundai Santro crosses 100,000 car sales June 19, 2000 -Hyundai Accent achieves the landmark of 10,000 car cumulative sales June 21, 2000 -Launch of Diesel version of Hyundai Accent I. July 21, 2000 -An export-shipment of 760 Accent plus Santro cars rolls out of the Chennai Port for Algeria.
Page No. 26
INDIA ENVIRONMENTAL ANALYSIS
Current market scenario As India celebrates its 50 years of independence, the passenger car industry will celebrated a centenary of its existence in India in 1998. Despite this head start, the industry has never quite matched up to the performance of its counterparts in other parts of the world. The allpervasive atmosphere created by the government's license raj was primarily responsible for this situation. The various layers of Acts sheltered the industry from external competition and smothered the development of the Indian automobile industry. Moreover, the industry was considered low priority as cars were considered to be an "unaffordable luxury." With the liberalization of the Indian economy, the passenger car industry was finally deregulated in 1993 and many companies, both Indian and foreign, announced their plans to enter the market. of adequate technology and purchasing power it resulted in the slow growth of the industry even after a long time since independence. The demand for cars increased from 15,714 in FY60 to 30,989 in FY80 at a CAGR of only 3.5%. The entry of Maruti Udyog Ltd, a GoI JV with Suzuki of Japan, in 1983 with a so-called "peoples" car and a more favorable policy framework resulted in a CAGR of 18.6% in car sales from FY81-FY90. After witnessing a downturn from FY90 to FY93, car sales bounced back to register 17% growth rate till FY97. Since then, the economy slumped into recession and this affected the growth of the automobile industry as a whole. As a result car sales remained almost stagnant in the period between FY97 and FY99. However, with the revival in the economy, FY2000 turned out to be a significant year for the industry in which it recorded volume sales of 638,815 units as against 409,951 units in the previous year. Thus, the CAGR for the period FY96 - FY2000 stands at 16.6%.
Page No. 27
Taking into consideration the rise in expendable income levels and necessity of personal transportation as a result of inefficient or deficient public transportation means, the demand for cars is expected to increase. FY2000 was an indicator of the growth phase to follow, registering a 20-year high growth rate of 56%. The second highest growth was recorded in 1985 at 42% when Maruti had entered the market. Riding on the popularity of the small car segment, coupled with the boost in sales of the mid size segment, total sales grew by 56%. However, such high levels of growth are highly unsustainable in the long run given the fact that there are as yet unutilized capacities in the industry. This would make the question of survival important and carmakers would have to play their cards well to remain in contention. Moreover, sales growth in FY2000 was calculated on a lower base of FY99. Keeping in mind these factors, one could predict a demand growth of 15-20% in the years to follow. Going by this trend, the demand for cars during FY2001 would be around 670,755 units. The flood of new entrants into the car industry as a result of liberalization has led to a complete transformation of the sector. The car segment is flooded with new models from new and existing players, a visible shift from a constrained supply situation to a surplus. In the last decade or so, as many as 30 models have invaded the market, making it a case of embarrassment of riches. Moreover a lot many models are waiting to hit the ramp by the end of the year. The capacity of car production has increased substantially in the last three years and is expected to grow manifold in the coming years. The capacity for car production in the country is expected to increase from around 750,000 in FY99 to 1,210,000 in FY01. The industry will, thus, witness substantial over capacity in the next few years. The car buyer will be the major beneficiary of the marketing war in the segment as they will be able to get technologically better products at good terms and conditions. But with an expected shake out, the threat of discontinuation of a model is also high. Nonetheless, times have changed significantly - the days of the customer chasing the dealer to purchase poor quality cars backed by inefficient service are history. Today, the customer dictates the terms.
Page No. 28
Industry structure The Indian car industry can be classified, based on the price of the car, into the 'small' car or the economy segment (up to Rs0.25mn), mid-size segment (Rs0.25-0.45mn), luxury car segment (Rs0.45-1mn) and super luxury car segment (above Rs1mn). The models in the car market can be fitted to different segments as given below: Category Models Economy segment (up to Rs0.25mn) Maruti Omni, Maruti 800, Padmini Premier 118NE, Ambassador Nova, Fiat Uno, Zen, Mid-size segment (Rs0.25-0.45mn), Hyundai Santro, Daewoo Matiz, Tata Indica, Maruti 1000, Contessa Peugeot 309, Tata Estate, Tata Sierra, Maruti Esteem, Luxury car segment (Rs0.45-1mn) Ceilo Executive, Honda City, Mitsubishi Lancer, Ford Ikon, Opel Astra, Fiat Siena, Opel Corsa, Daewoo Nexia, Hyundai Accent Super Mercedes Benz and other imported models Rs1mn). The demand for passenger cars can be segmented on the basis of the user segment as those bought by taxi operators, government/non government institutions, individual buyers etc. A major portion of the demand in India accrues mainly from personal vehicle owners. luxury segment (Above
The distribution of car sales in FY2000 in terms of the above mentioned segments is as given in the chart below.
Page No. 29
Segment Economy Mid size and Luxury
Market Share (%) 90.2 9.8
The table shows that sales in the economy segment still rules the roost with a large number of entrants purveying their wares in the segment and with a great degree of success too. However, in the past several months, sales in the mid-sized car segment has also picked up thanks to the wider choice set available and a steady rise in income levels. A look at the table below will suffice. Month Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Economy cars 51,355 52,113 44,065 47,299 45,300 45,503 47,322 59,259 45,654 43,396 Mid-sized cars 4,858 5,394 3,250 3,678 6,533 6,141 6,828 10,101 7,587 7,447 % Of mid-sized car sales 8.6 9.4 6.9 7.2 12.6 11.9 12.6 14.6 14.3 14.6
Source: Auto Car India The last ten months saw sales in the small/economy car segment stagnate while that in the mid-sized category has picked up barring a two-month period of October and November 1999 when it fell below 4,000 units. If the percentage of mid-sized cars sold in August 1999 was 8.6% it jumped to 14.6% in May 2000. Delhi leads the others in terms of sales with 38% of sales in the northern region happening there. Its share of nationwide sales is 16.7%. Maharashtra follows next with 10.3% of national sales. Market share The market shares of leading players for the month of May 2000 is as given below: Company Market Share
Page No. 30
Maruti Udyog Hyundai Motors Telco Daewoo Motors Hindustan Motors Ind Auto Honda Siel Others Source : SIAM
52.4% 14.4% 9.9% 11.5% 3.9% 2.1% 1.7% 4.1%
MUL has lost market share during the past two years. From a high of around 80%, it has now come down to 62.2% in FY2000. Offerings from new players like Ford, Hyundai, Daewoo and Telco have captured a substantial market share from MUL. PAL Puegeot and Fiat India, which have commanded a good part of the market in FY97, have now fallen back on hard times.
During FY2000, the economy cars as usual headed the passenger car rally. Maruti which is facing a constant threat from Hyundai (Santro) and Daewoo (Matiz), came out with Japan's largest selling model Wagon R. Also, the mid sized segment saw some action signifying its growth potential. The car market, which had witnessed a flurry of new launches in the economy segment in FY99, was now party to sleek entrants in the mid sized segment from Hyundai (Accent), Ford India (Ford Ikon), Daewoo (Nexia) and Fiat India (Siena). Also MUL (Baleno) and GM (Opel Corsa) belonging to the higher end mid sized segment also hit the ramp. The constantly escalating competition in the economy segment forced the players into further price cuts. Recently, Maruti lowered the prices of its economy cars by as much as Rs40,000. Increased support through finance from auto manufacturers was quite evident in FY2000. This has and will in the future induce existing owners of cars to go for technologically superior products in the same segment leading to sharp drop in prices of second-hand cars.
