Project Report ON: Consumer Satisfaction On Hyundai Motors'
Project Report ON: Consumer Satisfaction On Hyundai Motors'
ON
‘CONSUMER SATISFACTION ON HYUNDAI MOTORS’
OF
Bachelor of Business Administration
BBA 4 TH SEM
Sec – A
Roll No – 10
Table of Contents
I got an opportunity to do project report with “TATA MOTORS” the project undertaken by us in
my 1STyear on “CONSUMER SATISFACTION ON TATA MOTORS”.
People affiliated with management studies have a different view on this aspect of that “classroom
studies, have nothing to do with practical work.”
DEEPA CHOUDHARY
STUDENT OF
ROHINI,
SECTION-A
JIMS, SECTOR
ACKNOWLEDGEMENT
We sincerely thank our project guide teacher Ms. Asha Thomas for giving us wonderful
opportunity to undertake this project, for helping us by providing us with the necessary
information for this project. We also thank our friends for their valuable and insightful
suggestion, comments and criticism.
I also take this opportunity to thank the staff member of HYUNDAI MOTORS, who extended
wholehearted support during my stay in HYUNDAI MOTORS and helped me in completing the
study to the extent possible, within the limited time frame available to me
The guidance and efforts were vital for the completion of the project for which we are thankful
to our concerned faculty.
DEEPA CHOUDHARY
STUDENT OF
SECTION –A
JIMS SECTOR 3
CERTIFICATE
This is to certify that the project on HYUNDAI MOTORS has been done under my guidance
and supervision in partial fulfillment of B.B.A (Bachelor of Business Administration).
The working analysis mentioned in this report has been undertaken by the candidate himself and
necessary has been recognized and acknowledge in the text of the reports
DEEPA CHOUDHARYSTUDENT OF
SECTION- A
JIMS, SECTOR 3
CHAPTER-1 TOPIC
1.1 OVERVIEW OF THE INDUSTRY
In 1806, the first cars powered by an internal combustion engine running on fuel gas appeared,
which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal
combustion engine. Cars powered by electric power briefly appeared at the turn of the 20th
century, but largely disappeared from use until the turn of the 21st century.
The need to reduce the amount of air pollution generated by transportation has raised new
interest in electric and hybrid vehicles. The early history of the automobile can be divided into a
number of eras, based on the prevalent method of automotive propulsion during that time. Later
periods were defined by trends in exterior styling, and size and utility preferences.
Early automobiles
Steam automobiles
Cugnot's steam wagon, the second (1771) version
Ferdinand Verbiest, a member of a Jesuit mission in China, built the first steam-powered vehicle
around 1672, designed as a toy for the Chinese Emperor, it being of small scale and unable to
carry a driver or passenger but, quite possibly, the first working steam-powered vehicle ('auto-
mobile').
Steam-powered self-propelled vehicles are thought to have been devised in the late-18th
century. Nicolas-Joseph Cugnot demonstrated his fardier à vapeur, an experimental steam-driven
artillery tractor, in 1770 and 1771.
Walter Hancock, builder and operator of London steam buses, in 1838 built a four-seat
steam phaeton. Steam-car development continued, leading to significant advances by the early
1900s.
1885-built Benz Patent Motorwagen, the first car to go into production with an internal
combustion engine
1870, Vienna, Austria: world's first gasoline-run vehicle, the 'first Marcus car'
Early attempts at making and using internal combustion engines were hampered by the lack of
suitable fuels, particularly liquids, and the earliest engines used gas mixtures.
Karl Benz built his first automobile in 1885 in Mannheim. Benz was granted a patent for his
automobile on 29 January 1886, and began the first production of automobiles in 1888,
after Bertha Benz, his wife, had proved - with the first long-distance trip in August 1888, from
Mannheim to Pforzheim and back - that the horseless coach was absolutely suitable for daily use.
Since 2008 a Bertha Benz Memorial Route commemorates this event.
In all the turmoil, many early pioneers are nearly forgotten. In 1891, John William Lambert built
a three-wheeler in Ohio City, Ohio, which was destroyed in a fire the same year, while Henry
Nadig constructed a four-wheeler in Allentown, Pennsylvania. It is likely they were not the only
ones.
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile
Industry of India has come a long way.
During its early stages the auto industry was overlooked by the then Government and the policies
were also not favorable.
The liberalization policy and various tax reliefs by the Govt. of India in recent years have made
remarkable impacts on Indian Automobile Industry.
