Honda City Research Report 2006

1 ACKNOWLEDGEMENT

After successfully completion of marketing research program, I am in the position to offer my sincere gratitude to all. First I would like to extend my special thanks to my management of DR.K.N.M.I.E.T, for giving me the opportunity to do the Marketing Research program. I am also very grateful to my project guide MR.UMESH

SISHODIA

whose

experience; guidance & support helped me in the successful completion of the project. I am grateful to him for his keen interest, valuable suggestion and encouragement in the endeavor. I am also thankful to all the respondents & other persons who gave us their valuable cooperation & also to those who directly or indirectly helped me during the project. Without the help of all these respectable people, I would not have been able to undertake this project successfully. ANKIT KANSAL B.B.A. STUDENT DECLARATION -

I am ANKIT KANSAL student of BBA here by declares that the project report titled “COMPARATIVE ADVANTAGES OF HYUNDAI OVER HONDA CITY” is completed and submitted under the guidance of “MR.UMESH SISHODIA (Marketing Dept., K.N.M.I.E.T.),” is my original work. The imperial findings in this report are based on the data collected by me. This project has not been submitted to C.C.S.University, Meerut or any other university for the purpose of compliance of any requirement of any examination or degree. ANKIT KANSAL B.B.A.

2 PREFACE

The motive behind this project is to know the retail marketing strategy adopted by the companies in the market. I researched about companies’. In this project I analyze these strategy and done the survey and give some recommendation and their benefits to increase their effectiveness. I dedicate this Project Report to my loving family, who gives me inspiration to do hard work in the life. This project report highlights the company profile, their group of companies, and survey about the strategy. I am surveying the different market and residential areas in Delhi. There we find out the consumer awareness about the Network Marketing

3

HISTORY

-

ABOUT

HONDA

SIEL

CARS

INDIA

LTD.

(HSCI)

HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd. (India) being the key promoters. The company figures among the top players in the Indian

premium

and

luxury

car

market.

HSCI started commercial production in December 1997 with its indigenous level at over 50%, which has been raised progressively and is currently over 72%. Honda Siel introduced the Honda City car, an extremely successful engineering marvel, in India in December 1997. In August 2000, Honda Siel added to the line-up by introducing

the

Honda

City

VTEC.

The internationally successful Honda Accord was launched in July 2001. The company introduced its latest version, the all-new Seventh Generation Honda Accord, in July 2003. Simultaneously, the company also introduced CR-V, offering a unique combination of 'sedan and SUV', thus creating a new segment in the Indian car industry.

HONDA AND TECHNOLOGY Honda has always believed in giving more excitement and more joy. Be it designing high performance sports cars that are a pleasure to behold and a joy to drive or creating the world's first humanoid robot to walk on two legs or countless other technologies that astonish and delight Honda's spirit of exploration frequently invents the future. Not surprisingly, millions of people worldwide often respond to Honda's spirit of innovation with a sense of delight and amazement. Honda's obsession for technology that continuously improves upon the performance and safety of all Honda vehicles is what sets it apart from other names in the car industry. In the year 2003, Honda has delivered products with cutting edge technologies and breathtaking new designs. And set a new standard of world-class service that will astonish and delight. In the years to come, Honda will surpass your highest expectations

4 and provide an experience that goes beyond belief. So don't be surprised if you hear someone say "What a Honda!" It may be you.

READ IN DETAIL ABOUT HONDA'S INNOVATIONS •

Engines

•

FIT

•

NSX & S-2000

•

FCX

•

Dolphin

•

Dream

•

J-VX Hybrid

CR-V LAUNCH Our effort will be to provide Honda’s world-class products and services to our current and Take a closer look at the stylish new CR-V.

5

potential

customers

in

the

city.

The company has recently pioneered a new segment in the Indian automobile industry with the launch of Honda CR-V, which offers its customers a distinctive combination of ‘the comfort of a Sedan with the thrills of an SUV.’ Powered by a 2.0 litre, all new I-VTEC engine and Honda’s exclusive real time 4-wheel drive, CR-V feels at ease in any driving conditions. The CR-V exceeds the world’s toughest safety standards for frontal, offset, side and rear-end collisions as well as rollover accidents. The vehicle would be available at all exclusive Honda dealerships, across the country, from July 2003 onwards, at an approximate price of Rs. 15 lakh (exshowroom Delhi).

TWO SHIFT OPERATION The Honda Siel Cars India Ltd. (HSCI) plant - located at Greater Noida - has an installed capacity of manufacturing 30,000 units in a year. HSCI has started two shift operations since November 17, 2003 with the target of manufacturing 12,000 units of its new City model and 2,100 units of its new Accord model.

6

EMPLOYMENT As a result of the two-shift operation and three launches this fiscal (year 2003), HSCI now employs around 1,362 employees - which is a significant increase from the earlier number of 900. INVESTMENT The total investment envisaged in this project is about Rs. 850 crores in a span of 5-7 years, out of which Rs. 450 crores have already been invested. The authorized and paidup equity capital of the company is Rs. 360 crores. SALES The

sales

record

in

the

past

has

been

good.