Page No. 31
This will also create a platform for upgradation of existing two-wheeler owners to fourwheelers. Demand-supply scenario Demand The demand for cars in the past was supply driven, as demand did not match supply. This led to high premium and long waiting periods for the cars. But change in government policies coupled with aggressive capacity additions and upgradation of models by MUL in the early nineties led to increase in supply and subsequently reduced the waiting periods for economy cars. The demand for cars was suppressed by various supply constraints. The demand for cars increased from 15,714 in FY60 to 30,989 in FY80 at a CAGR of only 3.5%. The entry of Maruti Udyog Ltd (GoI-Suzuki JV) in 1983 with a "peoples" car and a more favorable policy framework resulted in a CAGR of 18.6% in car sales from FY81-FY90. After witnessing a downturn from FY90 to FY93, car sales bounced back to register 17% growth rate till FY97. Since then, the economy slumped into recession and this affected the growth of the automobile industry as a whole. As a result car sales remained almost stagnant in the period between FY97 and FY99. CAGR recorded during the FY94-FY99 period was 14.4%, reaching sales of 409,624 cars in FY99. However, during FY2000, with the revival of economy, the segment went great guns posting a sales growth of 56%yoy.
The table below indicates the past sales trend for cars Cars FY94 Volume 209,203 Growth %yoy 27.0 Source : SIAM FY95 264,822 27.0 FY96 345,486 30.0 FY97 410,992 19.0 FY98 417,736 2.0 FY99 409,624 -2.0 FY2000 638,815 55.8
Page No. 32
The demand for cars is dependent on a number of factors. The key variables are per capita income, introduction of new models, availability & cost of car financing schemes, price of cars, incidence of duties and taxes, depreciation norms, fuel cost and its subsidization, public transport facilities etc. The first four factors viz, increase in per capita income, introduction of new models, availability & cost of car financing have positive relationship with the demand whereas others have an inverse relationship with demand for cars. The demand for cars in the future can be estimated with the help of making use of macro economic variables like growth in GDP, per capita income etc. or house hold penetration technique. An attempt is made to estimate the potential demand for passenger cars based on the household penetration level of passenger cars as explained in Annexure 4 of the report. The demand for cars in the future is expected to come predominantly from the existing twowheeler owners who will be upgrading to a four-wheeler, due to rising income and necessity of car for personal transportation purposes. Therefore, excluding the owners of mopeds, the potential demand for cars in the next fifteen to twenty years can be taken as 50% of the existing two-wheeler population of around 28mn units.
But with the release of new models in the higher end of the economy segment, the supply of second hand economy cars is expected to increase substantially, which will be costing just about two times the price of premium range two-wheelers. This could affect the demand for first hand/new cars. Also, with cross demand from utility vehicles, availability of finance and other factors the above mentioned potential for cars will be difficult to realize. Growth in the segment thus is expected to hover around 15-20%yoy. The dominance of economy segment will continue in the future as it will provide large volume to Indian car industry. This is because a majority of customers for cars will graduate from two-wheelers. The demand for mid-sized and premium cars is expected to rise as new models enter the market, income levels rise and present car owners upgrading from the economy segment to higher end cars. Supply
Page No. 33
The supply of cars in Indian industry till 1991, was dependent upon the production capacity of individual players. The production of cars has increased from 42,475 units to 181,420 units from 1981 to 1991 respectively. The growth in production of cars has varied in the last three decades from just 1% in 1970-80 to 21% in 1980-90 and above 15% in 1991- 96. The table below gives the production numbers of passenger cars in the past few years. Cars Production Growth %yoy Source : SIAM FY94 FY95 FY96 FY97 FY98 FY99 207,658 264,468 348,146 407,539 401,002 390,355 27.2 27.4 31.6 17.1 (1.6) (2.7) (excludes the figures related to Daewoo and Honda Siel) FY2000 577,243 32.4
The major increase in production of cars in the 80's was due to the entry of MUL in 1983, which helped increase car production by 20,000 to 30,000 cars per annum till the early nineties. With the entry of MUL, the face of the passenger car industry changed forever. Existing producers who had operated in a protected, high margin environment faced the prospect of not just diminishing market share, but a shift in focus from producing vehicles to selling them. But MUL made use of the opportunity open to its technologically superior product and increased its capacity from 100,000 cars in FY90 to 240,000 cars in FY96 and 350,000 cars in FY98. The opening of economy in 1993, attracted world majors who joined hands with existing auto majors, to start their operations at the earliest. The first ones to enter the field were Mercedes Benz in joint venture with Telco to manufacture E220, E250D models, Peugeot in JV with PAL to manufacture Peugeot 309L, Fiat in JV with PAL to manufacture Fiat Uno. This has helped in increasing the number of models available to the customer from 8 to 30 and hence provided a wide choice to him. This has also helped in reducing the average waiting period and premium on cars, which were a part and parcel of car cost in the eighties. Government Policy The liberal policy on foreign participation through technical and financial collaboration in early eighties led to substantial product upgradation and introduction of new models. But it
Page No. 34
was alleged that the policy was discriminatory in favor of MUL, while others like Telco, PAL, HM were denied permission to produce cars in collaboration with Japanese companies. The GOI controls the car sector by way of framing policies on depreciation norms, import duty on cars and parts used in it, petrol prices and import duty of steel. The perception of a car as a luxury good lead to heavy excise duty on cars. But with the onset of the liberalization process in the early nineties, the government has continually rationalized the excise duty regime. Presently, there is a duty of 40% (16% + 24%) on motor vehicles, designed for transport of not more than six persons (excluding the driver). On vehicles designed for transport of more than six persons, but not more than 12 persons, the duty is 32% (16% + 16%). Over and above the excise duty, cess by the Central Government, states are now charging a uniform sales tax of 12%. This came in being after the 15th of May 2000. Earlier, states used to charge sales tax varying from 3 to 14%. But MUL vehicles receive favorable treatment in terms of sales tax as well.
Policy on petroleum products, auto emission and depreciation On the vehicle emission front, judicial activism has goaded the government to take certain policy measures in the recent past which has led to stricter emission norms for automobiles. As per a Supreme Court judgement, banning registration of all non Euro I compliant cars within Delhi, all vehicles should become Euro I compliant by April 2000. (In the National Capital Region of Delhi, Euro II norms are now in operation) As a result, almost all the existing players and new entrants have started introducing models complying with the said norms. This development has led to an increase in the prices of cars, which by an estimate, could be anywhere between 10-15%. Automotive Policy The main proposals of the new policy are:
Page No. 35
The new ventures would have to indigenise up to 50% within 3 years and 70% by the end of seventh year of starting commercial production. They will have to invest a minimum of $50 million as equity capital over a period of 3-4 years. The venture will have to become foreign exchange neutral over a period of 5-7 years. The ventures will be allowed to export components & ancillaries, apart from cars. A moratorium of 2 years would be given to companies for meeting the export commitment.
• • •
The new policy is expected to provide development of ancillarisation and increase employment opportunities. But for some of the new car ventures, auto policy will be a speed braker as they have to sign a new MOU with the government and make necessary arrangement to meet the new policy.
Although it is possible to predict with some confidence the qualitative impact of individual structural changes, there are difficulties, first, in predicting the quantitative impact of structural changes, and second, in predicting the aggregate effect of simultaneous structural changes that have conflicting effects on profitability. The Indian car industry is still in a nascent stage. The economy car segment accounts for the majority of the cars sold. However, as the economy picks up steam again and the Indian market matures, the car industry will also climb up the learning curve. The industry has virtually no competition from substitutes at
Page No. 36
least for the next decade. High entry barriers due to high capital costs are also a positive indicator for the existing car manufacturers. However, the intense competition between firms and increasing bargaining power of the buyers indicate towards intensifying competition and depressing profitability. It will also lead to an increasing need of working capital for these companies who will be faced with longer credit periods and higher inventory holdings. However, given the low motorization in India and increasing per capita incomes, the potential exists for the Indian car industry to increase profitability by generating significant volumes and reducing manufacturing costs. Significant opportunities exist for players to spot gaps in the market and cater to particular niche markets like sports utility vehicles (SUVs) and minivans. The diminishing power of the supplier industry will help the industry in improving the quality of car components and getting longer payment periods. The key to success in the Indian car market will be offering good-quality cars that offer value for money, run innovative marketing campaigns to attract potential buyers, and offer excellent after-sales service. Companies, which have a range of vehicles in all the segments of the market like Maruti, will be at a significant advantage due to their ability to cross-subsidize models. But, one thing is clear - The great Indian car wars have just started and whichever company wins, the final winner will be THE INDIAN CUSTOMER.