Indian auto industry, which is currently growing at the pace of around 18 % per annum, has
become a hot destination for global auto players like Volvo, General Motors and Ford.
Today Indian automotive industry is fully capable of producing various kinds of vehicles and can
be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.
Some of the best-known Hyundai divisions are Hyundai Motor Company, the world's fifth
largest automobile manufacturer by volume as of 2009 and Hyundai Heavy Industries, the
world's largest shipbuilder. Other companies currently or formerly controlled by members of
Chung's extended family may be loosely referred to as a part of the Hyundai chaebol.
The Hyundai logo, a slanted, stylized H, symbolizes the company shaking hands with its
customer.
Hyundai Motor Company was later established in 1967. The company’s first model, the Cortina,
was released in cooperation with Ford Motor Company in 1968.
When Hyundai wanted to develop their own car, they hired George Turnbull, the former
Managing Director of Austin Morris at British Leyland.
In 1975, the Pony, the first Korean car, was released, with styling by Giorgio Giugiaro
of ItalDesign and power train technology provided by Japan’s Mitsubishi Motors. In 1991, the
company succeeded in developing its first proprietary gasoline engine, the four-cylinder Alpha,
and transmission, thus paving the way for technological independence.
In 1983, Hyundai exported the Pony to Canada, but not to the United States because the Pony
didn't pass emissions standards there. Canadian sales greatly exceeded expectations and it was at
one point the top-selling car on the Canadian market. The Pony afforded a much higher degree of
quality and refinement in the lowest price auto segment than the Eastern-bloc imports of the
period then available.
In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as "Best
Product #10" by Fortune magazine, largely because of its affordability. The company began to
produce models with its own technology in 1988, beginning with the midsize Sonata.
In 1998, Hyundai began to overhaul its image in an attempt to establish itself as a world-class
brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung Mong Koo, in
1999.
Hyundai's parent company, Hyundai Motor Group, invested heavily in the quality, design,
manufacturing, and long-term research of its vehicles. It added a 10-year or 100,000-mile
(160,000 km) warranty to cars sold in the United States and launched an aggressive marketing
campaign.
In 2004, Hyundai was ranked second in "initial quality" in a survey/study by J.D. Power and
Associates. Hyundai is now one of the top 100 most valuable brands worldwide. Since 2002,
Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup.
Hyundai in India
Hyundai Motor India Limited is currently the second largest carmaker after Maruti Suzuki and
largest auto exporter in India. It is making India the global manufacturing base for small cars.
Hyundai sells several models in India, the most popular being the Santro Xing, i10 and the i20.
Other models include Getz Prime, Accent, Terracan, Elantra (Discontinued), second
generation Verna, Tucson, Santa Fe and the Sonata Transform. 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 faculty in
Hyderabad Andhra Pradesh, employing now nearly 450 engineers from different parts of the
country.
HYUNDAI MOTOR INDIA LIMITED.
For more than a decade till Hyundai arrived, Maruti Suzuki had a complete dominance
and monopoly over the Passenger Cars segment because TELCO and M&M were solely Utility
and Commercial Vehicle Manufacturers.
HMIL's first car, the Hyundai Santro was launched in 23 September 1998 and was a runaway
success. Within a few months of its inception HMIL became the second largest automobile
manufacturer and the largest automobile exporter in India. Hyundai Motor India Limited (HMIL)
is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the
largest passenger car exporter and the second largest car manufacturer in India. HMIL presently
markets 6 models of passenger cars across segments. HMIL’s fully integrated state-of-the-art
manufacturing plant near Chennai boasts of the most advanced production, quality and testing
capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in
February 2008, which produces an additional 300,000 units per annum, raising HMIL’s total
production capacity to 600,000 units per annum.
In continuation with its commitment to providing Indian customers with cutting-edge global
technology, HMIL has set up a modern multi-million dollar research and development facility in
the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering
and ensure quick turnaround time to changing consumer needs.
As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to
achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more
than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has
been the number one exporter of passenger car of the country for the sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 307 strong dealer network and
627 strong service points across India, which will see further expansion in 2010.
Hyundai Corporate Philosophy
Corporate philosophy:
Management Philosophy
With the spirit of creative challenge, we will strive to create a more affluent lifestyle for
humanity, and contribute to the harmony and co-prosperity with shareholders, customers,
employees and other stakeholders in the automobile industry.