The company sold 9631 units of Honda City in 1998-99, 9698 units in 1999-2000, 10011 units in 2000-2001 and 10,920 cars in 2001-02. By the end of the financial year 2002-03, the cumulative sales achieved by the company during the year have also jumped to 13,300 units, showing an impressive growth of 21.79 per cent over the corresponding period in the previous fiscal. All three Honda products have been well accepted in the market. Since the launch of the 7th generation Accord in July 2003, we have sold 861 units till October 2003. It still has a waiting period of 4 weeks in the market. The CR-V has also been doing very well in the market and we have delivered about 400 CR-Vs till October 2003, since its launch. The CR-V too has a waiting period of 4-5 weeks in the market. The latest Honda launch in this fiscal - the new City - has sold 813 units within 2 days from its launch on October 30, 2003. It now has a waiting period of 4-6 weeks.

7

FOUNDERS The history of the Honda Motor Company began with the vision of one man - Soichiro Honda.

His

dream

was

personal

mobility

for

everyone.

Soichiro Honda founded the Honda Motor Company in 1948. In the same year, he designed and engineered the first product of this company - a 50 cc motorized bike on a bicycle frame - in his small shed at Hamamatsu. Today, as we celebrate our 50th Anniversary, Honda is a global company with a global viewpoint and a five-region global strategy that is reflected in a solid commitment to local markets and economies. CHALLENGING THE LIMITS 'Challenging the Limits' is a phrase commonly heard across the length and breadth of Honda. It was made popular by its founder, Soichiro Honda, who knew that his fledgling company had to out-think and out-perform its competitors every step of the way in order to survive. After all, he started out at a time when his country was devastated by war.

HONDA'S GLOBAL VISION Soichiro's vision was international in character. His desire was to lead the world in technology, and make a significant contribution to the creation of a better society. As a result, most of the products that Honda developed started out by making a difference. Whether it was the CVCC engine in the sixties or the solar powered car of the nineties, they all sought to challenge and overcome conventional wisdom.

WORLD'S

TOUGHEST TRAINING TRACKS -

8 No story of Honda is complete without the mention of motor sports. Honda started participating in racing at the highest level much before it found international acclaim as a manufacturer. Once again, it was Soichiro Honda who was the driving force. He considered the highly competitive world of motor sports as the ideal training ground for his people. Through racing, Honda engineers learnt to accomplish more than they ever dreamed possible within limited amounts of time. They become quicker at responding to the technological challenges that arise in the commercial

world.

Honda's belief in the benefits of racing is sincere and unwavering. The company has invested millions of dollars in building two world-class racing circuits. The Suzuka opened its gates in September 1962. Located in northern Japan, it has become an integral part of the Grand Prix calendar. The Twin Ring Motegi, on the other hand, is a racing circuit for fans. Inaugurated in August 1997, it offers an oval-shaped Super Speedway, an Active Safety Training Park and the extremely popular Honda automobile museum. INNOVATION EVERYWHERE Honda is already, and literally, making big strides in the development of the world's first humanoid robot. Christened ASIMO, it is designed on the presumption that if a robot could walk like a human, it may be able to work like one. Honda is also taking to the skies with its very own aircraft technology. It took a 30-man team only six years to develop a prototype. Typical of Honda, the project leader was not quite 30 years of age when the experimental aircraft was first unveiled in 1993. Together, these diverse ideas prove the one central maxim that is dear to everyone at Honda - Challenging the Limits.

9

RESEARCH AND DEVELOPMENT The

true

value

of

R&D

lies

in

the

exploration of uncharted territory. Honda

believes

in

approaching

new

challenges

without

fear

of

failure.

We believe in setting the bar high and then finding a way to get over it. It is this spirit that gives rise to our innovative products and technologies.

Honda’s Driving Force: The Research Lab Honda has brought the world a myriad of leading-edge technologies, such as the CVCC (Compound Vortex Controlled Combustion), the first automobile engine to meet US Clean Air Act requirements. More recently, we led the world in bringing to market a fuel cell

vehicle,

the

FCX.

Our ongoing efforts in research and development play a central role in helping us to create original, innovative products that meet both the expectations of our customers and the needs of society. The Wako Research Center focuses on fundamental research in such fields as electronics, biotechnology and new materials. Four facilities share the initiative in developing new products for tomorrow, with a focus on increased durability, reliability, and performance. The Asaka R&D Center handles motorcycle R&D; the Wako R&D

10 Center is primarily responsible for automotive design development; the Tochigi R&D Center handles automobile R&D; and the Asaka Higashi R&D Center oversees power product R&D.

DEVELOPING LOCAL MODELS-LOCALLY Honda’s R&D operations in Japan form the hub for R&D activities at major regional centers around the globe, where products are developed in a timely way to meet local needs. The MDX and Element, for example, were originally developed for North America, then later introduced to Japan. Built in Thailand, the City was first developed for sale in Asian markets and is now sold in Japan as the Fit Aria. We continue to globalize, establishing networked facilities in the UK, Germany and Italy to promote more independent European

11 R&D, and a motorcycle research facility in China charged with developing products tailored to that country’s growing market. EVOLVING ROBOT TECHNOLOGY Starting robot development in 1986, Honda was the first in the world to introduce a humanoid robot capable of autonomous, bipedal motion: P2, in 1996. Honda’s advanced humanoid robot, ASIMO, was introduced in 2000 and rang the opening bell at the New York Stock Exchange in February 2002 to commemorate the 25th anniversary of Honda’s listing. In December 2002, Honda unveiled a new ASIMO that incorporates artificial intelligence, enabling the robot to understand and independently respond to body language and gestures. Our goal is to create a robot that will be a true partner to humankind.

HONDA (04

SIEL

CARS’ July,

RECORDS

STUPENDOUS

2005,

January 2003 Sales Soars 50 %; Cumulative Sales Jumps

SALES

New

GROWTH Delhi)

31%

Honda Siel Cars India Ltd. (HSCI), one of the leading manufacturers of premium and luxury cars in the country, today announced an outstanding increase of 49.89 per cent in

12 January 2003 sales. The company sold 1460 units of its City and Accord models during the month, which is significantly up from 974 units sold during the corresponding period last year i-e January 2002. With January 2003 ending, the company's cumulative sales for the period April 2002-January 2003 increased to 11,018 units, up from 8,433 units sold during the corresponding period last year (April 2001-January 2002), registering a remarkable increase of 30.65 per cent. Also, the company recorded a sales jump of 55.81 per cent, as compared with sales during the previous month, December 2002 (937 units). About Honda Siel Cars India Ltd. (HSCI): HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd. (India) being the key promoters. The company figures among the top players in the Indian premium and luxury car market. HSCI started commercial production in December 1997 with an indigenisation level of over 50%, which has been raised progressively and is currently over 72%. Honda Siel introduced the Honda City car, an extremely successful engineering marvel, in India in December 1997 and the New Honda City in November 1999. In August 2000, Honda Siel added to the line-up by introducing the Honda City VTEC. The internationally successful Honda Accord, the latest offering by the company, was launched in July 2001. Accord is currently available in two variants VTi and VTi-L, each offering a manual and an automatic transmission. HONDA SIEL CARS RECORDS A STUPENDOUS GROWTH OF 63 % IN FY

-2004-05 (02 April, 2005, New Delhi) Accord and CR-V end the year with leadership in their segment. On the back of the superb response generated by the new launches especially the highly successful new Honda City, Honda Siel Cars India Ltd., ended the FY 2003-04 with a phenomenal sales growth of 63%. The company sold a total of 21,703 units as against 13,300 units sold last FY 2002-03. In March, the

13

Company sold 3,218 units, recording an excellent jump of 64 % over corresponding month last year. Establishes New Leaderships All the three models launched by the company in the year generated successful response with the company establishing its leadership in the luxury segment and increasing its market share in the premium segment. The company sold 2,111 units of the Honda Accord and 1,200 units of CR-V during the year. The company sold a total of 18,392 units of its City model, recording a growth of 53 % over last year, while the Honda Accord achieved a stunning growth of 76 % over last year. The company’s most aggressive launch for the year, the new City also attracted a national success, with the company selling 12107units in 5 months. Commenting on the company’s successful performance, Mr. Neeraj Garg, Head-Marketing, Honda Siel Cars India Ltd., said, “All the three models launched in the year have exhibited brilliant performance in their respective segments. The launch of the new City has helped us in expanding our reach in

14

Smaller towns after consolidating our leadership in metros. This reflects the company’s growth strategy and going forward we hope to strengthen the company’s commitment towards the customers.” Other Records and Achievements The year 2003-04 saw company’s new launches being applauded by the most prestigious automobile awards in the country – BS Motoring awards, Auto Car India-CNBC awards and ICICI-Overdrive awards. While the juries of all the awards honoured the new Honda City with the prestigious ‘Car of the Year’ award for 2004, the Honda CR-V was adjudged as the ‘SUV of the year’ by ICICI-Overdrive awards. In addition, Honda City and Honda Accord were

15 ranked the highest in their respective segments, according to the Total Customer Satisfaction Study (TCS) conducted by NFO Automotive recently.

HYUNDAI -

HISTORY •

Hyundai's 2005 cars and sport utility vehicles continue to provide customers a high level of content and performance at an affordable price. Every vehicle in the lineup demonstrates Hyundai's emergence as an auto manufacturer whose products compete successfully in technology, quality, styling and refinement with automobiles from around

•

the

world.

Hyundai sold its first car, the subcompact Excel model, in the U.S. in 1986. At the time, few Americans had ever heard of Hyundai or its products. Since that time,

16 Hyundai has expanded and upgraded its product line in the U.S. and now accounts for more than two percent of the U.S. auto market. •

Hyundai now markets a full line of vehicles from the subcompact Accent to the award-winning Santa Fe sport utility vehicle to the luxurious XG350 sedan. The vehicles were developed exclusively by Hyundai Motor Company and are fitted with engines and transmissions designed and engineered by Hyundai.

HYUNDAI •

MOTOR COMPANY –

The late Ju-Yung Chung founded the Hyundai Motor Company (HMC) in 1947 as Hyundai Engineering and Construction Co.. Hyundai Motor Company, established in 1967, is the auto sales leader in the Korean domestic market and exports vehicles to 190

•

countries

worldwide.

Hyundai Motor Company operates the world's largest integrated automobile manufacturing facility in Ulsan, on Korea's southeast coast. In 1996, Hyundai opened the Namyang Technology Research Center, which includes a complete testing facility with a 2.8-mile oval test track and a new $40 million aero acoustic wind tunnel. That same year, 1996, HMC began production at its state-of-the-art Asan Plant, located southeast

of

Seoul.

17 •

Hyundai now operates eight research centers in Korea along with four international centers, including Hyundai America Technical Center, Inc. in Ann Arbor, Michigan, and the Hyundai California Design Center in Irvine, California. Hyundai's automotive technology centers employ approximately 4,100 researchers with an annual budget of five percent of current revenues. Current research projects include: electric-powered vehicles, low-emission gasoline engines, solar-powered vehicles, hydrogen-powered fuel

•

cell

vehicles

and

other

alternative

fuel

vehicles.