We view the Indian passenger car industry from these five angles leading to the expected changes in the coming years in the underlying structure of the Indian passenger car industry. Rivalry between Established Competitors
Highly Concentrated Industry: The Indian car industry is highly concentrated with Maruti itself accounting for about 80% of all sales. The lack of competition in the economy segment to Maruti 800 has given the company considerable power. Its
Page No. 37
dominance in this segment gives it the power to cross-subsidize its models in the other segments. However, this scenario is changing drastically from last three years with a number of new models being launched to challenge Maruti 800's dominance. The scenario in the economy segment could be similar to that in the premium segment currently with intense price competition. The slashing of Cielo's price by 25% has led to Ford and Opel introducing cheaper models.
Diversity of Competitors: 1984 and 1993 have been landmark years for the Indian car industry. The entry of Maruti in 1984 changed the complexion of the industry as for the first time Indians had the opportunity to buy a car which was comparable to the Japanese automobiles. 1993 was a historic year as the industry was deregulated and India became the latest battlefield for global auto majors. The last few years have seen the industry integrate with the global automobile industry and evolve into being extremely competitive. For the first time, Maruti's position as the leader of the car industry will be severely challenged especially if the three new cars (Telco Indica, Daewoo Matiz, Hyundai Santro) in the economy segment can deliver the promised performance.
Product Differentiation: One of the key trends observed in the car industry during the last decade is that the products of different companies have become increasingly similar especially in the economy and mid-size segment. There is a perceptible shift towards "cars" being treated as a commodity rather than as a consumer good. In the premium car segment in India, differentiation between different models is declining as companies strive to increase volumes by cutting prices. Even Opel Astra has decided to introduce a new model without any frills to reduce its price by Rs. 10 million.
Excess Capacity and Exit Barriers: The entry of numerous players in the car industry can lead to significant over-capacity. This is likely to lead to significant price cuts (as seen by Daewoo's recent price cut of Cielo) as companies will need to generate volumes to cover their fixed costs. The car industry faces high exit barriers in India due to various government laws, which make it difficult for a company to shutdown and fire all its employees. Also, many of the new players have invested heavily to set up new plants and develop the ancillary industry close to its manufacturing location.
Page No. 38
This means that these companies will suffer from high exit barriers and might be forced to continue operations even if they do not generate enough volumes.
Increase in Working Capital Needs: The intense rivalry between the automobile companies will mean that the companies would have to give longer credit periods to its dealers. The substantial over-capacity in the industry will lead to increased inventory holding. These two factors point towards an increase in working capital needs of car companies.
The competition between firms in the car industry is expected to intensify considerably as newer companies will start reducing Maruti's dominance of the market. The expected significant over-capacity in the industry, increasing working capital needs, and high exit barriers coupled with low differentiation between models especially in the economy segment will put downward pressure on prices and profitability of companies. Competition from Substitutes
Inadequate Public Transportation System: In developed nations, city planners have tried to relieve traffic congestion and pollution by creating an efficient public transportation system. However, they have been remarkably ineffective in encouraging motorists to forsake their cars for buses or subway. The public transportation system in India is not only extremely inadequate, it is notably poor in quality. This scenario is not expected to change drastically in the next ten years.
Developmental Stage of Electric Cars: All the major car manufacturers in the world are currently developing electric cars or hybrid cars to reduce pollution in the coming years. However, these technologies will requires considerable length of time to become commercially feasible in developing nations.
The lack of adequate public transportation system coupled with the fact that the electric or hybrid cars are still in the developmental stage means that the Indian car industry faces minimal competition from substitutes. Threat of New Entrants
Page No. 39
Economies of Scale: In the automobile industry, economies of scale act as a significant entry barrier since it is a capital-intensive industry. Globally, it has been witnessed that car manufacturers with low volumes find it extremely difficult to survive given the high per unit cost. The acquisitions of Rolls Royce, Jaguar, Rover, and AMC/Jeep are a testament to this. On the other hand by entering on a large scale, one runs the risk of drastic under-utilization of capacity as observed by Daewoo's experience in India. Since the economy segment cars are expected to drive volume growth in India in the coming years, it is extremely important for a manufacturer to have a model in this segment to reduce his per unit cost.
Government Policy: The license-raj regime of the Indian government till 1991 acted as a significant barrier for any new entrants in the passenger car industry. Moreover, the government's perception of the car being a "luxury" rather than a modern "necessity" resulted in this sector being labeled as "low priority." However, the liberalization of the Indian economy has removed this hindrance.
Excise duty: The car industry had been asking for reduction in excise duty so as to reduce the end prices of cars to customers and increase the slogging demand. With continuation of liberalization and shift in the perception (of car being a luxury product) will lead to reduction in duties over a period of two to three years. This will reduce the prices of cars leading to further boost in demand.
Sales tax duty: The levy of uniform sales tax in all the states, will have a negative impact on the demand front, due to increased prices. Huge Capital Costs: Huge capital costs act as a significant entry barrier and only established companies with deep pockets possess the resources to enter the automobile industry. Significant costs are involved in the development of a new car as can be seen by Telco's Indica which has incurred an expenditure of Rs. 17 bn.
Absolute Cost Advantages: Maruti's presence in the car industry since 1984 gives it considerable cost advantages over the new entrants. Not only are its plants highly depreciated and its cars highly indigenised as compared to its competitors, it has a wide distribution and services network, which will require mammoth resources to replicate.
Page No. 40
Although liberalization of the Indian economy has reduced the impact of government policy as an entry barrier, the car industry still enjoys high entry barriers due to huge capital costs involved in setting up efficient plants and numerous cost advantages enjoyed by Maruti. The recent pull-out of Peugeot is an example that even a global automobile company could find it extremely difficult to operate in India if it faces labor trouble and problems with its joint venture partner. Bargaining Power of Buyers
Buyers' Price Sensitivity: Car buyers in India are extremely price-sensitive especially in the economy segment. Although Maruti had very aggressively responded to price war launched by three new cars in the economy segment , we can expect the price competition to intensify since buyers would be more willing to switch while intense competition among the companies would require them to generate volumes.
Relative Bargaining Power: Gone are the days when the Indian car buyer had to buy one of the 30,000 Ambassadors or Fiats, which were produced. The penetration of satellite television has globalized the Indian customer. The Indian consumer is no longer satisfied with an outdated Mercedes E-220 or Peugeot 309 when one can see the latest S-Series Convertible flying down Rodeo Drive in Los Angeles. Car companies have been forced to revamp their dealer network. From a small shed for a dealership, the shift is towards huge dealerships who not only offer complete range of services for the car but also make sure that the customer has a replacement vehicle so that they may not become immobile. Many companies have mobile squads to take care of the car if it breaks down on the road. The entry of global players has re-defined the dealer-customer relationship in India.
Availability of Easy Financing: The entry of numerous car companies has brought along with it a massive increase in the availability of cheap finance for the Indian consumer. This has led to fierce competition among the car companies and has even led to free gifts being doled out to buyers to lure them to purchase a particular car.
Used Car Market: The used car market is still in the nascent stage in India as compared to the developed nations like United States which have a thriving used car market. A thriving used car market reduces the ownership period of cars and helps in
Page No. 41
increasing demand for new cars. Recently, Mercedes Benz in India was offering discounts of 30-35% for sparingly used E220s as it had decided to phase out this model. The entry of the global car manufacturers has transferred the balance of power into the hands of the buyer. The Indian car buyer is not only extremely price conscious, but also wants the highest value and service. Huge dealerships, member clubs, mobile squads, and replacement vehicles are just some of the sops being offered to the customer. The availability of cheap financing and maturing of the used car market will also increase the choices for the consumers. With many new models waiting to be launched, the Indian car buyer will only have more power to choose and dictate terms to the dealer. Bargaining Power of Suppliers
Diminishing Supplier Power: One of the key trends observed in the global auto industry is the significant increase in outsourcing of car parts. In India, the development of the auto ancillary industry has also brought in this phenomenon. However, the large number of competitors for supplying each part implies that in the coming years, supplier power will diminish to a large extent except for suppliers who have almost monopolistic powers like Mico-Bosch. Also, there is a increasing shift towards reduction in vendor base for a car company which means that the chosen suppliers also have to make substantial financial investments to enhance the quality of their products. Moreover, the lowering of tariffs will expose the Indian automobile ancillary industry to fierce competition from better-quality imports. All these factors will lead to a situation where the automobile manufacturer will have substantial bargaining power with the suppliers in terms of quality and pricing of the product.
