a study of safety awareness in customer while purchasing a new car: A study of Indian Passenger Car Market with special reference to ( Maruti Suzuki, Tata Motors, Volkswagen, Toyota, Mahindra & Mahindra, and Hyundai)
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Safety in automobile industry
1. A PROJECT REPORT ON
“Customer Preference in Car Purchase Decision Making Over
Safety Features. A Study of Indian Passenger Car Market”
In partial fulfillment of
Integrated Master of Business Administration
Submitted By-
Akash Kumar
Alka Kumari
Amit Kumar
Deepak Kumar Rajak
Indu Nath Jha
Sandeep Khalkho
(Semester VI)
Under the supervision of :-
Mr. S.M. Vipul
Assistant Professor,
Centre for Business
Administration,
Central University of
Jharkhand, Ranchi
2. ACKNOWLEDGEMENT
Every project big or small is successful largely due to the effort of a number of wonderful people
who have always given their valuable advice or lent a helping hand. We sincerely appreciate the
inspiration; support and guidance of all those people who have been instrumental in making this
project a success.
We, Akash Kumar, Alka Kumari, Amit Kumar, Deepak Kumar Rajak, Sandeep Khalkho,
and Indu Nath Jha students of Central University of Jharkhand, CBA (Centre for Business
Administration), IMBA, Sem VI are extremely grateful to Mr. S.M Vipul, Assistant Professor,
Central University of Jharkhand for the confidence bestowed on us and helping in our project
report entitled “Customer preference in Car purchase decision making over safety features.
A study of Indian Passenger Car market”
We would like to express our gratitude to Prof. Dr. Ashoke Kumar Sarkar, Dean, School of
Management Sciences and Head, CBA for the guidance, support and mentoring provided during
our Integrated MBA Program.
At this juncture, we place a deep sense of gratitude to our faculty, other team members and friends
who have been constant source of inspiration and help during the preparation of this project.
We would like to extend our gratitude and warm affection to our family members for standing by
us in all shades of our lives.
3. iii
EXECUTIVE SUMMARY
This project is a reflection of the study of the strategies that was conducted to understand what
automobile Companies are doing towards the safety measures.
The project overview encompasses the objective, rationale and methodology adopted for the
research. It’s a snapshot of why and how the project was carried out.
The brief profile of the automobile manufacturing companies aims not only to introduce the
companies but also to impart a better understanding of the safety measures as a whole. The
companies Vision, Mission, Values and Beliefs are mentioned in a nutshell.
The introduction to automobile industry `provides the theoretical base to build the project upon,
and also to better understand the significance of the safety, highlighting the need for the
companies today to be more proactive in safety measures. The focus has been on how much
car manufactures give weightage to safety measures in Indian market. Along with this the
project also focuses on current trends in automobile industry and various marketing strategies
adopted by firms in Indian Market
The study has also tries to analyse the customer’s awareness about the various safety measures
and features in their1 car. At the same time, how much they prefer Safety over price and other
factor while purchasing their new vehicle.
This project focuses on the research that has been conducted to study the “Customer preference
in car purchase decision making over Safety Features, A study of Indian Passenger Car Market”
of Automobile Industry in India.
4. TABLE OF CONTENTS
SI.
No.
CONTENT Page No.
1.
Declaration by student
Acknowledgement
Executive Summary
i
ii
iii
2. AUTOMOBILE INDUSTRY 1-7
3. INDIAN AUTOMOBILE INDUSTRY 8-16
4. VEHICLE SAFETY NORMS 17-19
5. MARUTI SUZUKI LIMITED 20-33
6. VOLKSWAGEN 34-48
7. TATA MOTORS 49-60
8. HYUNDAI 61-73
9. MAHINDRA & MAHINDRA 74-86
1. TOYOTA 87-99
11. RESEARCH METHODOLOGY 100
12. ANALYSIS & INTERPRETETAION 101-113
13. FINDING OF STUDY 114
14. LIMITATION & RECOMMENDATION 115
15. CONCLUSION 116
BIBLIOGRAPHY 117
ANNEXURE
5. 1
AUTOMOBILE INDUSTRY
INTRODUCTION
Demographically and economically, India’s automotive industry is well-positioned for growth,
servicing both domestic demand and, increasingly, export opportunities. A predicted increase in
India’s working-age population is likely to help stimulate the burgeoning market for private
vehicles. Rising prosperity, easier access to finance and increasing affordability is expected to see
four-wheelers gaining volumes, although two wheelers will remain the primary choice for the
majority of purchasers, buoyed by greater appetite from rural areas, the youth market and women.
Domestically, some consolidation or alliances might be expected, driven by the need for access to
better technology, manufacturing facilities, service and distribution networks. The components
sector is in a strong position to cash-in on India’s cost-effectiveness, profitability and globally-
recognized engineering capabilities. As the benefits of collaborations become more apparent,
super-specialists may emerge in which the automobile is treated as a system, with each specialist
focusing on a sub-system, akin to the IT industry. Though this approach is radical, it could prove
an important step in reducing complexity and investment requirements, while promoting
standardization and meeting customer demands.
Manufacturers are already planning for the future: early advocates of technological and
distribution alliances have yielded generally positive results, enabling domestic OEMs to access
global technology and experience, and permitting them to grow their ranges with fewer financial
risks.
This exciting outlook for the industry is set against a backdrop of two potentially game-changing
transportation trends – the gradual legislative move towards greener, gas-based public transport
vehicles, and a greater requirement for urban mass mobility schemes to service rapidly-expanding
cities.
• Green Revolution: In a price-conscious economy such as India’s, the shift towards green
vehicles will be slow unless spurred by government mandates. Although the major players are
already equipped with the necessary capabilities to develop cleaner vehicles, they do not see much
merit in commercializing these technologies until the green revolution gains momentum – most
likely through changes in political legislation – and it achieves the market scale required for
commercial viability. Manufacturers are placing greater faith in dual-fuel technologies than in
6. 2
battery-powered alternatives because the necessary support infrastructure, such as recharge
stations, is not yet in place for the widespread adoption of the latter. The launch of electric
motorcycles could have a significant impact on the market, given that motorcycles account for the
majority of two-wheeler sales in India.
Manufacturers of four-wheelers and commercial vehicles in particular stress the importance of
optimizing conventional combustion engines before experimenting too radically with costly new
technologies.
• Mobility Revolution: Use of public transport in India has waned as private vehicle ownership
has boomed, but increasing strain on the road infrastructure in major cities means public
investment is likely in Urban Mass Mobility Schemes such as metro systems and buses. The
automotive industry is unlikely to lose much of its customer base in the near-term, even as these
schemes become more prevalent, because the socio-economic statement of car ownership will
continue to make private vehicles desirable.
At present there is a lack of clarity in the automotive industry over the role it will play in any
mobility revolution. Although some industry experts believe the impact of the mobility revolution
will be minimal in the short-term, there may be opportunities for manufacturers to become
involved with the public sector in areas such as improving links between different modes of
transport. (SIAM, 2017)
MILESTONE OF AUTOMOBILE INDUSTRY
Since arriving on the scene in the late 1800s, the automobile has come a long way. As know-how
and technology have improved, so has the automobile. From appearance to speed and advanced
capabilities, the vehicles of today are smart, more energy efficient, and constantly evolving.
The Detroit Automobile Factory
Around 1900, Ransom E. Olds brings an automobile manufacturing factory to Detroit, producing
his namesake car, the Oldsmobile. Production and sales were less than stellar, and the company
7. 3
went bankrupt. However, this milestone marks the first automotive factory in a place that later
became known as the “Motor City.”
Ford’s Model T Hits the Scene
On October 1, 1908, Henry Ford debuted the first production Model T Ford at the company’s
Piquette Avenue plant in Detroit. Building a brand based on quality and affordability, the Model
T appealed to a wide range of American consumers. From 1908 to 1927 Ford built some 15
million Model T cars making it the longest production run of any automobile model in history
until the Volkswagen Beetle surpassed it in 1972.
The Electric Starter
A cumbersome hand crank start-up process was improved upon with the electric starter,
developed by Charles Kettering and Henry M. Leland in 1911. This electric starter was made
small enough to fit under the hood of a car; quite an engineering feat. The starters were first
installed by Cadillac in production models in 1912.
Automobile Assembly Line
The ability to make cars faster was another milestone, thanks to the first moving assembly line
by Ford Motor Company in 1913. The assembly line enabled Ford to crank out thousands of cars
in one year. Plus, the efficiency of the mass production assembly line made cars affordable for
more people.
8. 4
Material of Construction
Around 1914, car bodies were made of steel versus wood. Automotive manufacturer, Dodge,
introduced their first vehicle to the market on November 14, 1914, which featured what was then
a real novelty – an all steel body. Today, steel is used for making most car bodies.
Automatic Transmission
In 1939, General Motors debuted “Hydra-Matic” – an automatic transmission using hydraulic
fluid, which allowed vehicle gears to shift automatically during vehicle operation. This upgrade
meant drivers could forego manual gear shifting. This introduction has remained one of the most
important innovations in the history of the automobile.
Air Conditioning
According to Automobile Magazine, in-car air conditioners came on the scene around 1940. The
Packard was the first car to have it, and by 1969 more than half the cars manufactured included
A/C units. Today, more than 99 percent of all new cars are air-conditioned.
Electronic Fuel Injection
1966 was the year of the electronic fuel injection system. This milestone meant better fuel
delivery to the car engine and improved engine efficiency and eliminated the need to pump your
accelerator or pull a choke knob to get fuel to the engine. The 1967 Volkswagen 1600 was the
first car to sport the new technology from Bosch.
9. 5
Seat Belts
Safety became a major focus in automobile manufacturing in 1968. Government standards
required car manufacturers to equip front seats with shoulder and lap seat belts and back seats
with lap belts. The shoulder and lap belts became standard in front and rear seats over time.
Airbags
The installation of airbags in cars became a manufacturing mandate for passenger cars due to
a 1991 law, according to History.com. While major automotive manufacturers added air bags in
the 1970s, the technology was improved and widely accepted in the late 1990s.
Hybrids
While hybrid cars have a long history, these vehicles didn’t become a commercial success in
America until the late 1990s and early 2000s. Hybrid technology makes cars less dependent on
gasoline and more environmentally friendly. Honda and Toyota are well-known for
manufacturing award winning hybrid vehicles.
Smart Technology and Smart Cars
Building better cars requires better technology. Perhaps one of the biggest milestones in
automobile manufacturing is the use of state-of-the-art technology to yield intelligent
cars. Mechatronics, a hybrid of multiple engineering disciplines, is widely used in automotive
manufacturing and enables the production of quality cars integrated with smart technology.1
1
https://www.cebos.com/milestones-automotive-manufacturing/
10. 6
MARKET SCENARIO OF AUTOMOBILE INDUSTRY
In August 2014, the ranking of the world’s largest automotive manufacturers was topped by
Japan’s Toyota Motor Corporation, while Germany’s Volkswagen AG was ranked second. The
European automaker‘s worldwide automobile market share will likely suffer losses in next year’s
ranking. As a result of the Volkswagen diesel deception scandal that emerged in September 2015,
the manufacturer of Audi, Skoda, SEAT, Bugatti, Bentley, Lamborghini, Porsche, Scania, VW
commercial vehicles and VW passenger cars will be forced to recall at least 8.5 million vehicles
that were fitted with a defeat device in their engines.
