SUMMER TRAINING REPORT

ON
“A STUDY ON CUSTOMER SATISFACTION AT
HYUNDAI”

Submitted in partial fulfillment of the requirements for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Under the Guidance of

…………..
Faculty, VIPS

Submitted By
Ishita Sukhija
Enrollment no. ………

Vivekananda School of Business Studies

Vivekananda Institute of Professional studies
Guru Gobind Singh Indraprastha University
Delhi
2017
 STUDENT UNDERTAKING

This is to certify that I have completed the project titled “A Study on Customer
Satisfaction At Hyundai” under the guidance of ........ in partial fulfillment of the
requirement for the award of degree Bachelor of Business Administration at
Vivekananda Institute of Professional Studies, Vivekananda School of Business
Studies, New Delhi. This is an original piece of work and has not submitted
elsewhere.

Ishita Sukhija

2
 CERTIFICATE

(On Institute’s Letter Head)

This is to certify that Ms. Ishita Sukhija, a student of Bachelor of Business

Administration, a class of 2013, Vivekananda Institute of Professional Studies,
Affiliated to GGS.IP. University bearing Enrolment No. ............... has undertaken
the Summer Internship Training at “Orion Automobiles Pvt. Ltd.” During 5th June
2017 till 4th August 2017 under my supervision & guidance. She has conducted a
study & completed the Project on A Study on Customer Satisfaction at Hyundai

........

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 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “A Study on Customer

Satisfaction at Hyundai”. The work would not have been possible to come to the
present shape without the able guidance, supervision and help to me by number of
people.

With deep sense of gratitude I acknowledged the encouragement and guidance

received by my organizational guide …………. and other staff.

I convey my heartful affection to all those people who helped and supported me
during the course, for completion of my Project Report.

Ishita Sukhija
Enrolment No.: ...............

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 EXECUTIVE SUMMARY

The project study on customer satisfaction of Hyundai Motors Ltd. has been
conducted to observe the preferences of consumers. This system of education is
highly appreciated as it provides the students with an opportunity to acquaint them
with the outside world. The practical work helps the students to view the real business
world closely, which in turn widely influences their conception and perception.
Present world is the world of competition. Orion Automobiles Pvt. Ltd. is into
automobile business since last 11 years. It has a total turnover of Rs. 55 Crores with
total strength of around 225 personnel employed in various capacities.

Customer satisfaction is a concept that more and more companies are putting at the
heart of their strategy, but for this to be successful, they’re needs to be clarity about
what customer satisfaction means and what needs to happen to drive improvement.
There is huge competition in each and every sector. Everyone wants to be ahead of
their competitors. The competitive landscape, rapidly changing technologies,
increased complexity of products and services and more aware and demanding
customers are all pushing the Organization to adopt the customer centric focus. In the
present dynamic business environment customer play a vital role and is of centric
value to the Organization. Hence satisfying a customer by providing excellent
services is of prime importance to the company. First of all a proper outline of the
entire survey work was decided like research objectives, research approach. The main
objective of the research was to find out the satisfaction level of the customers from
products offered by the company in the market.

The next step was decided upon other areas of research design. To meet the main
objectives of the research program me a proper sample size was decide upon, which
represents the entire population and help in getting results. Structured questionnaire
was used as research instrument and personal interview method was used for data
collection in the whole survey. Analysis and interpretation were drawn from the entire
data so as to focus on the major problems. Analysis and interpretation were further
used to reach the results and findings of the survey and were also helpful in making
the suggestions.

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 TABLE OF CONTENT

Topic Page No

Certificate -

Summer Training Appraisal

Acknowledgement -

Executive Summary -

Chapter-I: Introduction -
1.1 Introduction of whole industry
1.2 Objectives of the Study
1.3 Scope of Study
1.4 Company Profile of Hyundai Motors Ltd.
1.4.1 Name of the firm/ company
1.4.2 Explain the nature of the Organization and its business
1.4.3 Company’s vision & mission.
1.4.4 Product range of the company.
1.4.5Size (in terms of manpower & turnover) of organization.
1.4.6 Organization structure of the company.
1.4.7. Market share & position of the company in the industry.
1.5 Industry Profile
Chapter-II: Review of Literature -

Chapter-III: Research Methodology

Chapter-IV: Data Reduction, Presentation & Analysis

Chapter-V: Data Interpretation

Chapter-VI: Summary & Conclusions

6.1 Results of the Study
6.2 Limitations:
6.3 Suggestions, Scope for further Study & Conclusion
6.4 Conclusion
6.5 Suggestions
References/ Bibliography

Annexure
 Questionnaire

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 Chapter-1
INTRODUCTION

7
 INTRODUCTION

1.1 Introduction of whole industry

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the
first automobile to run on roads. This automobile, in fact, was a self-powered, three-
wheeled, military tractor that made the use of a steam engine. The range of the
automobile, however, was very brief and at the most, it could only run at a stretch for
fifteen minutes. In addition, these automobiles were not fit for the roads as the steam
engines made them very heavy and large, and required ample starting time. Oliver
Evans was the first to design a steam engine driven automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between
1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert
Davidson were amongst the first to invent more applicable automobiles, making use
of non-rechargeable electric batteries in 1842. Development of roads made travelling
comfortable and as a result, the short ranged, electric battery driven automobiles were
no more the best option for travelling over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk
production of cars. This lead to the development of the industry and it first begun in
the assembly lines of his car factory. The several methods adopted by Ford, made the
new invention (that is, the car) popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the automobile

markets around the globe with no notable competitors. However, after the end of the
Second World War in 1945, the Automobile Industry of other technologically
advanced nations such as Japan and certain European nations gained momentum and
within a very short period, beginning in the early 1980s, the U.S Automobile Industry
was flooded with foreign automobile companies, especially those of Japan and
Germany.

The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car
markets, whereas the Automobile Industry in the developing nations, such as, India

8
and Brazil, have been consistently registering higher growth rates every passing year
for their flourishing domestic automobile markets.

Those who are interested in gathering more information about the Automobile
Industry, may browse through the following links
 World Automobile Industry
 Automobile Industry Trends
 India Automobile Market
 India Automobile Industry

EVEN GROWTH

Opposing the belief that the growth in mobile industry has catered only to the top
income-stratum of society, Growth of exports of 32.8 % in the first three quarters of
2015-16 the fastest growth in volumes has come from commercial vehicles as against
passenger cars.

Between 2011 and 2012, the output of commercial vehicles has grown 2.8 times
compared to the 2.2 times increase in passenger cars. Furthermore, two-wheeler
output continues to dominate the volume statistics of the sector. In 2010-11, for every
passenger car turned out by the sector, there were 7 two-wheelers produced. In the
two wheeler segment, there is a greater preference for motorcycles followed by
scooters, with both production and domestic sales of motorcycles increasing at faster
rates than for scooters in the current and previous years. However, mopeds have
registered low or negative growth. Export growth rates have been high both for
motorcycles and scooters.

(a) Meaning of the concept: As organizations become increasingly customer

focused and driven by demand, the need to gain customer loyalty and retain their
loyalty is critical. Customer satisfaction is the most effective way to achieve
customer loyalty. Customer satisfaction and customer loyalty share many similar
traits. Customer value is the customer’s perception of the ratio of benefits to what he
or she gives to obtain those benefits. The customer Value Triad is a framework used
to understand what it is that customers want. The framework consists of three parts:
(1) perceived product quality, (2) value-based pricing, and (3) perceived service
quality.

9
Customers are satisfied, when value meets or exceeds expectations. If their
expectations of value are not met, there is no chance of satisfying them. Figuring out
what the customers want, however, is a difficult and complex process. To be able to
create and deliver customer value is important to understand its components. On the
most basic level, value from a customer’s perspective is the ratio of benefits to the
risks being taken while buying the product.

AN INSIGHT

According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print

more frequently than any other catch phrase used to describe a new found magic for
industrial success. Before we proceed in to the study of the dynamics of Customer
Satisfaction it is important to know about, who a customer is and what satisfaction
really means.

Who really is a Customer?

The question of defining who your customers are seems fairly easy particularly if
you have segmented your market properly and understand who you are trying to
satisfy. However subtlety that frequently goes undetected by many firms is that is
that customer set can be divided into two parts, the apparent customer and the
user. The apparent customer is the person or group of people who decide what
product to buy and basically have control over the purse strings. The user is a person
or group who physically uses the product or is the direct recipient of a service.

What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple. However as

with customer there is a subtlety that needs addressing. Satisfaction by most
definitions simply means meeting the customer’s requirement.

Customer satisfaction is a concept that more and more companies are putting at the
heart of their strategy, but for this to be successful they’re needs to be clarity about,
what customer satisfaction means and what needs to happen to drive improvement.
Without this, there is a risk that customer satisfaction becomes little more than a
good intention, with confused objectives failing to address the real issues for

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customers, one helpful way to look at the problem is to rephrase the objectives: set
the sights on helping the customers meet their goals.

Customer satisfaction can be defined in many different ways. Finding the right way
for a company depends on understanding your customer and on having a clear vision
of the role that customer satisfaction is to play in the strategy. For example, a focus
on customer satisfaction can work alongside existing segmentations to support
revenue generation from high value customers or it can be a company-wide objective
rooted in the brand values. For the former, it may be sufficient to focus on improving
customer service, but for the latter a broader definition of customer satisfaction is
necessary, closer akin to corporate reputation.

Whatever the strategy for customer satisfaction, it must at least include getting the
basics right. Failing to achieve this can destroy the reputation as well as losing
valuable customers. Every customer, regardless of their economic worth to the
business, has the power to influence – positively or negatively – a company’s
reputation. Once the objectives for the customer satisfaction strategy are defined
there are a number of steps we can take to make sure the focus on customer
satisfaction is effective.

Job Satisfaction: It is realising the direct relationship between happy employees

The key measures to employee satisfaction are
 Employee retention
 Productivity
 Customer satisfaction
 Profitability

All the above mentioned factors are obtained only if the employees are satisfied
.This is because satisfied employees tend to be more creative ,tend to accept
challenging jobs which is an promotional opportunity to them .They tend to be more
productive .

Employees with higher job satisfaction: believe that the organization will be
satisfying in the long run .care about the quality of their work are more committed to
the organization have higher retention rates, and are more productive.

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“A study on employee satisfaction to enhance the present working conditions”

Retaining the employees in the long run has become an destructive problem to any
organization nowadays the organization which takes keen interest to satisfy their
employees before the customers are able to retain their employees in the long run.
So having this objective in mind the managements wants to know the satisfaction
level of the employees towards Modern Hyundai.

A study to know the satisfaction level of the employees towards the organization to
enhance the present working conditions for organizational growth and prosperity at
Modern Hyundai.

Employee Satisfaction is a prerequisite for the customer satisfaction. Enhanced

employee satisfaction leads to higher level of employee retention.

A stable and committed workforce ensures successful knowledge transfer, sharing,

and creation --- a key to continuous improvement, innovation, and knowledge-based
total customer satisfaction.

When companies are committed with providing high quality products and services;
when companies set high work standards for their employees; and when employees
are empowered through training and development, provided with knowledge and
information, permitted to make mistakes without punishment, and trusted; they will
experience an increase in their level of satisfaction at work.

This level of satisfaction can be enhanced further if teamwork and visionary

leadership are introduced.

Continuous improvement comes from the efforts of the empowered employees

motivated by visionary leadership. This is supported by the findings that
empowerment and visionary leadership both have significant correlation with
employee satisfaction. Teamwork is also supported by the findings. In addition, the
study found significant correlation between employee satisfaction and employee’s
intention to leave.

The success of a corporation depends very much on customer satisfaction. A high

level of customer service leads to customer retention, thus offering growth and profit
opportunities to the organization. There is a strong relationship between customer

12
satisfaction and employee satisfaction. Satisfied employees are more likely to stay
with company and become committed and have more likely to be motivated to
provide high level of customer service, by doing so will also further enhance the
employee’s satisfaction through feeling of achievement. Enhanced employee
satisfaction leads to improved employee retention; and employee stability ensures the
successful implementation of continuous improvement and customer satisfaction.
Customer satisfaction will no doubt lead to corporate success and greater job
security.

These will further enhance employee satisfaction. Therefore, employee satisfaction is

a prerequisite for customer satisfaction.

In a company, the satisfaction level of the employees differs, some of the employees
are happy with the facilities provided and some are not, some employees are happy
with their job itself, but some are not, at the same there can be satisfied and
unsatisfied employees in a company receive the same facilities and working
condition.

There are various factors that explains the satisfaction of employees in a company,
such as the relation of the employees with the management of the company, salary,
rewards and recognition of the employees for their better performances and
innovative ideas, employee benefits they get from the company, the trust and
importance of the employees, the motivation level of the company, the job and career
development of the employees their different needs like social needs, training needs,
financial needs, etc, if employees are happy with these factors the employees are said
to be satisfied.

Consumer Satisfaction: Analyze of Customer Satisfaction has become a very

important component in giving outstanding customer service. HR problems in
Hyundai Motor Co. Hyundai Motor Co., formed in 1967, was a part of the large
South Korean Chaebol - the Hyundai Group - until the group split in September
2000. In the last four decades, Hyundai managed to establish itself all over the world
as a company producing reliable, technically sound and stylish automobiles. In the
90s, the company started aggressive overseas expansion programs. By the late
90s, when Southeast Asian crisis struck, the company like all the other chaebol,
faced serious financial problems. To survive, it had to cut its labor force. The

13
company offered various retirement schemes, unpaid leave for two years, etc. to
workers, and expressed its inability to support its entire workforce in the slack
period. The unions refused to compromise and the management too held its ground.
Finally, the government intervened to force a negotiated settlement between the
union and the management.
1. Consumer’s complaint about Hyundai quality problems.

2. Consumer’s complaint about Hyundai transmission problem.

Working Capital Management: Financial management is such a managerial

process which is concerned with the planning and control of financial resources.
Working Capital Management refers to all management decision and action that
ordinary influence the size and effectiveness of the working capital. An effort has
therefore, been made to undertake an in –depth study on “working capital
management of Automobile industry (two wheeler) in India. My conclusion is that
negative working capital will continue to work for the two wheeler industry.
Automobile industry, financial management, working capital, two wheeler
manufacture. Decisions relating to working capital and short-term financing is a
financial metric which represents operating liquidity available to a business,
organisation or other entity, including governmental entity. Along with fixed assets
such as plant and equipment, working capital is considered a part of operating
capital. Gross working capital is equal to current assets. Working capital is calculated
as current assets minus current liabilities. If current assets are less than current
liabilities, an entity has a working capital deficiency, also called a working capital
deficit.

A company can be endowed with assets and profitability but short of liquidity if its
assets cannot readily be converted into cash. Positive working capital is required to
ensure that a firm is able to continue its operations and that it has sufficient funds to
satisfy both maturing short-term debt and upcoming operational expenses. The
management of working capital involves managing inventories, accounts receivable
and payable, and cash.

Working capital is the difference between the current assets and the current
liabilities.

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The basic calculation of the working capital is done on the basis of the gross current
assets of the firm.

Inputs: Current assets and current liabilities include three accounts which are of
special importance. These accounts represent the areas of the business where
managers have the most direct impact:
 accounts receivable (current asset)
 inventory (current assets), and

 accounts payable (current liability)

The current portion of debt (payable within 12 months) is critical, because it

represents a short-term claim to current assets and is often secured by long-term
assets. Common types of short-term debt are bank loans and lines of credit.

An increase in net working capital indicates that the business has either increased
current assets (that it has increased its receivables, or other current assets) or has
decreased current liabilities—for example has paid off some short-term creditors, or
a combination of both.

(b)Rationale for choosing the topic/problem understudy: Ratio analysis helps to

appraise the firms in the term of their profitability and efficiency of performance,
either individually or in relation to other firms in same industry. Ratio analysis is one
of the best possible techniques available to management to impart the basic functions
like planning and control. As future is closely related to the immediately past, ratio
calculated on the basis historical financial data may be of good assistance to predict
the future. E.g. On the basis of inventory turnover ratio or debtor’s turnover ratio in
the past, the level of inventory and debtors can be easily ascertained for any given
amount of sales. Similarly, the ratio analysis may be able to locate the point out the
various arias which need the management attention in order to improve the situation.
E.g. Current ratio which shows a constant decline trend may be indicate the need for
further introduction of long term finance in order to increase the liquidity position.

(c) Implementation strategy of concept in your present study: The most

important decision that Hyundai CEO’s should be making is which section of market
is Hyundai going to compete in. Although it is quite clear that Hyundai Motors is an
automobile production company, there exists, in the motor market, various groups of

15
consumers that are buying cars for lots of different reasons. Aiming for the right pool
of consumers will maximize the chance of success for Hyundai. Hyundai has
recently emerged in the global-market as a competitor in the auto industry relative to
other automakers like as Toyota and GM, and thus, lacks in many aspects: overall
size of the company and comprehensiveness of the line-up. This makes it especially
difficult for Hyundai to compete head-on with existing firms in the automarket aimed
at the general public of all race and age. This kind of strategy was possible in South
Korea where they were the first mover and was ensured protection and support by the
government. However in a totally competitive market like the one in North America,
a different approach for the strategy is required.

For Hyundai, targeting a specific consumer type with a relatively small line-up of cars
is advantageous. The advantage that Hyundai has can be summarized as having more
choices. Hyundai, compared to other major automakers, is smaller in size in terms of
total employers and production. This fact alone enables Hyundai to be more flexible
in terms of cost and decisions that relates to expansions and cutbacks. It would be
easier to expand a business once it has settled down than to contract after it has
already expanded; contracting a business is mainly done by selling property and firing
employees which usually has a low return, strong opposition and problems in cash
flow. Hyundai definitely holds advantage over other massive automakers in terms of
flexibility.

Therefore, the next question is naturally to ask in what kind of market in the auto-
industry is Hyundai going to aim for. One of the key facts that we are going to pay
close attention to is the fact that the average age of the consumer in North America is
46. People of age around 46 typically have been working for more than 20 years and
have a family to support - at least in the traditional American standard. These people
need a car that will last long, while having as few problems as possible. Also, around
this age, people will start to prepare for retirement, which will limit their spending on
new vehicles. In other words, this pool of consumers will practically not purchase a
new car as long as the car is fit for the job it is supposed to do. Therefore, the
consumers will look for a car with reliable steering wheels/break system and long-
lasting warranties, in opposed to having xenon headlights, v-10 engine and chrome
wheels. Given that they will be looking for a car to keep for a long time, low residual
rate would not be an issue for these buyers. In other words, the best way for Hyundai

16
to satisfy people of age around 46 is to produce cars that last long and contain only
the essential functions that the car needs in order to meet the customer’s basic needs.

Strategy implementation requires the following activities to be undertaken:

 Strategy articulation - Building consensus within the team responsible for

delivery of the strategy about the outcomes to be achieved

 Strategy validation - Engaging with stakeholders and others to confirm strategic

outcomes being pursued are acceptable

 Strategy communication - Convert strategic objectives into clear short-term

operating objectives that can be assigned to groups for delivery

 Strategy monitoring - Monitor the progress of the organisation in delivering the

strategic objectives

 Strategy engagement - Managerial interventions designed to ensure organisation

successfully achieves chosen strategic outcomes

1.2 Objectives of the Study

To study and understand the key service parameters using Customer

Satisfaction and reflect upon the low performing areas:

 To study about the customer satisfaction on the services provided by the

dealers.
 To study the opinion of the customers regarding the availability and cost
of spare parts.
 To study the opinion of the owners of cars regarding its features like
mileage, price etc.
 To study the effect of advertisement on the customers to promote the
product.
 To study the customer satisfaction with usage of their cars.
 To study the information resources that the customer using before
purchasing the car.

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1.3 Scope of Study
 The research measures the experiences of customers.
 Defines and analyses the experiences based on key deliverables.
 Gains insights into Customer expectations.

Limitations:
The study is restricted in scope of owing to the following limitations:
 Due to constraint of time only city of Hyderabad is selected and so it cannot
claim to be a comprehensive study of the population.
 The sample size is restricted to 100 respondents.

1.4 Company Profile of Hyundai Motors Ltd.

1.4.1 Name of the firm/ company
“Hyundai” a name to be reckoned in the World Automobile industry is Korea’s
number one automaker. Hyundai has established an enviable record for growth both
in quantitative and qualitative terms transforming itself from a domestically oriented
manufacture into a global player and leading contributor to Korea’s economic and
industrial development. Hyundai Motor Company is steadily accelerating to achieve
the status of world-class automobile company.

In December 1967, Hyundai Motor Company (HMC) was born out of the Hyundai
Business group, the nation’s largest conglomerate with the purpose of entering the
automobile industry to meet the growing domestic demand for cars. Since then, HMC
has played a major role in providing transportation to further Korea’s economics
growth and prosperity.

Entry of Hyundai Motor Company in the Indian Market.

Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor
Company in India. It is the second largest automobile manufacturer in India.

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Hyundai Santro Xing/Atos Prime (Discontinued-2014)was manufactured only by
Hyundai Motor India Limited.

Hyundai Motor India Limited was formed on 6 May 1996 by the Hyundai Motor
Company of South Korea. When Hyundai Motor Company entered the Indian
Automobile Market in 1996 the Hyundai brand was almost unknown throughout
India. During the entry of Hyundai in 1996, there were only five major automobile
manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo
had entered the Indian automobile market with Cielo just three years back while Ford,
Opel and Honda had entered less than a year back.For more than a decade till
Hyundai arrived, Maruti Suzuki had a near monopoly over the passenger cars segment
because Tata Motors and Mahindra & Mahindra were solely utility and commercial
vehicle manufacturers, while Hindustan and Premier both built outdated and
uncompetitive products.

Hyundai established its presence in India by opening a subsidiary called “Hyundai

Motor India Limited” with a total investment of US$ 614 Millions. The Hyundai
project is the largest to be made by an MNC in the automobile sector. The plant near
Chennai, in the state of Tamil Nadu is the largest manufacturing plant of Hyundai
motors outside Korea and contains nearly all facilities necessary for a self sufficient
manufacturing and production site for developing cars. This assembly plant not only
boasts its own assembly facilities but also a R&D center, a performance
experimenting and testing center, and a driving testing ground. As such, the India
plant represents a family-type combined automobile assembly facility, capable of all
production processes, research and development, testing of products, marketing for
sales and provision of after sale service in India.

In 1997, Hyundai Motor India limited launched “Santro” the best small car at its
worldwide debut in New Delhi. Santro is basically a face lifted version of the “Atos”.
Santro was introduced in three different models having varying features. Santro was a
runaway success in the India market and became famous as the Tall Boy car. It topped
the volumes year after year in its segment.

History: HMIL's first car, the Hyundai Santro was launched on 23 September 1998
and was a runaway success. Within a few months of its inception HMIL became the
second largest automobile manufacturer and the largest automobile exporter in India.

19
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai
Motor Company (HMC), South Korea and is the largest passenger car exporter and
the second largest car manufacturer in India. HMIL presently markets 10 models -
Eon, Grand i10, Xcent, Elite i20, i20 Active, Verna, Elantra, Creta and Tucson.

HMC has set up a research and development facility (Hyundai Motor India
Engineering - HMIE) in the cyber city of Hyderabad.

As HMC’s global export hub for compact cars, HMIL is the first automotive company
in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently
exports cars to more than 87 countries across EU, Africa, Middle East, Latin America,
Asia and Australia. It has been the number one exporter of passenger cars of the
country for the eighth year in a row.

To support its growth and expansion plans, HMIL currently has 475 strong dealer
network and more than 1,226 strong service points across India, which will see further
expansion in 2017.

In July 2012, Arvind Saxena, the Director of Marketing and Sales stepped down from
the position after serving the company for 7 years.

Manufacturing facilities: HMIL has two manufacturing plants in Sriperumbudur,

Kanchipuram district, Tamil Nadu.HMIL’s manufacturing plant near Chennai claims
to have the most advanced production, quality and testing capabilities in the
country.[citation needed] To cater to rising demand, HMIL commissioned its second
plant in February 2008, which produces an additional 300,000 units per annum,
raising HMIL’s total production capacity to 600,000 units per annum. Current
Production Capacity with these 2 plants in Sriperumpudur,Kancheepuram increased to
7,00,000 cars per year.

R&D Centre: Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary
of Hyundai Motor Company, South Korea, which is located at Hyderabad, Telangana.
HMIL established HMIE in November 2006 and contributed to the development of
Hyundai Motors' popular new models for the Indian market starting with the Eon and
followed now by the "i" series, and also in SUV segments like the Creta. Hyundai
Motors' other overseas R&D centres are located in the United States, Germany, Japan,
Korea, and China.

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Global Quality Centre: Named Indian Quality Centre(INQC),The centre is one of
the five quality Centre worldwide after the U.S,China, Europe and Middle East. The
India centre located at Faridabad, Haryana will conduct durablity study of existing
models and benchmark parts and systems for constant improvement. The key activity
of India quality Centre would be to "contribute in new car development from pilot
stage to create quality product with zero defect" . Besides ,the centre will also be
responsible for ensuring "top level safety quality "through proactive customer
oriented management system and understanding feedback from them to eliminate
potential risks. The centre also has an objective to study market conditions and other
Asia Pacific regions to develop new cars and adapt strategies for continuous product
quality improvement.

The company also opened a training centre at same facility. It will have its own body
and paint unit,The new service training will ensure overall skill development of entire

Ideology and Environment at Hyundai:

A management motto at Hyundai is “Customer first, best in technology, best in
quality and best value for human beings”. Hyundai as a company is dedicated to
create new value for its customers. Hyundai Motor Company’s target is to care for the
environment and devote attention to the future of our children and their ability to
inhabit a clean, pollution managed world. Hyundai believes that they have achieved
the current status as a world-class company by faithfully enforcing seven management
principles and creating an atmosphere where by each and every member of the
company is able to work for the benefit of common future. As a result, Hyundai motor
company is committed to its social responsibilities as it fulfills its mission with
dedication and strength of purpose.

Goal of Hyundai – “To build the world’s best quality cars”

Hyundai Motor Company

Type Public

Industry Automobile manufacturer

Founded 1967

21
Founder(s) Chung Ju-yung

Headquarters Seoul, South Korea

Area served Worldwide

Key people Chung Mong-koo, Chairman and CEO

Products Automobiles and commercial vehicles

Revenue ₩31.86 trillion (2009)

Net income ₩2.96 trillion (2009)

Employees 75,000 (as of March 31, 2009)

Parent Hyundai Kia Automotive Group

Type Subsidiary
Industry Automotive
Founded 6 May 1996; 21 years ago
Headquarters Chennai, Tamil Nadu, India
Key people Mr. Y. K. Koo (CEO)
Products Automobiles
Parent Hyundai Motor Company
Website www.hyundai.co.in
Company Orion Automobiles Pvt. Ltd.
Name B-31-32, Industrial Estate, Mehrauli Road, Gurgaon-122001
(Haryana)
Contact No. M. No.: 8010778899
Tel. No.: 0124-4760500
Email ID: showroom@orion-hyundai.com
Website: orion-hyundai.com

About

We are pleased to introduce ourselves as “Orion Hyundai”, the accredited Dealer at

Gurgaon of Hyundai Motor India Limited.

22
Hyundai Motor India Limited-the second largest manufacturer of the top quality, most
sought after and high demand passenger vehicles in India and Orion is India’s 1st and
maiden Dealer Partner of Hyundai which was incorporated on 23.12.1997.
Hyundai, in the Calendar Year 2008 declared Orion as the National Best Selling
Partner, followed with Certificate of Excellence in Sales in the Calendar
Year 2009 and bestowed Orion with National Best Target Achiever for the Calendar
Year 2010.
We, Orion Hyundai strongly believe in setting new benchmarks in providing best
customer experience through innovative and unique ways, which eventually helped us
in continuing the legacy year on year.
Hyundai Motor India Limited in the later years honored us with-
-Best partner for H1 2015 and National Best Seller award in 2015.
- National Best Seller award in August 2016, held in Toronto, Canada.
- National top volume Order and Retail Volume award Jan 2016, in Singapore.
-Best dealer partner award in recognition of Outstanding Performance, in 2016
We with a monthly sales volume of 300 cars have more than 18 years of market
presence in Delhi/NCR with highly satisfied customer base of more than 30,000
customers and is largely recognized on the strength of its consistently rising sales
performance year after year, surpassing targets, attaining above par customer
satisfaction, highest level of goodwill among its customers in general and the
automobile market.
As a dealer-partner of Hyundai we are geared up to provide our valuable customers,
the best products matched with world class services and our state of art workshop has
monthly service capacity of 1800-2000 cars.
At Orion, we have a highly efficient sales team along with fully equipped modern
workshop to fulfill the service need for your vehicles as per Hyundai Service
Standards.
The customer touch points are available under one roof as mentioned below-
-Attractive Offers on New Cars
-Attractive Finance Scheme
-Attractive Exchange Offers
-Attractive Loyalty benefits
-Attractive offers for Corporate/CPC/CSD and Govt. Employees.

23
It is our pleasure to inform you that We, Orion Hyundai are now your Neighbors at
Time-Tower, M G Road, Gurgaon, please feel free to get in touch with us about any
of your requirement or queries and let us serve you in the best possible way. Our
Sales Manager will contact you at a time convenient to you.
We look forward for a wonderful relationship together and success for all our
concerns.

1.4.2 Explain the nature of the Organization and its business

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai
Motor Company (HMC). HMIL is the largest passenger car exporter and the second
largest car manufacturer in India. It currently has ten car models across segments –
Eon, Grand i10, Elite i20, Active i20, Xcent, Verna, Creta, Elantra and Tucson.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts
advanced production, quality and testing capabilities.

HMIL forms a critical part of HMC’s global export hub. It currently exports to around
87 countries across Africa, Middle East, Latin America, Australia and the Asia
Pacific. HMIL has been India’s number one exporter for the last 10 years
consecutively. To support its growth and expansion plans, HMIL currently has 475
dealers and more than 1,226 service points across India. In its commitment to provide
customers with cutting-edge global technology, Hyundai has a modern multi-million
dollar R&D facility in Hyderabad. The R&D center endeavours to be a center of
excellence in automobile engineering.

1.4.3 Company’s vision & mission

Team provides value for your future.

Mission Statement:

To create exceptional automotive value for our

customers by harmoniously blending safety, quality
and efficiency.

With our diverse team, we will provide responsible

stewardship to our community and environment while
achieving stability and security now and for future generations.

24
1.4.4 Product range of the company

service profile of dealer manpower

Products rolling out of Hyundai Motor India Ltd.

The products that come out of the Hyundai Motor’s desk are Models
Manufactured locally
1. Hyundai Eon (Launched 2011)
2. Hyundai Grand i10 Facelift (Launched Feb-2017)
3. Hyundai Xcent Facelift (Launched April-2017)
4. Hyundai Elite i20 (Launched 2014)
5. Hyundai i20 Active (Launched 2015)
6. Hyundai Elantra (Launched 2016)
7. Hyundai Creta (Launched 2015)
8. Hyundai Tucson (Launched 2016)
9. Hyundai 3rd Gen-Verna (Launched 2017)

Imported
1. Hyundai Santa Fe Third Generation (Launched 2014)

Discontinued
1. Hyundai Santro (1998–2003)
2. Hyundai Santro Xing (2003-2014)
3. Hyundai Accent GTX (1999–2002)
4. Hyundai Sonata Gold (2001–2005)
5. Hyundai Sonata (Launched 2012)
6. Hyundai Accent Viva (2002–2004)
7. Hyundai Accent CRDi (2002–2006)
8. Hyundai Terracan (2003-2007)
9. Hyundai Getz (2004–2007)
10. Hyundai Accent GLS (2004–2005)
11. Hyundai Sonata Embera (2005–2009)
12. Hyundai Accent GLE (2006–2011)
13. Hyundai Verna (2006–2010)
14. Hyundai Getz Prime (2007–2010)

25
 15. Hyundai i10 (2007-2010)
16. Hyundai Verna Transform (2010-2011)
17. Hyundai Elantra (2004–2010)
18. Hyundai Tucson (2005–2010)
19. Hyundai Sonata Transform (2010–2011)
20. Hyundai Santa Fe Second Generation (2010-2013)
21. Hyundai Accent Executive (2011-2013)
22. Hyundai i20 (2008-2014)
23. Hyundai Verna (2011-2015)
24. Hyundai Elantra (2012-2016)
25. Hyundai i10 (2010-2016)
26. Hyundai Grand i10 (2013-2017)
27. Hyundai 4S Fluidic Verna(2015-2017)

Sales and service network

HMIL has 475 dealers and more than 1,226 service points across India.[4] HMIL also
operates its own dealerships known as Hyundai Motor Plazas in large metros across
India. HMIL has the second largest sales and service network in India after Maruti
Suzuki.
Hyundai Motor India Limited Annual Sales
Year Domestic sales Exports Total
1998 8,447 0 8,447
1999 17,627 20 17,647
2000 82,896 3,823 86,719
2001 87,175 6,092 93,267
2002 1,02,806 8,245 111,051
2003 1,20,325 30,416 150,741
2004 1,39,759 75,871 215,630
2005 1,56,291 96,560 252,851
2006 1,86,174 1,13,339 299,513
2007 2,00,411 1,26,749 327,160
2008 2,45,397 2,43,919 489,316
2009 2,89,863 2,70,017 559,880

26
2010 3,56,717 2,47,102 603,819
2011 3,73,709 2,42,330 616,039
2012 3,91,276 2,50,005 641,281
2013 3,80,000 2,33,260 613,260
2014 4,10,000 1,91,221 601,221
2015 4,76,001 1,67,268 643,269
2016 5,00,537 1,61,517 662,054

Exports
HMIL currently exports vehicles to over 92 countries across Africa, Middle
East, Latin America, Australia and Asia. It has been India’s number one exporter for
the last 10 years consecutively.[6] HMIL has been consecutively awarded "Top
Exporter of the Year" for 10 years by EEPC. The Highest Exported volume was
2,70,017 in year 2009.

Awards and achievements

 Indian Car Of The Year (ICOTY)
 2008 — Hyundai i10
 2014 — Hyundai Grand i10
 2015 — Hyundai Elite i20
 2016 — Hyundai Creta
 J D Power Appeal Awards 2016 demonstrating excellence of 'Made In
India' Products as per global standards for Grand-i10,Elite-i20 & Creta.

Brand ambassador
The carmaker gets Shah Rukh Khan on board as its brand ambassador for the Hyundai
Xcent,the company’s recently launched sub-compact sedan in India. Back in 1998,
SRK shot his first TVC for the Hyundai Santro, and his association with the car brand
has now turned 19. In 2010 Shah Rukh Khan won the "Brand Ambassador of the
Year" for Hyundai i10 at NDTV Profit Car and Bike Awards. SRK also promotes the
"Be The Better Guy" road safety campaign for Hyundai.

In,July-2017 Hyundai India extended the contract of Shah Rukh Khan for 2 Years.

27
 1. Santro Zing
2. Accent
3. i20
4. Sonata
5. i10 (kappa 1.2)
6. Getz

Santro Zing is a small segment car, with four different versions, and is priced between
3.38 Lakhs to 4.32 Lakhs. The four versions are named.
1. Santro Zing XE
2. Santro Zing XT
3. Santro Zing XG
4. Santro Zing XS

Accent is medium-sized car coming in six different versions, and is priced between
5.63Lakhs to 7 Lakhs. The six versions are named.
1.Accent CRDI
2.Accent GVS
3.Accent GLX
4.Accent GLS
5.Accent GPX Tornado
6.Accent VIVA 5-door petrol.

I20 is medium size car coming in three different versions, and is priced between
4.79Lakhs to 5.81Lakhs. The Three versions named
1. Magna
2. Asta
3. Asta(O)

Sonata is a luxury car priced between 14Lakhs to 18Lakhs.

I10 is a small car coming in the nine different versions, and is priced between
3.29Lakhs to 5.36Lakhs. The nine versions named
1.D-Lite (1.1)
2.Era (1.1)
3.Magna
4.Magna AT

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 5.Sportz
6.Sportz (AT)
7.Asta
8.Asta SR
9.Asta SR (AT)

Getz is medium car coming in the seven different versions, and is priced between
3.59Lakhs to 5.48Lakhs. The Seven versions named.
1.GLE 1.1
2.GVS 1.1
3.GVS 1.1 (175 Tyre + rear spoiler)
4.GVS 1.3
5.GLS 1.3
6.GLX 1.3
7.GVS CRDI 1.5

1.4.5 Size (in terms of manpower & turnover) of organization

Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer and
the largest passenger car exporter, registered 4.6% growth in exports for the month of
May 2013. The domestic sales accounted for 32,102 units and exports stood at 24,754
units. sales 476000 in 2015 domestic sales 17.1% market share.
In 2016 It sold 30K units more thereby hitting the 5 lakh mark. Hence domestic sales
stood at 500537 which is an increase by 5.2% compared to last year,with 17.13%
market share. "2016 has been an Year of Excellence for Hyundai in India achieving
various milestones - Celebrating 20 years in India, the roll out of 7 Millionth car in
November'16, crossing the 5 lakh domestic sales in CY2016 and the fastest 50,000
unit sales in the month of October," YK Koo, MD & CEO, Hyundai Motor India said,
in a statement.

Hyundai's Holy trinity-the Grand-i10,Elite-i20&Creta has cumulatively achieved 1.3

Million sales in less than 4 years which includes 1.1 Million domestic and 0.29
Million for exports.

29
With exceeding 2,50,000 sales in first quarter of 2017 Hyundai aims to target half
million sales in domestic market in 2017.
A tour around one of the largest automobile plants in the country is special. We visit
the Hyundai factory in Sriperumbudur near Chennai to know the process of car
making live.
With an investment of over 2.7 billion USD and vendor investment of 1.2 billion
USD, Hyundai Motor India Limited (HMIL) is Tamil Nadu’s largest investor.
Hyundai’s plant near Chennai is a fully integrated state-of-the-art manufacturing plant
and boasts advance production, quality and testing capabilities. Spread over a total
area of 535 acres, there are two plants inside producing 680,000 units between them.
While Plant 1 has a production capacity of 330,000 units, Plant 2 can produce
350,000 units. Together, the Hyundai plant employs a total of 9,500 employees.
Hyundai Motor Limited India has been India’s number one exporter for the past eight
years consecutively. In 2013, Hyundai sold a total of 380,000 units domestically and
exported 110,000 units. This year, the company has sold 137,661 units during the
period January to April and has exported 56,187 units for the same period.
A total of 119 Korean and Indian companies have been appointed as vendors that
provide 66% of the total supply of the components, while the remaining 34% comes
directly from Hyundai Motor Company. Of the 119 companies, 42 Korean vendors
provide components like engine parts, headlamps, seats, body parts and AC. The rest
of 77 companies are Indian vendors, who provide components like muffler, steel
wheel, battery, accelerator and alternator.

New Delhi, December 31, 2014- Hyundai Motor India Ltd, the country’s second
largest car manufacturer and the largest passenger car exporter has marked year 2014
as the “Year of Excellence” in India. Hyundai Motor India has set record sales in
2014 at over 4.10 lakh units driven by growth across segments. Marking the highest
market share of 21.6% in the history of 16 years in India makes Hyundai Motor India
the fastest growing automobile brand. Hyundai’s strong performance has
been propelled by successful product launches like the Grand i10, Xcent, Santa Fe
and the most recent, the Elite i20.

Since inception, Hyundai Motor India has been continuously growing and has become
the most trusted brand for 3.5 million happy families in the country. Exporting world

30
class products to over 100 countries from the state-of-art Indian manufacturing
facility in Chennai, Hyundai has benchmarked international quality standards in
India. Hyundai has retained its position of being the largest passenger car exporter
since 2004, with a market leadership of 40%. Encouraged by the ‘Make in India’
campaign, Hyundai Motor India believes its ‘Made in India’ Hyundai cars have won
customer trust and love not only in India but also in global markets.

Commenting on Hyundai’s successful 2014 year, Mr. BS Seo- MD & CEO,

HMIL said, “2014 has been an excellent year for Hyundai Motor India and it
demonstrates the continued confidence that our customers have in Hyundai and our
trendsetter products. We surpassed our targets of selling 4 lakh vehicles in the
domestic market by adding new products like Xcent, Elite i20 and Santa Fe to our
robust product portfolio. All our products have witnessed a stunning success in the
respective segments, setting modern style and technology leadership benchmarks. Our
network presence is one of our key strengths and reiterates our commitment to the
customers. We intend to continue our growth in 2015 and with new products coming
next year, we will create the right conditions to reinforce our claim to leadership over
the long term.”

Global Debuts in India

India plays important role in the market for Hyundai Motor Company, and Hyundai
Motor India has been serving Indian customers with high quality products. Marking
three successful world premieres, in the past one year for Grand, Xcent and Elite i20,
Hyundai has strengthened its commitment to the Indian market offering Modern-
Premium world class products. Hyundai Motor India won 2 successive Indian Car of
the Year awards in 2013 and 2014 for the Grand i10 and Elitei20 respectively and
these awards symbolizes Hyundai’s commitment to Indian customers by offering
world class standards of quality products, design and branding.

2014- The year which earmarked 16 years of association with Shah Rukh Khan
Underlining Hyundai’s commitment to delivering greater levels of customer
satisfaction, Hyundai has become the most loved and caring automotive brand in
India. On completing 16 years of association in 2014 with Shah Rukh Khan, Hyundai
Motor India announced Shah Rukh Khan as the brand ambassador for the real family

31
sedan- Xcent. And with the transition from i10 to Xcent, the new association connects
the family man Shah Rukh Khan with the attributes of real family sedan Xcent.

1.4.6 Organization structure of the company

Hyundai Motor India’s first corporate campaign- Life is Brilliant

Accentuating Hyundai’s caring and emotional connect with the Indian consumer,
Hyundai Motor India launched its first ever India centric corporate campaign- “Life is
Brilliant” in line with its global campaign titled Live Brilliant. The campaign was
designed to deliver the essence of global brand direction Modern Premium.

32
Global Dealership Space Identity - Modern Premium outlook for Hyundai
Dealership
2014 has been an exciting year for Hyundai Motor India with world class products
launches and an aggressive network expansion. Hyundai’s network presence is one of
the company’s key strengths for reaching out to the every customer across country.
Under the Global Dealership Space Identity norms, Hyundai Motor India has
equipped the new and existing dealerships and sales outlets with world class features
that are aimed to take care of all automotive needs of the evolving customers and thus
establishing a world class car ownership experience.

The Brand Value

Hyundai is one of the fastest growing automotive brands, in terms of both volume and
brand value. Hyundai has successfully completed 16 years in India by bringing world-
class products to the Indian market and has consolidated its position as a trendsetter
brand in India in-line with its brand slogan “New thinking New Possibilities“. In
2014, as per Interbrand Global Survey, Hyundai’s Brand Value had increased by 16%
estimated to be around $ 10.4 Billion and at No. 40 across the categories.

1.4.7. Market share & position of the company in the industry.

The Indian passenger vehicle industry had its own challenges during financial year
2016-17, but was filled with excitement too.
The annual report card of domestic sales has worked in favour of the likes of Tata
Motors, Volkswagen India, Toyota Kirloskar Motor, Nissan Motor India, Renault
India and Ford India as these companies managed to garner not only profits but also
increased their respective market shares last financial year.
Biggest of all which is not mentioned in the list above is the market leader Maruti
Suzuki India. The country’s largest car manufacturer increased its market share from
46.79 percent in FY 2015-16 to 47.38 percent in FY 2016-17.
While the gain is not much, it is not easy to sustain such a huge market share. Experts
believe that Maruti Suzuki's new launches like Vitara Brezza and the Balenoalong
with the company’s aggressive marketing strategy helped it to grow further.
Indian arm of the Korean car maker Hyundai Motor did post a growth of 5.24 percent
by selling 509,705 units last financial year. However, the company’s market share
stood at 16.72 percent which dropped marginally from 17.36 percent in FY 2015-16.

33
Renault India improved its market share steeply from 2.57 percent to 4.43 percent
with the success of its Kwid. The company sold over 1.09 lakh units in India last
financial year which helped it to expand its footprint and is aiming to further expand
with its focus on tier 2 and tier 3 cities.

Ford India was the third largest passenger vehicle manufacturer as the company
manufactured 252,959 units between April 2016 – March 2017. In the domestic
market, the company sold 91,405 units posting a 14.93 percent growth over FY 2015-
16. Ford also managed to reach a market share of 3 percent. It also overtook Maruti
Suzuki in exports to finish the year at second spot.

Also read: Top 10 PVs exporters from India in FY17: Ford beats Maruti, Renault
debuts

Mahindra and Mahindra continued to be the country’s third largest auto-maker,

despite a drop in the market share. M&M’s market share dropped to 7.75 percent last
financial year as against 8.47 percent in FY 2015-16.

Indian arm of Japanese auto maker Honda Cars’ market share also dropped from 6.88
percent to 5.15 percent. Honda’s sales also declined by about 18 percent as the

34
company sold about 1.57 lakh vehicles against over 1.92 lakh units in FY 2015-16.
Another Japanese manufacturer in India, Nissan increased its market share to 1.88
percent from 1.41 percent in the same period attributing its success to Datsun Redi-
Go.
Toyota Kirloskar Motor and Volkswagen also increased their market share in the
Indian market to 4.70 percent and 1.64 percent , respectively.
Overall the industry sold over 30 lakh passenger vehicles in the Indian domestic
market and reported a growth
of 9.23 percent.
India’s top two carmakers
Maruti SuzukiBSE 0.21 %
and Hyundai Motor India are
sitting on record market
shares at end of 2016-17 —
47.74% and 16.85%,
respectively — but it’s the
battle for the third place that
promises edge-of-the-seat
action.

Almost half a dozen

companies are looking to
break out of the pack, it’s just
one successful model or
3,000-5,000 units of
separation.

1.5 Industry Profile:

The World Automobile Industry is turned to the developing markets.

With the developed markets almost saturated, the World Automobile Industry is now
focused on the developing markets of South America and Asia, and Eastern Europe
with special emphasis on BRIC (Brazil, Russia, India, and China).

35
As per the reports of the International Organization of Motor Vehicle Manufacturers
or OICA(the association of the companies involved in World Automobile Industry),
for the fiscal end in 2013, the automobile manufacturers in the U.S. have been
overtaken by those in Japan, in terms of the total volume of automobile units
manufactured worldwide.

However, the struggling General Motors of the U.S. still remain the worldwide
leaders of the World Automobile Industry, ahead of the rapidly growing Toyota
Motor Corporation of Japan, by a substantial margin.

Measures to be adopted by global leaders of the World Automobile Industry.

Several significant economic measures are being considered by the major players of
the World Automobile Industry in order to make a smooth entry into the markets of
the developing countries, and to make a name for themselves. The effective measures
include:

 Reducing the selling prices of the automobiles manufactured in their factories

 Improving the levels of after-sales services to keep customers satisfied

 Opening manufacturing factories in the developing nations, to reduce effective

costs of production as well as saving shipping charges, and enhancing prompt
delivery of automobile units.

Automobile Industry Trends

In keeping with the Automobile Industry Trends, the leading automobile

manufacturers are turning to the Asian markets that appear set to grow immensely
over the next decade. The automobile markets in the U.S., Europe and the Japan have
almost matured as a result of saturation and appear set to decline through the next
decade. In contrast, the automobile markets spread over the entire Asian continent
(with the exception of Japan), are constantly increasing in size and will be the
destination for most of the globally leading automobile manufacturers.

The Automobile Industry Trends reveal that the emerging markets of the
developing nations of Asia especially China, and India are backed by their huge
population growth rate, to add to the growing national economy of these two nations.

36
The rapid growth of the national economy of the BRIC countries (including Brazil,
Russia, India, and China) has enabled a growing section of the population of these
countries to purchase automobiles. Global surveys conducted recently reveal that
within the next ten years, these emerging automobile markets will account for nearly a
whooping 90 percent of the global automobile sales growth. As a result of this,
leading Automobile manufacturers of the world are setting up factories in the
emerging markets, in order to serve the potential consumers better as well as reduce
manufacturing and shipping costs. In addition, these arrangements are enabling the
leading global automobile manufacturers to compete with the local automobile
manufacturers, that were flourishing in the absence of quality competition.

The prosperity of the national economy is reflected in the rising per capita income of
the developing nations. Therefore, increasing Gross Domestic Product and per capita
income have raised the purchasing ability of the population that constitutes these
emerging markets as a growing percentage of the population in the developed nations
age rapidly, in comparison to the rest of the world, these aging numbers necessitate
automobiles to fit the physiological change of the world population.

The Emerging India Automobile Market.

The India Automobile Market is a promising industrial sector that is growing
immensely every passing year. The passenger cars are referred to, through the use of
the word "automobile." The whooping growth experienced by the Indian Automobile
Market in the last financial year itself, that is the financial year end in February, 2014,
was very close to a 18 percent over the previous fiscal. This statistical fact is a
glittering example of the potential of the growing Automobile Industry in India.

As per the survey conducted by the Society of Indian Automobile Manufacturers, the
total number of automobiles manufactured by the Automobile Industry in India,
throughout the financial year 2013-14, was very close to the 15.5 lakh (1.5 million)
margin. The huge of number of automobiles manufactured by the Automobile
Industry in India was an enormous growth upon the number of automobiles
manufactured during the previous fiscal, that ended in 2013.

The total number of cars that were exported from India were very close to the 2.0 lakh
(2.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in

37
India. The export of cars manufactured in India comprised nearly 13 percent of the
total number of cars manufactured domestically by the Automobile Industry in India.

The India Automobile Market looks set to prosper, largely due to the growing market
for automobiles that is developing in India. In the financial year that ended in
February, 2011, the Indian automobile markets were the fastest growing in the world,
with the registered growth rate touching nearly 20 percent.

The Automobile Industry in India mainly comprises of the small car section, which
enjoys nearly a 2/3rd market share of the entire market for automobiles in India. In
this respect, the Indian markets are the largest in the world for small cars, behind
Japan.

The Indian passenger car market which ranks amongst the largest in the world, is
poised to become even more larger and enter the top five passenger car markets in the
world in the next decade.

India Automobile Industry

Following India's growing openness, the arrival of new and existing models, easy
availability of finance at relatively low rate of interest and price discounts offered by
the dealers and manufacturers all have stirred the demand for vehicles and a strong
growth of the Indian automobile industry.

The data obtained from ministry of commerce and industry, shows high growth
obtained since 2001- 02 in automobile production continuing in the first three quarters
of the 2011-12. Annual growth was 16.0 per cent in April-December, 2011; the
growth rate in 2010-11 was 15.1 per cent The automobile industry grew at a
compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997.

With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry
exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component
sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-
03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2010-11.

Automobile Dealers Network in India

In terms of Car dealer networks and authorized service stations, Maruti leads the pack
with Dealer networks and workshops across the country. The other leading

38
automobile manufactures are also trying to cope up and are opening their service
stations and dealer workshops in all the metros and major cities of the country.
Dealers offer varying kind of discount of finances who in tern pass it on to the
customers in the form of reduced interest rates.

Major Manufacturers in Automobile Industry

 Maruti Udyog Ltd.  Hindustan Motors
 General Motors India  Hyundai Motor India Ltd.
 Ford India Ltd.  Royal Enfield Motors
 Eicher Motors  Telco
 Bajaj Auto  TVS Motors
 Daewoo Motors India  DC Designs
 Hero Motors  Swaraj Mazda Ltd

Government has liberalized the norms for foreign investment and import of
technology and that appears to have benefited the automobile sector. The production
of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2010-11. It is
likely that the production of such vehicles will exceed 10 million in the next couple of
years.

The industry has adopted the global standards and this was manifested in the
increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-
00, such exports registered robust growth rates of well over 50 per cent in 2002-03
and 2010-11 each to exceed two and- a-half times the export figure for 2001-02.

Automobile Export Numbers

Category 2011-12 2015-16 (Apr-Dec)

Passenger Car 25468 121478
Multi Utility Vehicles 2654 3892
Commercial Vehicles 10108 19931
Two Wheelers 100002 256765
Three Wheelers 21138 51535
Percentage Growth -16.6 32.8

39
THE KEY FACTORS BEHIND THIS UPSWING

Sales incentives, introduction of new models as well as variants coupled with easy
availability of low cost finance with comfortable repayment options continued to
drive demand and sales of automobiles during the first two quarters of the current
year. The risk of an increase in the interest rates, the impact of delayed monsoons on
rural demand, and increase in the costs of inputs such as steel are the key concerns for
the players in the industry.

As the players continue to introduce new models and variants, the competition may
intensify further. The ability of the players to contain costs and focus on exports will
be critical for the performance of their respective companies.

The auto component sector has also posted significant growth of 20 per cent in 2010-
11, to achieve a sales turnover of Rs.30,640 crore (US$ 6.7 billion). Further, there is a
potential for higher growth due to outsourcing activities by global automobiles giants.
Today, this sector has emerged as another sunrise sector.

Life is brilliant with 5 million fans on Facebook

On December 27, 2014- Hyundai achieved the landmark of crossing five million
fans on the popular social networking site, Facebook. The official page of Hyundai
India was launched in year 2011 to directly engage with Indian customers, has
managed to surpass this milestone within 3 years. Hyundai is a young and vibrant
brand that strongly focuses on the digital marketing platforms to connect with the
Indian youth and engage with customers directly.
Hyundai Motor India and their next top 5 products to be launched in India during
2017-18

40
Hyundai Motor India has been doing quite well in the Indian car market in the recent
past. The Country's second largest automaker now plans to launch a slew of new
products in our country in order to take on the rivals and place one product in each
and every segment that currently exists in India. Its recent launches, the one of the
next-generation Elantra and that of the next-generation Tucson has so far seen quite a
welcoming response from the Indian consumers. Here we bring you the list of top 5
upcoming launches from Hyundai's stable which are to happen during the year 2017-
18

Hyundai Tucson 4×4

The next-generation Hyundai Tucson which was launched in India earlier this month,
so far is only available with a 2-wheel drivetrain. The variants of this SUV sold in the
international market also have a 4-wheel drive version, but the same was not launched
in India at the initial stage in order to keep the prices competitive. However, at the
launch event itself, senior Hyundai officials confirmed that they are to launch the
Tucson 4×4 in India during the month of May 2017. When launched, it is likely that
the same will only be made available on the top of the line diesel trim and paired with
the 6-speed automatic gearbox. Read Also: Hyundai India to launch Tucson 4×4 in
the month of May next year

Launch Date: May 2017

41
Expected Price: INR 20 lakh

Next-gen Hyundai Santro

After being discontinued from India and replaced by the i10 hatchback, the much sort
after Hyundai Santro is all set to make a comeback to India in an all new avatar. The
next-generation Hyundai Santro will be a completely new vehicle from the ground up
and will feature Hyundai's evolved Fluidic Sculpture 2.0 design language. Not only
this, seeing an increase in the demand for cars that are premium in nature, the new-
age Santro is expected to be comparatively up-market and feature loaded. Power units
are to include only a petrol derivative which could very well be borrowed from the
outgoing Hyundai i10. Read Also: 2017 Hyundai i20 WRC Coupe unveiled

