EXECUTIVE SUMMARY
Marketing is the action or business of promoting and selling products or services, including market research, strategies, advertising, etc.
Indian Automobile Industry is one of the largest in the world. It contributes to 7.1% of country’s GDP.
In this research, the marketing strategies that are taken up by the automobile manufacturers to grow and sustain in the Indian Market is discussed. This research is secondary in nature. For this purpose, two of the leading automobile companies are taken – Tata Motors Ltd and Hyundai Motors India Ltd (HMIL).
3 major criteria are taken to carry out this research:
a) 4P’s of Marketing
b) SWOT analysis
c) Pest Analysis
Conclusion – Tata Motors is in a better position than HMIL due to the following reasons:
Tata has a well-established brand name
It is almost in all segments of the automobile market.
It is socially more active and giving than HMIL
Marketing strategies in automobile industry in india
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DECLARATION BY STUDENT
AMITY SCHOOL OF BUSINESS
AMITY UNIVERSITY UTTAR PRADESH NOIDA
MARKETING STRATEGIES IN AUTOMOBILE INDUSTRY IN INDIA
Name of the Student: Raagini Mahendran
Enrollment Number:………………..
Class Roll Number: …….
Program: Bachelors of Business Administration
Batch: 2015-2018
Course: NTCC Dissertation
Faculty Supervisor: ……..
2. 2 | P a g e
This is to certify that I, Raagini Mahendran, a student of BBA 2015 -2018 Batch, Amity School of
Business, Amity University Uttar Pradesh, Noida have worked under the guidance and supervision of
………………… for NTCC Dissertation.
This report has the requisite standard for the partial fulfillment of the Under Graduate Degree in Business
Administration (BBA Degree). To the best of my knowledge no part of this report has been reproduced
from any other report and the contents are based on original research.
I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the report.
Signature (Student)
Name of the student – Raagini Mahendran
Enrollment No. – …………………..
Batch: 2015 - 2018
3. 3 | P a g e
DECLARATION BY FACULTY SUPERVISOR
This is to certify that Ms. Raagini Mahendran, Enrollment No-………, a student of BBA in, 2015 -2018
Batch, Amity School of Business, Amity University Uttar Pradesh, Noida has worked under my guidance
and supervision for the duration of NTCC Dissertation.
The report being submitted incorporates original work and research and is being submitted as a partial
fulfillment for the Under Graduate Degree in Business Administration (BBA Degree).
Signature
Name of Faculty Supervisor: ………………..
4. 4 | P a g e
ACKNOWLEDGEMENT
I owe great thanks to many People who helped and supported me. My deepest thanks to ………,
the guide of the project for guiding and correcting various documents with great attention and
care. He has taken the pain to go through the project and make necessary correction as and when
required. I express my gratitude to my Institution and faculty members without whom this
project would have been a distant reality.
5. 5 | P a g e
EXECUTIVE SUMMARY
Marketing is the action or business of promoting and selling products or services, including
market research, strategies, advertising, etc.
Indian Automobile Industry is one of the largest in the world. It contributes to 7.1% of
country’s GDP.
In this research, the marketing strategies that are taken up by the automobile manufacturers
to grow and sustain in the Indian Market is discussed. This research is secondary in nature.
For this purpose, two of the leading automobile companies are taken – Tata Motors Ltd and
Hyundai Motors India Ltd (HMIL).
3 major criteria are taken to carry out this research:
a) 4P’s of Marketing
b) SWOT analysis
c) Pest Analysis
Conclusion – Tata Motors is in a better position than HMIL due to the following reasons:
Tata has a well-established brand name
It is almost in all segments of the automobile market.
It is socially more active and giving than HMIL
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TABLE OF CONTENTS
S.No. Topic Page No.
Declaration by Student 2
Declaration by Faculty 3
Acknowledgment 4
Executive Summary 5
1. Chapter 1: Introduction 8 - 11
1.1 Fundamental principle of Marketing Strategy 8
1.2 Overview on Automobile Industry in India 9
1.2 Portfolios of Companies taken for research 10
2 Chapter 2: Literature Review 12
2.1 Research papers 12
3 Chapter 3: Research Methodology 13
3.1 Research Objectives 13
3.2 Research Design 13
4 Chapter 4: Tata Motors Limited 14 - 19
4.1 About Tata Motors 14
4.2 4 P’s of Marketing 15
4.3 SWOT Analysis 17
4.4 Pest Analysis 18
5 Chapter 5: Hyundai Motor India Limited 20 - 25
5.1 About HMIL 20
5.2 4 P’s of Marketing 20
5.3 SWOT Analysis 24
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5.4 PEST Analysis 25
6 Chapter 6: Data Analysis and Comparison 26 - 29
6.1 4 P’s of Marketing of Tata and HMIL 26
6.2 SWOT Analysis of Tata and HMIL 27
6.3 PEST Analysis of Tata and HMIL 28
7. Conclusions 30
8. References and Bibliography 31
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Chapter 1: Introduction
Marketing is the study and management of exchange of relationships. The American Marketing
Association has defined marketing as “the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,clients, partners, and
society at large.”
Marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive
advantage.
It also deals with the analysis of the initial situation of the company, its formulation, evaluation
and selection of the market – oriented strategies.
1.1) 4 Fundamental Principle of Marketing Strategy
Marketing Strategies
Basic
Activities
Short Term
- Activities
Long Term
- Activities
Specialization
Differentiation
Segmentation
Concentration
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1. Specialization - This helps in defining the domain, product, service, customer, market.
2. Differentiation –This principle would define your uniqueness. Your differentiation would make you
stand out of the crowd.
3. Segmentation –Segmentation means looking at specific customers in the market who values your
differentiation and will pay more for your area of specialization.
4. Concentration –Once you’ve determined your best market segments, focus all on resources,budgets
and time on acquiring customers from these markets and retaining them.
1.2) Overview on Automobile Industry
The Indian Automobile Industry is one of the largest in the world. The industry accounts for 7.1
per cent of the country’s GDP. The two wheelers segment with 81 per cent market share is the
leader of the Indian Automobile market owing to a growing middle class and a young
population.
The automotive industry in India is one of the largest in the world with an annual production of
23.9 million vehicles in the Financial Year 2015-2016. There has been a growth of 2.57% over
the last year.
75%
20%
5%
Segment wise Market Share
Two-Wheelers
Passenger Vehicles
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3.4) Portfolio of the Companies taken for research
Tata Motors Limited
Type Public
Traded as BSE: 500570
NSE: TATAMOTORS
NYSM: TTM
Industry Automotive
Founded 1945
Headquarters Mumbai, India
Area served Worldwide
Key people Natarajan Chandrasekaran (Chairman)
Ramakrishnan (President and group CFO)
Guenter Butschek (CEO)
Products Automobiles, commercial vehicles, coaches, busses, military vehicles,
automotive parts
Services Automotive design, engineering and outsourcing services, vehicle leasing
and service.
Number of
employees
76500 (2015)
Website www.tatamotors.com
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Hyundai Motor India Limited
Type Subsidiary
Industry Automotive
Founded May 6, 1996
Headquarters Chennai, Tamil Nadu, India.
Key people Mr. Y. K. Koo (CEO)
Products Automobiles
Parent Hyundai Motor Company
Website www.hyundai.co.in
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Chapter 2: Literature Review
Research Papers
1. Marketing Strategies of Indian Automobile Companies: A Case Study of Maruti Suzuki
India Limited.
Written by – Dr. M. A. Lokhande and Vishal Singh Rana
In this research paper, the automobile market has been described as very dynamic and
competitive with a wide range of players and products. Some of the reasons for the
growth of this industry are easy availability of finance, attractive rate of interest, and
convenient instalments. Rigid competition has forced the manufacturers to innovate
and be responsive to customer’s demands and needs.
2. Automobile Industry: A Review
Written by – Amarjit Singh, Dr. Vinod Gupta
CMJ University, Shillong, Meghalaya, India
India has the potential to develop into a significant market for automobile manufacturers.
Indian automotive industry holds significant scope for expansion, both in the domestic
market, where the vehicle penetration level is on the lower side as compared to world
average, and in the international market, where India could position itself as a
manufacturing hub.
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Chapter 3: Research Methodology
ResearchObjectives:
1. To study the various marketing strategies those are employed to sustain and grow by the
Automobile Industry in India.
2. The two companies taken for the purpose of research are Tata Motors Limited and Hyundai
Motors India Limited.
3. The following subject matters are discussed in detail for both the companies:
3.1. 4 P’s of Marketing
3.2. Swot Analysis
3.3. PESTEL Analysis
ResearchDesign:
This research project is a comparative study on two renowned automobile companies, Tata
Motors and Hyundai Motor India Ltd. In this research, secondary sources are used to acquire
well-grounded information.
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Chapter 4: Tata Motors Limited
4.1) About Tata Motors
Tata Motors Limited is and Indian multinational automotive manufacturing company
headquartered in Mumbai, India, and is a member of Tata Group. Its products include-
Passenger Cars
Trucks
Vans
Buses
Coaches
Construction equipment
Military vehicles
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in collaboration with Daimler-Benz AG. Tata Motors entered the
passenger vehicle market in 1991 with the launch of the Tata Sierra, becoming the first Indian
manufacturer to achieve the capability of developing a competitive indigenous automobile. In
2008, they launched Tata Nano, the world’s cheapest car, amounting only Rs 2.2 lakhs.
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4.2) 4 P’s of Marketing
Product
Brand: the products of Tata Motors have many special characteristics to them, but
when consumers think of it, they not only think of its features but also associate it
with quality, performance and class. All of these are achieved with advertising.
Consumers frequently buy the product not only for its functional features but also
associate with the brand. Tata Motors have created a successful brand image.
Packaging: A vehicle cannot have material packaging. In here, packaging is referred
to as effective assembly of features.
Innovation: The various motives behind buying an automobile are need, prestige,
comfort, fashion, novelty. The R&D department continuously strives to bring new
innovations in their product. The experience has helped them to develop products
which fulfil the expectations of Indian consumers.
Quality Control: Tata Motors have their Quality Control Standards. The QC
Department ensures that he customer does not face any inconveniences of a defective
product.
Price
Pricing Strategy: The prices are fixed keeping in mind a number of factors. Prices have
to be at par with the prices of the competitors. Tata Motors give a relative price
Marketing
Mix
Product Price Place Promotion
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advantage as compares to its competitors. The various determinants of prices are:-
Discounts: The discounts are decided by the company every month. These discounts
would attract more customers and raise their profitability.
Place
Channels of Distribution: Tata Motors have adopted the dealership method of
distribution of its products. The dealers purchase products from the company at a
negotiated price. The price is fixed by the company and the dealer gets a profit within
these prices. As the company deals in commercial and passenger vehicles, there may be
single or distinct dealerships to market its vehicles in a town.
Physical Distribution: The commercial vehicles are manufactured at Jamshedpur,
Lucknow and Patnagar, whereas passenger vehicles are manufactured at Pune plant.
From the plant, the finished product is transported to the dealerships.
Promotion
Personal Selling: There is minimal personal selling involved. The Sales Officers at the
dealerships collect prospective customer database and perform cold calling to attract
customers.
Advertising: Advertising is a form of commercial mass communication designed to
promote the sale of a product or service. Tata Motors is responsible for the advertising of
its own products. The various media used for advertising are TV, newspapers,
magazines, hoardings, internet, etc.
Market
Condition
Cost incurres Profit percentage Dealer Profit
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Sales Promotion: The purpose of sales promotion is to supplement and coordinate
advertising and personal selling; It is designed to persuade consumers to purchase
immediately by providing special incentives such as rebates, prizes, extra product, etc.
The company conducts uses intensive sales promotion during festivals.
Public Relations: Public Relations is a management function that creates, develops, and
carries out policies and programs to influence public’s opinion about an idea, product, or
an organisation. Tata Motors takes serious measures to maintain good public relations. It
follows business ethics to ensure that the customers are satisfied and receives good
service.
4.3) SWOT Analysis
It is an acronym for Strength, Weakness, Opportunities and Threats and is a structured
planning method that evaluated those four elements of a project or business venture.
Strengths:
o The brand is very well established.
o Tata’s management is strengthened by the collective experience of its partners and
acquired companies.
Strenght Weakness
Opportunities Threats
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o The company has a strategy in place for the next stage of its expansion. It has a
programme of intensive management development in place in order to establish its
leaders for tomorrow.
o Creation of an entirely new segment with Tata Nano.
o Acquisition of Jaguar and Land Rover.
Weakness:
o The company’s passenger car products are based upon 3rd and 4th generation
platforms, which put Tata Motors Ltd at a disadvantage with competing car
manufacturers.
o Tata has not got a foothold in the luxury car segment in its domestic market.
Opportunities:
o The Nano could sell well in other geographic markets like that of China.
o Jaguar and Land Rover provide Tata with an opportunity to establish itself in the
luxury segment in the upcoming years.
o No major player in the electric car segment in the domestic market so ‘Indica Vista
Electric’ and ‘Megapixel’ could just be the right answer for Indian consumers.
Threats:
o Maruti Suzuki and Hyundai are major rivals in the small car market
o Powerful competitors for the luxury market including Honda, Toyota, Ford and
Volkswagen are beginning to push onto the Indian market.
o Tata’s competitive price advantage will be under pressure as environmental
regulations are tightened and material costs increase.
4.4) PEST Analysis
PEST Analysis means Political, Economic, Social, Technological, Environmental and Legal
analysis. It is a standard way of analysing macro-economic forces which impact a company
or a corporation.
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Political and Legal Analysis: Tata Motors acquired a land of 997 acres for
manufacturing Nano Cars by State Government support. But this acquisition required
the displacement of farmers. It attracted heavy criticisms; “Save Farmland”
movement was started by opposition leader. On 3rd October, 2008, Tata Motors
closed its plant from Singur. It was later established in Sanland, Gujarat.
Economic Analysis: Tata Motor’s economic scenario is quite compromising with
GDP growth rate around 7%. However, high interest rates and low freight availability
impacted its financial infrastructure in first quarter of 2013. During the same time,
price pressure from competitors also marred its financial position. The commercial
vehicle segment of Tata Motors gave it an edge over others at that time and the big
and mid-sized vehicles helped it to regain its ground.
Social Analysis: Wherever Tata Motors goes, it hires mostly the local population
generating employment. Due to its age long history and its welfare activities, Tata
enjoys full public support. It is also involved in philanthropy and supports around 600
NGO’s. Tata also works towards provided high standards of education to students.
Some of the institutes opened and managed by Tata are Indian Institute of Science,
Tata Memorial Centre, Tata Institute Social Science, etc.
Technological Analysis: In order to adapt with the latest technology, the company
owns Tata Technologies Limited (TTL). TTL helps Tata Motors in the upgradation of
designs and technology. Tata faced a technological hurdle when two units o sots
revolutionary Nano cars caught fire in the year 2009. After forensic investigation, it
was assured to the customers that Nano is perfectly safe.
Environmental Analysis: Tata Motors manufactures its vehicles according to the
norms of Indian and Euro standards of emission. TTL is fostered by Tata to
manufacture greener cars with low fuel consumption and lowest emission gasses
possible. As an eco-friendly company, it has also invested in various “Green Earth,
Clean Earth” campaigns. It has also worked towards the stopping of deforestation
many years in a row.
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Chapter 5: Hyundai Motor India Limited
5.1) About Hyundai Motor India Limited
Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor Company in
India. It is the second largest automobile manufacturer in India. Hyundai Motor India Limited
was formed on 6 may 1996 by the Hyundai Motor Company in South Korea.
HMIL’s first car, the Hyundai Santro was launched on 23 September 1998 and was a runaway
success. Within a few months of its inception HMIL became the second largest automobile
exporter in India.
HMIL Presently markets 10 models. Some of them are listed below –
Eon
Grand i10
Xcent
Elite i20
i20 Active
Verna
Elantra
4.2) 4 P’s of Marketing
Product
Product classification: The products of Hyundai may be classified in the following basic
criteria:
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Packaging: Packing is meant for protection and maintenance of the quality of the product.
HMIL provides best maintenance of its cars. They use transportation service to transit the
car from one place to another.
Labelling: The label of the company gives the following information:
i) Brand name
ii) Address of HMIL
iii) Directions to use
iv) Retail price
v) Nature of product, etc.
Price
Factors affecting pricing factors:
i) Internal Factors: The factors within the organisation.
(a) Marketing mix - the change in cost of any other element may affect the price
of the product in huge amounts.
Durability and
Tangibility
•Hyundai cars come underthe categoryof tangible andDurable goods.
Consumer-Goods
Classification
•In thiscategory, itfallsunderSpecialitygoods.Hyundai carscarrya brand
value whichisverymuchnecessaryforthiscategory.Theyhave their
ownshowroomsinalmosteachand everycity.
Industrial Goods
Classification
•Raw Materials:The manufacturingof HMIL cars require natural resources
like iron, steel,coal, etc.All these productsare limitedinsupplyand
there isa constant change in the prices
•ManufacturedMaterialsandParts: The componentpartslike engines,
tires,etcare directlyboughtfromotherproducers.
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(b) Product differentiation - Hyundai is very well able to differentiate its price of
products according to the quality they are providing.
(c) Cost of the product - Cost and price of the product are interdependent. If the
cost of the product rises, the price would rise too.
(d) Objectives of the firm - There are certain goals of the organization, and to
fulfil such goals sales is the basic revenue source. So, it becomes very
important for the company to decide its price accordingly.
ii) External Factors: The factors which are beyond the control of the organisation.
(a) Demand - Demand of the product affects its prise on a huge scale. But,
Hyundai is able to keep its demand high due to nee features and variety in its
products
(b) Competition - Competitors price of similar kind of product also affect the
price of the commodity.
(c) Suppliers - Suppliers of raw materials also affects the price of the commodity.
Hyundai buys its raw materials which hare high-quality and are available at a
reasonable rate.
(d) Economic Condition - The inflationary and deflationary tendency affects the
pricing. During recession period in India, the prices of cars came down
dramatically.
(e) Buyers - In India, there are all kinds of buyers. Hyundai provides good
according to the need and ability of buyers.
(f) Government - Government policies affect the price of goods on large scale.
Place
Factors affecting choice of Distribution channel
i. Market Consideration
(a) Hyundai have well considered the Indian market and selected the distribution
channel. It has first tried to understand the nature of the Indian market and
then have established its products in India.
(b) HMIL has many potential customers in India.
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(c) The consumers in India are more price conscious thus Hyundai made its
products according to it.
ii. Product Consideration
(a) Per unit value of product is high thus directly affecting the distribution
channel
(b) It is not perishable in nature, it is of technical in nature and requires service.
(c) HMIL has a narrow product line. It has made according to the demand and
need of the customers.
(d) It is not seasonal in nature, but offers discounts and other incentives during the
festive season.
(e) It gives new products to the market which is generally accepted. It generally
has a stable price.
iii. Company Consideration
(a) Financial strength of HMIL is sound.
(b) Reputation of HMIL is very high in the market.
(c) It is the second best company in India in its field, thus have good market
control.
iv. Consumer Consideration
(a) Hyundai has designed its cars according to the customers in India.
(b) Consumers in India are price and mileage conscious. Thus, it has designed its
product accordingly.
Promotion
Advertising: Hyundai spends lots of money on its advertisements. With the help of
advertising, it is able to achieve an incredible figure of sales.
Sales promotion: HMIL is constantly encouraging people to buy its care by offering
skims, bringing new variety, etc.
Events and experience: HMIL also sponsors many programs to improve its reputation
Direct marketing: HMIL also does direct marketing through mails, websites, social
networks, etc.
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Personal selling: HMIL does not do any kind of personal selling.
5.3) SWOT Analysis
Strength
The quality advantage: Hyundai owners experience fewer problems with their vehicles
than any other car manufacturer in India. The Santro was chosen the best in premium
compact car segment and the Getz in the entry level mid-size car segment.
A buying experience like no other: Hyundai has sales network of more than 650 dealers
in about 370 cities in India, with a workforce of over 10000 trained sales personnel to
guide the customers in finding the right car.
Weakness
Commodity price risk: Hyundai’s commodity price risks to higher cost due to changes in
prices of inputs such as iron, steel, rubber, plastic, etc. which goes into the production of
automobiles. In order to mitigate these risks, the company continues to enter into long
term contracts based on its projections of price.
Exchange rate risk: The company is exposed to the risks associated with fluctuations in
foreign exchange rates mainly of import of components and raw materials and export of
vehicles.
Opportunities
Leading growth: As the market leader, the company led the growth in the passenger car
sector last year. Hyundai’s sales went up by 30%.
Changing lifestyle: As the lifestyle of people of India is improving, it offers an
opportunity to HMIL to increase its growth on large scale.
Threats
Risk factors: In course of its business, HMIL is exposed to varieties in the market and
other risk including demand dynamics, commodity prices, interest rates, etc.
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Business risk: The automotive industry is very capital intensive. Such investments require
a certain scale of operations togenerate viable returns.
Competitors: Maruti Udyog Limited and Tata Motors Limited are great and potential
competitors of HMIL.05u
5.4) PEST Analysis
Political Environment: HMIL usually does not get into quarrels with other companies or
get in controversies. But it locked horns with Maruti Udyog over a controversial
advertisement. Maruti showed in the advertisement that it was superior to Hyundai.
HMIL requested Maruti Udyog to refrain from such advertisements which they believe to
be malicious.
Economic Environment: The market share of HMIL has steadily being increasing. They
are No.1 in terms of exports and No.2 in terms of volumes produced.
Social Environment: Hyundai Motor India Foundation (HMIF) was formed in the year
2006 with the purpose of ‘giving back’ to the society and to initiate Corporate Social
Responsibility (CSR) activities in the areas of community development, healthcare,
educational and vocational training, road safety, etc.
Technological Environment: As to sustain in this competitive market, innovations are
crucial. Hyundai comes up with new technologies and are sustain their top position.
Some of the innovations are-
i) Autonomous Emergency Breaking System
ii) Advanced Traction Cornering Control
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Chapter 6: Data Analysis and Comparison
6.1) 4 P’s of Marketing of Tata and HMIL
4 P’s/Company Tata Motors Ltd. HMIL
Product
Tata has brand name that promises
quality, performance, and class. The
R&D department continuously
strive to bring in new innovations
and quality products that satisfy the
consumers. Also, they don’t focus
much on packaging of their product.
The products of HMIL can be classified
into:
Durability and tangibility
Consumer good classification.
Industrial goods classification.
HMIL focuses more on packaging and
labelling their product. Also, they
provide maintenance to the consumers
and provide their own transportation
services.
Price
For Tata Motors, pricing criteria
depends on these factors:
Market condition
Cost incurred
Profit percentage
Dealer profit
For HMIL, pricing criteria depends on
broadly two factors:
Internal factors (e.g.: cost of the
product, product differentiation,
etc. )
External factors (e.g.: demand,
competition, government, etc.)
Place Tata follows the dealership method
of distribution for its products.
There are single and distant
dealerships to market the vehicles.
Tata has its manufacturing units in
various cities such as Jamshedpur,
There are various factors that affect the
distribution channel of HMIL. They are:
Market consideration
Product consideration
Company consideration
27. 27 | P a g e
Lucknow, Pune, etc. Consumer consideration
Promotion
Tata does intensive advertising and
sales promotion for its products. It
offers incentives, prizes, discounts,
rebates, etc. to its customers. But
they don’t do much of personal
selling.
HMIL also does rigorous advertising and
sales promotion of its product. HMIL
does direct marketing through mail,
websites, social networking, etc.
6.2) SWOT Analysis of Tata and HMIL
SWOT/ Company Tata Motors HMIL
Strengths
Tata is a well-established brand. It
has a programme intensive
management development to
establish its leaders of tomorrow. It
also acquired Jaguar and Land
Rover.
HMIL is known for its quality
products. Its customers encounter
fewer problems than other car
manufacturing companies. It also
has more than 650 dealers in over
370 cities which acts its strength.
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Weakness
Its products are based on 3rd and 4th
generation platforms which does
not acts as an advantage for the
company.
HMIL’s commodity price risk to
higher cost. And it is also exposed
to the fluctuation of foreign
exchange rates which affects the
import of components and raw
materials and export of the
vehicles.
Opportunities
The Nano could sell well in the
markets like of China. The
acquisition of Jaguar and Land
Rover bought the company to enter
the luxury segment.
HMIL’s sales went up by 30%. It is
growing steadily in this market.
With the change in lifestyle of the
customers, gives HMIL a chance to
grow and expand further.
Threats
The powerful competitors in the
luxury segment like Honda and
Toyota are beginning to push into
the market. As they are not very
experienced in this segment, it
would be difficult for them to
survive.
There are broadly three categories
of threats of HMIL:
Risk factors-demand
dynamics, commodity
prices, etc.
Business risk- capital
intensive and investments
on various scales of
operations.
Competitors- Maruti Udyog
and Tata Motors.
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6.3) PEST Analysis of Tata and HMIL
PEST/ Company Tata Motors HMIL
Political/Legal
Environment
Acquisition of land attracted heavy
criticism as it required the
displacement of farmers. Tata then
closed its plant Singur.
HMIL got into a dispute with
Maruti Udyog on a controversial
advertisement by the latter.
Economic
Environment
Tata’s GDP growth rate has been
around 7%. High interest rates
impacted its financial infrastructure
in the first quarter of 2013.
The market share of HMIL has
been growing steadily over the past
18 years. Now, it is No.1 in exports
and No.2 in volumes production.
Social
Environment
Tata provides employment to the
local population. It also supports
more than 600 NGO’s and has
opened many educational institutes
like Tata Institute Social Science,
etc.
Hyundai Motor India Foundation
(HMIF) was formed in 2006 with
the purpose of ‘giving back’ to the
society to initiate CSR.
Technological
Environment
Tata Technology Ltd (TTL) helps
in up gradation of designs and new
technologies.
HMIL comes up with new
technologies like Advanced
Emergency Breaking System and
Advanced Traction Cornering
Control to sustain their top position
in the market.
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Chapter 7: Conclusion
Tata Motors Ltd has a better position and experience than Hyundai Motors India Limited.
The products of Tata are in nearly each segment of the automobile market of India. It has a wider
range of products, prices and customers. Tata owns a technology company which helps to create
new products or innovate various varieties of a product. And also it actively takes part in making
the society a better place to live in.
Hyundai Motors India Ltd (HMIL) on the other hand, is still facing rough competition in the
domestic market. It does not matter much if it is the No.1 exporter, but it has to dominate a little
to sustain the market for a long time. As the foreign exchange rate keeps fluctuating, they
definitely face rise in cost to purchase raw materials.
In conclusion, marketing strategies that are to be followed by the companies to sustain in the
automobile industry in India are:
1. Production of consumer and environment friendly product.
2. The prices should be decided with the following factors in mind:
i) Demand
ii) Financial state of the firm
iii) Cost and production
iv) Government (exchange rates, tax rates, etc.)
v) Competition and economic condition
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3. Thinking about new ways to contribute to the society. Coming up with programmes and
events would make a good brand name for the company.
Chapter 8: Reference and Bibliography
Tata Motors (www.tatamotors.com)
Hyundai Motor India LTD (www.hyundai.com/in)
Slide Share (www.slideshare.net)
Forbes (www.forbesindia.com)
Economic Times (www.economictimes.indiatimes.com)
Research Papers:
1. Marketing Strategies of Indian Automobile Companies: A Case Study of Maruti Suzuki
India Limited.
Written by – Dr. M. A. Lokhande and Vishal Singh Rana
2. Automobile Industry: A Review
Written by – Amarjit Singh, Dr. Vinod Gupta