Supplier power in the automobile industry will diminish greatly in the coming years due to the large number of competing suppliers, threat of cheaper and better-quality imports, and an increasing trend towards reduction of a car company's vendor base.
Page No. 42
SWOT ANALYSIS FOR HYUNDAI
Strengths Hyundai have basic advantages over its competition 1. First entry advantage: Hyundai was among the first entrants in the small car segment. Daewoo had already entered with its luxury car Cielo. It had slashed the price of the car by 11/2 lacs just six months after its entry because its pricing was high which had
Page No. 43
caused drop in sales. This acted as a negative factor for Daewoo and positive for Hyundai because it was offering a low cost economy vehicle. 2. Dealer network: Its dealer network was spread over 50 cities and 72 authorized dealers. They also had 33 spare service stations along with the 72 service stations provided by the dealers. They had company owned showrooms at Chennai, Delhi and Mumbai. As compared to this, Maruti had only 20 dealers when they started in 1983 and Daewoo was still struggling to get a firm foothold over its dealers in some parts of the country. In case of Indica, Tata just converted all its truck dealers into car dealers. However this worked against them because car dealers are far more sophisticated as compared to truck drivers. 3. Aggressive advertising: it attacked competition by comparing and stating facts and not stating anything negative about the competition. 4. Product pricing: their product was priced in the 3-lac range where it ate all the Maruti 800 customer and also Zen customers. Actually they were trying to provide “A Zen at the price of Maruti”. 5. Spare parts: The cost of the spare parts were kept at 40% low cost than any other company to make them as affordable as possible to the customer.
Weakness Taking into consideration Maruti’s monopoly, (market share of 70 per) the Korean chaebol had to fight a host of odds, besides low awareness levels, before the odd- cent) was one. Looming competition was another. Compatriot Daewoo, already established with Cielo in the mid-size segment, was preparing to launch Matiz. Its distribution network was functional and Matiz was receiving rave reviews in Europe. India’s biggest business house, Tata, was resorting to nationalistic pride to smoothen the entry of its own small car, Indica. There are three critical purchase elements for every customer - the corporate brand, the car brand and the service brand. Hyundai’s Santro was no match for its rivals on any of these parameters. Hyundai could not afford to spare any effort. It began with the customer.
Page No. 44
1. After the failure of a Korean company Daewoo’s Cielo consumer was not sure about an unknown company like Hyundai, which was the second company in line to enter India. 2. They didn’t have the advantage of experience in India. Maruti were the indispensable leaders of Indian automobile industry till now so its was a dicey situation for Hyundai to enter India 3. Existing dealer network of Maruti was so huge that to stand opposite it was not easy. 4. Hyundai had to come up with an integrated plant to expand their grounds in India because they had to produce locally to cut the cost. And for long-term benefits. They had also go through government hassles to set up a fully integrated plant. Whereas Maruti has almost 100 localized production, which help them to decrease prices. Opportunities 1. There was one more positive side to their launch was that both the models that they have launched had being launched all around the world at the same time. Unlike other companies which launched their older models in other countries to India, which affected their goodwill and credibility. 2. They also practice the punch line “leadership through listening”. 3. Net selling: they started selling through auto mart India. All sites may not be doing equally well, but there is certainly are customers on the Internet. There real people who actually want to buy cars. Threats 1. They were the first to introduce road service in India to combat Maruti because their dealer network was to too huge to fight.
Page No. 45
2. Second hand car market was huge in India they tried to counter it by introducing many finance schemes. They also launched Hyundai finance, which was an umbrella for many finance companies. This finance gave as much as 90% finance to consumers, which attracted many second hand car takers. The fact that the Indian customers are not money mined was reveled by the increased in sales of Santro because of its superior technology. Local market trends
Sales, particularly in the small car segment, will drive passenger car sales in the near term. However, within the next two years, capacity is expected to be twice the total demand for cars.
With developments in the small car segment acquiring a degree of stability in terms of price competition, the action is shifting to the mid-size car segment. Sales in this segment will pick up as new models come in and income levels rise but it is still some time till it comes anywhere close to the economy sized segment.
What will also drive car sales is the wide availability of finance schemes by a variety of banks and FI's. Sales in the used car market is also expected to do well as more and more older models get replaced by newer ones at a faster pace. The coming in of Euro III and IV norms will also increase scrappage rates.
In view of expected surplus in the domestic market, India will emerge as one of the leading car sourcing point in the Indian subcontinent.
Overview The modern day passenger car is a modern economy's draught animal, driving the growth of upstream industries like steel, iron, aluminum, rubber, plastics, glass, and electronics and down stream industries like advertising and marketing, transport and insurance. The car industry generates large amount of employment opportunities in the economy. For example in the US, every sixth worker is involved in the making of an automobile.
Page No. 46
The world car production has increased from 44.66mn in 1996 to an estimated 48.3mn cars in 1999. Japan, Canada and USA brought about the major increase, which contribute to 53% of the world's car production. The USA and Japan are the leaders with around 42% of the total world market. However, since the last two to three years, the international passenger car industry has been witnessing an over capacity of more than 30%. The trend suggests that industry volumes may grow by just 2% or around 10mn vehicles per year. If this situation continues for the next few years the world car market may witness shakeout in the near future. Already signs towards this are being observed as the phenomenon of mergers catches on. As per industry experts the number of major players in the world car market may come down from present level of 30 to 5 in next ten to fifteen years. The recent mergers in the international car market are Ford-Volvo, Renault-Nissan, and Daimler-Chrysler. A few more players are expected to join the fray in the next few years so as to strengthen their hold in the world market. Among the top car manufacturing companies General Motors and Ford Motors group of USA lead with a contribution of 15.8% and 11.6%, of world car production, respectively. Volkswagen and Toyota stand third and fourth with more than 9% contribution each to the world car production.
Future trends and outlook Firstly, the international car market is growing by around 2% pa and this set to continue for the next few years. This slow down is due to the increasing level of saturation in the largest car markets of the world. Analysts from EIU state that this saturation level may even translate into negative growth, given the recent trend of carmakers to opt for quality components, which will increase the vehicle’s useful life.
Page No. 47
Secondly, the Southeast Asian crises have been a dampener to the collective fortunes of various carmakers worldwide. According to EIU estimates, some countries in the region have witnessed cumulative falls of 70% this year. In Indonesia record sales reported in 1997 are not expected to be matched until 2005. In Malaysia it is expected to be 2003 before peak sales and production volumes are repeated and in the Philippines the market will take seven years to recover. In Thailand, the market for cars and commercial vehicles is expected to fall from almost 600,000 units per year to 125,000 this year. Thirdly, the global domination by the large automotive players has slowly abated with local manufacturers getting hold over the market. Japan, western Europe and the North American Free-Trade Agreement area comprising USA, Mexico and Canada are expected to account for 71% of the global park by 2005, down from almost 77% at the start of the 1990s. This has come about, as the concept of "region-centric" cars is becoming popular. Key earning drivers Government policy: The GOI policy will continue to dominate the supply of cars. The different norms with great significance to the sector are import duty on CKD/ SKD kits, auto components, foreign exchange and neutralization schedule for new ventures etc. Excise duty: The car industry had been asking for reduction in excise duty so as to reduce the end prices of cars to customers and increase the slogging demand. With continuation of liberalization and shift in the perception (of car being a luxury product) will lead to reduction in duties over a period of two to three years. This will reduce the prices of cars leading to further boost in demand. Sales tax duty: The levy of uniform sales tax in all the states, will have a negative impact on the demand front, due to increased prices. Competition in the sector: With the entry of all the world majors in the car segment, the competition is expected to heat up substantial in the next two years. This will lead to shakeout in the industry and only those companies having a backing of multinationals with strong
Page No. 48
commitment will be able to continue operations in the segment. This may also lead to take over activity in the Indian car industry. Release of new models: The flood of variations in existing and new models will provide wide range of choice for the customer one year down the line. Also these new models will be able to carve a niche for themselves in the crowded market. Outlook International trend
The global automotive car market is growing at a rate of only 2% per annum and is not expected to pick up in the near term. Growth has dropped due to the increasing levels of saturation in the larger car markets of the world. Worldwide the trend is towards ensuring that one's products are superior in terms of quality. This will enhance the useful life of cars and, hence, slow down growth in sales.