The spirit of creative challenge has been a driving force in leading HMC to where it is today.
Vision
We announced "Innovation for Customers" as our mid–to long–term vision with five core
strategies: global orientation, respect for human values, customer satisfaction, technology
innovation, and cultural creation. We desire to create an automobile culture of putting customer
first via developing human–centered and environment–friendly technological innovation.
Management Policy
Based on a respect for human dignity, we make efforts to meet the expectations of all
stakeholders including customers and business partners by building a constructive relationship
amongst management, labor, executives and employees. Also, we focus on communicating our
corporate values both internally and externally, and gaining confidence from all stakeholders.
Hyundai Manufacturing
Production in Korea:
China plant:
India plant:
HYUNDAI LOGO
The Hyundai logo seen above is appears to be an oval shaped H (symbolizing Hyundai). It is also
supposed to be symbolic of the company's desire to expand. The overlaid shape indicates the
company's global expansion and the slanted, stylized 'H' is symbolic of two people (specifically
the company and customer) shaking hands.
Click here for more information on the History, Design and Meaning of Car Logos. The
respective logos are registered trademarks. Use of the logo here does not imply endorsement of
the organization by this site.
Some Achievements of Hyundai:
Hyundai Santro topped the JD Power Asia Pacific Initial Quality Study (IQS) that
measures product quality.
Hyundai Santro topped the JD Power Asia Pacific APEAL study that measures customer
satisfaction.
CNBC Auto car India Hyundai has been named the manufacturer of the year.
Hyundai Motor India Received Engineering Export Promotion Council (EEPC) Top
exporter of the year Award for 2005-06 on June 1, 2007.
Hyundai Getz is the CNBC Auto car of the Year 2005.
Hyundai Elantra Best Value for Money Car of the Year 2005.
Tucson µSUV of the year by NDTV Profit/Car & Bike Awards 2006.
PM Presents ‘Star Company´ Award to Hyundai Motor India.
Hyundai Motor India Ltd. receives the EEPC National Award for Export Excellence for
2007-08.Hyundai won the Gold Trophy in the Large Enterprise category.
I10 Indian Car of the Year 2008.
b) Problems of Hyundai
1. HR problems in Hyundai Motor Co.
Hyundai Motor Co., formed in 1967, was a part of the large South Korean Chaebol -
the Hyundai Group - until the group split in September 2000. In the last four decades,
Hyundai managed to establish itself all over the world as a company producing
reliable, technically sound and stylish automobiles.
In the 90s, the company started aggressive overseas expansion programs. By the late
90s, when Southeast Asian crisis struck, the company like all the other chaebol,
faced serious financial problems. To survive, it had to cut its labor force. The
company offered various retirement schemes, unpaid leave for two years, etc. to
workers, and expressed its inability to support its entire workforce in the slack period.
The unions refused to compromise and the management too held its ground. Finally,
the government intervened to force a negotiated settlement between the union and the
management.
Ford
The Ford Motor Company is an American multinational automaker based in Dearborn,
Michigan, a suburb of Detroit. The automaker was founded by Henry and incorporated on June
16, 1903. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of
India in March 2008. In 2010 Ford sold Volvo to Greely Automobile. Ford discontinued
the Mercury brand at the end of 2010.
Henry Ford's methods came to be known around the world as Fordism by 1914. Ford is the
second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle
sales, after having been passed by the Hyundai KIA Automotive Group in 2010. At the end of
2010, Ford was the fifth largest automaker in Europe.
General Motors
General Motors is an American multinational automaker based in Detroit, Michigan and the
world's second largest automaker. With its global headquarters in Detroit, GM employs 209,000
people in every major region of the world and does business in some 157 countries. General
Motors produces cars and trucks in 31 countries, and sells and services these vehicles through the
following divisions: Buick, Cadillac, Chevrolet, GMC, Opel, Vauxhall, and Holden. GM's On
Star subsidiary provides vehicle safety, security and information services.
On June 8, 2009, GM was reorganized by bankruptcy protection under the provisions of Chapter
11, Title 11, and United States Code. On July 10, 2009, with financing partially provided by the
US Government, General Motors emerged from reorganization and was re-listed on major stock
exchanges on November 18, 2010 with the world`s largest IPO.
Toyota
Toyota Motor Corporation Toyota commonly known simply as Toyota and abbreviated as TMC
is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2009, Toyota Motor
Corporation employed 71,116 people worldwide (total Toyota 320,808). TMC is the world's
largest automobile manufacturer by sales and production.
