Project Work

ON
Automobile Industry

Submitted By
Rachit Kaushik

Sachin Anand

PGFB1335

PGFB1342

Jaipuria Institute of Management

A-32 A, Sector 62, Noida -201309

Maruti Suzukis Profile

In early 1980s Indian Govt decided to produce a small car, which would be within buying
reach of Indian middle class. The obvious place to shop for technology was Japan, which had
developed world class capabilities in small cars by that time. It was not Toyota, or Nissan, or
Honda, three largest players in Japan, but Suzuki, a much smaller company with strong
capabilities in making small cars. Suzuki grabbed the opportunity with both hands and
formed a joint venture with govt. called Maruti Udyog. Maruti Udyog Limited, a subsidiary
of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for about
two decades. Its manufacturing plant, located some 25 km south of New Delhi in Gurgaon,
has an installed capacity of 3,50,000 units per annum, with a capability to produce about half
a million vehicles. Maruti rolled out its 1st car, Maruti 800 with 800cc engine in December
1983. This model targeted at masses and was launched as Peoples car. In early 2003,
Maruti Udyog, a joint venture between Suzuki and Indian Govt. dominated Indias
automobile market with 54% market share and with annual production capacity of 5lac cars.
The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car
Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car
Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.In recent years, Maruti
has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D
hub for Asia. It has introduced upgraded versions of WagonR, Zen and Esteem, completely
designed and styled in-house. Maruti's contribution as the engine of growth of the Indian auto
industry, indeed its impact on the lifestyle and psyche of an entire generation of Indian
middle class, is widely acknowledged. Its emotional connect with the customer
continuesMaruti tops customer satisfaction again for 8t year in a row according to the J.D.
Power Asia Pacific. India Customer Satisfaction Index Study. The company has also ranked
highest in India Sales Satisfaction Study.In keeping with its leadership position, Maruti
supports safe driving and traffic management through mass media messages and a state-ofthe art driving training and research institute that it manages for the Delhi Government.

Hyundai Motors Profile

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest car manufacturer and the largest passenger
car exporter from India. HMIL presently markets 54 variants of passenger cars across
segments. The Santro in the B segment, the Getz Prime, i10 and the Premium hatchback i20
in the B+ segment, the Accent and the Verna in the C segment, the Sonata Embera in the E
segment and the Tucson in the SUV segment. Hyundai Motor India Ltd, continuing with its
tradition of being the fastest growing passenger car manufacturer, registered total sales of
489,328 vehicles in the calendar year (CY) 2008, an increase of 49.6percent over CY 2007.
In the domestic market it clocked a growth of 22.4 percent with 245387 units in 2008, while
overseas sales grew by 92.5 percent, with exports accounting for 243,931 units in
2008.HMILs manufacturing plant is located near Chennai which has advanced production
quality and testing capabilities in the country. In order to provide the Indian customer with
global technology, HMIL started its second plant in February 2008 which produces an
additional 300,000 units per annum, raising HMIL's total production capacity to 600,000
units per annum. Apart from expansion of production capacity, HMIL currently has 260
strong dealer networks Across India.
The production management processes at Hyundai Motor India are overlaid with an
organization-wide implementation of manufacturing best practices like Just-in-time inventory
management, Kaizen, TPM and TQM, that help us in making the world's best cars, right here
in India. Hyundai Motor Company was established in 1967, Hyundai Motor Co. has grown
into the Hyundai-Kia Automotive Group which was ranked as the worlds fifth-largest
automaker in 2007 and includes over two dozen auto-related subsidiaries and affiliates.
Employing over 75,000 people worldwide, Hyundai vehicles are sold in 193 countries
through some 6,000 dealerships and showrooms. Hyundai Motor Company, S.Korea, the
parent of HMI, has been doing considerable work on sustainable Environment Management.
The company has a well defined framework in place for developing products that reduce
pollutant emissions and processes for preservation of natural resources and energy along all
the stages of the product lifecycle from production, sales, use to disposal and has been
awarded the ISO 14001 certification for all its three major plants in Ulsan, Asan and Jeonju in
S.Korea.
Cars of Hyundai

Hyundai deals in wide variety of cars which includes Santro, i10, Getz prime, i20,
Accent,Verna, Sonata, Tuscon, etc.