The global domination of the larger automotive manufacturers is slowly on the wane and the trend in sales is shifting towards more "regio-centric" products. Automakers that have been enjoying a generally prosperous spell would have to rethink on the way vehicles are designed, manufactured, distributed or sold. Already, players like GM, Volkswagen and Toyota have begun to re-examine their dealer relationships and pricing strategies. Carmakers would now have to think in terms of a new customer focus and provide better financing and servicing.
Strategic tie-ups, mergers and acquisitions have become the talk of the day. A few instances are Daimler Benz's tie-up with Chrysler of the US, Ford's acquiring of Daewoo and tie up with Volvo Car Corporation and Renault acquiring a stake in Nissan. Such deals would certainly lead to economy in terms of costs but it remains to be seen whether they will also create significant new opportunities for growth.
NATURE OF INDIAN CONSUMER
Cars- part of our lives Automobiles have become an indispensable part of our lives, an extension of the human body that provides us faster, cheaper and more convenient mobility every passing day. Behind this
Page No. 49
betterment go the efforts of those in the industry, in the form of improvement through technological research. What actually lie behind this betterment of the automobiles are the opinions, requirements, likes and dislikes of those who use these vehicles. These wheeled machines affect our lives in ways more than one. Numerous surveys and research are conducted throughout the world every now and then to reveal one or the other aspect of automobiles, be it about the pollution caused due to vehicle population in cities, or rising motor accidents and causes, vehicular technology, alternative medicine and so on. Consumer behaviour over the last decade In the Indian context, where resources are scarce, and incomes limited, these points do become relevant, even though most Indians consumers are generally cautious in making their purchases. When it comes to consumer sophistication, the market for cars shows some interesting trends over the last decade. Till around 1991, cars were there to take families from point A to point B. then, suddenly; expensive mid-sized cars rolled in. now cars are trying to become personality statements fro individualists. Most luxury car purchase decisions, though, still seem to be going chiefly by the status underpinnings. So an Opel-Astra and Honda City are same in the neighborhood perception. Many more people see cars, including business associates who need to be meet shoulder-toshoulder. But that’s not the full explanation. After the aeons of frugality, people aren’t at ease with the pursuit of luxury. Many consumers are on different points in the continuum from simple living to visible consumption, from ‘we’ to ‘me’, and from blending in to the stand out. There’s a dichotomy between their upbringing and the new world ideology, and some are torn between the two. With cars, it’s the later that wins. Barring a few non- conformists, Indian consumers are acutely status-conscious. And brand- consciousness is closely related to the perceived status value of the product being consumed Impact of advertising on the Indian consumers
Page No. 50
While most Indians may not go out and buy expensive things they don't need merely due to subliminal media suggestions, the power of advertising can have an impact on discretionary spending and can also result in changes in value systems and personal tastes - particularly so on that small minority of Indians that has the extra income to spend. Taking the recent fascination for cars into considerations. For people to really enjoy the use of a personal car, a country must have enough land for wide roads and large parking lots. And that's exactly how every automobile ad in India shows off new cars. Cars for the Indian market are shown scurrying along wide and vacant highways in dreamy countryside settings, completely unrelated to the actual Indian reality or experience. After all, some of India's most scenic destinations aren't even connected by motorable roads, and virtually all Indian cities are so densely populated that even newer residential and commercial areas are planned with narrow roads and limited parking facilities. There is thus something very surreal about the Indian media's glamorization of the car Impact on Indian industrialists and politicians But it is not only the media, but captains of Indian industry and politicians who have also been hooked by the so-called magic of the private car. Much of the emphasis in this liberalization decade has been on the personal car. Chief Ministers of different states have vied with each other in offering concessions to car manufacturers to set up plants in their states. But no one seems to have paid any attention to the actual economics of owning and running a car. For most Indians, just the running costs of a car are so prohibitive that even with suitable credit facilities, the option of owning a car becomes prohibitive. It is little wonder that the demand for cars has tapered off after a very short-lived boom.
Lack of infrastructure A decade after liberalization, the monthly sale of cars has fallen off to about 45000-50,000 a month. Although each car may contribute 7000-8000 dollars (or more) to the national GDP - consider how so few Indians are being able to afford a car. Even assuming a car lasts for 1215 years - it means that only 6-8 million Indians, (and still fewer households) enjoy the
Page No. 51
benefit of a private car. But imagine, if the country produced better means of public transportation. Assuming that a mini-bus costs only three times as much to produce as a car, and assuming that the average mini-bus seats about 30 people (or more) comfortably, there is a ten-fold increase in transportation options. Even discounting all the problems and headaches of owning a car in India, it is obvious that a car only raises the standard of living for a small minority. But improvements in public transport raise the standards of living across the board. However, this improvement in the overall standard of living may not show up as dramatically in the GDP numbers. Key Demand Drivers • Traditionally, disposable income was perceived as the one critical factor that drove passenger car demand. However, household income is no longer the single most important factor in determining the demand for vehicles. • Other critical factors are the mobility needs of people and the availability of cheap finance. The top three income groups - middle, upper middle, and high - have grown from 10% in 1986 to 17% of the population and covers over 52 million families. The number of high-income households is growing very rapidly, more so in the rural areas. These findings have revolutionary implications for the passenger car market. • The development of the used car market will also play a major role, as the customers will be encouraged to trade in their old cars. The key to the growth of future markets is to make maintenance-free vehicles, to improve the road infrastructure, and to reformulate fuels and lubricants so as to reduce vehicle-operating costs.
NATURE OF CORPORTE CONSUMERS
In India, the corporate consumers were not looked upon as major target market till late 1980’s. However with increasing amount of industrialization and more competition settling in the Indian car market the organisational consumers started getting more and more importance in regards to prospective customer value.