Honda
Honda has been the world's largest motorcycle manufacturer since 1959 as well as the world's
largest manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines each year. Honda is the sixth largest automobile
manufacturer in the world.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Since 1986, Honda has been involved with artificial intelligence/robotics
research and released their ASIMO robot in 2000. They have also ventured into aerospace with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet,
scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.
d) S.W.O.T
STRENGTHS
WEAKNESS
Design
No luxury cost.
No innovations.
Commodity price risk.
Exchange rate risk.
OPPORTUNITY
Cheaper cars.
Diversification.
Cost reduction.
European and African market.
THREATS
1.3Conceptual Discussion:
Hyundai Verna Transform launched by Hyundai India at price Rs. 6.56 lac
Hyundai Motor India Ltd (HMIL) today launched Hyundai Verna
Transform today in India. The Hyundai Verna is targeted at mid income
level customers. Hyundai Verna Transform is set at price range of Rs.
6.56-9.22 lac (ex showroom Delhi). Hyundai Verna 2010 is launched
ahead of its 2011 model. Hyundai Verna diesel variant is set at price of
Rs. 7.87 lac in India. The car is good value for money and will compete
with Tata Indigo, Maruti SX4 and other mid segment cars.
Hyundai
Verna 2010 will have 2 variants; petrol engine 1.6L and diesel engine 1.5L. Hyundai Verna
mileage will be 14.8 kmpl on highways for petrol variant and 16.8 kmpl for diesel variant on
highways.
Introduced at the 2010 Auto Expo, the Verna Transform has already been launched in Korea and
has managed to earn raving response thanks to its revamped exterior and stylish interiors. The
previously dull looking Verna has been given a more aggressive front facia with brand new
bumpers, headlamps, radiator grill and side mirror repeaters.
The new Verna Transform brings a stylish new interior with a lot of additional features making it
more fuel efficient and as all its power trains receives fuel economy improvements. On the
interiors side the sedan boasts of a latest MP3 player, a blue lit illuminated panel which catches
eyes instantly and an iPod connect. The new avatar of Verna also brings an eco friendly lamp in
the dash board that consumes very less of power and a radio, Speedo and techno dial.
Hyundai to launch 800 cc cars both for India and export markets
Hyundai Motor India Limited (HTML) is planning to launch its 800 cc small car by 2011-12.
The wholly owned subsidiary of Hyundai Motors Company is taking this step foreseeing the
demand for small cars which is likely to touch 2 million units in India by the time this car gets to
launch here. The Hyundai 800 cc cars will be both for Indian market and exports markets.
But the company made a clear remark that it had no intentions to give a competition to Nano as
“We hope to bring our smaller car than Santro, which will be an 800 cc vehicle, by 2011,” said H
S Lheem, Managing Director Hyundai Motors India. He, however, did not divulge details
like price range of the car. The car is aimed to hit not only the Indian domestic market but the
company also plans to cater to the export market as well. The design of the car will be prepared
in Korea.
The research and development work has already started at R&D centers at Hyderabad and
Namyam (Korea). The company however has not revealed much about the product specification
but there are anticipations that this car would be a petrol variant with 800 cc engine. These units
have the capacity to manufacture 20,000 units per month and 600,000 units per year. HMIL has
also promised a preview of its i20 car in the hatch back segment with a code name PB at the
Paris Auto Tariff Show on October 2.
Hyundai is probably impressed by what Maruti 800 did to the Indian small car segment. Maruti
Udyog happens to be the only company that boasts of having a monopoly in the small car
segment in India. Hyundai’s new 800 cc car is bound to face tough competition from Maruti’s
Alto, Maruti 800 and Spark. The company aims to take forward this sensation by launching yet
another affordable small car, looking at the growing market of small cars in India.
Hyundai i10- most fuel efficient car in India now top seller compact car
Hyundai i10 has become the top selling car model in India with whooping sales of 149,242 units
during the financial year 2009-10. The Korean car maker has given a clear defeat to Maruti
Suzuki which was the uncrowned king of this car segment and boasts of top car selling company
in India in ‘over one liters of capacity’ segment. Another reason to smile for Hyundai i10 is that
it has also become the most fuel efficient petrol car in the segment in India. Thus, not only
the price tag but fuel efficiency and comfort have made the i10 gain such a place in Indian car
market.