The Hyundai California Design Center, established in 1990, creates and develops both production vehicles and cutting-edge design concepts for the automotive market. Several innovative vehicles have emerged from the design center including three concept roadsters, HCD-1, HCD-2, HCD-6, a hybrid sport utility vehicle, HCD-3, the CrossTour sport utility vehicle (HCD-5) and the HCD-7 luxury sedan. The influence of the California Design Center can be clearly seen in the sleek lines of the first generation Hyundai Tiburon sporty coupe and the Santa Fe sport utility vehicle.

A LOOK BACK - HYUNDAI'S ENTRY INTO THE U.S. MARKET The timing of Hyundai's entry into the U.S. market in 1986 was ideal. At that time, most automobile manufacturers had abandoned the entry-level market in favor of high-end, high-priced vehicles and that left a large void in the market. First-time car buyers such as college students and young families were not able to find adequate, value-equipped cars

18 that met their needs, yet were priced within their economic means. In February 1986, Hyundai launched its subcompact Excel model in the U.S. market. Customer response was immediate; in just seven months Hyundai Motor America had sold its 100,000th Excel. Total 1986 sales numbered 168,882 - an industry record for an import car distributor in its first year. Hyundai sales averaged 1,431 units per dealer, another sales record. In 1987, Hyundai sales continued to soar, reaching a record 263,610 units.

•

What makes this sales performance all the more remarkable is that it was done with dealers located in only 31 of the 50 states. In the early years, Hyundai concentrated its sales efforts primarily on the West and East coasts, as well as in the southern states. In 1987, Hyundai expanded into the central portion of the United States, opening a central region office near Chicago. Today there are four regions and more than 600 Hyundai dealerships nationwide.

EXPANDING THE PRODUCT LINE -

19

Sonata



Hyundai took a major step to becoming a full-line automotive importer/distributor in 1989 with the introduction of its midsize sedan, the Sonata. This roomy, powerful, front-wheel-drive sedan expanded Hyundai's appeal to more mature, family-oriented buyers. It also offered current Excel owners

An

opportunity

to

move

up

within

the

Hyundai

product

line.

In 1995, the Sonata was completely redesigned. It incorporated state-of-the-art technology that moved it up the scale in the midsize sedan segment. In 1999, the third-

20 generation Sonata was introduced with the company's first all-aluminum V6 engine, double wishbone front suspension and standard equipment side impact air bags. For 2002, the Sonata was revised with new exterior styling and an available 2.7-liter DOHC V6 engine and four-speed automatic transmission with Shiftronic manual shift control. Accent-

In

1995, after 10 years in the U.S. market, the Excel was replaced by the all-new subcompact Accent. With the Accent, Hyundai offered customers high-tech sophistication and features, but still at an entry-level price. For model year 2000, the Accent was redesigned to offer buyers even more value and quality. For the 2001 model year, Accent GS and GL models were upgraded to the powerful 1.6-liter dual overhead cam fourcylinder engine. In 2002, the GS and GL models were fitted with air conditioning as standard

equipment.

For the 2003 model year, the Accent was extensively revised with new front fenders, hood, bumper, fascia and headlamp assemblies. The rear deck, tail lamps and bumper were also revised. The GT package, with revised sport suspension and a 14-inch wheel and tire package was reintroduced in 2003. The sophisticated 1.6-liter DOHC fourcylinder engine is now standard equipment in all Accent models. Since January 2003, every Accent built for sale in the U.S. is equipped with driver and front passenger sideimpact

airbags

as

standard

equipment.

21

For 2004, the exciting Hyundai Accent receives only minor changes - the Accent GT 3door becomes a model instead of a trim package - and continues to be the value leader in the entry-level class. Elantra -

The compact Elantra sedan debuted in 1991 as a 1992 model. It quickly became Hyundai's best-selling model in the U.S. Elantra was redesigned in the 1997 model year and a station wagon version was introduced. Elantra captured the Hyundai sales record in 1997, 1998, 1999, 2000 and 2001.

For the 2001 model year, Hyundai introduced the all-new third-generation Elantra with a longer

22 wheelbase, a roomier cabin and even more refinements. Side impact air bags were also made standard on 2001 Elantra models, making them the first cars in their segment to

offer

side

impact

airbags

as

standard

equipment.

For 2002, there were two Elantra models offered -- the Elantra GLS four-door sedan and the new sporty Elantra GT five-door hatchback. In 2003, the new Elantra GT 4-door joined

the

lineup.

23

There are extensive changes for 2004, including both exterior and interior styling and a significant engine enhancement. The hood, grille, front bumper, headlamp assembly, rear bumper and tail lamp assembly are all new for 2004. Interior upgrades include a new instrument cluster, new vents and controls, new center console, new HVAC controls and more. In addition for 2004, the 2.0-liter DOHC engine is fitted with Continuously Variable Valve Timing (CVVT) and is available in SULEV (super ultra low emissions vehicle) and ULEV (ultra low emissions vehicle)

24

Configuration depending on the states in which it is sold. The Elantra GT models feature a long list of standard equipment that includes sport-tuned suspension, alloy wheels, leather seating surfaces, front air dam with fog lamps and handsome rear spoilers.

25 Tiburon -

In 1997, Hyundai introduced the exciting Tiburon sporty coupe. Based on the HCD-1 and HCD-2 concept cars, Tiburon combined sleek, eye-catching styling with outstanding performance

and

handling.

The Tiburon's performance lives up to its sporty styling. Competing in the tough Michelin SCCA Pro Rally series, a specially prepared Hyundai Tiburon, driven by Paul Choiniere and Mark Higgins who joined the team for the 2002 season, won the Manufacturer's Championship in 1997, 1998, 1999, 2000, 2001 and again in 2002. In 1997, Choiniere captured the Driver's Championship and he also piloted the Tiburon on its winning run up Pike's Peak in the annual Pike's Peak Open "Race to the Clouds." The Tiburon was extensively revised in 2000 with revamped front, rear and interior styling. There was no 2002 model Tiburon. The 2001 model was sold until the spring of 2002, when the exciting all-new 2003 Tiburon replaced it. The new Tiburon GTV6 model offered some exciting new features -- a V6 engine, 6-speed manual transmission and a high

Performance 17-inch wheel and tire package. For 2004, the Tiburon received only minor interior trim changes and simplified packaging.

26

In the fall of 2000, Hyundai Motor America added two new vehicles to its lineup; the Santa Fe sport utility vehicle and the XG300 sedan. The Santa Fe is a car-based crossover utility vehicle (XUT) that provides car-like ride and handling with the seating position and utility of a sport utility vehicle. The XG sedan instantly became Hyundai's flagship vehicle in the U.S. - it's larger and more luxurious than the Sonata. Santa Fe-

27 The Santa Fe was an instant hit with consumers and for the first time in many years, Hyundai dealers were taking orders and putting customer's names on waiting lists. For 2002, the Santa Fe received minor refinements and upgrades. In mid-2002, the Santa Fe was again upgraded with a revised center stack design with relocated clock and larger air conditioning

vents

and

a

power

sliding

moonroof

option

was

added.

For 2003, driver and passenger side impact airbags were added as standard equipment on the Santa Fe. Then, near the end of the 2003 model year, the Santa Fe 3.5-liter was introduced with the 3.5-liter DOHC V6 engine, 5-speed automatic transmission with Shiftronic manual shift control and an available electronic 4WD system from BorgWarner. For 2004, there are only minimal changes and upgrades to the Hyundai Santa Fe.

XG300/XG350-

The XG300 was a hit as well, selling well For 2002, the engine displacement of the XG300 moved from 3.0 liters up to 3.5 liters resulting in a name change from XG300 to XG350. For 2003, changes to the XG350 included a new instrument panel design and new

trip

computer

display.

The 2004 XG was extensively revised and went on sale in July of 2003. Both front and rear styling was changed for 2004, and the front disc brake rotor diameter was increased as well. The XG350L now features a new 12-spoke design alloy road wheel and all XG350 models are fitted with a full-size spare tire mounted on matching alloy wheel. There are also many interior enhancements for the 2004 Hyundai XG350 to make it even more luxurious.  Sonata GL Sedan Drivetrain•

2.4L DOHC 16-valve 4-cylinder engine

•

Available 2.7L DOHC 24-valve V6 engine

28 •

5-speed manual transmission

•

Available 4-speed automatic transmission with SHIFTRONIC™ manual-shift mode

Exterior 15-inch steel wheels with full wheel covers •

Michelin® tires

•

Projector-beam headlights

•

Front fog lights

•

Tinted glass

•

Power-adjustable outside mirrors

•

Speed-sensing,

•

windshield wipers

•

Front mudguards

Interior •

Air conditioning

•

Rear-seat heater ducts

•

Cruise control

•

Power windows with driver's one-touch auto-down

•

Power door locks

•

5-passenger seating

•

Leather-wrapped steering wheel and shift knob (w/automatic transmission)

•

Front bucket seats

•

Front center armrest with storage compartment

•

Cloth seating surfaces

•

Dual front cup holder

•

60/40 split fold-down rear seatback

•

Rear center armrest

•

Rear window defroster with timer

•

Digital clock

29 •

Remote fuel-filler door release

•

Remote trunk release

•

Carpeted floor mats (w/V6 engine)

Audio •

AM/FM stereo and CD player with 6 speakers

Safety & Security** •

Dual front airbags

•

Front seat-mounted side-impact airbags

•

3-point front seat belts with pre-tensioners, force limiters and

•

Adjustable-height shoulder-belt anchors

•

3-point rear seat belts, including rear-center position

•

Rear-seat LATCH (Lower Anchors and Tethers for Children) system for

•

Securing a child-restraint seat

•

Front and rear crumple zones

•

Side-door guard beams

•

Energy-absorbing steering column

•

Hood buckling creases with safety stops

•

Remote keyless entry system with alarm

 Sonata GLS (adds to GL) •

2.7L DOHC 24-valve V6 engine

•

4-speed automatic transmission with SHIFTRONIC™ manual-shift mode

•

16-inch, 10-spoke aluminum-alloy wheels

•

H-rated Michelin® tires

•

In-cabin air filtration

•

Power heated outside mirrors

•

Chrome exterior trim

30 •

Premium AM/FM stereo and cassette, CD player with 6 speakers

•

Wood grain interior trim

•

Adjustable lumbar support for driver seat

•

Premium cloth seating surfaces

•

Front center console with armrest and two-level storage compartment

•

Rear armrest with dual cup holder and storage compartment

•

Front map lights

•

Carpeted floor mats

•

Power antenna

SONATA GLS SPECIAL VALUE MODEL (ADDS TO GLS) •

Unique 16-inch, 6-spoke aluminum-alloy wheels

•

Automatic temperature control

•

Heated front seats

•

Electro chromic (auto-dimming) inside mirror

•

Home Link® Universal Transceiver

SONATA LX (ADDS TO GLS SPECIAL VALUE MODEL) •

16-inch, 10-spoke aluminum-alloy wheels

•

Leather seating surfaces

•

8-way power driver seat

•

Heated front seats are optional

MECHANICAL LAYOUT •

Front engine, front-wheel drive 4-door sedan

ENGINE (4-CYLINDER) •

2.4L DOHC 16-valve inline-4-cylinder engine

31 •

Iron engine block, aluminum cylinder head

•

Electronically controlled fuel injection

•

138 hp @ 5,500 rpm

•

147 lb-ft. of torque @ 3,000 rpm

ENGINE (V6) •

2.7L DOHC 24-valve V6 engine

•

Aluminum block and cylinder heads

•

Electronically controlled fuel injection

•

170 hp @ 6,000 rpm

•

181 lb-ft. of torque @ 4,000 rpm

TRANSMISSION •

5-speed manual transmission (4-cylinder engine)

•

Electronically controlled 4-speed automatic transmission (V6 engine, optional w/4cylinder engine)

BRAKES •

Ventilated front disc/solid rear disc brakes

•

Available Anti-lock Braking System

•

Traction Control System (TCS):

•

Optional TCS (GLS, GLS Special Value Model, LX) SUSPENSION -

•

Independent double-wishbone front suspension with stabilizer bar

•

Independent multi-link rear suspension with stabilizer bar

STEERING •

Engine-speed-sensitive power-assisted rack-and-pinion steering

32 •

Turning diameter: 34.4 feet (curb-to-curb)

WHEELS & TIRES •

15-inch steel wheels with full wheel covers (GL)

•

205/65R15 Michelin® tires (GL)

•

16-inch alloy wheels (GLS, GLS Special Value Model, LX)

•

205/60R16 Michelin® tires (GLS, GLS Special Value Model, LX)

CURB WEIGHTS •

4-cylinder GL w/manual transmission (lb.) -- 3181

•

4-cylinder GL w/automatic transmission (lb.) -- 3217

•

V6 GL w/automatic transmission (lb.) -- 3212

•

GLS/GLS Special Value Model/LX (lb.) -- 3254

EXTERIOR •

Length (in.)

186.9

•

Wheelbase (in.)

106.3

•

Width (excl. mirrors)(in.) 71.1

•

Height (in.)

•

Tread width, front/rear (in.)

56 60.6/60.2

INTERIOR •

Head room, front/rear (in.)

39.3/37.6

•

Legroom, front/rear (in.)

43.3/36.2

•

Hip room, front/rear (in.)

55.8/54.4

•

Shoulder room, front/rear (in.)

•

Passenger volume

100

56.9/55.7

33 •

Cargo volume (trunk, rear seats upright, cu. ft.)

14.1

FUEL ECONOMY AND CAPACITY •

Fuel tank (gallons)

•

Fuel economy (city/highway)*

•

4-cylinder w/5-speed manual

22/30

•

4-cylinder w/4-speed automatic

22/30

•

V6 (all models)

17.2

19/27

HYUNDAI IN INDIA -INDIA to educe new car models Saturday, April 03,2004 •

NEW DELHI, April 2 (Reuters) - Hyundai Motor India Ltd, the country's second-biggest carmaker, will introduce the Elantra family sedan and Getz compact car in India this year to boost sales in a fast-growing market, its president said on Friday. The automaker, wholly owned by South Korea's Hyundai Motor Co <005380.KS>, has been in India since October 1998 and makes the Santro hatchback, the Accent and Sonata sedans at its car plant on the outskirts of Madras. It also sells the imported Terracan utility vehicle.” Later this month, we will introduce the Elantra. The big volume model, Getz, will have to wait for our new capacity to come in, say by September," B.V.R. Subbu told a news conference.

Thirteen firms make cars and utility

vehicles in India, most of them local units of global automakers like General

34 Motors, Toyota and Ford. Total industry sales are estimated to touch a million units in the financial year ended March 31.

Subbu said the Elantra would be

introduced in both petrol and diesel versions and most likely with 1.8 liter and 2.0 liter engine options. The car is expected to be priced between the mid-sized Accent and the larger Sonata family sedan.

The Getz will be introduced in the

July-September quarter after new capacity at its plant is commissioned, he said. Hyundai, whose main competitors in the Indian market include top-ranked Maruti Udyog Ltd, a unit of Japan's Suzuki Motor <7269.T> and local firm Tata Motors, has faced production constraints through 2003/04 as local demand surged. It is now boosting annual capacity to 250,000 vehicles from 150,000 to keep pace with galloping domestic sales and booming exports to markets to Europe, Central and South America. Subbu estimated Hyundai's sales to have jumped 35 percent in the financial year ended March 31 to some 172,000 units.

Hyundai will also

raise car prices -- at different times for different models -- beginning later this month to neutralize a three percent cost increase.

He said India's car market

could expand by 15 percent a year if its GDP grew seven to eight percent as falling interest rates had sharply cut the cost of owning a car. Nearly 90 percent of cars bought these days use consumer financing schemes.

India's passenger

vehicle sales surged 34 percent this year driven by GDP growth forecast at over 8.0 percent and interest rates near three-decade lows. Source: (4/2/04) Hyundai Motor Shares Fall as Currency Lowers Earnings (Update2) April 28 (Bloomberg) -- Shares of Hyundai Motor Co., South Korea's largest carmaker, declined after the company's operating profit fell more than expected in the first quarter as the South Korean won rose against the dollar. Shares fell as much as 2.2 percent to 53,100 won in Seoul and traded 1.3 percent lower at 11:34 a.m. The carmaker reported today operating profit fell 30 percent to 322.7 billion won ($322 million), more than the 21 percent decline forecast by analysts. Sales fell 0.6 percent to 6.17 trillion won.

35 The won has gained 13 percent against the dollar over the past 52 weeks, eroding the value of Hyundai Motor's exports of Sonata sedans and Santa Fe sport-utility vehicles. Chairman Chung Mong-Koo opened the company's first U.S. factory in Alabama this year, shifting production to the world's largest car market to reduce risks from currency fluctuations. The Seoul-based company also paid more for steel last quarter. ``The won caused a pretty big blow,'' said Eun Hyo Sang, who manages the equivalent of $100 million at Seoul Investment Trust Management Co. ``The won will probably continue to move in an unfavorable direction.'' He sold Hyundai Motor shares earlier this year. Net income unexpectedly rose 14 percent to 509.8 billion won ($503.2 million) in the first quarter from 463 billion won the year earlier, the carmaker said to the Korea Stock Exchange today, as income from overseas affiliates rose to 128 billion won from 68 billion won. Under South Korean accounting standards, profit from overseas affiliates is booked as non-operating profit. •

U.S. EXPORTS –

Hyundai Motor's exports to the U.S. account for about 37 percent of total sales, Kim Hagju, an auto analyst at Samsung Securities Co., who rates the company ``buy'', said in a report on April 26. About 65 to 70 percent of Hyundai's exports were paid for with U.S. dollars, he said. The carmaker's raw material costs in the first quarter accounted for 67 percent of revenue; compared with 59 percent a year earlier, it said in the release. Hyundai Hysco, the steel making unit of Hyundai Motor, agreed to pay $600 a ton for the steel in the first quarter, almost double what it paid a year earlier. U.S. Plant Hyundai Motor will begin selling cars manufactured at its U.S. plant next month. The $1.1 billion plant will make 150,000 cars this year, and the company plans to increase output to 400,000 units a year. The Sonata competes with Toyota Motor Corp.'s Camry and Honda Motor Co.'s Accord models.

36 Hyundai Motor sold a total of 583,463 vehicles in the first three months of 2005, a rise of 19 percent from a year earlier. Exports rose 28 percent to 464,274 units while domestic sales fell 6 percent to 119,189 vehicles. Hyundai aims to be one of the world's five largest carmakers by 2010, aided by gains in the U.S. where its sales more than quadrupled to 418,615 last years from 90,217 in 1998. The company will begin selling a luxury car in the U.S. in 2007 to compete with Toyota's Lexus. Hyundai Motor more than doubled its sales in China in the first quarter to 56,064 cars. It plans to sell 1 million cars in China by 2010, taking a fifth of the country's market share for passenger cars. The carmaker said on April 14 it aims to raise its sales in China by 53 percent to $6.6 billion this year. The carmaker sold and exported a record 23,669 Santro, Sonata and other cars last month in India, 23 percent more than a year earlier. Hyundai, India's third-biggest automaker is selling new models and investing $500 million by 2008 to compete in Asia's fourthbiggest automobile market. To contact the reporter on this story: Yunsuk Lim in Seoul [email protected] Last Updated: April 27, 2005 22:39

SEOUL, APRIL 28 - Hyundai Motor Co, South Korea’s top automaker, posted a surprise 14% jump in first-quarter profit on Thursday on better-than-expected contributions from its Chinese and Indian operations. But operating profit tumbled by almost a third, hit by a strong won, higher steel prices and a sluggish local economy that could continue to undermine its performance, sending its shares down 2% to a fourmonth low. Hyundai is due to hold wage talks with its powerful 40,000-strong Union. Big pay rises could further dent profits. However, the second-quarter profit outlook is picking up as the company pushed through vehicle price rises at home and abroad, said Hwang Yoo-no, head of Hyundai’s investor relations.

37 “The result was better than expected. It seemed like the impact of the rising won was modest,” said Cho Se-hoon, a fund manager at Prudential Asset Management. “Our focus is how Hyundai will bear the impact of the won’s appreciation and which strategy it will take in China where Hyundai has been trying to build market share at the expense of margins.” Full-year profit is forecast to rise 12% to 1.99 trillion won and then jump 23% to 2.44 trillion won in 2006, according to 19 analysts surveyed by Reuters Estimates. 27/4/2005: HYUNDAI BEATS FORECASTS BUT NET PROFIT DOWN Hyundai Motor posted a 14 percent jump in first-quarter net profit helped by strong contributions from its operations in China and India but operating profit slumped nearly a third as the company grappled with a stronger won, high steel prices and a domestic market

that

remains

in

the

OBJECTIVES OF STUDY  Evaluate the comparative advantages of Hyundai over Honda city.  Critical analysis of the factor, which make influence to buy Hyundai  Facilitates provided by Hyundai

doldrums.

38 RESEARCH METHODOLOGY Research methodology is a systematic way, which consists of series of action steps, necessary to effectively carry out research and the desired sequencing to these steps. The marketing research is a process of involves a no. of inter-related activities, which overlap and do rigidly follow a particular sequence. It consists of the following steps: •

Formulating the objective of the study

•

Designing the methods of data collection

•

Selecting the sample plan

•

Collecting the data

•

Processing and analyzing the data

•

Reporting the findings

RESEARCH DESIGN Research design specifies the methods and procedures for conducting a particular study.

39 A research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is broadly classified into three types as •

Exploratory Research Design

•

Descriptive Research Design

•

Causal Research Design

I have chosen the descriptive research design. DESCRIPTIVE RESEARCH DESIGN Descriptive research studies are those studies that are concerned with described the characteristics of particular individual. In descriptive as well as in diagnostic studies, the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with a clear cut definition of population he want to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximize reliability, with due concern for the economical completion of the research study.

SAMPLE DESIGN A Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique to the procedure adopted in selecting items for the sampling designs are as below:

40

•

Sample size

•

Sample method

•

Survey period

SAMPLE SIZE - The substantial portions of the target customer that are sampled to achieve reliable result are 100. The cost and time limitation compelled me to select 100 respondents as sample size

SAMPLING METHOD In this marketing research project, I am using Random sampling method

SAMPLE DESIGN As complete enumeration of all the members of the population (Member and Nonmember) I have understate sampling technique. SAMPLE SIZE •

50 members

•

50 Non - members

41 SAMPLE TYPE  AREA SAMPLING Sample area – •

Modinagar

•

Ghaziabad

SAMPLE SELECTION •

Simple random selection sampling

SAMPLE TECHNIQUE •

I have taken the Statistical tool of percentage method to analysis and interpretation of the collected data.

RANDOM SAMPLING A random sample gives every unit of the population a known and non-zero probability of being selected. Since random sampling implies equal probability to every unit in the population, it is necessary that the selection of the sample must be free from human judgment. There is some confusion between the two terms ‘random sampling’ and ‘unrestricted’ random sampling. In the latter case, each unit in the population has an equal chance of being selected in the sample. Such a sample is drawn ‘ with replacement’, which means that the unit selected at each draw is replaced into the population before another draw is made from it, ‘as such, a unit can be included more than once in the sample. Most statically theory relates to

‘unrestricted random sampling. In order to distinguish

between these two sample. i.e. sample, without replacement and sample with replacement, the terms ‘sample random sample’ and ‘unrestricted random sample’ are used. If the latter is devised in such a manner that no unit can be included more than once, it will then be known as the simple random sampling.

42 It may be noted that while both sample random sampling and unrestricted random sampling give an equal probability to each unit of the population for being included in the sample, there are other sample design too, which provide equal probability to the units. The process of randomness is the very core of simple and unrestricted random sampling. The selection of a sample must be free from bias, which can be ensured only when the process of selection is free from human judgment.

43 COLLECTION OF DATA The study was conducted by the means of personal interview with respondents and the information given by them were directly recorded on questionnaire. For the purpose of analyzing the data it is necessary to collect the vital information. There are two types of data, this are•

Primary Data

•

Secondary data

PRIMARY DATA Primary data can be collected through questionnaire. The questionnaire can be classified into four main typesA) Structured non disguised questionnaire B) Structured disguised questionnaire. C) Non structured non disguised questionnaire D) Non –structured disguised questionnaire. For my market study, I have sleeted structured non-disguised questionnaire because my questionnaire is well structured, listing of questions are in a prearranged order and where the object of enquiry is revealed to the respondents. To making a well-structured questionnaire, we have adopted three type of questionsa) Open ended question b) Dichotomous questions c) Multiple choice questions

44 These types of questions are easy to understand and easy to give required answers. SECONDARY DATA Secondary data means data that are already available i.e. they refer the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, than he has to look into various sources from where h e can obtain them, in this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in: a) Various publications of the central, state and local government; b) Various publications of foreign government or of international bodies and their subsidiary organizational; c) Technical and trade journals; d) Books, magazines and newspapers; e) Reports and publications of various associations connected with business san industry, stock exchanges etc.; f) Reports prepared by research scholars, universities, economists etc; g) Public records and statistics, historical document and other source of published information. The source of unpublished data are many; they may be found in diaries, letters, unpublished biographies and autobiographies and also may be available with scholars and research workers, trade associations, labor because and other public private individuals and organization. COLLECTION TECHNIQUE –

•

Questionnaire method is used in collection the data.

45 PROCESSING & ANALYSIS THE COLLECTED DATA – Once the field survey is over and questionnaire has been received, the next task is to aggregate the data in a meaningful manner. A number of tables are prepared to bring out the main characteristics of the data. The researcher should have a well thought out framework for processing and analyzing data, and this should be done prior to the collection. It includes the following activities— (i) EDITING - The first task in data processing is the editing. Editing is the process of examining errors and omissions in the collected data and making necessary corrections in the same. (ii) CODING - Coding is the procedure of classifying the answer to a question into meaningful categories. Coding is necessary to carry out the subsequent operations of tabulating and analyzing data. If coding is not done, it will not be possible to reduce a large number of heterogeneous responses into meaningful categories with the result that the analysis of data would be weak and ineffective, and without proper focus. (iii) TABULATION - tabulation comprises sorting of the data into different categories and counting the number of cases that belong to each category. The simplest way to tabulate is to count the number of responses to one question. This is also called universal tabulation. The analysis based on just one variable is obviously meager. Where two or more variables are involved in tabulation, it is called bivariate or multivariate tabulation. (iv) ANALYSIS After the all three above steps, the most important step is analysis of the data. Under this step, they can use the various tools of the analysis such as Central Tendency, Dispersion, Correlation co-efficient, Regression Analysis, and Test of Hypothesis etc.