Page No. 52
With the passage of the years, however, the definition of service to change drastically among service providers and the organisational buying behaviour was studied. The increasing amount of awareness about the quality of the product and better negotiable offers made companies in the better position to negotiate with the different car manufacturers. Customer service and personal relationships In Hyundai they believe that customer service is the major thrust for the organisational market and involves forming and maintaining personal relationships. A commitment to service is usually tailored to the needs of all entities, with expectations depending on the nature of company’s business and its objectives in the Indian market. This commitment involves coordination among departments. Relationships are further extended between intermediaries, with the intention of building value and winning repeat business. In Hyundai, they demand that the dealers have to satisfy the certain amount of qualification to live up to the sophistication standards of the customers and keep a sufficient inventory of parts to maintain in acceptable level of customer service. For corporate customers it’s necessary to have relationship marketing for the dealers. The corporate are not entertained by the company but by any of the dealers. The dealers have to appoint for DSA’s for the companies and negotiate with them the price for the lots in which the customers are going to buy. The philosophy of selling in bulk a single model to a particular company, which was followed by the dealers, is outdated. Now days it is believed that cars can be sold in small quantities to different price at negotiable price and hence u can increase your customer base if the product is good and the customer gets value for money concept. The concept of value Hyundai has its own concept of value to be followed by all its dealers because they believe that the dealers the face of the companies and they are the ones who portray the values in the company. Hence, they are given extensive training to deal with different types of the customers. The price factor, which is very critical in the Indian market, is taken care by
Page No. 53
introducing various financial schemes. Hyundai have also gone to the extent of introducing Hyundai finance. PRODUCT AND SERVICE STRATEGY Market testing Originally, Hyundai had intended to launch accent, a 1.5- litre sedan. But market research indicated the need for a compact family car. Hyundai’s team approached the customer with ‘car clinics’. Organised across the country, they were meant to provide an in-depth understanding of the customer with respect to all aspects of a car, based on his experience with existing products. The findings threw up the following critical evaluation factors: price, space, performance, comfort and safety. New-product development strategy Yet, the company observed that Indian roads were often overloaded, what with turbans and sarees to be accommodated. To find a voluminous compact car the company adopted the ‘tall boy’ design of its Atoz operating in Ulsan, South Korea. It was promptly redesigned for Indian conditions, with a modified fuel-injection system and suspension. And thus, in December 1996, was born the Santro. With consumer insights in place, Hyundai went back to the drawing board. Considering the space parameter for a small car, it concluded that the only way to make it look roomier was to increase the height. That also gave Santro a radically different look. The original Atoz grille and tail-light position, which didn’t go down well with the consumer, were changed. In consonance with the poor-quality Indian fuel, Hyundai changed the MPFI (multi-fuel point injection) calibrations and reprogrammed the engine control unit. While most manufacturers are moving to four valves (for performance), Hyundai retained the three-valve cylinder to make a trade-off between power and economy. Product differentiation
Page No. 54
Santro is intended to be something of a miniature sports-utility vehicle(SUV). Unlike the flimsy-looking 800, Santro not only tough, the engine delivers ‘torque’ (how strongly it can pull loads even at low speeds) for traffic-heavy Indian road conditions- giving it a steering feel of power. Almost paradoxically, the car can zip along speedily, when required. And best of all, the seating is high, which delivers ‘road command’ on roads where not just might, but height is right. Brand strategy Trust, Hyundai recognized, was one of the Indian customer’s major concerns. Being a barelyknown Korean group (often confused with Honda), it had to anchor itself in space as a dependable brand. With some dollar 613 million invested in India, Hyundai was keen to pose as the leading alternative to Maruti. Also, it wanted to offer technology that other carmakers had thought too advanced for slowly emerging Indian market. So in October 1998 Hyundai hit roads with a multipoint fuel injection (MPFI) engine the first small car with this relatively fuel-efficient and eco friendly technology. The base LE model priced at Rs.3.1 lacs was very competitive against Maruti Zen, the standard upgrade from the 800 till then. The fancy LS model at Rs 3.7 lacs had power steering, power windows; central locking internally operated petrol lid and other enhanced features. (There’s an even fancier GS model too). Most impressive of all was the manner in which Hyundai introduced this complete family car to Indian household. This was through an impressive ad campaign shot on the young and energetic Shahrukh Khan. The brand gained immensely from positive word of mouth on how trouble free the car was. This went well with the brands sporty, youthful and energetic image. Having made a dramatic entry, Santro chose to downplay its earlier advertising theme preferring to speak of technology and product features. Hyundai wanted Santro to become the first preference to anyone who had once driven or ridden in it. Such was the brands reputation this was not too tall an order.
Page No. 55
To keep the brands buzz going Hyundai need to focus on specific need thus it zeroed in on maneuverability and parkability, and came up with Santro zip drive, and modeled that had a special ad campaign the phrase that rung home, and people are actually asking for zip drive. It has also changed Santro’s line up earlier the top end model used to sell just 20% the rest being the base model. Now zip drive accounts for over half the sales, with top and the base model doing about 15% each. Product innovation It is in the same spirit of keeping the consumer excited by novelty, that Hyundai has recently redesigned Santro’s back hood, tail lights and front fender appearance. DISTRIBUTION STRATEGY The distribution function integrates the functions of physical distribution and logistics in Hyundai. Computerized integration of order processing, warehousing, and dispatching as well as utilisation of technological advances as well as the utilisation of technological advances in communications are essential in the distribution strategy. The distribution strategy is decided by the top level and kept with minimum intermediaries to keep the damage to the product minimum. The distribution channel for Hyundai is by road or rail. Exports are routed though sea. Hyundai has a criterion for selecting appropriate middlemen and guidelines for fostering channel co-operation while considering environmental factors. For the same, it has been choosing the right dealers based on set benchmarks. For example, it is imperative that the dealer builds and nurture relationships with the customer. In Hyundai they believe that technical inputs for product understanding can be taught, what is hard to inculcate is the interpersonal skills and attitudinal change in dealers. Hyundai claims that a large number of its dealers are either MBAs or engineers. It argues that this helped in providing the brand with credibility and a positive word-of-mouth. The impact is evident in the fact that almost 40 per cent of Santro’s sales comes through referrals. It is also learnt that the existing network of 70 dealers have invested close to Rs 300 crore and transporters have added their bit to gear the supply chain to get Santro on to the roads.
Page No. 56
Logistics The logistics program is basically is designed to focus on customer sevice and channel member support. Logistics is mainly done for two things; one for the cars and other for the spare parts. The cars were transported by the centralized plant allover the country. They didn’t maintain any depots and the cars landed directly in the godowns of the dealers. Spare parts had to reach the service stations immediately and hence they had to be stacked in the depots. There were 4 regional depots and the spare parts were dispatched to the dealers from the depots as and when required. All the cars and spare parts were transported through road and rail. By road to eastern, southern and western regions and to northern region by rail, this would help them to control cost. The cars were bought into trucks or trailers and hence there is no chance of the car being damaged or used till it lands in the dealers’ godowns as compared to Premier, which drove the cars all along and the customers never got a brand new cars. Hence quality of the car was maintained.
Page No. 57 DEALER GODOWNS
CHANGE IN GAME PLAN The initial strategy of Hyundai Motor was to introduce both AC and non-AC versions, with the former priced at around Rs 3 lacs while the AC variants would be priced around the ZEN VX to encircle it on both sides, one lower than the Zen while the other would be higher. However, the company has subsequently changed the entire pricing strategy and instead reduced the price of the AC variants by over Rs 45,000 to peg the base model at Rs 2.99 lakhs.
Page No. 58
Hyundai Motor has also dispensed with the non-AC version totally. The design of the nonAC version of Santro does not allow the option to fix an AC later if the customer so wants, unless the engine is totally overhauled. Hence, the non-AC option was decided against and Santro was planned to be launched in AC variants only. FINANCIAL SCHEMES Hyundai has already tied up with Bank of America for the financing of the car and is talking to 18 other finance companies for the same. The cars carry a warranty of one year with unlimited amount. Hyundai is also exploring the options of setting up a car finance company in India, either as a wholly owned subsidiary or through a joint venture with a domestic financial company. India is in the initial stages of motorisation, and this juncture in its evolution favours the small car. PROMOTION SRATEGY ADVERTISING The masterstroke of Hyundai during the launch was the bang-on-target advertising campaign. Saatchi & Saatchi was the chosen as the official agency to communicate in an Indian context -- in 15 or 20-second commercials -- the idea that Hyundai was launching this technologically brilliant car. For short-term quick results a celebrity was the best bet. Shah Rukh Khan was the pivot in this. The celebrity route was preferred over a mere endorsement to involve the consumer to know more about the company and it’s offering. He was to serve as a model Indian consumer who is as ignorant about Hyundai as any other consumer in the country.
AD CAMPAIGNS The Rs10 crore, six-month long 7 ad campaigns featured the ‘fun-loving but mature’ Shahrukh khan in a serialized story of Hyundai persuading him to endorse the brand. The
Page No. 59
campaign has wide-sweeping objectives including a corporate intro, network, technology and finally the product. The teaser campaign that began in April 1998 aimed to build the corporate image for Hyundai. A series of five ads, showing the managing director of Hyundai India, Mr. Kim, introducing the company to Shahrukh and trying to get him to do the Santro ad worked with the mid-market customer Santro was targeting. The whole objective was to create a level playing ground for Hyundai.
