Hindustan Motors Limited (HML) was India's first automobile company, established in 1942. It grew steadily for several decades as one of the largest car manufacturers in India, producing models like the iconic Ambassador taxi. However, in the late 1990s and 2000s, HML began to decline as competition from other automakers like Maruti Suzuki increased. HML lost market share and profitability as its products fell behind competitors in technology and features. The company attempted survival strategies like new product lines, cost cutting, and supplying auto components, but has been unable to regain its former dominance in the Indian market.

1. Let’s
AAKASH SETHI

2. PRESTIGE
INSTITUTE OF MANAGEMENT & RESEARCH
ASSINGMENT ON
YEAR 2013-14
PRODUCT LIFE CYCLE
GUIDED BY SUBMITED BY
PROF. KHUSHBOO MAKWANA AAKASH SETHI

3. APPROCHES TO KNOW
INTRODUCTION
DECLINE GROWTH
MATURITY

4. THE LEGEND

6. INTRODUCTION
1) IMPORTANT
FACTS ABOUT
COMPANY
2) STANDARD
3) PRODUCTS
INTRODUCTIO
OF THE
N OF
COMPANY
COMPANY

7. 1) IMPORTAN FACTS ABOUT THE COMPANY
HINDUSTAN MOTORS LIMITED (HML) are India's first car makers, came into
existence prior to the country’s independence AUGEST (1947).
 B.M. BIRLA founded HML in 1942 and it went on to flagship company C.K. Birla
group.
 HML started their operations at port okha, Gujarat and then shifted to
UTTARPARA ,WEST BANGAL IN 1948. Now this place is called Hind motor.
 Hindustan motors was the face of Indian cars.
The company was the largest car manufacturer in India before the rise of
MARUTI UDYOG.
 HML also have a successful venture with Mitsubishi science 1998, both the
partner’s started off with the philosophy of “one country one price”
 It is the producer of the Ambassador car, widely used as a taxicab and as a
government limousine.

8. STANDARD INTRODUCTION OF COMPANY
TYPE PUBLIC BSE(500500)
INDUSTRY AUTOMOTIVE
FOUNDED 1942
HEAD QUATER KOLKATA,W.B.,INDIA
KEY PEOPLE UTTAM BOSE (MD) 2012
PRODUCTS AUTOMOTIVE PARTS AUTOMOBILE
REVENUE 799 CRORE 2011
PARENT C K BIRLA
GENREL MOTORS JOINT VENTURE 1967
ISUZU JOINT VENTURE 1980-1993
MITSUBISHI JOINT VENTURE 1998
PLANT- HINDMOTOR WEST BANGAL
PLANT –PITHAMPUR MADHYA PRADESH
PLANT -THIRUVALLUR TAMILNADU
PLANT -HOSUR BANGLORE

9. PRODUCTS OF THE COMPANY
General Motors Joint Venture Bad ford trucks, opel astra .
Earthmoving Equipment Division (HMEED) All kind of equipment division
Hindustan Tractors All type of tractors but company sold to
Mahindra in 2001.
Isuzu Joint Venture Isuzu F series trucks, contessa .
Mitsubishi Lancer Evolution X , Lancer , Cedia ,
Mitsubishi Joint Venture
Pajero , Montero ,Outlander.
Hindustan Models Hindustan Ambassador, winner, mascott truck, RTV
ranger truck(OKA motor co. Australia)

10. Models of Hindustan Motors
Hindustan 10 - based on 1947 Morris 10
Hindustan 14 based on 1948 Morris Oxford MO Series
Hindustan Landmaster- based on Morris oxford Series II –
1954
Hindustan ambassador Mark I, II, Station Wagon, III, IV, Nova -
based on the British Morris Oxford Series III – 1956
Hindustan contessa - based on the British victor Vauxhall with
Isuzu diesel or petrol engines.
Hindustan Pushpak , Trekker and Porter – Multiutility Vehicles
based on Ambassador chassis and engines (Half Ton Driveway
Chassis).

11. GENREL MOTORS JOINT VENTURE MODELS
BAD FORD TRUCK OPEL ASTRA

12. EARTH MOVING EQUIPMENT DIVISON – ALL TYPES

13. HINDUSTAN TRACTORS

14. ISUZU JOINT VENTURE
ISUZU F SERISE TRUCK CONTESSA

15. MITSUBISHI JOINT VENTURE
LANCER - 7 OUTLANDER
CEDIA - 9 PAJERO

16. MITSUBISHI JOINT VENTURE
MONTERO LANCER

17. THE KING OF INDIAN ROADS

18. HINDUSTAN AMBASSADOR

19. HINDUSTAN- 10 HINDUSTAN -14 HINDUSTAN WINNER
HINDUSTAN BADFORD HINDUSTAN PUSHPAK HINDUSTAN PORTER

20. HINDUSTAN RTV RANGER HINDUSTAN LANDMASTER
HINDUSTAN- VEER

21. GROWTH
PROGRESS
EXPANSION
COMPETITORS

22. COMPETITORS
THERE ARE SOME MAJOR REASONS FOR THE GROWTH OF THE
COMPANY-
 Manufacturing is licensed – this period of time is called LICENSE
RAAJ(till 1993).
 High custom duty on export of any vehicle .
 High excise duty with sales tax.
There are only 3 players in the automobile industries HINDUSTAN
MOTORS , PRIMIER AUTOMOBILE , PADMINI AUTOMOBILE.
 Only Hindustan motors and premier motors are two major player
in the market.

23. EXPANSION
Mile stones of Hindustan motors-
1) In 1942, Hindustan Motors Limited was established by B. M. Birla on February 11.
(Gujarat)
2) In 1945, company issued 45,75,000 shares in the market.
3) In 1948, all production operations of this company were shifted to Uttarpara, West
Bengal and the Ambassador was the first model which was produced in this plant.
4) In 1954, production of the Landmaster began and this vehicle was based on the
Morris Oxford.
5) In 1959, HM and Caterpillar Tractor Company, USA joined hands for the production
and sale of bulldozers and scrapers.
6) In 1967, Hindustan Motors was collaborating with the General Motors
Corporation, USA, for manufacturing earthmoving equipment at its assembly
plant, Trivellore.
7) In 1978, diesel engine version of Ambassador Model became available in vehicle
market.

24. 8) In late 1980s, Hindustan Motors began a joint venture with Isuzu
. Till the end of this year, this brand was the leader in car sales.
9) In 1983, the government accepted the proposal of HM to increase the
manufacturing capacity of passenger car models to 50,000 units per annum
out of which 20,000 models were to be manufactured in Madhya Pradesh.
10) In 1984, Hindustan Motors launched its new Contessa model.
11) In 1985 company established a plant in hosur, tamil nadu for
manufacturing heavy duty transmission.
12) In 1997, Hindustan Motors tied up with Mitsubishi Motors for
production of 20,000 Lancer passenger MMC sedan cars.
13) After a Memorandum of understanding(MOU), PNB would offer
attractive and easy finance schemes for at least three years.

25. PROGRESS
THERE ARE SOME FACTORS WHICH MADE HM PROGRESSIVE ARE FOLLOWING -:
1) Parent company of C.K. BIRLA give it a high jump in the market.
2) During the license raj company get a lot of profit in the market.
3) Holding in the market is more then 70 percent till 1980 because of low competition.
4) Best quality and low custom duty and British model design attract people.
5) In 1983 government accepted the proposal to increase the sales of HM 20000 to
50000.
6) Joint ventures with different companies improve the quality and variety of its
product.
7) It became the face of Indian automobile industries, people used to buy this product
mostly.
8) Working in almost all segment improves the sells of HM.

26. MATURITY
BRAND IMAGE
1) It’s a one million turnover major company manufacturing passenger
cars, utility vehicle ,earthmoving equipment.
2) Ambassador- the first car to be manufacture in India has been ruling the
Indian roads and only automobile to ply Indian roads for more then 6 decades.
3) According to the perception of the people its truly indainised car because of
its time tasted and practical characteristics .
4) Hindustan ambassador has a vast service network the whole market of HM is
attendant by 115 strong dealer, 50 service and parts dealer, 60 exclusive parts
dealer, regional office.

27. CONTINUE……
1) All cars are manufactured according to EURO-1EMISSION GOV.
norms.
2) The biggest USP of ambassador is its sturdy & tough model.
3) Ambassador most popular for its taxi segment , 65 % of the sales
of ambassador is just because of this segment, for its
safety, comfort ,and best structure for Indian roads .
4) BHARAT RATAN awarded our president A.P.J. Abdul kalam used to
travel by old ambassador car for its simplicity ,also without VIP
cap .
5) There is no government order to buy this car but all politician
, senior , top civil servant, judges and generals used to buying it as
a prestige to own it.

28. ADVERTISEMENT OF HM

29. A
D
V
E
R
T
I
S
E
M
E
N
T
O
F
H
M

30. REASONS FOR DIMINISHING OUTPUT – Rising of MUL
1) Tough and sturdy ambassador dose not find many takers in India with people
looking more fancy car its export has been steadily increasing mainly in the
British and Japanese market.
2) During early 80’s it need 6 month to 1 year for delivery from company.
3) In 1981 entry of MUL change the scenario drastically because of MUL’s
small, fuel efficient, and well designed car, Maruti 800 became huge success.
4) By 1980 MUL became the market leader.
5) MUL became more successful when they get 1st ISO CERTIFICATE by JV with
SUZUKI, they need 14 hours to make a car.
6) Marketing is not much developed at that time.

31. HM PASSENGER CAR SALES
YEAR 1993-94 1994-95 1995-96 1996-97 1997-98
SALES 25150 27517 25942 25711 20109
PREMIUM SEGMENT COMPARISON
Period Sales Sales Sales
Lancer HM Esteem MUL Honda city HONDA
1998-99 2866 16744 9631
1999-2000 8300 16031 9772
2000-01 7635 12000 10011
1) HM PREMIUM SEGMENT market share were being eaten up drastically by MUL&
HONDA.
2) Mostly due to advertising and effective marketing strategies of the competitor

32. THE KEY PLAYER CAR SEGMENT BY ….2K
MARUTI
17.19 HYUNDAI
17.19% % 50.37 %
TATA
19.17 HONDA
%
OTHERS
BY THE YEAR PASSING HM WAS CONSIDERD AS OTHERS

33. DECELINE STAGE
OVERVIEW
REASONS ACTIONS IN
SURVIVAL
FOR DECLINE
STRETEGIES
DECLINE STAGE

34. REASONS FOR DECLINE
THREATS OF
NEW
ENTRANTS
COMPETITIVE
BARGAINING RIVALERY LACK OF
POWER OF NEW
SUPPLIERS WITHIN THE TECHNOLOGY
INDUSTRIES
THREAT OF
SUBSITUTE

35. 1) THREATS OF NEW ENTRANTS -HM was unable to create barriers for potential
new entrants ,many foreign collaborated entrants like Maruti Suzuki ,GM
,Toyota launched HM was unable to compete with their existing strategies.
2) BARGAINING POWER OF SUPPLIERS – Even supplier were not Looked into
deep ,company was in a snail pace and couldn't take up the challenge of new
potential entrants in the market, including the suppliers of it’s different parts.
3) THREAT OF SUBSITUTE –HM was only focused to one segment till 1997 and
within the that time MUL was able to bring out brand for each segment with
in the nation substitute for the brand was quite visible in the economy.
4) COMPETITIVE RIVALERY WITHIN THE INDUSTRIES – Rivalry within the
company also lead to downfall of the company and ultimately leading to less
market share.
Example- Internal problem , Union problem etc
5) LACK OF NEW TECHNOLOGY – HM was unable to improve the technology in
engine and features according to time and new competitors technology.
That’s why they are unable to satisfy their customer.

36. PRODUCTION OF AUTOMOBILE
1) Domestic sales
PRODUCTION SALES EXPORT have been
growing
9 strongly.
8 2) Export have
7 nearly trapped
6
in this years.
5
3) HM was unable
4
to hold the
3
2
position in
1 market due to
0 their drop in
2000-01 2001-02 2002-03 2003-04 2004-05 market
strategies.

37. HM didn’t
now
where
they fit in
the
existing
economy.

38. ACTION IN DECLINE STAGE
1) HM decide to tap new segments ease the
competitive pressure from other giants.
2) HM collaborated with OKA MOTORS CO. to develop
targeting at rural market.
3) HM launched trekker in 1995 in 3 northern states
(state on hills).
4) In 1999 HM launched the re-designed trekker and
upgraded version of amby.
5) Cost cutting measure – company also do some cost
cutting exercise and announce a voluntary retirement
scheme. For workers in April 1998. and offer (0.01)
million rupees
6) HM sold the earthmoving equipment company to
caterpillar company in 2001.

39. SURVIVAL STRATGIES
1) HM decide to look beyond its existing portfolio and company explored the global
auto component business in 2000 and start a plant in indore to assemble engines &
gear boxes.
2) By this time many foreign companies entered into the market and establish tie-
ups/ JV with various companies.
3) HM start supplying components in both domestic and global market.
4) HM executive director (SARKAR NARAYAN) said- we are open to such
opportunities it brings in extra cash and its an expansive way to upgrade our skills
by working with different customers.
5) HM overhauled the distribution system in order to become more market friendly –
Green – rural market - trekker
Blue – semi urban - contessa
Red – metro – lancer(selling and services)

40. PRODUCT LIFE CYCLE –GRAPH
100%  1942-50-INTRODUCTION STAGE
C  1950-80-GROWTH STAGE
O 90%
 1980-00-MATURITY STAGE
M 80%  2000-13-DECLINE STAGE
P
A 70%
N 60%
Y
50%
G 40%
R
O 30%
W 20%
T
H 10%
0%
-10% 1942-50 1950 -80 1980-00 2000-13
TIME PERIOD

41. BUT IT’S NOT THE END OF
HM

42. THE KING IS COMING BACK

43. COMING SOON…..

44. THANK YOU
REGARDS
AAKASH SETHI