General Motors Profile

General Motors is the worldwide leader in car manufacture, with a 17% share in the world
auto market. Its products are sold in over 170 countries, and its manufacturing base is spread
across 43 countries and its annual production is roughly 83 lakh vehicles.
It manufactures a variety of vehicles, like the Chevrolet, Pontaic, Cadillac, Oldsmobile, Opel,
Saturn, Geo, Vauxhall, Holden and many more. At the forefront of technological innovations
in the automotive sector, General Motors, since its inception in 1908, has always stood a
shade above the rest. In 1911, it introduced the electric self-starter, in 1933, developed the
front wheel suspension, called the Knee - Action.
OVERVIEW OF GENERAL MOTORS INDIA
General Motors India, incorporated in 1994 as a 50-50 joint venture company with the C.K.
Birla Group of Companies, became a fully owned subsidiary of GM in 1999 when GMOC
bought the remaining shares. The company was restructured in 1999 and was converted from
a Public Limited company to a Private Limited company. GM currently holds 86 percent of
voting shares, and Holden (Australia) holds 14 percent.
In India, GM strengthened its presence with new product launches Chevrolet Optra in
2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly in 2006, GM
India is expected to register a growth of 90% over 2005.
With sales volume going up, the market share of GM India has gone to nearly 3%.
The sales volume in 2005 was 25,155 units while 2007 figure is expected to be around
42,000 units.
FACILITIES IN INDIA
The existing GM India plant was originally built by Hindustan Motors. In 1994, GM India
entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the
45,000-square-meter plant near Halol, 45 kilometers northwest of Vadodara, in the western
state of Gujarat.
In February, 1999, GM bought the holdings of Hindustan Motors and GM India became a
100% subsidiary of General Motors Corporation of USA. The plant produces the Opel Corsa,
Corsa Sail, Chevrolet Optra, and Chevrolet Tavera. The Chevrolet Forester and Opel Vectra
are sold as CBUs (Completely Built in Units) and as imported from Japan and Germany.

Major Manufacturers in Automobile Industry and their Cars

Maruti Udyog Ltd. :Cars: - Maruti 800, Omni, Zen, Esteem, WagonR, Swift, SX4, Alto, Ritz, Grand Vitara.
Tata Motors:Cars: - Indica, Indigo Marina, Safari, Sumo, Nano
Hyundai Motor India Ltd.:Cars: - Santro, Accent, Sonata, Verna, Getz, Elantra, Tuscon, i10, i20
Honda:Cars: - Honda City, Civic
Accord BMW:Cars: - 3 Series, 5 Series, 6 Series, 7 Series, X3, and X5
Other Automobile Companies are:Skoda, Toyota, Hindustan Motors ,Ford ,Toyota, Mahindra and Mahindra, General Motors,
Mercedes
COMMON MARKETING STRATEGIES OF AUTOMOBILE COMPANIES
Advertising in News papers and Magazines:In this companies advertise about the car in various local newspapers like Economic times
and they give detail explanation about the feature of the cars, keeping customers
requirement. They also provide various dealers addresses and contact numbers for reference.
Company also tries to advertise through various magazines like Auto Cars, Overdrive, etc.
Grand Launch :Recently Tata Nano car was grandly launched and created a buzz in market. After the launch
media aggressively took interest in providing the minute details about the car to the customer
by showing test drives, etc.Once the car is launched they give adds in every possible
newspaper, car magazines, put hoardings, display car models in the malls.
Company provides exchange offers to customers:This is one of the most effective ways adopted by the companies and very successful
marketing strategy, which has helped company increase their sales. In this method,
companies provide option to buy a new car of your choice in exchange of their old cars, but
the price of old car is decided by the dealer by looking at its condition. It helps customers, as
they dont need to go anywhere else to sell their old car. This also helps companies to
increase their sale of new cars.

Adding Star Value to product- Brand Ambassador:Companies choose brand ambassadors for their cars to reach wide masses. For e.g. Shahrukh
Khan promotes Hyundai, Abhishek \Bachan promoted Ford Fiesta, Saif Ali Khan and Rani
Mukherjee promoted Chevrolet Aveo and Amir Khan promoted Toyota Innova. Ambassadors
give a special identity to the products.
Companies have started sponsoring reality shows for better visibility:As we all know reality shows are making all time big in television and entertainment
industry. This is really a smart move by automobile companies to gain visibility through
reality shows. The reality shows are aired all over the world and huge number of people
watches it. So companies sponsor such shows and get noticed.E.g. Maruti sponsored Indias
Got Talent show on Colors channel and gifted Ritz to the winner. Indian Idol winner was also
gifted with Maruti SX4.
Mall Displays
Various companies display their cars in Malls so as to get prime attention. People go in Malls
for shopping and hangouts with their friends and family. They conduct small contests and
give gift hampers as prize. Thus they try to attract crowd towards them.
Companies enter market with help of Film:In terms of marketing strategies Chevrolet Aveo found a unique way of advertising by way of
a Yash Raj Film production, Tara Rum Pum. The main motive behind this was to popularize
and promote the product in youth.
Companies Sponsor Go- Karting events:Go-karting events are really booming up among young crowd. And thats the reason we see
craze for participating in go-karting events is on high. People have started taking interest in
the sport and huge crowds turn up for such events. But for sure car companies would to not
like to miss chance of visibility they get in such competitions. Few years before Maruti
Suzuki sponsored Autocross rally. Similarly Tata Engineering has sponsored Narayan
Kartikeyan as Indias Entry in to the World Series motorcar racing.
Personal selling:Personal Selling largely takes place at the Dealers End. The way customer is attended
depends mainly on the Dealer as he acts as an interface between the company and the
Consumer. The various cases in which Personal Selling takes place is Individual Sales,
Corporate Sales, Sales Presentations, Fair and trade Shows. Mostly in case of Individual
Sales the Customer goes to the showroom and takes a look at the product. There he is
attended to by the Sales Personnel of the Dealership. Sometimes the Senior Sales Executive

has to make Sales Presentation to Corporate Buyers. Personal Selling is also practiced at
Trade Fairs and Auto Shows wherein the Company appointed Sales Personnel attend
prospective customers and also book their orders

MARKET SHARE OF AUTOMOBILE COMPANIES

10.1

3.9
1st Qtr

4.3

2nd Qtr
3rd Qtr
4th Qtr

6.7

46.9

5th Qtr
6th Qtr
7th Qtr

13.5

14.6

1st Qtr - Maruti Suzuki Ltd.:-46.9%

2nd Qtr - Tata Motors Ltd.:-14.6%
3rd Qt r- Hyundai Motor India Ltd.:-13.5%
4th Qtr - Mahindra & Mahindra Ltd.:-6.7%
5th Qtr - General Motors India Pvt Ltd.:-4.3%
6th Qtr - Honda Siel Cars India Ltd.:-3.9%
7th Qtr Others:-10.1%
Above market share graph shows us that in automobile industry still Maruti Suzuki is
enjoying highest market share. And then comes companies like TATA and Hyundai Motors
India Ltd.

Marketing Strategies used by Maruti Suzuki

In earlier days when the market was dominated by only few brands like Ambassador &
Premier Padmini, Maruti Suzuki India Limited entered the Indian market with different
strategy. The strategy of the company was to offer a compact, modern and fuel efficient car.
Maruti released its first Maruti 800 car on 14 December 1983 to fulfill the dreams of Indian
customers and became the market leader. Since 1983 till date Maruti Suzuki gradually offered
several choices to the consumer. Due to aggressive competitors today Maruti Suzuki believes
in Innovative Marketing Strategies. With the changing needs, wants & requirements of
customers and markets, Maruti Suzuki is altering their Brand Positioning, Advertising and
Distribution strategy.
BRAND POSITIONING STRATEGY OF MARUTI SUZUKI INDIA LIMITED
Brand Positioning is the most vital concept in a brands strategy. Brand Positioning is also
linked with managing a brands meaning. Today several brand of cars are positioning
themselves on the features like Price, Comfort dimensions, Safety, Mileage etc. Currently
Maruti Suzuki followed a very effective multi-segmentation strategy to grab the different
segments of the market with different versions of its brands. About brand positioning Mayank
Pareek says that, Maruti Suzuki believe in research and before launching a product the Maruti
team does an extensive research on the needs of the customer. Maruti try to understand the

customers demography and psychology to position a brand. Also the company follows the
suggestions made by existing customers.
1. Maruti 800
Considering the middle class & small families the Maruti 800 was launched. The car was also
targeted at the urban professionals. It was projected as a car with minimum maintenance
needs and with greater fuel efficiency. Later the company added some features like MPFI
(Multi Point Fuel Injection) technology & few changes in front grill, head light, and rear
light.
2. Omni:
Earlier the Omni was known as Van. The van was targeted more at businessman, tourist taxis
and large families. It was positioned as a vehicle offering benefits of a car with more space.
But due to some different perceptions of consumers regarding van, after some time the van
was renamed as Omni and was repositioned as the most spacious car. Recently Maruti Suzuki
launched new variant called Omni Cargo which has been positioned as a vehicle for
transporting cargo and meant for small traders.
3. Alto:
Maruti launched Alto with tagline Lets Go. In the TVC of Alto, a young married couple
goes to different destinations in their Alto. By this TVC Maruti positioned Alto as a car for
young people. Also the car has highlighted as fuel efficient car.
4. Wagon R:
Maruti Suzuki launched the Wagon R brand in February 2000. This is one of the successful
brand from Maruti portfolio in the premi um segment of compact cars. Wagon R was initially
positioned on the basis of the functionality platform. Earlier this car was promoted as a
family car with the baseline, Feel at Home. Then as per the changing pattern of market ,
competition and customers Maruti altered the positioning of Wagon R from Feel at Home to
Inspired Engineering to As Interesting as you are and finally to For a Smarter Race.
5. A-Star:

While speaking about A-Star Mr. Shashank Srivastav says that the A-Star was the only car in
the Indian market that was targeted at the urban youth. It is about the new generation of
Indians who are confident. Also in the second campaign which was done around July 2009,
the companys focus was to inform the consumers about the A-Stars K-Series engine. The
current campaign of A-Star focuses on self belief and confidence. Considering the fact that
self belief and confidence are the attributes of youths, Maruti has positioned A-Star very well.
In the current ad campaign a focus has given to a young person who goes for an Interview &
with his confidence and self belief he impresses all.
PROMOTIONAL STRATEGY OF MARUTI SUZUKI INDIA LIMITED
Every company is it a big or small needs an innovative promotional strategy because
promotional campaigns tend to have a huge effect on the reception of the product. Maruti
Suzuki India Ltd has a formidable line-up of vehicles in its stable and has been quite
aggressive about promoting each of its automobile brands. With an intention to face with
cutthroat competition and due to declining market shares, in 2000 Maruti Suzuki cut the
prices of few models like Wagon R, Omni and Maruti 800 because Maruti knew very well
that the Indian consumer is very sensitive about price & this price cut will definitely
beneficial for company. In Jan 2002 to attract the customers, Maruti decided that some of its
corporate assets in Delhi including Marutis manufacturing plant and childrens park
should be promoted. With an intention to promote road safety and efficient driving the
company held carnivals periodically at IDTR. In 2003, to attract the customers Maruti
Suzuki launched attractive campaign like Change Your Life. The company also offered
vehicle insurance for One rupee only. In this camp aign the customers were asked to write
down the chassis and engine number of their vehicles on the entry form and had to answer the
question. In this contest the winners were chosen by a draw of lots and were entitled to gifts
worth Rs.50 million. In 2004, Maruti introduced the 2599 offer under which by paying an
EMI of Rs. 2599 for seven years after a down payment of Rs.40000, a consumer could buy a
Maruti 800. In 2004 Maruti introduced the Teacher Plus scheme, in a tie up with SBI. In
this scheme the bank offered reduced rates of interest for teachers who were interested in
buying a new car.
Rural India is a fast emerging as a focus area in the countrys economy. Maruti knew that
there is a great potential in rural markets & in rural markets, the endorsements of opinion
makers takes precedence over an informed objective Judgment. Considering this fact, Maruti
Suzuki launched a panchayat scheme for such opinion makers which covers the village

Sarpanch, doctors and teachers in government instititutions, rural bank officers where in an
extra discount is given to make a sell. As a part of customer engaging strategy and to attract
the potential customers Maruti organized various melas wherein local flavor is added by
organizing traditional social activities like Gramin Mahotsava are conducted round the year.
As a part of promotional approach Maruti Suzuki promoted Swift & other brands through
sponsoring various live programmes (Dancing shows) like Dance India Dance.
ADVERTISING STRATEGY OF MARUTI SUZUKI INDIA LIMITED
Advertising is one aspect of brand building. Whenever Maruti launched any brand, it
supported that brand with an ad campaign. Marutis advertising campaigns included TVCs,
Radio and Print ads, Point of Sale, Mobile promotions, online marketing, Outdoor
promotions. Marutis advertising strategy focused both on building up its corporate image
and promoting its cars. Marutis campaigns emphasized different aspects of its cars, including
fuel efficiency, looks, space, etc. In the late 1990s, Marutis advertising campaigns were
handled by Lowe India (later known as Lowe Lintas & Partners, India) and Rediffusion
DY&R. While advertising related to Esteem, Zen and Baleno were handled by Lowe India
and the ad campaign of Maruti 800, Gypsy, Omni and Wagon-R were handled by
Rediffusion. With an intention to promote the all brands effectively, in 2000 Maruti decided
to appoint Capital Advertising. In 2003, Maruti Suzuki came up with an innovative
advertising that became popular for its simplicity and clear message. In this ad one child
plays with his toy car & when the father asked him, he replies, Kya karoon papa petrol
khatam hi nahi hota. This ad depicted the fuel efficiency of Maruti Suzuki.
BRAND RELATED ADVERTISMENTS OF MARUTI SUZUKI INDIA LIMITED
Maruti segmented the customers by designing its brand specific advertisements. The
advertising of Maruti was targeted towards the needs and wants of a particular consumer
segment.
1. Wagon R
Maruti launched Wagon R in 2000 and launched an ad campaign with the tagline, ]A Car
Full of Ideas. In May 2009, Maruti launched an outdoor campaign for Wagon R using
billboards, mobile vans, unipoles etc. The outdoor ads of WagonR were placed on 23 outdoor

sites in and around airports of several cities across India. In the ads different backgrounds
were highlighted and each ad displayed a landmark structure from each city with different
messages. For e.g, in Mumbai it was, Welcome to the city of film stars and WagonR, in
Hyderabad, the message was Welcome to the city of Charminar & WagonR.
2. Swift
In 2005, Maruti came up with an ad campaign for its new Swift. The ad campaign included
print ads, teaser TV ads and a TVC. In the TVC ad a Maruti Swift car being driven by a
young couple at high speed on the road without stopping & car stopped only after chased by a
traffic police.
3. A-Star
Maruti has always been advertised A-Star with the tagline of Stop at Nothing which shows
the attitude that this car has always stood for. In this ad Farhan Akhtar was the brand
ambassador during the launch and the launch TVC also shared elements with the Bollywood
hit film Rock On to make it more relatable to the young adult seeking an expression for his
passion. According to Mayank Pareek, Head of Marketing, Maruti Suzuki India Ltd says that
Cyber media is the best Marketing tool. The company has displayed their banners on various
internet sites. And due to boom of Cineplexs and Malls, marketing has become easy.
DISTRIBUTION STRATEGY OF MARUTI SUZUKI INDIA LIMITED
Distribution is an important marketing mix. In earlier days the consumers used to book for a
car and wait for more than a year to actually buy it. Also the concept of Show rooms was
non-existent. Even worse thing was the state of the after sales service. With an objective to
change this scenario & to offer better service to customers, Maruti took initiative. To gain
competitive advantage, Maruti Suzuki developed a unique distribution network. Presently the
company has a sales network of 802 centres in 555 towns and cities, and provides service
support to customers at 2740 workshops in over 1335 towns and cities.
The basic objective behind establishing the vast distribution network was to reach the
customers even in remote areas and deliver the products of the company. The company has
formed the Dealer territories and the concept of competition amongst these dealers has been
brought about. Periodically corporate image cam paigns in all dealership are carried out. In
2003, to increase the competition the company implemented a strategy for its dealers to
increase their profitability levels. Special awards were sometimes given by company for sales

of special categories. Maruti Suzuki had given an opportunity to dealers to make more profits
from various avenues like used car finance and insurance services. In 2001, Maruti started an
initiative known as Non Stop Maruti Express Highway. As a part of this initiative Maruti
developed 255 customer service outlets along with 21 highway routes by 2001-02. Also with
an intention to provide fast service in less time Maruti had offered Express Service Facility.
In the year 2008, Maruti had near about 2,500 rural dealer sales executives, among the total
15,000 dealer sales executives.
Advertisements:Good promotional strategy is adopted by Maruti Suzuki to transform its thoughts to the
people about its products by marketing through advertisement in television, radio, newspaper,
etc. Through radios they try to promote their product by organizing quiz contests and the
person who wins are offered special discounts, gift vouchers, coupons, etc. Through
television they promote their vehicle by showing the utility value, its comfort level.
Some of the strategies used for cars were:Baleno: Missed the flight catch Baleno The most comfortable Car even in long drives.
Esteem: My Daddys Big Car Affordable mid size car Alto: Lets Go The fuel efficient
and affordable car
After Sales Service:Kya yahan Maruti Service Station hai Availability of service stations even in the remotest
place in the country.
Display:If you visit any of the Maruti Dealers showrooms what you will notice is One thing very
similar that is the display. They display only 2-3 cars in the showroom. Well this is the
strategy to make people concentrate on only few choices otherwise they might get distract
and get confused. Here Maruti wins one customer. Tie up with many banks To promote its
bottom line growth, Maruti launched Maruti Finance in Jan 02.Prior to the start of this service
Maruti had started two joint ventures Citicorp Maruti and Maruti countrywide with City
Group and GE Countrywide Today Maruti has tie ups with ABN Amro Bank, HDFC Bank,
ICICI Ltd, Kotak Mahindra Bank, Standard Chartered Bank etc.
Exchange offers:Maruti has also placed its step and progress by marketing through exchange offers. In this it
makes possible to leave and get it replaced for a new one with barely some amount. This is
one of the greatest ways to attract more and more customers and also makes possible to
increase sales.

SBI Maruti Car Loans:The countrys largest bank and the largest car maker have joined hands to make affordable
car finance available to more and more people across the country. The mega alliance makes
car loans available at lower interest rates to a wider section of people, with transparent terms
and conditions.
The unbeatable advantages of SBI Maruti car loans:-Two market leaders in their respective industries with trusted brand names.
-Low interest rates
-No processing fees or hidden costs to ensure transparency.
-Car loans available for diverse categories of customers including govt. employees and
agriculturist.

Marketing Strategies of Hyundai

Advertisements:Hyundai had used Bollywood star Sharukh Khan as Brand Ambassador for promoting their
car. Through this they tried to attract the customers. Promote their product they organized
quiz contests on radio and the person who wins was offered special discounts, gift vouchers,
coupons, etc.They also advertise in Newspapers. In this companies advertise about the car in
various newspapers and they give detail explanation about the feature of the cars, keeping
customers requirement. They also provide various dealers addresses and contact numbers for
reference.
Free checkups:Hyundai arranges free checkups from time to time in which they check for any problem and
advice to visit the nearest service center for servicing. This helps in maintaining good
relationship with customers and tries to keep good image in market.
Exchange offers:As Hyundai deals in second hand cars also. They offer exchange offers to customers. And by
paying adjusted amount customer can get brand new car in exchange of old once. Exchange
offer makes customer happy as they dont have to pay full amount also, they get new car also
and their old car gets replaced also with new one.
Cold callings:-

In this type of strategies old customers are given a relationship call just to know some other
references. This gives a boost to sales and customers also feel a sense of involvement.
Hyundai gets maximum sale through such type of cold callings only.
Events at Corporate Office and Banks:Hyundai tries to attract customers by conducting camps, events at corporate offices and bank
as most of the customers are of middle-age group and corporate offices are good source for
company to attract such customers.
Display:Hyundai keeps attractive display so that maximum number of people gets noticed. And they
even keep their own accessories related to cars at special accessories counter. For attractive
display they decorate their showroom as well as all the cars which are displayed.
SuccessStoryHMILs first car ,Santro came out of the plant in less than 17 months.

It was priced at Rs 289000 was placed in B segment of the Indian car Industry.
The success was not predicted because it was felt that the car lacked an
elegance,appealing lock, moreover the B segmented was dominated by zen at that

time.
Contrary to the expectations santro became a major success ,selling 75000 vehicles

between April 1999 to March 2000 becoming the largest selling car in B segment.
With the success of just one model Hyundai became second largest automobile
manufacturer in India across all segments.

Factors contributing to Hyundai Success in India

They did a close study of the Indian Market.
A complete market research was carried out by the companies top officials.
Ideas and other information was taken from vendors ,dealers and customers.
Surveys in details were carried out.
Analysis of the mindset of customers and their demands.
Launched Santro instead of Accent.
Products with advanced technology were introduced.
Newly innovated market technology.
Some USP of HyundaiHyundai came into Indian Scenario through its own subsidiary HMIL.
It was the first foreign company to establish its own manufacturing unit.

Hyundai also launched a complete new product unlike other players.

Innovations and attractiveness introduced in design and features.
An attractive and intelligent advertising strategy was carried out.
Emphasis on customers satisfaction was given.
Elaborate procedure for Dealer selection which included:

Education Background.
Financial net worth.
Income details.
Investment and loan details.

Business Strategy

Hyundai entry into the market was unique in every sense.

It initially positioned itself as a B-segment car manufacturing company by launching

SANTRO.
Technologically superior products which provided Value for money.
In order to develop a better image it launched innovative marketing strategies

positioning at a better safety, better products and better features.

The Indian Middle class was targeted by providing a affordable family size car.
They basically focused on a car satisfying Indian needs instead of importing a

successful model.
It surveyed market before entering.
They established themselves as a company providing cars that had better features and

was safe.
It positioned itself in stages as a company having cars for entire segment.
Launched Accent CRDi which was one of the best diesel car in its segment.
It was considered as a leap and not a step.
Sonata was positioned as Premium car that was
Dreamt about by Everyone, Owned by select few.

WHAT IS GM'S STRATEGY IN INDIA?

GENERAL MOTORS is one of the largest corporations in the world. In 1999, based
on foreign asset holdings, the UN's World Investment Report (2001) ranked it No 4

among the top 100 transnational corporations.

GM has expanded through green fields too but makes foreign acquisitions also a part

of its global strategy.

India has a fraction of GM's total foreign assets of $68.5billion (25 per cent of total

assets).
GM continued its subtle Indian presence through technical collaboration with
Hindustan Motors, India's flagship car company until 1985. It is this partnership that

brought GM and HM together in the 50:50 Halol joint-venture.

GM as an American company in India is making a German product for the Indian
market, using imported Brazilian engines, and using Indian labour and components.

Local content is 60-70 per cent.

It is also true that GM has deep pockets and its Indian operation is minuscule. Yet, we
should not forget that GM can expand by acquiring foreign companies. So far it really

has not acquired much except to buy HM's 50 per cent share.
A few years ago it secured a 20 per cent stake in Fiat. While GM has allowed these
companies to run autonomously, capturing market share through acquisition is a
sound strategy for global expansion.

INDIAN STRATEGY
1. GM has stakes in Suzuki Motors (20 per cent), Isuzu (49 per cent), and Fuji Heavy
Industry (makers of Subaru 20 per cent).

2. With the latest disinvestments, Suzuki has even firmer control in India and, indirectly,
GM.
So what does this all amount to?
1. GM's grip on the Indian market may be far greater than what meets the eye: A 100
per cent affiliate, indirect engagement through Daewoo and Suzuki, and a partner in
India's largest auto venture MUL

New global Strategy of GM

They are focusing on four key things," said General Motors President and Chief Operating
Officer:

Leveraging our capabilities as a single GM global automotive unit

Driving for stretch results
Pursuing goals with a sense of urgency
Product success around the globe

Entrance of Beat in Indian Market

GMI launched another sedan called the Chevrolet Cruze in the Indian market in October
2009. The Chevrolet Cruze was well received in the Indian market and got good reviews
from industry analysts. The Cruze's powerful engine coupled with its compact design made it
highly suitable for the congested Indian roads. By June 2011, the Chevrolet Cruze had
clocked in sales of 860 units per month, making it one of the best performing premium
sedans in the Indian market. Despite the success of GMI's first small car, the Chevrolet Spark,
the company could not make any significant impact on the Indian automobile sector.
The increase in the sales of the Beat in spite of the problems faced by the Indian automobile
market like increasing fuel prices and high interest rates on vehicle loans was seen by many
analysts as the sign that GMI was finally improving its performance in the Indian market.
Analysts said that GMI had started to understand the preferences of the Indian customers.
They said that high fuel efficiency and the low price tag were the main reasons for the
success of the Beat diesel in India. But some analysts warned that the increase in the sales of

a single model could not be inferred as a turnaround in an automobile market like India which
was turning increasingly competitive.
GMs core strategies
General Motors is restructuring its Indian operations and evaluating its product portfolio as it
looks ahead to improve its market share in the third largest Asian economy.
General Motors CEO Mary Barra said, There are many aspects of the business that we need
to work on to make sure we are efficient. She added that India was significant to GMs
global success story. As car sales are reviving in the country and are expected to grow 5-10%
this fiscal year, GM plans to launch 40 new products in India and other international markets,
excluding China, North America and Europe.
Indeed, GM has been facing a dearth in sales growth despite having a portfolio that includes
compact cars - a hot favorite among Indian car buyers. This is because of stiff competition
from Hyundai Motor Co, Honda and Maruti Suzuki which cumulatively account for twothirds of car sales in the country.
GM is considering of making India as an export hub for the Asia Pacific region
GM may also be considering India as an export hub for the Asia Pacific region, since the
company is beginning to export cars to Chile from its Indian base. India has a population
that would work for lower wages, which may be a reason why the company has suggested
such a move.
The company is shutting down its Australian plant due to the high cost and is expecting to
import cars from India into Australia. Apart from Australia, GM also views South America as
a favorable destination of India-made cars.
Staying ahead of rivals
As the closest rival, Ford , gears up with the planned launches in the next 18 to 20 months,
GM has to gear up its launches as well, though no clear timelines has been indicated by the
management.

Honda has also launched popular models like Amaze, Mobilio and Jazz in India and as the
demand for these models has shown an uptick since their launch, it does indicate that the
companys on the right track. Thus, to compete with the rivals in India whose market share
has been gradually building up, GMs strategy seems to be a solid one to oust them.

Bumpy Road Ahead for General Motors India

Late last month, the company announced its decision to recall 1.14 lakh units of its utility
vehicle Tavera, manufactured between 2005 and 2013, because they failed to meet emission
and specification norms. There has been no official statement on the cause, but media reports
suggest GM engineers manipulated emission tests to comply with government standards. Post
the controversy, GM has fired about 25 people, including Anil Mehrotra (India CFO), Sheila
Jain Sarver (head of GMs India technical centre at Bangalore) and Sam Winegarden (vice
president for global engine engineering).
Source:
http://forbesindia.com/article/checkin/bumpy-road-ahead-for-general-motorsindia/35841/1#ixzz3TneixRtI

The problem doesnt end here. From early July, GM has halted the production of its Sail
sedan and hatchback citing quality issues. It is contemplating are call.

Dealers believe this will affect business.And its not as if GM Indias cars have been selling
big. In June, it sold 6,575 vehicles, down 11 percent year on year.

Can GM catch up in India?

If you look at how GM have done in past three or four years, there has been a significant
increase in volumes, said Pragya Bansal, an automotive industry analyst at Fitch Ratings.
The trouble is that GM isworking from a dismally low base. GM virtually ignored India
during the 1990s . As a result, Japan's Suzuki took a massive lead through its Maruti-Suzuki
joint venture, and upstart Korean car maker Hyundai jumped out to take a market share of
more than 20 percent.
According to the Society of Indian Automobile Manufacturers, Maruti Suzuki India's share of
India's passenger car market fell to 48.7 percent in 2011 from 50.1 percent in 2009. Hyundai's
market share fell to 18.1 percent from 20.6 percent. And Tata Motors dropped to 12.9 percent
from 13.2 percent.
While GM gave back a little ground, too, dropping to 4.4 percent from 4.6 percent, it's still
doing better than during the bad old days. But the real story is sales volumes. India is where
the action is. And even as the big players lose share to new entrants, everybody's sales are
booming. After half-hearted failures with the outdated Escort and various Opel models, Ford
and GM have over the past five years revamped their India strategies to emulate the industry's
most successful players launching made-for-India hatchbacks, increasing their focus on
diesel engines, and cutting prices to the bone.
GM hit the ground running when it shuttered Opel and introduced its Chevrolet brand,
rolling out eight new models since 2003. But its biggest success has come with the launch
of its own cheap hatchbacks the Aveo, Spark and Beat which have come with an
aggressive pricing and merchandizing strategy.
What Chevy did was gave me about 20,000 rupees [$500] worth of freebies
including an audio system, a security system, a gear lock that's not part of the standard
system and other small things like a car cover, black strips and a bunch of stuff, said

Pierre Fitter, a young Indian who recently bought his first car (like many Goans, he has a
Western-sounding name). What really sold me was the free servicing for three years.
No doubt the American carmakers are dipping into the marketing budget to compete with
Hyundai and Maruti-Suzuki. They're also tapping the cheap money flooding US credit
markets post-2008 to finance massive expansion plans in India, with billion-dollar
investments on the cards for new factories that will dramatically increase manufacturing
capacity.
Because of access to cheaper money they're able to undertake massive expansion, said
Fitch's Bansal. Ford is investing about $2 billion in emerging economies, of which $1
billion is coming to India only.