In light of growing environmental awareness
and an increasing desire to connect vehicles to
the internet, automotive manufacturers are
faced with a variety of new challenges.
Market trends such as the shift to lighter
materials, as well as the trend towards electric
vehicles and alternative fuel powertrains are
set to revolutionize the industry.
• Largest player is Toyota Motors with
9.20% of global market share.
• Followed by Volkswagen AG with
market share of 7.20%
• Around half of market is shared by local small players such as Suzuki Motors etc.2
2
https://www.statista.com/statistics/316786/global-market-share-of-the-leading-automakers/
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00% 9.20%
7.20%
6.50%
5.50%5.40%
4.70%4.40%
3% 2.80%2.70%
MARKETSHARE
Market Share Distribution
Source- www.statista.com
11. 7
NEW TREND IN AUTOMOBILE INDUSTRY IN INDIA
• Rising Popularity of UVs. Over decades, the Utility Vehicle (UV) segment has grown
exponentially. From the stylish or compact MPVs to premium and luxury SUVs, the
segment has witnessed vehicles with different kind of looks
– a trend that will continue for three to four years.
• Designing Affordable Electric Vehicles. Designing electric vehicles (EVs) is an art. With
India aiming for 100 per cent e-mobility by 2030, it sets the trend for light vehicles in the
market. There are two types of EVs. The first type is: electrified, which is a usual Internal
Combustion (IC) engine car converted into an EV by replacing the IC with an electric
power train. This is how most of the first generation EV cars will be created.
• Badge Engineering. To fill out the brands product line with an existing vehicle and to save
on design, manufacturing, tooling and manufacturing cost. Companies are now opting for
badge engineering or rebadging.3
3
SIAM, KPMG Research
12. 8
INDIAN AUTOMOBILE INDUSTRY
INTRODUCTION
India is home to a vibrant automobile of more than 40 million vehicles. It has been one of the few
worldwide which saw growing passenger car sales during the recession of the past two years. In
fact, in 2009-10 it has recorded its highest volumes ever. It is believed this upward trend will be
sustained in the foreseeable future due to a strong domestic market and increased thrust on exports.
The Indian economy has grown at an average rate of around 9 percent over the past five years and
is expected to continue this growth in the medium term. This is predicted to drive an increase in
the percentage of the Indian population able to afford vehicles. India’s car per capita ratio
(expressed in cars per 1,000 population) is currently among the lowest in the world’s top 10 auto
markets. The twin phenomena of low car penetration and rising incomes, when combined with
increasing affordability of cars, are expected to contribute to an increase in India’s automobile
demand. The automotive industry is one of the key drivers of India’s economy, accounting for
around 7.1 percent of India’s GDP and over 200,000 jobs.
Source: SIAM, KPMG Research
Source: SIAM, KPMG Research
13.8
46.7
109.2
140.7
65.2
41
0
50
100
150
200
250
2001-02 2009-10
NumberofHousehold(`000)
Indian GDP growth vs. Annual passenger vehicle volumes
High Income (>180k per month) Middle Income (45k-180k per month) Low income(Less than 454k)
13. 9
HISTORY
The Indian automobile market is one of the largest in the world, both in terms of sales volume and
production. Talking about historical roots of the car market in India, the first time that a vehicle
came on road was in 1897. Till 1930, India did not have any manufacturing facility and cars were
imported directly from other countries. The landmark decade in the manufacturing process was
that of 1940s, in which Indian companies like Hindustan Motors and Premier started to
manufacture cars of other firms. During the same decade, Mahindra & Mahindra also started to
produce utility vehicles. Soon after independence 1947, Government of India tried to create an
automotive component manufacturing industry in order to supplement the automobile fraternity.
From 1960 to 1980s, the Indian market was dominated by Hindustan Motors, which gathered a
large amount of share due to its Ambassador model. However, during 1950s till 1960s, the overall
industry moved at a slow pace due to trade restrictions set on imports. Soon after this repressive
phase, demand surged but to a smaller extent, which was mainly seen in the tractor and commercial
vehicles segment.
It was in 1980s that the two firms, Hindustan Motors and Premier, were challenged by a new
entrant, Maruti Udyog Limited. Soon after liberalization period, car makers that were previously
not allowed to invest in Indian market due to stringent policies arrived in the country. Post
liberalization, the alliance between Maruti and Suzuki was the first joint venture between an Indian
company and foreign one. Slowly and steadily, the economic reforms brought in the led to the
entry of major foreign companies like Hyundai and Honda, which expanded their bases to the
country. From 2000 to 2010, almost every major car company expanded its presence to India by
establishing manufacturing facilities across different parts of the country.
14. 10
Indian Auto Sector: Future Prospects
The Indian automobile industry has seen interesting dynamics in recent times with the effect of
the global downturn, followed by recovery in domestic demand. The future of the industry in the
medium term based on current trends, is analyzed here along two broad themes in the global
automobile industry:
• Growth
• Consolidation
As discussed below, the nature of demand in the Indian automotive industry and the associated
drivers are likely to take it along a path, which is different from the evolving global automotive
landscape.
Growth:
India’s automobile market has grown steadily over the last seven to eight years, with the exception
of the previous two years where the effects of the global downturn were felt, primarily in sales of
commercial vehicles. However, even during the downturn, the two-wheeler and three-wheeler
segments, which were until then experiencing low growth or losing volumes, bucked the trend.
India’s vehicle demand is quite different from other top automobile markets – with the exception
of China – in that two-wheelers constitute a significant portion of vehicle demand (more than 3/4th
of the Indian market is in two-wheelers).
15. 11
(Source: www.statista.com)
In the context of the unique characteristics of the Indian automobile market, growth is expected to
be driven by the following:
Affordability: While quite a few new vehicles launched in the Indian market have been developed
locally, vehicle affordability remains a significant concern as seen in graph below. Although the
price of an average motorcycle in India (about USD 900) is comparable to the average per capita
income, the prices of passenger cars have a long way to go. Although the entry level car (Nano) is
priced at around USD 2,500, the passenger car market could grow multi-fold if there is a break-
through of another price level in the years to come.
John Flintham, global CEO of Amtek Auto, believes four-wheelers are particularly well placed to
take advantage of these changing trends. “If you look at the Tata Nano, people buying two-wheeler
bikes who have a bit more disposable income and can now afford to buy a car instead. I think
you’re going to see a doubling of sales over the next three to four years and I think that’s going to
be driven by both domestic demand and by India becoming a small car export hub.”
Ford India Managing Director, Michael Boneham, believes changing demographics in India will
see auto sales scale new heights. He argues that the increasing number of educated people entering
the working age bracket will provide a fertile environment for a buoyant economy and healthy
79%
3% 3%
15%
Indian Automobile Market 2016-17 Domestic
Sales Volumes
Two wheeler
Three Wheeler
Commercial vehicles
Passenger Vehicles
16. 12
demand for private light transport. “The Indian auto industry should have double digit growth
levels for the next five years and beyond, depending on taxation, legislation, infrastructure and
global conditions,” he says.
Fuel Economy: The volume leaders across two-wheelers and four-wheelers in India are
companies which have been able to offer products with the globally acknowledged best-in-class
fuel economy rates, as well as affordable total cost of ownership. For example, while the US is
setting norms for cars to achieve 35 mpg on petrol a majority of Indian cars already offer that
much, while the leading class bikes offer up to 200 mpg and more in some cases. This performance
expectation will only increase in the future. Fuel economy will also be an important factor in the
truck sector, with Marc Llistosella, CEO and Managing Director of Daimler India Commercial
Vehicles, noting that a vehicle’s mpg rating will become an increasingly important purchasing
factor. “No one buys a truck for leisure,” he says, “greater efficiency means better fuel
consumption and this is in our interest. Some 65 percent of the total cost of ownership of a truck
is fuel consumption. This goes directly to the profit and loss of the customer”
Alternative Fuels Vehicles based on alternative fuels remain another area of interest for both
consumers and companies. Reva, a pioneer in electric cars, remains an exception in the area of
36,380
1080
1860
27000
8500
17000
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
US
INDIA
CHINA
Source:- KPMG Research, EIU
Countries
Vehicle Affordability
Average Price Of Car (2017) Personal Disposable Income(2017)
17. 13
electric vehicles in India, although in two-wheelers there are multiple offerings, none of which
have as yet taken off in terms of volume. Although both commercial vehicles and passenger
vehicles running on CNG are gaining popularity among transport service providers and consumers
due to their lower cost of operation, much more needs to be done to improve the fueling
infrastructure before CNG vehicles become more mainstream.
Niche Products: While India remains predominantly a cost-conscious market, profitable niches
are available for the products which address specific needs. One example is the growth in the sales
of gearless scooters, most of the scooters are in the 75-125cc sub-segment, often targeted at young
people and women in particular. The growing population, a significant proportion of which will
be of working age over the next decade, is another source of demand to most automobile
companies.
Rural Market: The automobile industry has yet to fully tap into demand from rural areas.
Previously, consumers from these areas would need to go to automobile dealerships in towns and
cities for their vehicle purchases. However, in recent years, market players have made overtures
to rural consumers, with encore aging sales While the Indian automobile industry seeks to double
total sales on the back of steady growth over the next decade, these relatively under tapped demand
segments (rural markets, youth, women and luxury cars) are expected to play a significant role.4
4
EMIKAY, Research, NCAER
0%
20%
40%
60%
80%
100%
1999-2000 2009-2010 2015-2016
6 10.2 13.9
94 89.8 86.1
Source: EMKAY RESEARCH, NCAER
Growth in rural demand for passenger vehicles
(1.95 Mn vehicles in 2015-16)
Rural Urban
18. 14
MARKET SCENARIO OF INDIAN AUTOMOBILE INDUSTRY
Production of passenger vehicles, commercial vehicles, three wheelers and two wheelers grew at
14.41 per cent year-on-year between April-February 2017-18 to 26,402,671 vehicles.
The auto industry is set to witness major changes in the form of electric vehicles (EVs), shared
mobility, Bharat Stage-VI emission and safety norms. Electric cars in India are expected to get
new green number plates and may also get free parking for three years along with toll waivers.
India's electric vehicle (EV) sales increased to 25,000 units during FY 2016-17 and are poised to
rise further on the back of cheaper energy storage costs and the Government of India’s vision to
see six million electric and hybrid vehicles in India by 2020.
AUTOMOBILE MARKET IN INDIA
• The automotive manufacturing industry comprises the production of commercial vehicles,
passenger cars, and three & two-wheelers.
• Two-wheelers are by far the most popular form of vehicle in India, taking an 80% share in
2015-16.
• 22 million automobiles produced in
FY17.
• 25 million automobiles is expected to
produce in FY18.5
5
https://www.ibef.org/industry/automobiles-presentation
19. 15
INDUSTRY DISTRIBUTION
• Maruti Suzuki dominates the Passenger Car market with 49.60% of market share.
• Hyundai is the second largest player of market with 12.33%
• 11.33% of market is shared by companies like Volkswagen, GM and other startups.
GOVERNMENT INITIATIVES
The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -
• The Government of Karnataka is going to obtain electric vehicles under FAME Scheme
and set up charging infrastructure across Bengaluru, according to Mr R V Deshpande,
Minister for Large and Medium Industries of Karnataka.
• The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the
country for introduction of electric vehicles (EVs) in their public transport systems under
49.60%
12.33%
7.50%
5.91%
5.53%
4.32%
3.48%
11.33%
Market Share Distribution
Maruti Suzuki
Hyundai
Mahindra
Tata Motors
Honda
Toyota
Renault
Others
Source: www.statista.com
20. 16
the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India)
scheme.
• Energy Efficiency Services Limited (EESL), under Ministry for Power and New and
Renewable Energy, Government of India, is planning to procure 10,000 e-vehicles via
demand aggregation and has already awarded contracts to Tata Motors Ltd for 250 e-cars
and to Mahindra and Mahindra for 150 e-cars.
RECENT INVESTMENTS
The government is planning to set up a committee to develop an institutional framework on large-
scale adoption of electric vehicles in India as a viable clean energy mode, especially for shared
mass transport, to help bring down pollution level in major cities.
In order to keep up with the growing demand, several auto makers have started investing heavily
in various segments of the industry during the last few months. The industry has attracted Foreign
Direct Investment (FDI) worth US$ 18.413 billion during the period April 2000 to December 2017,
according to data released by Department of Industrial Policy and Promotion (DIPP).
Some of the recent/planned investments and developments in the automobile sector in India are as
follows:
• The only electric automaker in India, Mahindra and Mahindra Ltd, has partnered with Uber
for deploying its electric sedan e-Verito and hatchback e2o Plus on Uber platforms in New
Delhi and Hyderabad.
• Mahindra & Mahindra (M & M) is planning to make an additional investment of Rs 500
crore (US$ 77.23 million) for expanding the capacity for electric vehicles in its plant in
Chakan.
21. 17
VEHICLE SAFETY NORMS
In past few years safety is becoming a critical issue not only for manufactures and buyers but for
government and various international bodies also. Due to rapid increment in road accidents
various bodies have started on focusing on safety norms. (Global Ncap, 2017)
INTERNATIONAL SAFETY NORMS FOR AUTOMOBILE INDUSTRY
❖ GLOBAL NEW CAR ASSESMENT PROGRAM (NCAP)
In the past 20 years, substantial and evidence-based improvements have been made in vehicle
safety. Improvements in vehicle safety design over this period have reduced the risk of death and
serious injury for car occupants by 50% or more. Improvements in vehicle safety design and
equipment for pedestrians and motorcyclists are expected over the next decade, as are further
developments in driver support and assistance. Research has identified large scope for enhancing
vehicle safety further although the increasing variety in the vehicle fleet is expected to bring new
challenges over the next decade.
Features of NCAP:
• Support New Car Assessment Programmes (NCAPs) in emerging markets by offering
technical support guidance and quality assurance.
• Provide a cooperation platform for NCAPs and like organisations around the world to share
best practice, to further exchange information, and to promote the use of consumer
information to encourage the manufacture of safer cars across the global automotive market.
• Promote vehicle safety technologies with proven effectiveness and encourage their
accelerated use across the globe by increasing consumer awareness and where appropriate
by supporting mandatory application.
• Support training initiatives in vehicle safety regulatory and rating systems to promote policy
making capacity particularly in emerging markets.
• Promote the use of safer vehicles and technologies by fleet managers in both the public and
private sector.
22. 18
• Recognise achievement in vehicle safety, innovation in safety related technologies, and
products through a global awards scheme.
• Support the UN Sustainable Development Goals and the target to halve road deaths and
injuries by 2020, and the full implementation of the Global Plan for the UN Decade of
Action for Road Safety especially the recommended activities for vehicles.
• Support improvements in vehicle emissions reduction and fuel efficiency and evidence
based consumer information to inform consumers about the environmental performance of
motor vehicles.6
GOVERNMENT SAFETY NORMS FOR AUTOMOBILES INDUSTRY IN
INDIA
From starting onward, Indian car industry is basically price and fuel economic centered, customers,
manufacturers and government were not very much concerned about safety. But in recent few days
the perception of customers as well as government is changing. In a very recent time government
launched the BNVSAP for car safety.
❖ BHARAT NEW VEHICLE SAFETY ASSESSMENT PROGRAM (BNVSAP)
The Bharat New Vehicle Safety Assessment Program (BNVSAP) is a proposed New Car
Assessment Program for India. Cars sold in the country will be assigned by star rating based on
their safety performance.
It will be implemented in phases, according to the National Automobile Testing and R& D
infrastructure project. It is the 10th
NCAP in the world and is being set up by the govt. of India.
New cars sold in India will need to comply with voluntary star ratings based on crash safety
performance test. Critical safety features such as:-
• Airbags
• ABS
• Seat Belts
6
http://www.globalncap.org/about/
23. 19
These features will become standard in cars sold in India resulting from rankings and mandatory
crash testing.
It is proposed that this BNVSAP would start the official testing from October 2017 onwards. The
car testing protocols is defined by ARAI as follows:
• Frontal offset testing (64kmph proposed)
• Side impact testing
• Pedestrian protection testing
• Rear impact testing
• Child dummy dynamic crash testing7
SAFETY STANDARD COMPARISON
COMPONENT INDIA EUROPE
Airbag YES YES
Reverse Gear Sensor YES YES
Speed Warning System YES YES
Seatbelt Reminder YES YES
Blind Spot Monitoring NO YES
Lane Support Systems NO YES
Autonomous Emergency Braking NO YES
Attention Assist NO YES
Automatic Emergency Call (eCall) NO YES
Precrash systems NO YES
Vision Enhancement Systems NO YES
Note: - The Indian safety standards mentioned above is voluntary from October 2017 and
is mandatory from April 2020.
7
https://govinfo.me/bharat-new-vehicle-safety-assessment-programme/
24. 20
MARUTI SUZUKI INDIA LIMITED
COMPANY PROFILE
It is started in 1982 in Gurgaon, Haryana. The year marked the birth of the Maruti Suzuki factory.
India turned out 40000 cars every year. The new Maruti Suzuki 800 hit the streets to begin a whole
new chapter in the automobile industry.
Maruti Suzuki’s 1st
car owner was Mr. Harpal Singh in Dec 1983 i.e. Maruti 800.
A team of over 13200 dedicated and passionate professionals that turned out 15 car models with
over 150 variants. The drive is backed up by a nationwide service network spanning over 1500
cities and towns and a sales network that spreads across 1471 cities, 2 state of Art factories, which
together turn out 15 lakh annually.
The first Lot of Maruti Suzuki cars assembled in 1983. In 1984, India’s first MUV by Maruti
Suzuki i.e. OMNI was introduced in the market. Maruti Suzuki is the first car company in India to
start a “customer care center” in 2000.
Today Maruti Suzuki alone makes 1.5 million Maruti Suzuki family cars every year. That’s 1 car
in every 12 seconds. They drove up to head and shoulders above every major global auto company.
Yet their story was not just about making a mark. It was about revolutionary cars that delivered
great performance, efficiency and environment friendliness with low cost of ownership. That’s
what they call true value.
In the year 2005, Maruti ranked 7th
in the world in the terms of Automotive sector and 91 in Forbes
magazine’s list of world’s 200 in terms of Most reputable companies.
Maruti Udyog Ltd. is renamed Maruti Suzuki India Ltd. in 2007.
Maruti Suzuki chairman Mr. R C Bhargava received Padma Bhushan from President of India Shri
Pranab Mukherjee in 2016.
25. 21
About Maruti Suzuki (NEXA):
• In 2015, Maruti Suzuki launched NEXA, a new dealership format of its premium cars.
• Maruti currently sells the BALENO, BALENO RS, S- CROSS, IGNIS & VITARA
BREZZA through NEXA outlets.
• S-Cross was the first car to be sold through NEXA outlets.
Maruti Suzuki total production output annually is 1568603 units (as per 2017 data)
Maruti Suzuki total Revenue is 796060 million (as per 2017 data) and 40000 no. of employees are
there in Maruti Suzuki.
Maruti Suzuki grabbed 50% market share in the passenger vehicles for the first time ever in 2017-
2018.
Maruti, India’s biggest car maker also sold more than 1.5 million units for the first time in its over-
three decade history. (economictimes, 2018)
(Source: economictimes.indiatimes.com)
26. 22
MILESTONE
• Maruti Suzuki has 3165 sales outlets and 3382 service workshops (as on 1 Mar 2018).
• Maruti Suzuki has been no. 1 in the JD power customer satisfaction award for 16 years in a
row.
• Compact car of the year; Overdrive Awards 2013 for Alto 800.
• Maruti Suzuki Alto emerged as ‘World best-selling small car for 2014’.
• Indian car of the year (ICOTY) i.e. SWIFT in 2012 & 2006.
• Car India Award for compact Sedan of the year 2013 for SWIFT.
• Reader’s choice Technology of the year Award 2013 for SWIFT.
• ERTIGA- family car of the year 2012 by Top Gear.
• BALENO- Premium car of the year and Viewer’s choice of the year.
- CNBC TV18 Overdrive Awards 2016.
- Safety technology of the year by Indian Automotive Technology and innovative
awards (IATTA) 2016.
• VITARA BREZZA- Won 3 Awards :
- Viewer’s choice car of the year 2017
- Car of the year 2017
- Compact SUV/Crossover of the year by Auto car India Awards.
27. 23
MISSION & VISION
MISSION
“The leader in the Indian Automobile Industry, creating customer delight and shareholders’
wealth; A pride of India”
To provide a car for every individual, family, need, budget and way of ife.
VISION
• Customer Obsession
• Fast, flexible and First mover
• Innovation and Creativity
• Networking and partnership
• Openness and learning
PRODUCT LINE OF MARUTI SUZUKI CARS
1. Passenger Vehicles
Alto, Wagon R, Swift, Ritz, Celerio, Dzire, SX4, Ciaz, Baleno, S-cross, Ignis
2. Utility Vehicles
Gypsy, Grand Vitara, Ertiga
3. Vans
Omni, Eco
29. 25
SWOT ANALYSIS OF MARUTI SUZUKI INDIA LTD.
1. STRENGTH:-
• Maruti Suzuki is one of the most established and oldest companies of automobile sector in
India.
• It has a wide and extensive distribution and service channel.
• It has a very big market penetration in passenger vehicles.
• Expert servicing facilities present in every nook and corner of the country.
• Suzuki motors presence and strong competitors in the international market has enabled
Maruti Suzuki to enhance and build up its operations in India.
• Dedicated engineering and R & D department.
• Maruti Suzuki has a huge number of employees.
• Highly diversified product portfolio.
• Strong brand legacy owing to parent brand Suzuki.
SWOT ANALYSIS
STRENGTH
• Strong Network
• Presence
• Brand Image
• Knowledge of the Market
• Strong partnership
WEAKNESS
• Relatively new in the diesel car
segment
• Image stuck on small car
• Heavy impact tariffs on imported
models
OPPORTUNITY
• Growing small car market
• Government subsidies
• Increase in purchasing power of
Indian customers
THREAT
• Global players
• Worker’s strikes
• High competition
30. 26
2. WEAKNESS:-
• Presence limited to the markets of South Asia, South east Asia, some European countries as
compared to international car manufacturers whose presence are evident in the markets of
Asia, Americas, Europe, Africa and the middle east.
• Controversies like the Manesar incident has hurt the market share of Maruti Suzuki.
3. OPPORTUNITY:-
• Rising tilt of Indian customers towards premium cars as opposed to traditional economy
class cars.
4. THREAT:-
• Every rising fuel costs has forced the company to constantly increase the prices of its cars.
• Competition from other automobile companies means reduced market share foe Maruti
Suzuki.
• Competitive products offering same level features at a lesser price by other competitors.
• Product innovations by competitors.
31. 27
BCG MATRIX OF MARUTI SUZUKI CARS
MARKET SHARE
HIGH LOW
HIGH
(GROWTH)
LOW
STARS: High market share and High growth rate
QUESTION MARK: Low market share and High growth rate
CASH COW: High market share and Low growth rate
DOG: Low market share and Low growth rate
Swift
Alto 800
Alto K10
Wagon R
Baleno
? ? ?
Swift Dzire
Ignis
Ciaz
Vitara Brezza
S- Cross
OMNI
Celerio
Gypsy
32. 28
SAFETY MEASURES IN MARUTI SUZUKI CARS ACCORDING TO
GOVT. NORMS
1. MARUTI SWIFT
(3rd
most selling car in Feb 2018)
(LOW) (HIGH)
Price- Rs. 4.99lakh Price- Rs. 7.29lakh
Mileage- 28.4kmpl Mileage- 28.4kmpl
Model- LXI 2018 Model- ZXI plus
Airbags- Driver & Passenger Airbags- Driver & Passenger
Seat belts- Yes Seat belts- Yes
Anti- lock braking system- Yes Anti- lock braking system- Yes
Electronic Brake force Distribution- Yes Electronic Brake force Distribution- Yes
Central locking- No Central locking- Yes
Fog lamps (front/rear) - No Fog lamps (front/rear) - Front
Child safety lock- Yes Child safety lock- Yes
2. MARUTI BALENO
(4th
most selling car in Feb 2018)
(LOW) (HIGH)
Price- Rs. 5.36lakh Price- Rs. 8.66lakh
Mileage- 21.4kmpl Mileage- 21.1kmpl
Airbags- Driver & Passenger Airbags- Driver & Passenger
Seat belts- Yes Seat Belts- Yes
ABS- Yes ABS- Yes
EBD- Yes EBD- Yes
Central locking- Yes Central locking- Yes
Child safety lock- Yes Child safety lock- Yes
Fog lamps( front/ rear)- Front Fog lamps (front/rear)- Front
33. 29
3. MARUTI SWIFT DZIRE
(Top selling car in Feb 2018)
(LOW) (HIGH)
Price- Rs. 5.43lakh Price- Rs. 9.43lakh
Mileage- 22kmpl Mileage- 28.4kmpl
Model- Vxi Model- AMT ZDI plus
Airbags- Driver & Passenger Airbags- Driver & Passenger
Seat belts- Yes Seat belts- Yes
ABS- Yes ABS- Yes
EBD- Yes EBD- Yes
Central locking- Yes Central locking- Yes
Child safety lock- Yes Child safety lock- Yes
Fog lamps( front/ rear)- No Fog lamps(front/rear)- Front
4. MARUTI VITARA BREZZA
(Top selling crossover in Feb 2018)
(LOW) (HIGH)
Price- Rs. 7.24lakh 10.2lakh
Mileage- 24.3kmpl 24.3kmpl
Model- VDi(o) ZDi plus Dual Tone
Airbags- Driver & Passenger Driver & Passenger
Seat belts- Yes Yes
ABS- Yes Yes
EBD- Yes Yes
ESP- No No
Central locking- Yes Yes
Child safety lock- Yes Yes
Fog lamps ( front/ rear)- No Front
34. 30
5. MARUTI ALTO 800
(2nd
most selling car in Feb 2018)
(LOW) (HIGH)
Price- Rs. 2.50lakh 3.86lakh
Mileage- 29.7kmpl 33.4kmpl
Model- STD LXI CNG airbags
Airbags- No Driver
Seat belts- Yes Yes
ABS- No No
EBD- No No
ESP- No No
TCS- No No
Central locking- No No
Child safety lock- No Yes
Fog lamps ( front/ rear)- No No
6. MARUTI ALTO K10
(2nd
most selling car in Feb 2018)
(LOW) (HIGH)
Price- Rs. 3.30lakh 4.26lakh
Mileage- 24.7kmpl 24.7kmpl
Model- Vxi optional VXi AT optional
Airbags- Driver Driver
Seat belt- Yes Yes
ESP- No No
TCS- No No
Central locking- Yes Yes
Child safety lock- Yes Yes
Fog lamps( front/ rear)- front No
35. 31
7. MARUTI S- CROSS
(LOW) (HIGH)
Price- Rs. 8.62lakh 11.33lakh
Mileage- 25.1kmpl 25.1kmpl
Airbags- Driver & Passenger Driver & Passenger
Seat belts- Yes Yes
ABS- Yes Yes
EBD- Yes Yes
ESP- No No
TCS- No No
Central locking- Yes Yes
Child safety lock- Yes Yes
Fog lamps ( front/ rear)- No Front
8. MARUTI IGNIS
(LOW) (HIGH)
Price- Rs. 4.66lakh 8.16lakh
Mileage- 20.89kmpl 26.8kmpl
Model- 1.2 Delta 1.3 AMT Alpha
Airbags- Driver & Passenger Driver & Passenger
Seat belts- Yes Yes
ABS- Yes Yes
EBD- Yes Yes
ESP- No No
TCS- No No
Central locking- Yes Yes
Child safety lock- Yes Yes
Fog lamps (front/ rear)- No Both
36. 32
9. MARUTI CELERIO
(LOW) (HIGH)
Price- Rs. 4.20lakh 5.48lakh
Mileage- 23.1kmpl 23.1kmpl
Model- LXI MT ZXI optional AMT
Airbags- Driver Driver & Passenger
Seat belts- Yes Yes
ABS- No Yes
EBD- No No
ESP- No No
TCS- No No
Central locking- No Yes
Child safety lock- Yes Yes
Fog lamps ( front/ rear)- No No
10. MARUTI CIAZ
(LOW) (HIGH)
Price- Rs. 7.83lakh 11.80lakh
Mileage- 28.09kmpl 28.09kmpl
Model- 1.4 Sigma 1.3S
Airbags- Driver & Passenger Driver & Passenger
Seat belts- Yes Yes
ABS- Yes Yes
EBD- Yes Yes
ESP- No No
TCS- No No
Central locking- Yes Yes
Child safety lock- Yes Yes
Fog lamps (front/ rear)- No Front
38. 34
VOLKSWAGEN
INTRODUCTION
The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading
automobile manufacturers and the largest carmaker in Europe. It designs, manufactures and
distributes passenger and commercial vehicles, motorcycles, engines, and turbo machinery and
offers related services including financing, leasing and fleet management. In 2016, it was the
world's largest automaker by sales, overtaking Toyota and keeping this title in 2017, selling 10.7
million vehicles. It has maintained the largest market share in Europe for over two decades. It
ranked sixth in the 2017 Fortune Global 500 list of the world's largest companies. The company
has operations in approximately 150 countries and operates 100 production facilities across 27
countries.
Volkswagen activities may focus on the automobile, but the Volkswagen Group is far more than
just a carmaker. A wide variety of mobility-related services round off our portfolio. Uniting a wide
variety of brands and companies with all their individual characteristics and focuses under one
umbrella is a great challenge, especially as the Volkswagen Group is committed to maintaining
their individual identities. But this is the only way all the brands and companies can make their
own contributions to the common value stream and form cornerstones of the Group.
The Group is made up of twelve brands from seven European countries:
• Volkswagen
• Audi
• Bentley
• Bugatti
• Lamborghini
• SEAT
• Skoda
• Volkswagen Commercial Vehicles
• Scania
• Man
39. 35
• Ducati
• Porsche
Each brand has its own character and operates as an independent entity on the market. The product
range extends from low consumption small cars to luxury class vehicles. In the commercial vehicle
sector, the product offering spans pickups, busses and heavy trucks.
HISTORY
When in 1937 the company known as "Gesellschaft zur Vorbereitung des Deutschen Volkswagens
mbH" was founded, no one could have guessed that it would one day be Europe’s largest carmaker.
The history of the company - with all its trials and tribulations - is first and foremost a story of
impressive success.
➢ 1937-1945
On May 28th, 1937 the "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH"
company is founded, and on September 16th, 1938 it is renamed "Volkswagenwerk GmbH".
In early 1938, in what is today Wolfsburg, work begins on construction of the Volkswagen
werk plant which is to house production of the new vehicle designed by Ferdinand Porsche.
During the Second World War Volkswagenwerk production is switched to armaments. Some
20,000 forced laborers, prisoners of war, and later also concentration camp prisoners, work at
the plant.
➢ 1945-1949
After the end of the Second World War, in mid June 1945, responsibility for Volkswagenwerk
is placed in the hands of the 3/13/2018 Project Volkswagen British Military Government.
Under the management of Major Ivan Hirst, mass production of the Volkswagen Beetle is
started.
➢ 1949-1960
On March 8th, 1950 the Type 2 goes into production, expanding the company’s product range.
The Volkswagen Bus, still today known to many as the "VW Bully", soon creates rising
40. 36
demand thanks to its multifunctional capabilities. In 1956 a separate manufacturing base for
the Transporter is established in Hanover, at the same time setting down the roots of today’s
Volkswagen Commercial Vehicles brand. In 1955 employees and dealers from Germany and
abroad celebrate the production of the one millionth Volkswagen Beetle in Wolfsburg.
➢ 1960-1980
On February 17th, 1972 Volkswagen breaks the world car production record: with 15,007,034
units assembled, the Beetle surpasses the legendary mark achieved by the Ford Motor
Company’s Model T, popularly known as the "Tin Lizzy ’’,between 1908-1927. In 1973 the
Passat is the first model of the new generation of Volkswagen vehicles to go into production –
with front-wheel drive, a water-cooled four-cylinder engine and a range of engines up to 110
bhp. The Passat is built in line with the modular strategy, by which standardized components
usable in a range of different models provide significant rationalization. In January 1974 the
first Golf is built at the Wolfsburg plant. The compact saloon quickly becomes a hit, and
advances to become the legitimate heir to the legendary Beetle. The same year also sees the
launch of the sporty Scirocco, which was to continue in production until 1981.
In 1976 the first Golf GTI rolls off the production line. The car, with its110 bhp engine, creates
a real furor on the roads - and lays the foundations for the birth of a legend.
➢ 1980-1990
In June 1983 production of the second-generation Golf begins. The car is designed for a largely
automated assembly process, and in the specially erected final assembly hall, designated Hall
54, robots are deployed for the first time in vehicle manufacture.
➢ 1990-2000
In September 1998, in recognition of the events of that time, VOLKSWAGEN AG established
a humanitarian fund on behalf of the forced laborers compelled to work at Volkswagen during
the Second World War. By the end of 2001 more than 2,050 people in 26 countries had
received humanitarian aid from the fund. Furthermore, a Memorial in remembrance of the
forced labor employed at the Volkswagenwerk plant is currently being established at
Wolfsburg, involving contributions from presented ay Volkswagen apprentices.
41. 37
With the production launch of the Lupo 3L TDI, the first production car to offer fuel
consumption of just three liters per 100 kilometers, in July 1999, Volkswagen once again
makes automotive history. In December 2002 the "Auto 5000 GmbH" company, operating a
plant at the Groups site in Wolfsburg, starts production of the Touran compact van.
➢ 2000-2003
In August 2002, at Volkswagen Slovakia as, in Bratislava, mass production of the Touareg, a
luxury-class off-road vehicle, is started, marking the Volkswagen brands move into an entirely
new market segment. In 2003 production of the fifth-generation Golf is started, embodying a
new dynamism in its design and engineering.
➢ 2003
In July, VW announces plans for a $1 billion assembly plant in Chattanooga, Tennessee. It will
make cars designed for North America, including a midsize sedan to compete with the Honda
Accord and Toyota Camry. On October 26, Porsche, which had been buying up VW stock,
reveals a plan to assume control of VW.
➢ 2009
Volkswagen and Porsche announce a merger on May 6. In October, VW announces it will take
a 49.9% stake in Porsche for $5.75 billion. And in December, VW takes a 19.9% stake in
Suzuki, a deal valued at $2.5 billion.
➢ 2009- present day
The Golf VII was fashionably late to the United States and didn’t actually become available
until 2015. It easily is the safest and most technologically advanced Golf thus far. What’s
special about this Golf is that it features a “cab backward impression.” What this means is that
its proportions make for a longer hood and the cab located closer to the rear, the Golf looks
like something seen in higher segments. 8
8
https://www.volkswagenag.com/en/group/history.html
42. 38
MISSION & VISION OF VOLKSWAGEN
“The New Group strategy is not the work of external consultants. It came straight from the heart
of our company.”
(Matthias Müller)
Chairman of the Management Board
In launching its future program TOGETHER – Strategy 2025, Volkswagen has kicked off the
biggest process of change in its history. Its ambitious vision is to become a world-leading provider
of sustainable mobility.
Here is the vision and mission of the Volkswagen
VISION
• To become the global leading provider of mobility
MISSION
• To offer tailor-made mobility solution to customer
• To serve needs of customer with a strong product portfolio
• To take responsibility regarding environmental, social and safety issue
• To build the foundation for work on quality, reliability and passion.
Source: Volkswagenag.com (Mar, 2018)
43. 39
PRODUCT LINE
As we all know, in the global market Volkswagen is one of the largest manufacturer of the
automobile industry and with all of their subsidies companies they are having a large product
portfolio to offer customers. Although in India the product line of Volkswagen is not that much
large. In India the VW offers Passenger Vehicle in 5 categories:
1. Premium Sedan:
• Volkswagen Passat
2. Sports Utility Vehicle:
• The Tiguan
3. Performance Hatchback:
• Volkswagen Golf GTI
4. Sedan:
• Vento
• Ameo
5. Hatchback:
• Polo
• Polo GT
44. 40
PRODUCT PORTFOLIO OF VOLKSWAGEN INDIA
Volkswagen Passat
The Tiguan Golf GTI
Vento Ameo
Polo Polo GT
Source- Volkswagen.co.in (Mar,2018)
45. 41
MARKETING MIX OF VOLKWAGEN
PRODUCT:
Volkswagen offers several vehicles in different countries. Its top selling and most popular models
include Volkswagen Polo, Volkswagen Passat, Volkswagen Jetta, Volkswagen GTI, Volkswagen
Tiguan, Volkswagen Touran, Phaeton, Eos, and Beetle. All these cars are the product strategy in
the marketing mix of Volkswagen. Depending on the level of localization, features, comfort, size,
seating capacity, options, engine configurations and power several different trims and variants are
offered.
PRICE:
Volkswagen is leading global automobile manufacturer. With 34500 vehicles sold every day,
Volkswagen prices its products competitively for certain developing nations and slightly more
expensively for economies where it is seen as a brand which can command a higher premium.
Pricing strategy in the marketing mix of Volkswagen is mostly based on competition, segment,
demand, features offered in the car and the geography being served.
PLACE:
Volkswagen cars are available almost everywhere throughout the world. Having assembling lines
and manufacturing facilities in several parts of the world. These includes Germany, Mexico, USA,
China, India, Indonesia, Russia, Czech Republic, Portugal, Spain, South Africa, Poland, and
Slovakia. As far as India is concerned Volkswagen to start the assembly of specific export
modules of engines and also local engines to increase localizations levels to 90% from the current
70%. Volkswagen cars are available throughout the world via company owned dealerships and
multi-brand car showrooms.
PROMOTION:
Volkswagen has always been forceful with its ad campaigns. As a part of its marketing mix
promotion strategy, Volkswagen has used 360 branding to promote not only the parent company,
but all its cars individually. With higher grade of tensile strength used in its steel, greater depth
and shine of paint, higher craftsmanship of its cabins and better equipment levels has helped
Volkswagen drive ‘higher quality’ as a trait of all of its car and most of its promotions in
46. 42
developing countries advertised the same. Product differentiation is one marketing tactic used in
the creative for promotional activities of Volkswagen and safety and German build quality are two
traits used most often in campaigns of its vehicles
SWOT ANALYSIS
STRENGTH
• Quality
• Reliable
• Performance-oriented
• Brand Image
WEAKNESS
• High labour costs
• Production facilities
• Low market share in Indian mrket
OPPORTUNITY
• Car penetration in India
• Interest in environment friendly
vehicles
• Tax benefits
THREAT
• Global competition
• Government regulations
• fuel issues
(SWOT matrix of Volkswagen India)
47. 43
STRENGTH
• Quality
• Reliable
• Performance-oriented
• Ability to design products with differentiating features
• Brand image
• Experience and know-how in technology
WEAKNESSES
• Market share is threatened by huge lineups from Toyota, BMW, and Mercedes
• High labor costs
• Production facilities
OPPORTUNITIES
• Road development
• Territorial expansion
• Car penetration in India
• Interest in environment friendly vehicles
• Tax benefits
THREATS
• Global competition
• Government regulations
• fuel issues
• Rising oil and raw material prices in the world market
48. 44
BCG MATRIX OF MARUTI SUZUKI CARS
MARKET SHARE
HIGH LOW
HIGH
(GROWTH)
LOW
STARS: High market share and High growth rate
QUESTION MARK: Low market share and High growth rate
CASH COW: High market share and Low growth rate
DOG: Low market share and Low growth rate
POLO
VENTO
? ? ?
PASSAT
TIGUAN
POLO GT
AMEO
GOLF GTI
49. 45
VOLKSWAGEN SAFETY MEASURES
At Volkswagen, we believe in both prevention, and protection. The thoughtful features for
active and passive safety along with those added especially for children, highlight this
philosophy. Below are the various systems included under active and passive safety
respectively,
1. ACTIVE SAFETY SYSTEM:
All systems which actively intervene to help defuse critical driving situations and prevent
accidents from happening come under active safety. Driver assistance systems such as ESP,
Brake Assist, Front Assist and Side Assist are of central importance in this respect. The
active safety systems include the following:
• Electronic Stabilisation Control (ESC) – The Electronic Stabilisation Control
(ESC) detects critical situations at an early stage, and takes action to stop skidding
and help bring your Volkswagen safely under control.
• Anti-lock Braking System (ABS) – ABS prevents wheels from locking when brakes
are applied in an emergency. The system ensures that the car comes to a halt with
ease and prevents the vehicle from skidding, by keeping it under control. This
means that the vehicle is less likely to spin, even when the brakes are fully applied.
• Traction Control System (TCS) – The TCS reduces engine output if a wheel spin
occurs and adapts the output to suit road surface conditions.
TCS helps the car to start moving, accelerate and climb gradients in unfavorable
road conditions.
• Electronic Brake Force Distribution (EBD) – Every car’s center of gravity shifts
forward when you brake. This creates a reduction in grip which can cause the rear
wheels to lock. EBD ensures maximum braking performance on all wheels and
prevents the rear end from swerving out because of over-braking at the rear wheels
• Parking Sensors – City driving often finds passengers having to man oeuvre cars
into tight parking spots. This sometimes results in minor damages. Parking sensors
make your job easier by warning you when you’re getting too close to something,
thus preventing small knocks and scratches.
50. 46
2. PASSIVE SAFETY SYSTEM:
All design and engineering measures which exist to protect car occupants from external
impacts and to minimize the risk of injuries in the event of an accident are passive safety
systems. The term also refers to what happens in the event of a collision of other road users
(partner protection). Besides the seat belt system, the most important passive safety
features in our cars include the airbags, the "deformation-resistant" occupant cell and the
front/rear deformation zones. Along with the active safety systems, these features provide
a substantial amount of protection for passengers by dissipating the impact energy.
• Seatbelts – Seatbelts, generally known as ‘safety belts’, serve to safeguard passengers
in case of collision, accidents or sudden braking. It saves passengers from major
injuries. Abiding by the Indian law and always wearing seatbelts while driving results
in reduced risk of injuries
• Supplemental Restraint System (SRS) Airbags – The airbags can protect vehicle
occupants during frontal and side collisions by reducing the occupants’ movements in
the direction of the collision. Each triggered airbag is filled by a gas generator. This
causes the airbag covers to break and the airbags are inflated with high power in
milliseconds. Once an occupant wearing a seat belt starts to sink into the inflated
airbag, the gas inside the airbag starts to escape to cushion the occupant and slows
down their movement. This reduces the risk of severe and fatal injuries
• Child Seats – Your child's safety is a priority - for you, as well as for us. That's why
we use ISOFIX child seat fittings in specific Volkswagen cars. ISOFIX is being
adopted worldwide as a safer way to travel with your children. Child seats provide
extra care and protection due to their solid built.
• Child Door Lock – The child safety lock is on the side of each rear doorframe. When
activated, the doors can only be opened from outside. The central locking system
enables you to lock and unlock all the doors and the boot lid from one point:
▪ From outside the vehicle with the vehicle key
▪ From inside the vehicle with the central locking button
51. 47
Certain functions for the central locking system can be switched on or off by a
qualified workshop. The doors and the boot lid can be locked or unlocked manually
if the vehicle key or central locking system fails, locking the vehicle after the
airbags have been deployed.
• Chassis, Stiff Roof and Crumple Zones – The TCS reduces the engine output if wheel
spin occurs and adapts the output to suit road surface conditions.
TCS helps the car to start moving, accelerate and climb gradients in unfavorable road
conditions.
• Battery Cut-off – The TCS reduces the engine output if wheel spin occurs and adapts
the output to suit road surface conditions.
TCS helps the car to start moving, accelerate and climb gradients in unfavorable road
conditions.9
COMPARITIVE ANALYSIS BETWEEN VOLKSWAGEN PASSAT & POLO
▪ PASSAT
Volkswagen launched the eighth-gen Passat at Rs 29.99 lakh (ex-showroom, pan India). It
has been reintroduced after nearly 4 years in the Indian market. It comes standard with 9
airbags (segment-first), a 360-degree camera display, ESP, ABS, Hill Start Assist, Auto hold
and tire pressure monitoring system. The Passat returns an ARAI-certified mileage of
17.42kmpl.
▪ POLO
Volkswagen has introduced the Polo Pace, a limited-run model based on the Polo hatchback's
Comfort line variant. Priced at Rs 5.42 lakh. The standard Polo can be had with a 76PS, 1.0-
litre petrol engine or a 90PS, 1.5-litre diesel engine. Both the engines are mated to a 5-speed
manual transmission..
In terms of safety features, the Polo gets dual front airbags and ABS as standard across all its
variants. However, the Polo GT TSI also gets electronic stability program and hill-hold control
over the standard equipment.
9
https://www.volkswagen.co.in/en/volkswagen-service/volkswagen-safety.html
52. 48
COMPARISION BETWEEN SAFETY FEATURES OF PASSAT & POLO
SAFETY MEASURES PASSAT POLO
Anti-Lock Braking System YES YES
Parking Sensors Front & Rear NO
Central Locking YES YES
Driver Airbag YES YES
Passenger Airbag YES YES
Side Airbag-Front YES NO
Side Airbag-Rear YES NO
Rear Seat Belts YES YES
Seat Belt Warning YES NO
Brake Assist YES NO
Door Ajar Warning YES NO
Crash Sensor YES YES
Power Door Locks YES NO
Child Safety Locks YES YES
ISOFIX Child Seat Mounts YES NO
Side Impact Beams YES YES
Front Impact Beams YES YES
Day & Night Rear View Mirror YES YES
Passenger Side Rear View Mirror YES YES
Engine Immobilizer YES YES
Centrally Mounted Fuel Tank YES YES
Hill Assist YES NO
Automatic Headlamps YES NO
Follow Me Home Headlamps YES NO
Front Brake Type Disc Disc
Rear Brake Type Disc Drum
Height Adjustable Front Seat Belts YES NO
53. 49
TATA MOTORS at A Glance
Type Public
industry Automotive
founded 1945: 73 years ago,
headquarters Mumbai, INDIA
Area served Worldwide
key people Natrajan Chandrashekhran (CEO)
products
Automobiles
Sport Cars
Commercial vehicles
Coaches
Buses
Construction equipment
Military vehicles
Automotive parts
revenue ₹2.697 trillion (US$41 billion) (2017)
operating income ₹30,343.5 crores (US$4.6 billion) (2017)
net income ₹7,454.88 crores (US$1.1 billion) (2017)
total assets ₹2.725.80 trillion (US$42 billion) (2017)
Number of employees 79,558 (2017)
parent Tata group
subsidiaries Jaguar, Land Rover
Tata Daewoo
Tata Technologies
website www.tatamotors.com
54. 50
COMPANY PROFILE
The largest passenger automobile and commercial vehicle manufacturing company of India Tata
Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company),
has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York
Stock Exchange in 2004 has created $320 billion wealth and was one of the top 10 wealth creators
in India, with manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This
company was founded by Jamshedji Tata and is run by Ratan Tata under the flagship company
known as Tata and sons group. He commands 79558 employees working in three plants as well as
other regional and zonal offices across the length and breadth of India.
Tata motor’s passenger cars still need to reach acceptable international requirements. The company
commands an imposing 65% share of the domestic commercial vehicle market and is trying to
modernize this segment. The financial business of Tata motors was separated into a subsidiary
company in Sep. 2006, where it recorded a strong financial performance during the last 5-year
period. From year 2005-2009, the profits of the company went up at a CAGR of 36.4%, to attain
Rs. 3,31,525 million in 2008 from Rs. 95,731 Million in 2003. By floating two rights issues at the
end of Sep 2009 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary
share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called “A” share
would have different voting and dividend rights, for every such 6-share held at a face value of 305
would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short-
term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of jaguar and Land
Rover from their principle “The Ford Motor Company’s”.
TELCO (TATA Engineering and Locomotive Company)
• Multinational Corporation.
• Headquarters in Mumbai.
• India's largest passenger automobile and commercial vehicle manufacturing company.
• World's 19th largest automaker.
• Sales: 19,654.41cr.
• Stock price: Rs. 347
55. 51
In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It
had also developed the capability of designing, testing and manufacturing such vehicles.
Leading commercial vehicle manufacturer and has significant presence in the multi-utility and
passenger car segments.
With the Launch of Tata Indica, a Euro 2 compliant vehicle is the country’s first indigenously
designed, developed and manufactured passenger car.
With the launch of Tata Nano, Tata has penetrated the market to its extreme by making a car
available for Rs. 132000 only. This is the cheapest car in India till date and with the announcement
of its diesel variant it has made potential buyers to eagerly wait for it.
FOUNDATION - The seeds of what would mature and become today's Tata group were laid long
years before India became independent.
CONSOLIDATION - The Tata group ventured into new areas and built on the foundations, in
spite of the restraints imposed by a controlled economy.
LIBRILISATION -The Indian economy unleashed a period of remarkable growth for the Tata
group, in India and worldwide.
FIVE CORE VALUES OF TATA
The Tata Group has always sought to be a value-driven organization. These values continue to direct
the Group’s growth and businesses. The five core Tata values underpinning the way we do business
are:
➢ Integrity: We must conduct our business fairly, with honesty and transparency. Everything
we do must stand the test of public scrutiny.
➢ Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.
➢ Excellence: We must constantly strive to achieve the highest possible standards in our day-
today work and in the quality of the goods and services we provide.
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➢ Unity: We must work cohesively with our colleagues across the Group and with our
customers and partners around the world, building strong relationships based on tolerance,
understanding and mutual cooperation.
➢ Responsibility: We must continue to be responsible, sensitive to the countries, communities
and environments in which we work, always ensuring that what comes from the people goes
back to the people many times over.
GENERAL OVERVIEW
INDIAS LARGEST BUSSINESS GROUP
DIVERSE BUSSINESS IN 7 SECTOR
INTERNATIONAL INCOME 61%OF GROUP REVENUE
OPERATION IN OVER 80 COUNTRIES
PRODUCT AND SERVICES EXPORED IN 85 COMPANIES
LARGEST EMPLOYER IN PRIVATE SECTOR OVER 300,000
GROUP REVENUE FY17 : $100.5 bn
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PRODUCT MIX
1. MULTI UTILITY VEHICLES
TATA SUMO GRANDE TATA XENON
2. SPORTS UTILITY VEHICLE
TATA SAFARI TATA SUMO VICTA
3. HATCHBACK
TATA INDICA VISTA TATA TIAGO
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SWOT ANALYSIS OF TATA MOTORS LTD.
Strengths:
• Renowned Brand Name
• Huge Employee Base
• Highest Productivity Percentage
• Low price cars with low fuel consumption
• India`s largest automobile company
• High Corporate responsibility
• Strong Research & Development
• Highly diversified product portfolio
Weaknesses:
• Return on Investment on share is low
• Not able to meet safety standards
• Domestic sale is not up to the mark
• Losing Customers
Opportunities:
• Eco friendly car market is still untapped
• Demand of mini SUV is increasing
• Increasing per capita income and purchasing power
• Leveraging Customer engagement experiences to acquire new customers
• Can boost business by Augmenting the distribution and service network in various
countries
Threats: Sustainability and environmentalism could mean extra costs for this low-cost producer.
This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys
into other brands this problem could be alleviated. Since the company has focused upon the
commercial and small vehicle segments, it has left itself open to competition from overseas
companies for the emerging Indian luxury segments Other players developing luxury cars targeted
61. 57
at the Indian market include Ford, Honda and Toyota. In fact, the entire Indian market has become
a target for other global competitors including Maruti Udyog, General Motors, Ford and others.
Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of
fronts. The price of steel and aluminum is increasing putting pressure on the costs of production.
Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its
traditional home market.
SWOT MATRIX
STRENGTH
• Brand Name
• Low price cars
• Strong R&D
• High CSR
WEAKNESS
• Low ROI on investment
• Domestic sale is not up to the mark
• Losing Customer
• Not able to meet safety standards
OPPORTUNITY
• Increase in demand of mini SUV
• Interest in environment friendly
vehicles
• Increase in purchasing power of
buyer
THREAT
• Global competition
• Government regulations
• fuel issues
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BCG MATRIX OF TATA MOTORS (PASSENGER VEHICLES)
MARKET SHARE
HIGH LOW
HIGH
GROWTH
LOW
STARS: High market share and High growth rate
QUESTION MARK: Low market share and High growth rate
CASH COW: High market share and Low growth rate
DOG: Low market share and Low growth rate
Tiago
Tigor
? ? ?
Nexon
Bolt
Hexa
Safari
Sumo
Zest
Nano
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SAFETY AT TATA CARS
Tata is not very famous for their safety features rather than they believe on delivering value for
what the customer pay for. Recently launched TATA HEXA is said to be one of the safest car of
TATA MOTORS.
Now we are going to compare one best (most safest) & one worst (most unsafe) car of TATA
Motors
TATA NANO
The Tata Nano’s prices fall in the bracket of Rs 2.26 lakh - Rs 3.20 lakh (ex-showroom Delhi).
The most affordable car in India is available in five variants - XE, XM, XMA, XT and XTA.
Powering all the variants is a 624cc petrol engine generating a modest power of 38PS and 51Nm
of peak torque. This engine comes paired with either a 5-speed manual or a 5-speed automated
manual (AMT) gearbox.
The Nano gets a powerful AC, front wiper & washer, front fog lamps, dual glove boxes, central
locking, booster assisted brakes, power steering (except the XE), remote keyless entry, foldable
rear seats, front power windows and music system with bluetooth, CD, MP3, Aux-in connectivity
TATA HEXA
The Tata Hexa is priced in the range of Rs 11.85 - 17.42 lakh. It gets a 2.2-litre VARICOR diesel
engine with either 150PS/320Nm (for the base XE variant) or 156PS/400Nm on tap. While the
one with the lower state of tune is available with a 5-speed manual, the latter can be had with a 6-
speed manual as well as a 6-speed automatic. It's available in a total of six variants - XE, XM,
XMA, XT, XTA and XT 4x4. The top-spec XT 4x4 is only available with a 6-speed manual
transmission. Tata claims that the Hexa delivers a mileage of 17.6kmpl.
The Tata Hexa is loaded with features such as projector headlamps, 19-inch alloy wheels, LED
taillamps and a 10-speaker JBL audio system among others
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SAFETY COMPARISION BETWEEN TATA NANO & TATA
HEXA
SAFETY FEATURES TATA NANO TATA HEXA
Anti-Lock Braking System No Yes
Central Locking No Yes
Driver Airbag No Yes
Passenger Airbag No Yes
Knee Airbags No No
Rear Seat Belts Yes Yes
Anti-Pinch Power Windows No No
Smart Access Card Entry No No
Seat Belt Warning No Yes
Door Ajar Warning No Yes
Crash Sensor No Yes
Anti-Theft Alarm No Yes
Child Safety Locks Yes Yes
Side Impact Beams Yes Yes
Front Impact Beams Yes Yes
Day & Night Rear View Mirror No Yes
Passenger Side Rear View Mirror Yes Yes
Engine Immobilizer No Yes
Centrally Mounted Fuel Tank Yes Yes
Rear Camera No No
360 View Camera No -
Hill Assist No -
Follow Me Home Headlamps No Yes
Front Brake Type Drum Disc
Rear Brake Type Drum Disc
Height Adjustable Front Seat Belts No Yes
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HYUNDAI
INTRODUCTION TO COMPANY
Hyundai motor was founded by Ju-Yung Chung who established Hyundai Auto Service in Seoul,
South Korea at the age of 31 years. Later on Hyundai Motor India Limited (HMIL) was formed
in 6 May 1996 by Hyundai Motor Company of Korea. Hyundai is the largest passenger car
exporter and the second largest car manufacturer in India. The company is investing an
additional US$ 220 to expand capacity at this plant to 250,000 units a year in line with its recent
designation at HMC’s global export hub for small cars having share of 17% of market share and
to cater to its upcoming product launches India.
HMIL presently markets over 18 variants of passenger cars across four models, the Santro in the
B segment, the Accent in the C segment, the Sonata in the E segment and the Terracan in the
SUV segment.
Hyundai has two manufacturing plants in India located at Sriperumbudur in the Indian state of
Tamil Nadu, both plants have a combined annual capacity of 600,000 units. In the year 2007
Hyundai opened its R&D facility in Hyderabad Andhra Pradesh, employing now nearly 450
engineers from different parts of the country. Basically the Hyundai Motor India Engineering
(HMIE) gives technical & engineering support in Vehicle development and CAD & CAE
support to Hyundai's main R&D center in Namyang Korea. In 2010, Hyundai started its design
activities at Hyderabad R&D Center with Styling, Digital Design & Skin CAD Teams.
South Korean car maker Hyundai, which as per reports is also world’s fastest growing automaker
and fourth largest car manufacturer across the globe, has launched a new car, Hyundai EON in
October in India.
Eon is an entry-level car but at the same time it is very spacious with a large boot. The car has
814 cc engine, promising to deliver the mileage of over 20 km per litre. The New Hyundai’s
small car is sure to stir competition in the under Rs 3 lakh price range. Hyundai EON price has
kept its price around Rs 2.5 lakh.
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HISTORY
1967-2000
Incorporation of Hyundai Motor Company, then mass production of Cartina began In 1985 the
first generation of sonata was launched ,then again in year 1993-95 Sonata II ,Accent and Elantra
were launched and also the solar powered and fuel cell electric vehicle were developed.in 1998
Grandeur and Sonata were launched and hence acquisition of Kia motors took place. Around 2000
it became official sponsor of the UEFA Euro 2000 and Korea first fuel cell electric vehicle Sonata
Fe was developed.
2001-2006
Production of Beta engine surpasses 1 million units unveiling of Korea’s first fuel cell electric
vehicle Santa Fe Established Hyundai European Design Center Launch of Tuscani (Hyundai's
sports coupe), Terracan, and Lavita Santa Fe ranked No.1 in U.S. customer satisfaction survey.
Around 2002 Cumulative production at Asan plant surpasses 1 million units Production of Sonata
begins in China .Launch of Chinese-made Elantra. Sonata receives J.D. Power's APEAL Award.
The world’s first ultra-high pressure hydrogen storage system for fuel cell electric vehicles
developed.
2007-2008
Launch of European strategic model i30 Cumulative sales in the U.S. It surpass 5 million units
Unveiling of the 3rd generation fuel cell concept car i-Blue which developed F, G, H diesel engines
for commercial vehicle. Later on the Launch of the next-generation compact car i10 by HMI took
place. And then Verna awarded Best Car of the Year by India’s Overdrive magazine and i30
selected as Australia’s Car of the Year and Green Car of the Year
In 2008 Beijing Hyundai hit 1 million vehicles production milestone and so it established 2nd plant
in Beijing .During that time only front-wheel 6-speed automatic transmission was developed
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2009-2010
Genesis named ‘North American Car of the Year’ It became the official sponsor of 2010 FIFA
world cup South Africa. And the annual sales in the US surpass 500,000 units and later on Sonata
Hybrid was launched. The ecofriendly car blue on was launched.Hyudai was also official car
sponsor of G20 Summit.
2011-2012
Blue Link introduced at the 2011 International Consumer Electronics Show (CES) in the
U.S.Launch of Veloster and the HCD-12 concept car at the North American International Auto
Show. Cumulative sales by HMI surpass 3 million units unveiling of the new brand direction and
slogan ""New Thinking. New Possibilities."" Launch of the 5th generation Grandeur (Azera) and
Veloster .First official car partner of the International Cricket Council (ICC) from 2011 to 2015
2013-2017
The launch of all new Genesis took place. It ranked the most valuable Car Brand in the U.S and
later on the launch of i20 Tucson took place. In the same year sonata became the most dependable
Mid-Size Car in the U.S and Sonata Fe selected as the 2013 Canadian Utility Vehicle of the year.
It also ranked most valuable car in the U.S. In the year 2014 it became official sponsor of the FIFA
World Cup Brazil and i20 was awarded as the ‘Indian Car of the Year’ later on in 2014 the new
sonata Turbo, new Tucson, all new elantra were launched. Launched IONIQ eco-friendly hybrid
car model and Genesis G80 sports car. In 2017 Hyundai participated in GES 2017and established
smart safety Technology center for production of autonomous
69. 65
MISSION AND VISION OF HYUNDAI MOTORS
MISSION:-
To create exceptional automotive value for our customers by harmoniously blending safety,
quality and efficiency. With our diverse team, we will provide responsible stewardship to our
community and environment while achieving stability and security now and for future
generations.
VISION
• Together for a better future.
• Lifetime partner in automobiles and beyond.
• Bring new prospective to automobile.
• Innovative mobility solution.
CORE VALUES
Hyundai Motor Company recognizes the importance and impact that automobiles have on
society and mankind. It strives to play a role that extends beyond being a simple car
manufacturer to become customers’ lifetime companion. It will build connections with customers
by fulfilling its vision to become a “lifetime partner in automobiles and beyond” and participate
in working “together for a better future” as a constituent of Hyundai Motor Group.
70. 66
HYUNDAI MARKETING MIX
Marketing Mix of Hyundai analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Hyundai marketing strategy. The article elaborates the pricing,
advertising & distribution strategies used by the company.
PRODUCT:
Hyundai Motor Company offers a diversified portfolio of cars ranging from hatchbacks to sedans
to SUVs, which are covered under the products of the marketing mix of Hyundai. The cars offered
by Hyundai globally are: Hyundai Passenger cars: Verna, Accent, and Elantra are sedans whereas
all the other cars in this segment are hatchbacks. Tucson is a premium sedan in its segment.
Hyundai Recreational Vehicle: Tucson, Hyundai SUVs Creta. Creta is a compact SUV.
PRICE:
The automobile industry market globally is very competitive with each major player launching
new models to gain the market share. It is growing at a rate of 7-8%. It uses competitive pricing
strategy globally. The global competitors of Hyundai are Toyota Motor Competition, GM Korea
Company, Ford Motor Company. At the showrooms, the customers are offered test drive of
preferred Hyundai cars through which the customers can make the appropriate decisions. After
sales service support is also provided at these showrooms.
Major auto players in include Maruti Suzuki, Hyundai, Honda, Toyota, Ford, Tata motors, M&M
among the others. The automobile market is also growing at a steady rate making it suitable for
New Entrants. Each player is trying to offer the best value cars at the beat price. Hyundai follows
competitive pricing Strategy in its marketing mix especially in the economy class segment.
However, pricing also varies from one geography to another and the features being offered in the
car.
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PLACE:
Hyundai cars are sold in 19+ countries worldwide through some 5000 dealerships and showrooms.
Apart from this, the company has multiple manufacturing plants worldwide. Hyundai India sells
its cars through dealerships in India. Hyundai India has two manufacturing plants in
Sriperumbudur, Kanchipuram district, Tamil Nadu capable of producing 670,000 vehicles
annually. It also has a multimillion dollar R&D facility in Hyderabad.
PROMOTION:
Hyundai follows an aggressive promotional strategy in its marketing mix. The company is doing
promotions in the following ways
• Press Releases: The customers know about the latest breaking Hyundai Motor local news.
• Advertisements: The Company releases Ads during the launch of New Models to create
awareness among its target audience. It also indulges in Digital Marketing and Print
Ads. Hyundai also has celebrity brand ambassadors like film stars to promote their cars.
• Media review: Hyundai also promotes through media through expert opinions and reviews.
These reviews help its target audience in decision making.
• Be The Better Guy: Hyundai comes up with short and unique films. The messages in these
films revolve around creating innovative content, pressing on to '#BeTheBetterGuy' in an
adverse situation related to road safety and Behavioral Change.
72. 68
SWOT ANALYSIS OF HYUNDAI
STRENGTH
• Good reputation among
customers.
• Trusted brand in India
• Serving Worldwide
WEAKNESS
• Shortage of spare parts
• Lack of access to provide services.
• Limited Car designs
OPPORTUNITY
• Develop fuel efficient cars
• Hybrid cars.
• Launch electric cars
THREAT
• Global competition
• Exchange rates.
• Emergence of substitute products
A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm’s resources and
Capabilities to the competitive environment in which it operates. AS such, it is instrumental in
strategy formulation and selection. The following diagram shows how a SWOT analysis fits into
an environmental scan.
STRENGTHS:
A firm’s strengths are its resources and capabilities that can be used as a basis for developing a
Competitive advantage Examples of such strengths of HYUNDAI
• Hyundai have a good reputation among customers.
• Well established co. since 1993
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• Trusted brand in INDIA.
• Strong distribution network all over India.
• It has the maximum number of service station all over.
• Exclusive access to high grade natural resources.
WEAKNESS:-
• Lack of patent protection.
• The company has low brand recognition in A segment and passenger car.
• High cost structure.
• Lack of access to the best natural resources.
• Lack of access to provide the services for dealing of second hand cars.
OPPORTUNITIES:-
The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such Opportunities include
• An unfulfilled customer need
• Arrival of new technologies.
• Loosening of regulations.
• Removal of international trade barriers
THREATS:-
Changes in the external environment also may present threats to the firm. Some of examples of
such threats include:
• Shifts in consumer tastes away from the firms products.
• Emergence of substitute products.
• New regulations.
• Increased Barriers.
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BCG MATRIX OF HYUNDAI CARS
MARKET SHARE
HIGH LOW
HIGH
(GROWTH)
LOW
STARS: High market share and High growth rate
QUESTION MARK: Low market share and High growth rate
CASH COW: High market share and Low growth rate
DOG: Low market share and Low growth rate
Elite i20
Verna
Creta
? ? ?
Elantra
Xcent
Grand i10
Eon Tucson
75. 71
HYUNDAI SAFETY MEASURES
It's always been our aim to engineer the safest cars in the industry, which is why it's always exciting
when we receive accolades by safety experts for a job well done. For 2016, five Hyundai models,
the Sonata, Santa Fe, Santa Fe Sport, Elantra and Tucson, were awarded Top Safety Pick+ from
the Insurance Institute for Highway Safety. The "plus" signifies the vehicles earned the highest
possible rating for front crash prevention in IIHS testing. And, the National Highway Traffic
Safety Administration awarded Tucson and Elantra GT a Government 5-Star Overall Safety
Rating, which took into account frontal crash safety, side crash safety and rollover safety.
ACTIVE SAFETY
The collisions, which happen due to various reasons – from distracted driving to external shocks,
pose a major risk to the life of the passengers and driver. Therefore, Hyundai Motor is engaged in
ongoing research to study various technologies including ring-shaped structure, sequential-order
structure and hot stamping method in order to get the vehicle prepared for collisions. First, the
“ring-shaped structure” is about linking the automotive body’s length and width materials using
rings so that it could be solid and light. The ring shaped structure not only enhances safety but also
promotes fuel consumption efficiency.
In addition, the “sequential-order structure” is the technology that helps the car body to absorb the
kinetic energy that comes out during collision, sequentially to scatter the energy. Also, hot
stamping method is the technology that gives three to five folds greater sturdiness through press
forming and quick freeze quenching of the high-temperature heated material. These two are the
technologies that best protect the passengers and pedestrians in times of collision.
Hyundai uses the Energy Absorbing Steering Column (EASC) mechanism that promotes safety
through the air bag in the steering wheel absorbing the kinetic energy to minimize damage done
to the driver. Moreover, the seatbelts have evolved beyond being merely a belt for fastening the
passengers to the seats. Hyundai Motor uses the Seat Belt Pretensioner technology which, by
76. 72
rewinding the belt instantly after the collision and releasing it, grabs the passenger and promotes
the effect of an air bag.
PASSIVE SAFETY
• Study on car to car frontal impact with compatibility. Car-to-car frontal impact is a large
portion in a real vehicle accident. In this study, the improvement of the response of
passenger’s injury and the development of the vehicle structure which reduces the
aggressiveness against the opponent vehicle is conducted.
• Nonlinear optimization studies about the vehicle focused on improving performance of low
speed collisions. By ensuring the optimum profile and the proper placement of body
structures, minimizing the customer's vehicle repair costs.
• The Automatic Emergency Braking system uses both a camera and radar sensor. If a crash
is imminent and the driver does not react, the system deploys Automatic Emergency
Braking. The system can even apply full brake-force stopping power from 5 to 50 mph10
Relentless Research and tests for 100% safety not even for 99%.
The technicians at Hyundai Motor assert that there is no such thing as 99% of safety. Hyundai
Motor pursues relentless researches and tests for 100% safety. Before our technicians come up
with new vehicles, they go for mock up accidents, which are most similar to the real situations,
and assume the worst scenario to test the safety.
10
https://www.hyundaiusa.com/new-thinking/safety.aspx
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COMPARISON OF HYUNDAI TUCSON WITH EON
FEATURES HYUNDAI TUCSON HYUNDAI EON
Price 25.25 lakhs 4.10 lakhs
Driver air bags YES Yes
ABS Yes No
EBD Yes No
Electronic Stability
Program
Yes No
Brake assistant Yes No
Child safety lock Yes Yes
Seat belt warning Yes Yes
Crash Sensor Yes Yes
Anti-Theft Device Yes Yes
Power door locks Yes Yes
Passenger Airbag Yes No
Side Airbag Yes No
Door Ajar Warning Yes No
Automatic Headlamps Yes No
Engine Check Warning Yes Yes
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MAHINDRA & MAHINDRA
COMPANY PROFILE
Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on,
after the partition of India, one of the partners - Ghulam Mohammad – returned to Pakistan, where
he became Finance Minister. As a result, the company was renamed to Mahindra & Mahindra in
1948.
M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled
CKD jeeps in 1949. Over the passing years, the company expanded its business and started
manufacturing light commercial vehicles (LCVs) and agricultural tractors.
Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in
manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in
China, the United Kingdom and the USA.M&M partnered with companies prominent in the
international market, including Renault SA, International Truck and Engine Corporation, USA, in
order to mark its global presence. M&M also started exporting its products to several countries
across the world. Subsequently, it set up its branches including Mahindra Europe Srl (based in
Italy), Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.
At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding
leadership in the market of the country, for around 25 years. The company is an old hand in
designing, developing, manufacturing and marketing tractors as well as farm implements. It made
its entry to the passenger car segment in India, with the manufacture of Logan (mid-size sedan) in
April 2007, under the Mahindra Renault collaboration. Soon after the considerable success of
Logan, M&M started launching a wide range of LCVs and three wheelers as well as SUVs
including Scorpio and Bolero. In the present time, Bolero has gained immense popularity in India.
It is one of the most opted vehicles in its.
79. 75
HISTORY OF MAHINDRA AND MAHINDRA LIMITED
Mahindra and Mahindra Limited (M&M) is an Indian multinational car manufacturing corporation
headquartered in Mumbai, Maharashtra, India. It is one of the largest vehicle manufacturers by
production in India and the largest manufacturer of tractors in the world. It is a part of Mahindra
Group, an Indian conglomerate.
It was ranked 21st on a list of top companies in India by Fortune India 500 in 2011. Its major
competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok Leyland and others.
Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra &
Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After
India gained independence and Pakistan was formed, Mohammed immigrated to Pakistan where
he became that country's first finance minister. The company changed its name to Mahindra &
Mahindra in 1948.It eventually saw a business opportunity in expanding into manufacturing and
selling larger MUVs, starting with the assembly under license of the Willys Jeep in India. Soon
established as the Jeep manufacturers of India, the company later commenced manufacturing light
commercial vehicles (LCVs) and agricultural tractors.
Over the past few years, the company has taken interest in new industries and in foreign markets.
They entered the two-wheeler industry by taking over Kinetic Motors in India.[9] M&M also has
a controlling stake in the REVA Electric Car Company and acquired South Korea's SsangYong
Motor Company in 2011. In 2010–11 M&M entered in micro drip irrigation with the takeover of
EPC Industries Ltd in Nasik. In October 2014, Mahindra and Mahindra acquired a 51% controlling
stake in Peugeot Motorcycles.
In December 2015, Mahindra and Mahindra Ltd and affiliate Tech Mahindra Ltd, through a special
purpose vehicle (SPV), have agreed to buy a 76.06% stake in Italian car designer Pininfarina SpA,
for €25.3 million (around Rs.186.7 crore).
In January 2017, Mahindra and Mahindra Ltd (M&M) acquired a 75.1 equity stake in Hisarlar
Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar), a farm equipment company, marking its entry
into Turkey.
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In September 2017 Mahindra and Mahindra Ltd said it has acquired Erkunt Traktor Sanayii AS, a
Turkish tractor maker and its foundry business for Rs800 crore.
MILSTONE, AWARDS AND ACCOLADES
M&M’s 61st year was studded with a number of noteworthy achievements, prestigious prizes
and glittering awards
• Dual honours for chairman mr. Keshub Mahindra
• Slew of honours for mr. Anand Mahindra
• Highest crisil rating for m&m
• Dun & bradstreet american express corporate awards 2006
• Mahindra receives amity hr excellence award
• Global hr excellence award for m&m
• M&m wins bombay chamber good corporate citizen award 2006-07
• Golden peacock award for excellence in corporate governance
• Best automotive manufacturing supply chain excellence award
SUV PRODUCT OF MAHINDRA AND MAHINDRA
MAHINDRA BOLERO
Mahindra Bolero is one of the most successful and popular utility vehicle of the Mahindra and
Mahindra Group. The car is robust in appearance and it has been elegantly designed, keeping in
mind the conditions of the Indian roads.
Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has
equipped it with a 2500 cc diesel engine with5- speed transmission.
MAHINDRA SCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle in
India in 2002. This SUV has redefined the expectations for the design of SUVs with its sturdy
looks and powerful performance, the sophisticated interior design adds to the further glory to the
appearance.
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MAHINDRA TUV300
In Aug 2015, Mahindra & Mahindra announced TUV300 and the microsite for the vehicle went
live the same month. The vehicle was officially launched on 15 Sep 2015 in Madhya Pradesh.
TUV300 is designed by Mahindra Research Valley and is built on the same platform as the
Scorpio. TUV300 also carries the same engine as the XUV500 and Scorpio, but the engine
displacement in the TUV300 is lower, resulting in lower engine power and torque.
MAHINDRA XUV500
The base model of the Mahindra XUV500 – W4, W6, and W6 AT come with steel wheel covered
with full wheel caps. On the other hand, the top-trims – W8, W8 AT, W10 and W10 AT come
with 17-inch dual 5-spoke alloy wheels.
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MISSION AND VISION
• MISSION:
To be the global leader in outsourcing services to the Telecom industry, building on our
technologies, competencies and customer interests, and creating value for our shareholders and
customers.
• VISION:
The vision of the company is to be the Leading independent player in the global Gears &
Transmissions Space.
This we wish to achieve through a two pronged approach of developing a portfolio of products
thereby being able to provide a differentiated product offering to our customers and extensive
focus on operational excellence thereby improving internal efficiencies in the system.
• CORE PURPOSE
Our Core purpose is derived from the Mahindra Group’s purpose: We will challenge conventional
thinking and innovatively use all our resources to drive positive change in the lives of our
stakeholders and communities across the world, to enable them to Rise.
• CORE VALUES
We are governed by the Core values of the Mahindra Group. They are an amalgamation of what
we have been, what we are and what we want to be. These values are the compass that guides our
actions, both personal and corporate. They are:
• Good Corporate Citizenship: We will continue to seek long term success in alignment
with the needs of the communities we serve. We will do this without compromising on
ethical business standards.
• Professionalism: We have always sought the best people for the job and given them the
freedom and the opportunity to grow. We will continue to do so. We will support
innovation and well-reasoned risk taking, but will demand performance.