The Hyundai i10 has1.2 L Kappa, Bharat Stage IV complaint engine that delivers a superb
mileage of 19.81 km/l. The engine is supposed to be the best in class ARAI-certified fuel
efficiency in compact car segment among the petrol variant. Beating the likes of Wagons,
Hyundai i10 has emerged as a clear leader and the company aims to increase its share in a cost –
sensitive market. Good mileage together with a low carbon footprint makes the car an affordable
transportation solution in the country.
Speaking about the phenomenal success of Hyundai i10, Arvind Saxena, Director, Marketing
and Sales, HMIL, said, “The extraordinary fuel efficiency of Hyundai i10, best among the petrol
cars in its segment emphasizes Hyundai’s overall technology leadership in making highly fuel-
efficient cars.” It is interesting to know that Hyundai i10 made its world debut in India and
witnessed a great demand for the car not only from the domestic market but from oversees
market as well.
It seems that the Indian market for compact car segment has grown manifolds to an extent that
big car manufacturers like Volkswagen, General Motors and even Ford have introduced their
compact car models in the market. Maruti Suzuki, who has enjoyed a literal monopoly over the
past decades in the compact car segment, though has been shifted to number two, plans to
upgrade the Alto with a whole new K series engine and even has revamped its WagonR at an
aggressive price tag.
1.4 Research Methodology:
Descriptive research:
It includes surveys and fact finding inquiry of different kind. The major purpose of
descriptive research is description of the state of affairs as it exists as the present. The main
characteristic of this method is that the research has no control over the variable. He can only
report what has happened or what is happening.
Sources of data:
1. Primary data:
Are those which are collected afresh and for the first time and thus happen to be original in
character? A structured questionnaire was developed for this purpose.
2. Secondary data:
Are those which have already been collected by someone else and thus already been passed
through the statistical process. Thus the data collection work is merely that of compilation. We
use data from internet, books for this purpose.
Questionnaire design:
The questionnaire is a structured technique for collecting primary data in a marketing survey. It
is a series of written or verbal questions for which the respondent provides answers. A well
designed questionnaire motivates the respondent to provide complete and accurate information.
The survey questionnaire should not be viewed as standalone tool. Along with the questionnaire
there is field work, rewards for the respondents and communication aids, all of which are
important components of the questionnaire process.
Research design: -
Objective:
Sample unit:
Size of sample:
It refers to the number of items to be selected from the universe to constitute a sample. Sample
size has been restricted to 100 people in random.
Time:
40 days
Limitations of the study:
2. Sometimes the respondent does not find interesting to give us any information or their
response.
3. We have taken area of north Delhi only which does not represent the information as whole
a) Hyundai 7
b) Ford
8
c) Toyota
6
d) Honda
3
e) Others
9
CAR BRANDS USED BY PEOPLE
Hyundai Ford Toyota Honda Others
27% 21%
9%
24%
18%
Interpretation:
Most of the people are having other brands car. In 2nd number Ford is the most preferable
brand.
a) 1 10
b) 2
13
c) 3
7
d) More than 3
3
NO. OF CAR USED
1 2 3 More than 3
9% 30%
21%
39%
Interpretation:
b) 1-2 year
10
c) 2-3 year 10
d) Above 3 year
4
NO. OF YEAR CAR USED
Less than 1 year 1-2 year 2-3 year Above 3 year
12% 27%
30%
30%
Interpretation:
Some people i.e. 12% use car for more than three year but many people use car for not more
than 1-2 year.
45%
55%
Interpretation:
a) TV 7
b) Newspaper
7
c) Magazine
6
d) Showroom 6
e) Family /friends
7
SOURCES OF AWARENESS
TV Newspaper Mgazine Showroom Family/Friends
21% 21%
18%
21%
18%
Interpretation:
Many people buy the car after seeing the advertisement in the television.
a) Quality 9
b) Price
10
c) Mileage
7
d) Brand name 7
21%
30%
Interpretation:
Many people see the price of the car before buying it.
a) Yes 16
b) No
7
c) Not sure
10
CURRENT MILEAGE
Yes No Not sure
30%
48%
21%
Interpretation:
Many people are very much satisfied with their car mileage.
a) 3 17
b) 5
9
c) Above5
7
FREE SERVICE
3 5 Above 5
21%
52%
27%
Interpretation:
a) Trendy 10
b) Stylish
11
6
c) Poor resale value
d) Sporty
6
18%
33%
Interpretation: