Chapter No.

1
INTRODUCTION

INTRODUCTION
This project is an attempt to give a comparison between Maruti Suzuki Swift and Hyundai i20. It
aims to know the marketing strategies, performance analysis and consumer perception regarding
these cars along with factors which influence their choice.
It focuses on the following:1. In 1st, 2nd & 3rd Chapter you will find all the Information about Maruti Suzuki Swift and
Hyundai i20 and comparison between both companies.
2. In 4th & 5th Chapter you will find an overview of the History, Profile of Cars, Producers
Profile, Key Persons, Timeline of Generations, Marketing Strategies and SWOT Analysis
of all the 3 companies, Literature Review and Research Methodology
3. In 6th Chapter you will find Analysis and Interpretations on the Project Report.
1

4. In 7th Chapter you will find Conclusion and Recommendations on the Project.
5. In the end, you will find the various sources I referred for gathering information.

Automobile Industry
In India there are 55 people per vehicle, while this figure is 12 in China. It is expected that
Indian automobile industry will achieve mass motorization status by 2015.
Industry Overview
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 has 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.
A well developed transportation system plays a key role in the development of an economy,
and India is no exception to it. With the growth of transportation system the Automotive
Industry of India is also growing at rapid speed, occupying an important place on the 'canvas'
of Indian economy.
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.
Snippets

The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.
Foreign players are adding to their investments in Indian auto industry.
Within two-wheelers, motorcycles contribute 80% of the segment size.
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market.
2/3rd of auto component production is consumed directly by OEMs.
India is the largest three-wheeler market in the world.
India is the largest two-wheeler manufacturer in the world.
India is the second largest tractor manufacturer in the world.
2

India is the eigth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.
India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment Know-how
Among the two-wheeler segment, motorcycles have major share in the market. Hero Motors
contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS
makes 82% of the mopeds in the country.
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the
market share. Among the passenger transport, Bajaj is the lead by making 68% of the threewheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share
in passenger cars and is a complete monopoly in multipurpose vehicles. In utility vehicles
Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata
Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.
Miscellaneous
Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the
country by the second half of 2008. It would be set up by city-based Prajay Engineers
Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile
financing institutions and insurance services to create a complete range of services required
for both auto companies and customers. It will also have a multi-purpose convention centre
for auto fairs and product launches.

Chapter No. 2
CORPORATE
OVERVIEW

HISTORY OF MARUTI SUZUKI SWIFT

In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as
Maruti Swift. In the Indian auto market Swift is available with seven variants four with petrol
and three with diesel engine option. The petrol version of Maruti Swift is powered by 1.2L
K-series engine. The 1.2L, K-series petrol engine present in Maruti Swift is highly fuel
efficient with the availability of 16 Valve light weight DOHC engine that reduces friction and
improves durability and fuel economy to the best in town. Maruti Swift is endowed with 5
Speed Manual Transmission Gearbox. This gearbox is cable type gearshift which is of great
help at the time of shifting of gear. Maruti Swifts powerful engine with the emission of BS
IV and is very fuel efficient and a very good performer that offers an impressive mileage of
14.4 kmpl in the city roads and 18.1 kmpl on the highways.
However, the diesel version of Maruti Swift is packed with 1.3L, DDiS engine with a
displacement of 1248cc. The 1.3L diesel engine is packed with turbocharger and intercooler
combination that offers efficient combustion and clear emissions. The diesel engine is
endowed with 5 step multi injection common rail system that offers better fuel combustion
and hereby gives good performance and makes the car economical to run. This compact
diesel engine is incredibly fuel efficient and offers a mileage of 16.9 kmpl in the city roads
and 19.6 kmpl on the highways.

Statistics
BODY TYPE

Body Type

Hatchback

Number of Doors

ENGINE
Capacity

1197cc

Number of Cylinders

Number of Valves

16

Bore x Stroke

73.0mm x 71.5mm

Compression Ratio

10.1:1

Maximum Power

85ps @ 6,000rpm

Maximum Torque

113Nm @ 4,500rpm

Fuel Distribution

Multipoint injection

Emissions

BS IV

TRANSMISSION
Five-speed manual, with synchromesh in

Type

all gears, one reverse

Gear Ratios

1st

3.545

4th

0.914

2nd

1.904

5th

0.757

3rd

1.280

Reverse

3.272

DIMENSIONS
Overall Length

3,760mm

Overall Width

1,690mm

Overall Height

1,530mm

Wheelbase

2,390mm

Track

Front

1,470mm

Rear

1,480mm

Ground Clearance

170mm

Minimum Turning radius

4.7 metres

Luggage Capacity

232 litres (with seatback raised)

368 litres (with seatback folded)

CHASSIS
Steering

Rack and pinion, power assisted

6

Brakes
Suspension

Front

Ventilated discs

Rear

Drums

Front

MacPherson strut and coil spring

Rear

Torsion beam and coil spring

TYRES

165/80 R14 / 185/70 R14 (tubeless)

WEIGHTS
Kerb Weight

980 kgs [LXi] / 1,000 kgs [VXi] / 1,010

kgs [ZXi]

Gross Vehicle Weight

1,415 kgs

FUEL TANK CAPACITY

43 litres

The Generation V Swift debuted at the Paris Auto Salon in September 2004. This generation
of the Swift marked a significant departure with the previous Cultus-based models, with
Suzuki re-designing the vehicle as less of a "low price alternative" subcompact and more of a
"sporty" subcompact. The Swift's design and driving characteristics focused on the European
market with its chassis refined through a road-testing program across Europe.
2009 Indian Suzuki Swift
Indian Engineers were called to Japan to help Suzuki design this generation of Swift.
Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol
engines, the new Swift is Suzuki's new "global car", produced in Hungary, India, Japan,
Pakistan and by Chang'an in China. In Japan, only the 5-door body is available and fourwheel drive is an option for the 1.3 L or 1.5 L petrol engine. 1.2 L CVT transmission version
also available in only front wheel drive version. The design of the new Swift was previewed
on the Concept S and Concept S2 concept cars at auto shows, in the years leading up to its
launch. In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L
petrol engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available
with an automated manual gearbox or with four-wheel drive. The British Autocar magazine
gave the new Swift a favourable 4/5 stars in road test, judging it a "thoroughly impressive allrounder". The Generation IV Swift has received a four stars out of five rating in the
EuroNCAP crash tests.

MARKETING STRATEGIES
Objectives
The main objective of Maruti Suzuki Swift is to conquer the market of hatchback car
segments. Launched in 2005, Maruti Suzuki aimed to make Swift the leader of top quality
hatchback cars, and since then no car of its competitors has been able to tackle Swifts sales.
The MS Swifts share is more than 15% in the market, and is currently the best selling Car of
its segment in India.
Target Markets
Swift targets the domestic market first and it will not face any capacity constraint here. A
sizeable number of cars have been manufactured at Maruti plant in Gurgaon and deliveries
will commenced by the first week of June 2005," Arvind Saxena, chief general manager,
sales, MSL said. "Over 85 per cent of the car has been indigenized. Swift is based on the
latest European design and styling, built with Japanese quality and precision, utilizing Indian
engineering capability. The car has an universal appeal," he added. At present, MSL has an
installed capacity of 3,50,000 units per annum and the company manufacturers around
6,00,000 vehicles per annum on a two-shift basis. However, the company officials did not
divulge the exact number of Swift cars to be manufactured in India. According to industry
estimates, around 50,000 Swifts are expected to be sold in India in the first year. Currently,
being launched across the globe, Swift has received rave reviews internationally for its path
breaking looks and styling and superior safety features. It has become one of the top 20 bestselling models in Japan since its launch there in November 2004.
Positioning
Using product differentiation, Maruti Suzuki Swift will be placed as the most comfortable,
convenient, value added hatchback model for above target market used. The marketing
strategy will be focused on promoting the car as the best hatchback car model for the next
generation.
Strategies Product
The Maruti Suzuki Swift is fully loaded and comes with a warranty of upto 3 years, it can
also be extended upto 5 years maximum. Also a higher model, Maruti Swift DZire has been
introduced in 2010, as a replacement for Maruti Esteem, which has completed its run.

Price:
Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki
Swift car. After launching cars for the masses since so many years, Indias largest automobile
manufacturer is now targeting the premium segment with their latest model from the Suzukis
stable. The analysts predict thepricing of this premium hatchback to start from Rs. 4 lakh.
This price range would practically rip apart Hyundais offering in i20, which is priced at a much
higher tag of Rs. 4.5 lakh. Both the companies are known for their value based offerings and
Maruti with their extensive service network and brand reputation for making reliable cars should
get the customers nod over their competition. The official pricing however is still not out.
However, the company is said to be studying the prospects of launching the base model at the 4lakh price tag. There is another advantage in doing so considering in the capital city of Delhi NCR
road tax on the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a price higher than 4
lakh have to pay a 4% road tax.
Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. And if
they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai
Getz, they would quite likely force the competition to rethink their strategy.
Distribution
The Stockist will represent 4 to 5 districts in a State.
The Dealer will represent a district or main City.
The Sub-Dealer shall represent a particular area or taluka.
The booking agents will be individuals working on freelance basis.
Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agency will also coordinate public relation efforts to build Maruti Suzuki brand & support the differentiation
message. To attract market attention & encourage purchasing, we will offer a limited time,
registration & insurance. To attract, retain & motivate channel partners for a push strategy,
we will use trade sales promotions and personal selling to channel partner.

CAR PROFILE
Chairman
Year of Establishment

Mr. Shinzo Nakanishi

2000

Sector

Light Motor Vehicle (4 Wheeler)

Business Group

Maruti Suzuki India Ltd.

Presence

Produced and Distributed over several countries like Australia,

Germany, India, Pakistan and Japan etc.

Manufacturing Unit in IndiaManesar, India.

Head Office in India

Maruti Suzuki Limited 1, Nelson Mandela Road, New Delhi 110070

Vasant

Kunj,

Delhi

Tel. No.: 011 4678000

Joint Venture

Maruti and Suzuki Ltd.

Contact No.
Email ID:
Official Website:

1800 1800 180

contact@maruti.co.in
www.marutiswift.com

PRODUCERS PROFILE

Maruti Suzuki India Limited

10

Type

Public (BSE MARUTI, NSE MARUTI)

Industry

Automotive

Founded

1981 (as Maruti Udyog Limited)

Headquarters Delhi, India

Key people

Mr. Shinzo Nakanishi, Managing Director and CEO

Products

Automobiles

Revenue

US$4.8 billion (2009)

Employees

6,903 [1]

Parent

Suzuki Motor Corporation

Website

MarutiSuzuki.com

Other Car Models produced by Maruti Suzuki:

1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (Launched 1985)
4. WagonR (Launched 2002)
5. Alto (Launched 2000)
6. Estilo (Launched 2009)

11

7. Grand Vitara (Launched 2007)

8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10.A-star (Launched 2008)
11.Ritz (Launched 2009)
12.Eeco (Launched 2010)

TIMELINE OF GENERATIONS
First generation (20002004)
The first generation Swift was introduced in 2000 as a replacement for the Suzuki Cultus.
Outside of Japan, the Suzuki Ignis name was
widely

used.