SALES FORCE Hyundai had a professional unified 600-sales force set up before the launch with the managing director Mr. Kim, was brought back from Korea headquarter will rest of the team was assembled from the best of the country. Hyundai had B.V.R. Subbu as the director marketing & sales at Hyundai. PUBLICITY News conferences in different parts of the country were called during the launch of the company on the country. There were various News releases highlighting different strategies of the company in different newspapers, magazines, weekly etc. the primary aim was to make the people aware of the story favoring the company and its offerings. SALES PROMOTIONS: For the customers They started their 5-crore campaign in 32 cities by having road shows. 1. In Delhi they held a horse racing at J Jwalia ground and exhibitions organized for the dealers allover the country 2. Also in cities like Nasik, Surat, Pune they had organized entertainment programmes like rock shows, pop shows etc and games. These programmes were conducted for 3
Page No. 60
days period where in the morning they used to demonstrate the cars and in the evening they used held the shows. 3. There were customer loyalty programs. In this programs the dealers to ask them for the feedback or any complaints with the car in the first week month or year called the customer. They also notify the customer about their periodic servicing, any new scheme that have come up. 4. There was a Mills & Mills rally held for all the Hyundai customers in Delhi. This was treasure hunt organized which had an appreciating response. 5. On the launch oh Accent all the Santro owners were invited for dinner party. 6. There was a ‘referral scheme’ introduced by the company in which the company sends a thank you card to the customer and if a customer gives three or more references he is given a free gift or the customers gives 5 inquires free and gets accessories free. 7. The warranties were extended by 1 year for both the cars. The Santro originally had 2year warranty, which was increased to 3 years and Accent’s to two years. This even helped to build confidence among the customers about the company. The company was sending signals that they are here to stay. 8. There was this campaign called catch them young in which the dealers had tied up with the nearby hottest places visited by the youth especially the boutiques, beauty parlours, salons, discos, bowling alleys etc and gave an free test drive coupons, the people who would come for the test drive was given a free wrist watch. 9. There were drawing competitions held by the dealers. The child was provided with colours and paper meanwhile parents were given test-drives and told about the car. At the end of the competition each child was given a gift.
Page No. 61
10. Hyundai also penetrated rural markets they organized demos and set up dealers in Surat, Nausari, Vapi, Jabalpur etc. they also had road shows in Mehssana and Gaziabad were the sales caught really fast FOR THE DEALERS 1. “Push and Pull” strategies for the dealers by offering them discounts and other offerings. 2. The dealers who completed the sales target were given incentives by taking them to yearly trips abroad free of cost. The first year they were taken to Korea to see the plant, the second year to America and the third year to Australia. 3. They ensured that spare parts were sold only by authorized dealers so that the customer would comeback and this would be a revenue generator for the dealer add an extra benefit to the customer as the quality is rest assured as compared to Maruti whose parts are available every where.
MARKETING STRATEGY Positioning strategy In a market that was yet to see clear positionings, the ‘family car’ position was to serve Santro in the long stead. Maruti picked up its service network as a differentiator. Now on a fairly strong ground, Hyundai reacted with user testimonials. Matiz continues its attempt to anchor itself in customer mind space. Khan did the trick, after all. Shahrukh has changed the rules of the film industry and Santro did the same in the passenger car industry. From the day Hyundai made a mid-course correction, dumping the 1,495-cc Accent in favour of a smaller car, it was clear that its offering had to be a complete family car. Yet, given its relative obscurity in the Indian market, it had to offer tangible differentiators. That philosophy has been translated into a superior engine and a spacious interior while air-conditioning has become a standard feature in all the 5 versions of the Santro.
Page No. 62
A company can look after its customers and its changing requirements only if it makes profits. An entity with a bleeding bottomline will find it difficult to service customers needs. This situation can be disastrous for a car manufacturer, which incidentally does not thrive so much on technology but more on customer services management. Strategy is all about common sense and understanding what the consumer wants, what is good for the customer is also good for the company. Hyundai had come a long way from the time when it needed Shahrukh Khan for recognition. The film star offered them instant recognition and helped in brand building when they were fresh entrants into the Indian market. Giving an example, that when he went for discussions with oil and finance companies before the launch of the product, Hyundai was almost an unknown entity in the car business. Six months after the Shahrukh campaign unfolded, the company did not need an introduction to deal with any business segment.
Hyundai’s plan revolved around entering through the volume market and breaking even, which A is what it did by introducing Santro, the tall boy car. It then moved to the mid-range — Accent — to attain profitability, followed by getting a toehold into the premium luxury category through Sonata to reinforce its brand presence. Subbu mentioned that since entry price was critical, it be-came imperative to attain cost competitiveness and commit single vendor source to achieve economies of scale. High levels of world-class localisation were achieved. Hyundai’s underlying theme was leadership through listening to the consumers. The result of its endearing relationship with its customers is reflected now in 40 per cent of is sales coming through customer referrals, and market leadership in its segment.
Page No. 63
Demand and supply In the mid 1998 the government announced ban on carbonated engines suddenly increased the demand for euro 1 vehicles. At the moment only Hyundai Santro and Daewoo’s Matiz had MPFI engine. The sudden spur in demand caused a little unrest in the company and the company had to take a decision of starting too shifts to meet the increased demand. The production, which was around 3500-4000 a year, was increased to 6000 in a span of two years. The company basically took this decision because at that the time the waiting period for Santro was 4 weeks and for which the customer had to pay a premium to get his vehicle fast. To avoid this the step was taken following the company policy. Within seven months of launch in India, Hyundai Motors India (HMI) has sold 20,000 Santros. Daewoo, launching its Matiz in the same slot and same time, has peddled all of 5,000. And yet, Matiz outsells the Atoz, the Santro's parent worldwide. So what did Daewoo do wrong in India? To start with, it learnt nothing from its Cielo pricing debacle. (The Cielo first tried to position itself in the Opel Astra/Ford Escort class with its price, before doing a volte-face and dropping price to Maruti Esteem levels.) Location analysis The $13.5 billion South Korean automaker Hyundai has identified India as its most important overseas production base. The company has outlined investment of over $1.1 billion for its Indian project, which, apart from expanding an integrated production facility for various models, will also include a state-of-the-art research and development centre that will have the capability of designing and developing new models. Why India? In comparison to other third world countries India is much better option due to opening up of economic reforms in 1990. There was survey conducted in 94-95 end by end of 95 end the decision to enter India was taken by the authorities. The primary reasons were that India was a growing market as
Page No. 64
compared to other developing countries and in the automobile there not many players which gave them lots to scope. One more reason that supported their decision was that is some countries there were restriction for 100% subsidiary. They had more limitation that any country where Toyota had entered they couldn’t their put their foot on because they are such a huge competition that Hyundai cannot counter attack them primary reason being that Toyota offers products in all segments of the automobile market and all of their products at qualitatively lot more superior. So India was the country they were looking for. Second car market couldn’t pose as a threat to them because Australia having almost 4 times larger organized second had market still the successfully existed and in India second hand market was completely unorganized so they could make their presence felt in the market. There were also survey conducted to see the viability of the places for plant and the distribution network. Chennai was selected because of its proximity to the port and that that was help them to cut cost as well as Chennai was well connected to land transport. The one more major advantage of Chennai was that the labour their understood English and there were comparatively less labour problems. They had their Korean vendor lobby and they set up their manufacturing around the plant in Chennai. Its Rs 2,300-crore 1.30-lakh-unit-capacity manufacturing facility at Sriperambudur in Tamil Nadu is Hyundai's largest integrated unit outside South Korea. Since Hyundai makes its own engines and transmissions, its costs are more controllable than those of, say, Daewoo, which will be importing Semi-Knocked Down (skd) kits for its Matiz. With an army of 60 vendors, Hyundai has already achieved a localisation level of 70 per cent compared to Daewoo's 45 per cent. Even Maruti Udyog had a localisation level of 25 per cent when it launched the 800 in 1983. Agrees K. Mahesh, the Ceo of the Rs 60-crore Sundaram Brake Linings: "Localisation is critical for cost competitiveness and long-term strategy."
Page No. 65
They also produced certain parts, which were recyclable, which helped them to get concessions as environment friendly company. They didn’t opt for a joint venture primarily because deciding on the strategies wouldn’t take long vis-à-vis in a JV the Indian partner have to be involved which would take much of the time in taking decisions. They were quite clear about the manufacturing base and an integrated plant built to their needs. Initially, they wanted a 1500 cc car but discovered that the need of the hour in India was small car. The Santro was the result and it was ensured that Santro was a State-of-art car with the latest technology. Financials The company has outlined investment of over $1.1 billion for its Indian project. Hyundai Motor India expects to break even in the fourth year of its operations. The company announced the October-launch of five variants of the Santro in the price range between Rs 2.8 lakh and Rs 4.00 lakh. The additional $400 million will be used for the second phase of expansion in 2001 to raise the manufacturing capacity to 200,000 cars per annum. A technical R&D centre and a modern test track will also be set up. The company, which has an equity capital base of $282 million, has pegged the debt-equity ratio of the cost of its Chennai project at 1.5:1, and is negotiating with various banks and financial institutions, both domestic and foreign, for term loans as well as to meet working capital requirements.
EXPLORING GLOBAL STRATEGIES
Foreign markets Hyundai are major players in certain segments in US. In UK, Australia, New Zealand, South Africa they have their presence in mid car segment where they have Accent and Sonata. In eastern countries like Indonesia, Singapore they are not doing well. They are the Major Players in Korea.
Page No. 66
Expansion plans Hyundai is conducting a feasibility study to ascertain if it can manufacture fully built models of the Atoz in India for export to South Korea. The Atoz was the precursor to the small car Santro that has been launched in India. The Atoz has met with phenomenal success in Europe and other export markets. Because of capacity constraints we have had to focus on exports. As a result we have an order backlog of 6 months production in the domestic Korean market. This has also influenced Hyundai's decision to study if the Atoz can be manufactured in India for exports. The Atoz has a different engine capacity. It also has a left hand drive, while the Santro being manufactured in India has a right hand drive. We will have to make some investments to start manufacturing left hand drive cars here. But no decisions have been taken yet. Hyundai's car pant in Chennai is also flexible enough to produce more than one model within a short span of time. Hyundai Motor India launched the successor to the mid-sized car the Accent late next year .it also has the production of Sonata done there, which the new model added to the bandwagon. Hyundai is going to manufacture the Sonata in India with a definite productionising strategy, Sonata will, thus, start off with a local content of 30 per cent. The fully integrated plant now has a capacity of 1.2 lakh cars expandable to 2 lakh cars in the second phase. Exports Hyundai has given a commitment of Rs 4500 crore worth of exports within the next 9 years and expects to start exporting once the Chennai plant is at full capacity operation. This plant not only produces for the domestic market but also for the export markets like Pakistan, Bangladesh, Bhutan, Sri Lanka, Algeria, Indonesia Cyprus, Mauritius, other
Page No. 67
European markets, Nepal and African Market. Among which Algeria being a huge market where they export yearly 1000 Santros and 400 Accents. These engines and components that are exported to Korea will be fitted into cars that are meant for re-export to other markets including Europe and the US. This is expected to free some capacity for the Korean chaebol to cater to domestic demand. Hyundai Motor also plans to set up a manufacturing facility with an annual production capacity of 150,000 gear transmission sets, engines and body shells to be exported to its various assembly facilities in other countries like South Africa, Egypt and Turkey. This will form part of Hyundai’s plan to set up a composite manufacturing base in India for cars and components to be supplied to different overseas markets and production facilities of the company. Hyundai Motor, which has only two manufacturing bases outside Korea India and Turkey plans to export cars from India to South Asian, markets like Pakistan and Sri Lanka, and explore similar possibilities in South East Asian region. India will be the company’s sole manufacturing base for Santro in the world. FUTURE PLANS After entering the premium D-segment with the Sonata launch, Hyundai Motor India Ltd (HMIL) is likely to enter the Sport Utility Vehicle (SUV) segment with its Santa Fe. The company is currently undertaking a feasibility study for the project. However, the vehicle will take another year and a half to hit the Indian market Santa Fe would be produced here instead of adopting the completely built unit (CBU) route. They also have no plans about CBU imports for our new offerings, as our parent company has no concerns about their viability.
Page No. 68
HMIL would be entering the SUV segment only at the upper-end and would not be offering its lower-end SUVs for the Indian market: Santa Fe would be an ideal introduction, as it has an advanced engine to meet Indian fuel conditions. Company officials said that with an indigenous content of 30 per cent, Santa Fe would ideally be priced around the Rs 18 lakh mark. The SUV segment was interesting, though volumes would be typically small. Santa Fe is one of the few American cars currently with a waiting list, according to the company. Santa Fe has a price range of $16,499 through $24,000 in the American market. Santa Fe is an all weather SUV with off-road capability and modern safety features. Similar in size to a Lexus RX300, Santa Fe has all-aluminum V-6 engine.
CUSTOMERS PERCEPTION ABOUT HYUNDAI
Change in choices Over the years the customer focus has changed from public owned vehicles to private vehicles. In private vehicles motorcycles were preferred by the middle and lower classes. However with the entry of small car segment more and more people want luxury on four wheels in the best possible price. The companies in turn have lots to offer with increasing completion in the market and the customer takes the advantage. A survey taken in India about the best possible vehicle to be possessed the passenger car gets the highest rating. Customer for Hyundai In Hyundai customer focus is very essential for the company employees as well as the dealers. The company through various level of training passes this to them. In Hyundai they believe that selling a car is different and having a satisfied consumer is different. Based on these assumptions Hyundai have given its dealers certain guidelines, which they use to achieve better customer satisfaction. These parameters and different from the conventional way the Indian manufacturers look at their customers. Some of them are:
Page No. 69
1. Define customer satisfaction as being equal to sales success in terms of priorities: satisfying customers will result in more sales. Lifetime customers 2. Put customer satisfaction into the context of all dealership objectives: everything you do must satisfy the customer as well as sell cars, service or parts. 3. Only with a vision, and then a solid action plan, will you arrive at your customer satisfaction goals: first: the vision then: the action plan to achieve the vision. Their punch line is LEADERSHIP THROUGH LISTENING They have also formulated a satisfaction index for Indian car customer based of different parameters. This index is based on many parameters including product knowledge, quality of the product, number of after sales services, quality of service, complaint handling, and steps on feedback taken etc. this model was developed taking sample of 100 customers of all the existing brands of passenger cars in India. Based on this customer satisfaction index Hyundai tried to fill in the gaps in the services they provided. The index shows the satisfaction level of different types of customer allover India before the entry of Hyundai and other foreign companies in India: Think :
35 30 25 20 15 10 5 0
le dg e
y qu a lit
fe ed b
pr od u
Page No. 70
or ks ho ps
de al er s
se rv i
pr ic e
Index shows that there was hardly any concept existing such as feedback, service and product knowledge. But customers were not knowledgeable in case of price, which is prevailing the world over; in short the customer had little option about the price. Quality and after sales services (in case of network) was satisfactory because the quality concept was introduced by Maruti which in comparison to Ambassador or a Fait was far more better and all the local Customer survey For the purpose of the final analysis of the service perception carried by the company and perceived by its customers there was survey conducted in which the customers voice their perception about the company. The given survey shows that the not all what is said and done is what the customer thinks about the company. However, the over all perception on an average is good, if not excellent. The product is good but the availability of spare parts is minimum because the company doesn’t want any circulation of spare parts. However the customer does not agree fully with the company it wants its servicing cost to be less and instantly.
Page No. 71
Related to Automobile industries
View of a MARBLE industry
Endgame in the U.S. Automobile Industry
SHREEJI CABLE INDUSTRIES
Bhagwati Industries : Production Management !!
Competition, Regulation and Strategy in Industries with Consumer Side Scale and Scope
Century Textiles & Industries Ltd..
Report on Opportunities in UK Aerospace and MRO Market
Report on Opportunities in Indian Aerospace and MRO Market
Research Report on China Tyre Market
CNG Vehicle Market in Europe 2011-2015
Finanacial Statement Analysis
GSA Industries case study
PROJECT ON PBL ROLE OF SMALL SCALE INDUSTRIES IN DEVELOPING NATION
Vietnam Automobile Forecast 2014
The Automobile Industry Under Concern
financial analysis of indian automobile sector
Volkswagen AG : Automotive - Company Profile, SWOT & Financial Report
Automotive Lighting and Signaling Equipment Market in China
American Auto Refinance Helps You Refinance Your Auto Loan Quickly
Family First Dealer Services and MUDD Advertising Announce Marketing Partnership for Trade-In...
Start a agro based industry
Being "SIKANDER"'s Documents
created 3 year(s) ago,
1024 views, 0 comments
Mc donalds ma..
created 3 year(s) ago,
3818 views, 2 comments
coca cola mar..
created 3 year(s) ago,
2311 views, 3 comments
Terms & Conditions
Buy Entrance Exam Forms
Your Link Here
Copyright 2004 - 2015 Management Paradise.
Site Developed by Available.co.in
There was an error processing the request. Please try again.
Login via Facebook?
You are currently logged in to Facebook. Would you like to autologin to the network?
Remember my choice