The

Ignis

was

originally

manufactured as a five-door hatchback, powered

by a new generation of Suzuki straight-four
gasoline engines, the M family. Displacement
ranged from 1.3 to 1.5 L, and the standard
transmission was the usual five-speed manual,
with an optional four-speed automatic gearbox.
The vehicle is available with either front or four-

Maruti Swift in Production

wheel drive, although the 4WD/auto combination was limited to the Japanese and Australian
markets.
A shorter three-door version, with redesigned bumpers, was introduced in 2003, named Swift
Sport in Japan and Ignis Sport in Europe. The Ignis Sport used the same 1.5 L as the regular
Ignis, but with power increased. The Swift/Ignis Sport went out of production in 2005.
In 2001, General Motors introduced the Chevrolet Cruzea crossover SUV based on the
Swift, retaining the original car's basic dimensions and power plants. The Cruze was restyled,

12

adopting a crossover look between a tall hatchback and a sport utility vehicle, and the threedoor body was dropped. The "Chevrolet Cruze" commercial designation was used in most of
south Asia, while in Australia the car was sold by as the Holden Cruze from 2002 to 2006.
Suzuki in Europe introduced the Cruze as an update of the Ignis in 2003, although extended
by roughly 150 millimetres (5.9 in) in length, to improve interior room and luggage space.
This version was manufactured by Suzuki's Hungarian Magyar Suzuki plant specifically for
the European market.
Also in Europe, due to an agreement with Subaru, the car was also sold as the Subaru
Justy (4WD only) from 2003, as happened previously with the previous generation Cultusbased Swift.
The Cruze-based update was never sold in Japan as a Suzuki, only as a Chevrolet. Europe
was the only market to receive the updated car as a Suzuki.
Second generation (2004present)
The second generation Swift debuted at the Paris Auto Salon in September 2004. This
generation of the Swift marked a significant departure with the previous Cultus-based
models, with Suzuki re-designing the vehicle as less of a "low price alternative" subcompact
and more of a "sporty" subcompact.[2] The Swift's design and driving characteristics focused
on the European market with its chassis refined through a road-testing program across
Europe.[3]
Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L petrol
engines,

the

new

Swift

is

Suzuki's

new

"global

car",

produced

in Hungary, India, Japan, Pakistan and by Chang'an in China.

In Japan, only the 5-door body is available and four-wheel drive is an option for the 1.3 L or
1.5 L petrol engine. 1.2 L CVT transmission version also available in only front wheel drive
version. The design of the new Swift was previewed on the Concept S and Concept S2
concept cars at auto shows, in the years leading up to its launch.
In Europe, the Swift was launched in 3- or 5-door hatchback form, with 1.3 and 1.5 L petrol
engines, and a 1.3 L DDiS engine supplied by Fiat. The 1.3 L petrol is also available with
an automated manual gearbox or with four-wheel drive.
The British Autocar magazine gave the new Swift a favorable 4/5 stars in road test, judging it
a "thoroughly impressive all-rounder". The second generation Swift has received four stars
13

out of five rating in the Euro NCAP crash tests.[4] It also was awarded 2006Semperit Irish Car
of the Year in Ireland.
Since its global launch in 2005, which was kicked off with a marketing campaign fronted by
the

footballer Cristiano

Ronaldo in

many

European

countries, the Swift has recorded

above forecast sales in most
markets. In Japan, sales figures
have been twice the forecast and
in many European markets the
model

has

been

runaway

success. In Denmark, the Gen IV

Swift has been consistently in Top

Maruti's team of 25 engineers who went to Japan to

co-develop the Swift

3 for more than 2 years and was the car with the highest sales figures in 2006. In India, rapid
sales of the new Swift model contributed to the 64% rise in Q1 profits for Maruti Suzuki. The
Swift will be reintroduced to the U.S. market in 2010 to replace the Suzuki Reno
Third generation (planned for 2013)
A new model for Maruti Suzuki Swift is
under development in India, and is going
through various tests, It is planned to be
launched in India by the first phase of
2011. This model is better than the older
one is various prospects. he changes on
the exterior are quite subtle with no major
changes reflecting from the spy shots.
Interiors are under cover and customers

A look of new Maruti Suzuki Swift awaiting its

can keep guessing until the official

launch in 2011.

pictures

are revealed. However, an

increased wheelbase promises more space in the interiors. The new Maruti Suzuki
Swift looks to be powered by the latest K12 1.2L engine that powers current model
and Maruti Ritz. The diesel variant can be sourced from Fiat which will be the 1.3L Multijet
14

diesel engine, according to disclosed details right now. The new Swift has been codenamed
as YP8 which is being developed to compete in the Indian market with new entrants
like Chevrolet Beat, Ford Figo, Volkswagen Polo, Nissan Micra and the upcoming Toyota
Etios Liva and Honda Brio.
SWOT ANALYSIS
Strengths
Brand Image
Reliable and cheap. Established brand in Indian market. Great service and nationwide

penetration.
Experience in Indian market
Very old player in Indian market. First major player.
Established distribution & after sales networks

Weaknesses
Diseconomies to scale
No online presence
Not diversified
Opportunities
Acquisitions
Innovation
Online Product and services expansion
Takeovers
Targeting Higher Middle Class requirements
Threats
Competition
Cheaper technology
External changes (government, politics, taxes, etc)
Lower cost competitors or imports
Price wars
Product Substitution.

15

FACTORS INFLUENCING SALES OF CARS

FEATURES: It plays major role in sale on any cars. Today people are more attracted towards
the features of cars and are ready to spend huge amount of money on buying a handset
having huge numbers of features.
E.g. Maruti Swift ZXi, Hyundai i20 Asta (O) etc.
PRICE: Price also plays a major role. Companies need to place their products in such a way
that it can differentiate itself from others by its price. If price of car is kept low and more
features are provided to customers than company can create market for itself.
AVAILABILITY: Products need to be available easily. Customers dont like to travel much to
buy cars. They prefer to get their cars from nearest showrooms so in order to be market
leader companies should make sure that there products are easily and conveniently available
to customers.
AFTER SALES SERVICE: Companies should make sure that they provide good after sale
service to their customers and there problems are rectified as soon as possible. The turn
around time should be very less that customers dont have to wait too long for their problems
so to be solved.
QUALITY: The quality of products should be very good. Todays customers want value for
money if that is not provided than company will find it difficult to position itself in the
market.

16

HISTORY OF HYUNDAI i20

The Hyundai i20 was designed in a Hyundai Designing Centre in Germany by a BMW
designer: Thomas Buerkle. The Hyundai i20 is a supermini/subcompact car, made its debut
at the Paris Motor Show in October 2008 and went on sale in December 2008 in India to fit
between the i10 and i30. It is a Front wheel drive car. The car is mostly European because of
its design and designer. Three and five door versions are available (Both have different sleek
window shapes). The i20 replaces the Getz in most markets but in the UK and India, the Getz
will still be available for the time being. The i20 is assembled in Turkey (Kozyata plant) for
the European market[1] and in India for sale in Asia and Oceania. The i20 has recently
replaced the Getz in Australia.
The i20 is not sold in Korea, as the similar, Korea-built Click (Which is also known as the
Hyundai Getz in the UK) sold there.
In Indian market, Hyundai i20 comes with Hyundai i20 is powered by an 1.2L kappa engine
developing 80 PS (59 kW; 79 hp) of max power at 5200 rpm and 114 Nm (84 lbft) of peak
torque at 4000rpm.i20 also gets 1.4L gamma gasoline generates 100 PS (74 kW; 99 hp) of
power at 5500 rpm and 139 Nm (103 lbft) at 4200 rpm i20 CRDi the diesel i20 comes with
a powerful oil burner generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and
224 Nm (165 lbft) of peak torque between 17502750 rpm.

Statistics

17

Overview
Model

i20

Body Type

Hatchback

Number Of Doors

Seating Capacity

Fuel Capacity

45

Dimensions:
Length

3940 mm

Width

1710 mm

Height

1505 mm

Wheelbase

2525 mm

Ground Clearance

N/A

Minimum Turning Radius

N/A

Weight:
Kerb Weight

1066 kg

Engine:
Type

1.4-L diesel 1.2L petrol

Number Of Cylinders

Displacement

N/A

Transmission

5 Speed, Manual

Max. Power

90 bhp Diesel 58 kW - petrol

Max. Torque

N/A

Suspension:
Front Suspension

Mc Pherson Strut with Coil Spring

Rear Suspension

Coupled Torsion Beam Axle with Coil Spring

Brake:
Front

Disc

18

Rear

Drum

Steering Type

Rack & Pinion, Power Assisted

Tyre Size

175/70 R14

MARKETING STRATEGIES
Objectives
First year Objectives: We are aiming for 5% market share of the Indian market through unit
sale volume of 100000.Second year Objectives: We are aiming for 10% market share of the
Indian market. An important objective will be to establish a well-regarded brand name linked
to a meaningful positioning. We will have to invest heavily in marketing to create a
memorable and distinctive brand image projecting innovation, quality and value. We also
must measure awareness and response so we can adjust our marketing efforts if necessary.
Target Markets
Hyundai i20's marketing strategy is differentiated marketing. Our primary consumer target is
middle to upper income professionals who need true value for their money and comfortable
ride in city conditions. Our secondary consumer target is college students who need style and
speed. Our primary business target is mid sized to large sized corporates that want to help
their managers and employees by providing them a car for ease of transport. Our secondary
business target is entrepreneurs and small business owners who want to provide discounts to
managers buying a new car. Each of the four marketing strategies conveys Hyundai i20's
differentiation to the target marketing segments identified above.
Positioning
Using product differentiation we are positioning the Hyundai i20 as the most versatile,
convenient, value added car model for above target market used. The marketing strategy will
be focused on promoting the car as economic car for the next generation.
Strategies Product
Hyundai i20 is fully loaded and will be sold with 3 year warranty. We will also introduce a
CNG/LPG version of Hyundai i20 in the near future. Also the high end model has an option
of GPS system.
Price

19

Hyundai i20's base model is at ex-showroom price of 4.5 lakhs. This price reflects a strategy
of
1) attracting desirable channel partners
2) Taking market share from Maruti.
Distribution
The Stockist will represent 3 to 4 districts in a State.
The Dealer will represent a district or main City.
The Sub-Dealer shall represent a particular area or taluka.
The booking agents will be individuals working on freelance basis.
Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main points of
product differentiation. Research about media consumption, pattern will help our advertising
agency to choose appropriate media and timing to reach prospects before & during the
product introduction. Thereafter, advertising will appeared on a pulsing basis to maintain
brand awareness and communicate various differentiation messages. The agency will also coordinate public relation efforts to build Hyundai brand & support the differentiation message.
To attract market attention & encourage purchasing, we will offer a limited time, registration
& insurance. To attract, retain & motivate channel partners for a push strategy, we will use
trade sales promotions and personal selling to channel partner.
CAR PROFILE

Founder and Chairman

Year of Establishment

Mr. H.W. Park

2008

Sector

Light Motor Vehicle (4 Wheeler)

Business Group

Hyundai Motors India Ltd.

Presence

Produced and Distributed over several countries like Australia,

Turkey,
Oceania and India etc.

Manufacturing Unit in IndiaSriperumbudur, Tamil Nadu

Head Office in India

Chennai, India.

20

Joint Venture

None

Contact No.
Email ID:
Official Website:

1800 11 4645
cr@hmil.net
www.hyundai.com

PRODUCERS PROFILE

Hyundai Motor India Limited

Type

Subsidiary

Industry

Automotive

Founded

6th May 1996

Headquarters

Chennai, India

Key people

Mr. H.W. Park, MD

Products

Automobiles

Parent

Hyundai Motor Company

Website

www.hyundai.co.in

Other Car Models produced by Hyundai Motor India:

1.
Hyundai Accent (Launched 1999)
2.
Hyundai Santro Xing (Launched 2003)
3.
Hyundai i10 (Launched 2007)
4.
Hyundai Verna Transform (Launched 2010)
5.
Hyundai Santa Fe (Launched 2010)
TIMELINE OF GENERATIONS

21

First generation (2008present)

In Indian market, Hyundai i20 comes

with

Hyundai i20 is powered by an 1.2L

kappa engine developing 80 PS (59

kW;

79 hp) of max power at 5200 rpm and

114 Nm (84 lbft) of peak torque at
4000rpm.i20 also gets 1.4L gamma
gasoline generates 100 PS (74 kW; 99

hp)

of power at 5500 rpm and 139 Nm

lbft) at 4200 rpm i20 CRDi the diesel

(103
Hyundai i20 in production

i20

comes with a powerful oil burner generating 90 PS (66 kW; 89 hp) of peak power at 4000 rpm and
224 Nm (165 lbft) of peak torque between 17502750 rpm.
There are currently no plans to replace the current model, as of now.

A picture of the current Hyundai i20 produced in India

SWOT ANALYSIS
Strengths
The Quality Advantage
A Buying Experience Like No Other
Widespread

22

Weaknesses
Commodity Price Risks
Exchange Rate Risk
Poor Maintenance
Opportunities
Leading Growth
Threats
Risk Factors
Business Risks
Threats from Competitors
Maruti Udyog Limited
Tata Motors Limited
Chevrolet India Limited.

OBJECTIVES OF THE STUDY

1.
2.
3.
4.
5.

To know the market share of Maruti Suzuki and Hyundai.

To know the performance of Swift and i20 respectively.
To know the perception of customers regarding these cars.
To determine customers satisfaction regarding cars.
To determine the factors the choice of customers regarding cars.

23

Chapter No. 3
COMPARISON
BETWEEN MARUTI
SWIFT & HYUNDAI i20

24

INTRODUCTION
The Maruti Suzuki Swift and the Hyundai i20 are the two top-selling premium hatchbacks
which have huge demand in the market. It is quite difficult for a buyer to choose between
these two cars because both are established brands in the premium hatchback market.

The Swift managed to get 61% votes while the i20 grabbed only 39% votes of the total votes
cast. Here we try to find out why the CarToq community believes that the Maruti Swift is a
better hatchback than the Hyundai i20 based on a quick comparison.

Where Swift is better than i20

Performance (Petrol) and handling
The Swift petrol is powered by a 1.2-litre motor that puts out 86 bhp of power, which is a bit
more than the i20s 1.2-litre engine that puts out 84 bhp. The Swift petrol is a bit easier to
drive in city traffic, which demands quick acceleration without compromising on mileage
compared to the i20.
The Swift may not offer a plush ride, but its suspension setup can take quite some beating.
The precise steering feedback, great straight line stability and handling characteristics makes
the Swift, a drivers delight. On the other hand, the Hyundai i20 steering is too light which

25

though helpful for city driving, doesnt feel connected when driven at three digit speeds. The
suspension setup of the i20 offers a good ride at low speeds while at high speeds it is
unsettled and may cause discomfort to passengers.
Price
The Swift is cheaper than the i20 across variants. The base petrol variant of the Swift is Rs.
29,000 cheaper than the base petrol variant of the i20. The Swift VXI is Rs. 7,000 cheaper
than the i20 Magna variant, while the top-end variant of the Swift is Rs. 97,000 cheaper than
the top-end i20 petrol.

Model/variant Era
i20 petrol
Swift petrol

Magna

Rs. 4.73 lakh Rs. 4.97 lakh

Magna
(O)
Rs.
lakh

Sportz

5.27 Rs.
lakh

Asta

5.75 Rs.
lakh

Asta (O)
6.21

Rs. 6.65 lakh

Rs. 4.44 lakh Rs. 4.90 lakh

Rs. 5.68 lakh

(LXI)

(ZXI)

(VXI)

Coming to the diesel variants, the base variant of the Swift is Rs. 43,000 cheaper than the i20
base variant. The mid variant of the Swift VXI diesel is Rs. 22,000 cheaper than the i20
Magna. The Swift ZDI is Rs. 68,000 cheaper than the i20 Asta.
Model/variant Era
i20 diesel
Swift diesel

Magna (O) Sportz

Asta
Rs.
6.50 Rs.
6.98
Rs. 5.96 lakh
Rs. 6.20 lakh
Rs. 7.44 lakh
lakh
lakh
Rs. 5.53 lakh Rs. 5.98 lakh
Rs. 6.76 lakh
(LDI)

Magna

(VDI)

(ZDI)

Fuel economy
When it comes to mileage, the Swift diesel has an ARAI-certified mileage of 23.4 kmpl,
which is slightly higher than the ARAI-certified mileage of the new i20 (21.9 kmpl).
However, the claimed mileage of the Hyundai i20 petrol is 18.5 kmpl, which is close to the
claimed mileage of the Swift petrol (18.6 kmpl). Overall, the Swift diesel is more fuel
efficient compared to the i20 diesel.
26

Maintenance costs
Maruti Suzuki cars are known for their low maintenance costs and spare parts. The Swift is a
good example as it is easy to maintain and spare parts costs are also lower than its rivals such
as the i20. Besides, the wide sales and service network ensures peace of mind even when
using the car for long drives.

Where i20 is better than the Swift

Performance (diesel)
The i20 diesel is powered by a 1.4-litre CRDi (common rail direct injection) motor that puts
out 89 bhp of power and 220 Nm of torque whereas the Swift is powered by a 1.3-litre diesel
motor that puts out 74 Bhp of power and 190 Nm of torque. Besides, the i20 comes with a 6speed transmission while the Swift gets a 5-speed transmission. Hence, an additional cog,
more power and torque make the i20 diesel, more drivable than the Swift especially on the
highway, but in the city the i20 requires more shifting of gears.
Space and Comfort
The new i20 is longer and a bit wider than the Swift though the Swift is a bit taller than the
new i20. That essentially means the i20 offers more legroom and a bit more shoulder room
especially for passengers. The luggage space of the i20 (295 litres) is 85 litres more than that
of the Swift and it can gobble up a few more bags.
With regard to comfort, the i20 and Swift both have supportive front seats but things change
drastically when it comes to rear seat comfort. The i20 offers slightly more legroom and
shoulder room than the Swift. Hence, the middle passenger will feel more comfortable sitting
in the i20 than in the Swift.

Features

27

In terms of features, the i20 has a significant advantage over the Swift. The i20 Asta (O)
comes with sunroof, auto-fold and heated mirrors, push button start, reversing camera, auto
headlight and rain sensing wipers, as well as daytime running lamps (updated versions).
These features are not offered in the Swift ZXI/ZDI variants.
The i20 also comes in more variants that allow the customers to choose the package which
most suit their needs. For instance, the Magna (O) which is priced roughly Rs.30, 000 more
than the Magna, comes with features such as automatic climate control, clean air cluster
ionizer, rear defogger, rear speakers and turn indicators on outside mirrors. But in case of
Swift, the automatic climate control is offered only in the top-end trim.
Similarly, the i20 Sports variant which is roughly Rs. 50,000 cheaper than the top-end Asta
variant comes with many features such as driver airbag, tilt & telescopic steering, Bluetooth
connectivity, steering mounted audio and phone controls, alloy wheels and rear adjustable
headrests. In case of Swift, these features are offered only in the top-end trim. Summing up,
the i20 offers many features with more variants to choose from than the Swift.
Overall, in terms of handling, price, fuel economy and maintenance costs, the Swift has an
edge over the i20. But the i20 scores more than the Swift when it comes to features, space
and comfort. This clearly explains why the Swift managed to get 61% votes in our poll.

28

Chapter No. 4
REVIEW
OF LITERATURE

REVIEW OF LITERATURE
Relevant literatures pertaining to the present study on four wheeler automobile industry are
included in this chapter. The literatures are helpful for proper understanding the four wheeler
automobile industry and its various related aspects. Review of literature is also helpful in
effectively fulfilling the objectives for which the research project has been undertaken.
G.S. Dangayach and S.G. Deshmukh, in their study on Advanced manufacturing
technologies: evidences from Indian automobile companies in International Journal of
Manufacturing Technology and Management, reports the findings of an exploratory survey
on Advanced manufacturing technologies (AMT) administered in Indian automobile
companies. The objective of the survey is to assess the status of advanced manufacturing
technologies, identify advanced manufacturing technologies relevant to Indian automobile
sector companies, identify competitive priorities, and assess the degree of investment in

29

advanced manufacturing technologies. Responses from 68 companies are analysed and

presented.
RNCOS industry in their study of Indian Automobile Sector provides a forecast and
analysis based on various macro- and microeconomic factors, sector and industry specific
databases, and an in-house statistical and analytical model. This model takes into account the
past and current trends in an economy, and more specifically in an industry, to bring out an
objective market analysis. In this research main topics covered are: Study of the Indian
automobile industry structure, Analysis of performance of industry sub-segments and their
future outlook, Understanding the Indian auto component market and its growth aspects,
Identification of future prospects for the Indian automobile industry.
S. Saraswathi undertook a study on Customer Satisfaction on Post-Sales Service with
Reference to Four-Wheeler Automobile Industry which reveals that the key to success of
automobile industry lies not only in having good products but also in being able to provide
the customer with the level of service they desire. Because of increasing competitiveness in
the Indian automobile industry, almost all automobile manufacturers have invested valuable
resources on customer satisfaction as a tool to understand the needs and expectations of their
customers. Increased presence of four-wheeler vehicles throughout the country has created a
growing need for providing service infrastructures closer to the customers' homes or offices.
Dr V Sumantran (Executive Director-Passenger Car Business Unit and Engineering
Research Centre at Tata Motors Limited during November 2001 to August 2005,
conducted a study on The Indian Auto Industry & The Role of Dealers which reveals
that the global auto industry has been the subject of much analysis in recent years. While
global capacity creation proceeds at a good clip on one hand, continued capacity creation in
the face of sluggish sales have led to depressed levels of capacity utilization. Today, the
Indian auto industry is one of the largest industrial sectors with a turnover that contributes to
roughly 5 per cent of India's GDP. More importantly, it contributes to employment of over 2
million people directly and indirectly to another 10 million. The industry is important for
national policy in that it contributes 19 per cent of indirect taxes.
Akie Takeuchi, Maureen Cropper and Antonio Bento in the Journal of Regional Sciences
published a paper on The impact of policies to control motor vehicle emissions in Mumbai,
India which examines the impacts of measures to reduce emissions from buses, cars, and

30

four-wheelers in Mumbai, India. They have considered three possible policies: conversion of
diesel buses to CNG, an increase in the price of gasoline and a tax on vehicle ownership.
In The Wall Street Journal, India Infoline Sector Reports published a report on AutomobileIndian four Wheelers Industry which reveals that India is the second largest manufacturer and
producer of four-wheelers in the world. It stands next only to Japan and China in terms of the
number of four-wheelers produced and domestic sales respectively. This distinction was
achieved due to variety of reasons like restrictive policy followed by the Government of
India towards the passenger car industry, rising demand for personal transport, inefficiency in
the public transportation system etc
Dr. Amit Kumar Dwivedi and Mr. Punit Kumar Dwivedi, in their article on Automobile
Sector: Industry Vs Indian Middle Class in Indian MBA concluded that that there are great
opportunities and possibilities in the automobile sector. But hike in the fuel price is
influencing the market of this industry. There is a need of a very liberal policy for the fuel
prices and requires a great good deal with fuel supplying countries. Though, the performance
of the industry is better instead of high and unfavourable fuel policy.

Chapter No. 5
RESEARCH
METHODOLOGY
31

RESEARCH METHOLODGY
It is a well known fact that the most important step in marketing, research process is to define the
problem. Choose for investigation, because a problem well-defined is half solved. That was the
reason that at most care was taken while defining various parameters of the problem. After giving
through brain storming session, objectives were selected and the set on the base of these
objectives. A questionnaire was designed major emphasis of which was gathering of new ideas or
insight so as to determine and bind out solution to the problems.
DATA SOURCE
Research included gathering both Primary and Secondary data. Primary data is the firsthand data,
which are selected a fresh and thus happen to be original in character. Primary Data was crucial to
know various customers and past consumer views about cars and to calculate the market share of
this brand in regards to other brands.
Secondary data are those which has been collected by some one else and which already
have been passed through statistical process. Secondary data has been taken from
internet, newspaper, magazines and companies web sites.
RESEARCH APPROACH
The research approach was used survey method which is a widely used method for data collection
and best suited for descriptive type of research survey includes research instrument like
questionnaire which can be structured and unstructured. Target population is well identified and
various methods like personal interviews and telephone interviews are employed,
SAMPLING UNIT
It gives the target population that will be sampled. This research was carried in Faridabad and New
Delhi. These were 16 respondents.
DATA COMPLETION AND ANALYSIS
After the data has been collected, it was tabulated and findings of the project were
presented followed by analysis and interpretation to reach certain conclusions.

SCOPE OF THE STUDY

1. My project was based on the Comparative Study of Swift vs. i20 and data
2. was taken in Faridabad and New Delhi only.

LIMITATIONS OF THE STUDY

32

1. Research work was carried out in Faridabad and New Delhi only the finding may not be
applicable to the other parts of the country because of social and cultural differences.
2. The sample was collected using connivance-sampling techniques. As such result it may not
give an exact representation of the population, it is also very small which represent my
research on consumer behavior.
3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesnt reflect true picture.
5. I had only found the upper-middle class family to fill up the questionnaire, but generally,
an average middle class family was required for the study.

Chapter No. 6
DATA ANALYSIS
&
33

INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
Q1: Which Car brand do you have ?
Maruti Suzuki
39
Hyundai
34
Chevrolet
15
Others
12

34

Interpretation: The study shows the Maruti Suzuki have more customer than other brands of
cars.
Q2: Which Car do you prefer out of Swift and i20 and which model?
Maruti Suzuki Swift
Highest Model
Middle Model
Lowest Model
Hyundai i20
Highest Model
Middle Model
Lowest Model

67
11
38
18
33
7
16
10

Interpretation: The study shows that 67% of customer demanding Maruti Suzuki Models
and 33% of customers demanding other models of Hyundai i20
Q3: Which family Income level do you Fall in?
250000 350000
22
350000 450000
37
450000 550000
31

35

Above 550000

10

Interpretation: The study shows that 37% family incomes fall in 350000-450000 group,
30% in 450000-550000, 23% of 250000-350000 and 10% of Above 550000

Q4: While purchasing a car, what features influence you?

Price
25 %
Product Feature
20 %
Brand
30 %
Service
10 %
Durability
15 %

36

Interpretation: 30% of customer watching brand at the time of purchase, while 25% Price,
20% Product Feature, 15 Durability, 10% Service

Q5: How frequently you change your car?

In 1-3 years
In 3-5 years
In 5-10 years
In More than 10 years

25 %
20 %
30 %
10 %

37

Interpretation: 30% of the people change their cars after 5-10 years gap, 25% 1-3 years,
20% 3-5 years, 10% after more than 10 years

Q6: For what purpose do you use your car?

Official Purpose
Personal Purpose
Joy Purpose
Others

Maruti Suzuki Swift

37
30
23
10

Hyundai i20
25
35
20
20

38

Interpretation:
Maruti Suzuki Swift:37 % of people using Maruti Suzuki Swift for their Official Purpose, 30% Personal Use, 23%
Joy Purpose, 10% others.
Hyundai i20:25 % of people using Maruti Suzuki Swift for their Official Purpose, 35% Personal Use, 20%
Joy Purpose, 20% others.
Q7: How did you come to know about this Car?
Newspaper
Television
Magazine
Friends and Relatives

Maruti Suzuki Swift

22
40
18
20

Hyundai i20
25
35
10
30

39

Interpretation:
Maruti Suzuki Swift:22% by Newspaper, 40% by T.V., 18% by Magazines and 20% by friends and Relatives
Hyundai i20:25% by Newspaper, 35% by T.V., 10% by Magazines and 30% by friends and Relatives

Q8: Did Advertisement influence your choice, while you chose your car?
Yes
No
Cant say

85%
5%
10%

40

Interpretation: 85% of customers says that advertisement have strong effect on their
purchasing of a car, 5% says No and the left 10% cant say.

41

Q9: Did you have full knowledge before buying your car?
Yes
No

56
44

63
37

Interpretation:
56 % of customers agreed that they fully acknowledged before buying their Maruti

Suzuki Swift and 44 % dont agreed with that.

63 % of customers agreed that they fully acknowledged before buying their Hyundai
i20 and 37 % dont agreed with that.

Q10: Which Factors below influenced your decision?

Price
Mileage
Quality
Resale Value

Maruti Suzuki Swift

39%
28%
15%
11%

Hyundai i20
30%
24%
32%
10%
42

Status Symbol

7%

4%

Interpretation:
39% Customers of Maruti Suzuki Swift influenced by Price, 28% Mileage, 15%

Quality, Resale Value 11%, Status Symbol 7%.

30% Customers of Hyundai i20 influenced by Price, 24% Mileage, 32% Quality,

Resale Value 10%, Status Symbol 4%.

Q11: How would you rate the following factors of Cars with respect to different
company?
Mileage
Price
Pick Up
Maintenance
Look and Shape
Brand Image

Maruti Suzuki Swift

28%
20%
20%
12%
10%
10%

Hyundai i20
25%
20%
27%
12%
10%
6%

43

Interpretation:
28% Customers of Maruti Suzuki Swift impressed by Mileage, 20% Price, 20% Pick

up, 12% Maintenance, 10% Look and Shape, 10% by Brand Image.
25% Customers of Hyundai i20 impressed by Mileage, 20% Price, 27% Pick-up, 12%

Maintenance, 10% Look and Shape, 6% by Brand Image.

Q12: If a new Car with good features comes in, then would you like to change your
existing car?
Yes
No
Cant Say

Maruti Suzuki Swift

47
33
20

Hyundai i20
50
30
20

44

Interpretation:
Maruti Suzuki Swift:47% says yes that they would change their existing car, 33% says no and the left 20% cant
say.
Hyundai i20:50% says yes that they would change their existing car, 30% says no and the left 20% cant
say.

Chapter No. 7
CONCLUSION
&
45

RECOMMENDATIONS

CONCLUSIONS
1. Maruti Suzuki Swift is considered to be most fuel-efficient car on Indian roads,& has
better quality, higher resale as compared to Hyundai i20.
2. Maruti Suzuki Service & Spare parts are available throughout India and in local
markets also, & Swift has comparatively low maintenance cost in contrast to Hyundai
i20.
3. While buying a car, economy is the main consideration in form of price, maintenance
cost, fuel efficiency.
4. Majority of the respondents had bought changed their cars within 5 10 years of
purchase of their older cars.
5. Maruti Suzuki Swift has been rated better than Hyundai i20 by the people in terms of
mileage, price, pick up, maintenance and brand image, while Hyundai i20 has only
been rated better in terms of looks and shape.
6. The middle model in both Maruti Suzuki Swift and Hyundai i20 is preferred more
than the highest and lowest models respectively, by the people.
7. Maruti Suzuki Swift is more preferred than Hyundai i20 by people in terms of Office
and Joy purposes, while Hyundai i20 is more preferred for Personal Purposes.
8. Owners of Hyundai i20 are interested in changing their cars if a new model is out,
more than the owners of Maruti Suzuki Swift.

46

RECOMMENDATIONS
1. Hyundai should focus on improving the fuel efficiency of its i20 model, the quality
and reliability needs to be worked upon too, on which the resale value of car depends.
2. Hyundai needs to tap the export market more efficiently as there is a huge potential to
make India as the world's 4-wheelers production base. For this, it needs to look for
joint ventures abroad.
3. More service centers should be opened for Hyundai Motors, so that its Service &
Spare parts are available throughout India and in local markets also.
4. They should also introduce some good finance/discount schemes for students, so that
more of the young generation is attracted.

47

BIBLIOGRAPHY

48

BIBLIOGRAPHY

www.marutisuzukiswift.com
www.hyundai.com
www.google.com
www.wikipedia.org
www.authorstream.com
www.india-server.com
www.wiki.answers.com
www.cardekho.com
www.profilefacts.blogspot.com

49

ANNEXURE

50

QUESTIONNAIRE
Name: __________________________________
Contact No.: ______________________________
Age:

a) 15-20
c) 30-40

b) 20-25
d) Above 40

Occupation: a) Businessman
c) Student
Q1: Which car brand do you have?
a) Maruti Suzuki
c) Chevrolet

b) Employee
d) Other
b) Hyundai
d) Others

Q2: Which Car do you prefer out of Swift and i20 and which model?
a) Maruti Suzuki Swift
b) Hyundai i20
-Lowest
-Middle
-Highest

-Lowest
-Middle
-Highest

Q3: Which family Income level do you fall in?

a) 250000-350000
b) 350000-450000
c) 450000-550000
d) Above 550000
Q4: While purchasing a car, what features influence you ?
a) Price
b) Product Feature
c) Brand
d) Service
e) Durability
Q5: How frequently you change your car?
a) In 1-3 Years
b) In 3-5 Years
c) In 5-10 Years
d) In more than 10 years
Q6: For what purpose do you use your car?
a) Official Purpose
b) Personal Purpose
c) Joy Purpose
d) Others
Q7: How did you come to know about this Car?
a) Newspaper
b) Television
c) Magazine
d) Friends and Relatives
Q8: Did Advertisement influence your choice, while you chose your car?
a) Yes
b) No
c) Cant Say

51

Q9: Did you have full knowledge before buying your car?
a) Yes
b) No
Q10: Which Factors below influenced your decision?
a) Price
b) Mileage
c) Quality
d) Resale Value
e) Status Symbol
Q11: How would you rate the following factors of Cars with respect to different
company?
a) Mileage
c) Pick Up
e) Look and Shape

b) Price
d) Maintenance
f) Brand Image

Q12: If a new Car with good features comes in, then would you like to change your
existing car ?
a) Yes
c) Cant Say

b) No

Q13: Any Suggestions for the company ?

___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________
(Signature)

52