Launch Date: Early 2018

Expected Price: INR 3.5 lakh to INR 4.5 lakh

42
2017 Hyundai Verna
Hyundai Verna has always been a tough contendor in the premium sedan segment in
India as it is pitted against the likes of Maruti Suzuki Ciaz and Honda City. The new
model of the Hyundai Verna is expected to be launched sometime in the year 2017.
The new model is claimed to be more spacious than the outgoing model. The exterior
design phylosophy will be based on Hyundai's Fluidic Sculpture 2.0 design
Phylosophy. Under the hood, it is expected to carry the same powerhouse options –
1.4-liter and 1.6-litre petrol and 1.4-liter and 1.6-litre diesel engines. Read Also:
Hyundai Motor India posts 4.4 percent growth in cumulative sales
Launch Date: Late 2017
Expected Price: INR 6 lakh to INR 9 lakh

Hyundai Carlino Compact SUV

Showcased at the 13th edition of Auto Expo 2016, Hyundai Carlino Compact SUV
will be based on the same chassis as that of Elite i20 and will rival against the likes of
Maruti Suzki Vitara Brezza, Ford EcoSport, Mahindra TUV 300 and the upcoming
Tata nexon. The Carlino Compact SUV will be available with both Petrol and Diesel
engine options. As with every other Hyundai, the Carlino too will be feature loaded
and provide a premium cabin; factors which are to give it s slight edge over its
competitors. Read Also: Hyundai Santro to replace Hyundai i10 in India: Production
halted

43
Launch Date: Mid 2018
Expected Price: INR 6 lakh to INR 9 lakh

Hyundai Grand i10 Facelift

Hyundai mid-size hatchback, the Grand i10 is due for its mid-life facelift. The same
was recently unveiled by Hyundai and will also be making its debut in India soon.
With the facelift, the Grand i10 is come with a slightly modified front and rear facia
along with minor modifications done to its interior specifics as well. The power units
are to remains same as that of the outgoing model along with the transmission units.
Only recently, a test mule of the Hyundai Grand i10 facelift was spotted doing its
testing round near Chennai, hitting towards a possible launch soon.

Launch Date: Mid 2017

Expected Price: INR 4.5 lakh to INR 6 lakh

44
 Chapter-II-
Review of Literature

45
 LITERATURE REVIEW

Review of literature is necessary as it familiarises the researcher with concepts and

conclusions already evolved by earlier analysts. It also enables the present researcher
to measure the scope for future study and to frame appropriate objectives for the
proposed evaluation. Since the proposed study is to analyse the gap between
expectations and perceptions in service quality, the previous studies made in this area
of research are briefly reviewed. It also includes the opinions expressed by various
authors in leading articles, journals and books.

Nitin Joshi1, D. P. Mishra (2011) The aim of the study is to understand the
behaviour of the customer in the State of Maharashtra which is one of the most
developed states of India. The study was carried out to understand the customer
awareness on environment friendly car (EFC). The objective of the study is to
understand the awareness levels and create awareness of the EFC so that the efforts of
the manufacturing the green car will be achieved. SPSS version 17.0 has been used
for analysis of the data. Five hundred respondents have been asked to fill in a
questionnaire. The study has been done keeping in mind age group and the
geographical area of the respondents. With reference to the age group, it is observed
that there is no significant difference in the awareness levels but with reference to the
geography, it is observed that there is a significant difference in the awareness levels
with reference to the EFC.

Dr P. Sathyapriya (2011) India is becoming a hub of major manufacturing industries

and the automobile industry (in specific for passenger car segment) makes rapid
progress in the country. After de-licensing of the industry in 1991, a number of global
players have opened their plants in India. The players of automobile industry are
developing new strategies to increase their market share. They do this by launching
new variants in existing models and new models targeting people who prefer cars in
various car segments. An important feature of this industry is that the industry is
sensitive and the choice of a brand in passenger cars varies across segments. The
current research explores the choice of a brand in different segments and the factors
influencing the same with weighted average ranking. The study was conducted in
Chennai with six hundred and three respondents who owned a car. The impact of

46
demographic variables on their choice of a passenger car was studied with the chi-
square test. The study revealed that factors influencing the brand preference among
the consumers who prefer passenger cars in mid and premium segments vary, and age
and income influence their brand choice.

Marsha Peter (2OO2) examines temporal changes in post-purchase

productsatisfaction for a durable goods purchase. Involvement and satisfaction
variables were measured in a cross-sectional and a longitudinal study of car owners.
Overall, consumers with high product involvement showed slightly greater
satisfaction with their cars than low-involvement consumers over the term of
ownership. However, in the 2-month period after purchase, consumers with high
product involvement showed a decline in satisfaction, whereas low-involvement
consumers' satisfaction increased. The role of disconfirmation in these changes was
investigated. Benefits and problems disconfirmation were found to make independent
contributions to satisfaction judgments, and the strength and form of contribution
varied with product involvement. These findings suggest that benefits and problems
disconfirmation need to be measured separately in satisfaction research.

YooshikYoon(2004) studied the effects of motivation and satisfaction on

destinationloyalty: a structural model and investigates the relevant relationships
among the constructs by using a structural equation modeling approach.
Consequently, destination managers should establish a higher satisfaction level to
create positive post-purchase behavior, in order to improve and sustain destination
competitiveness.

Diane Halstead(1993) studied the Focuses on a group of unsatisfied car

owners.Examines the roles of the car warranty and the post-purchase service received
during the complaint process in terms of their effects on customers' satisfaction with
complaint resolution. Presents some suggestions for customer service policies,
complaint handling procedures, and warranty fulfillment service.

James Y.L. Thong(2006) studiedthe effects of post-adoption beliefs on

theexpectation-confirmation model for information technology continuance .The
expectation-confirmation model (ECM) of IT continuance is a model for investigating

47
continued information technology (IT) usage behavior. This paper reports on a study
that attempts to expand the set of post-adoption beliefs in the ECM, in order to extend
the application of the ECM beyond an instrumental focus. The expanded ECM,
incorporating the post-adoption beliefs of perceived usefulness, perceived enjoyment
and perceived
ease of use, was empirically validated with data collected from an on-line survey of
811 existing users of mobile Internet services. The data analysis showed that the
expanded ECM has good explanatory power (R2=57.6% of continued IT usage
intention and R2=67.8% of satisfaction), with all paths supported. Hence, the
expanded ECM can provide supplementary information that is relevant for
understanding continued IT usage. The significant effects of post- adoption perceived
ease of use and perceived enjoyment signify that the nature of the IT can be an
important boundary condition in understanding the continued IT usage behavior. At a
practical level, the expanded ECM presents IT product/service providers with deeper
insights into how to address IT users’ satisfaction and continued patronage.

Marsha L. Richins(2002) Post-purchase product satisfaction: Incorporating the

effectsof involvement and time describes changes in post-purchase product
satisfaction for a durable goods purchase. Involvement and satisfaction variables were
measured in a cross-sectional and a longitudinal study of car owners. Overall,
consumers with high product involvement showed slightly greater satisfaction with
their cars than low -involvement consumers over the term of ownership. However, in
the 2-month period after purchase, consumers with high product involvement showed
a decline in satisfaction, whereas low-involvement consumers' satisfaction increased.
The role of disconfirmation in these changes was investigated. Benefits and problems
disconfirmation were found to make independent contributions to satisfaction
judgments, and the strength and form of contribution varied with product
involvement. These findings suggest that benefits and problems disconfirmation need
to be measured separately in satisfaction research

ClaesFornell(1992) examines that Many individual companies and some industries

monitorcustomer satisfaction on a continual basis, but Sweden is the first country to
do so on a national level. The annual Customer Satisfaction Barometer (CSB)

48
measures customer satisfaction in more than 30 industries and for more than 100
corporations. The new index is intended to be complementary to productivity
measures. Whereas productivity basically reflects quantity of output, CSB measures
quality of output (as experienced by the buyer). The author reports the results of a
large-scale Swedish effort to measure quality of the total consumption process as
customer satisfaction. The significance of customer satisfaction and its place within
the overall strategy of the firm are discussed. An implication from examining the
relationship between marketshare and customer satisfaction by a location model is
that satisfaction should be lower in industries where supply is homogeneous and
demand heterogeneous. Satisfaction should be higher when the
heterogeneity/homogeneity of demand is matched by the supply. Empirical support is
found for that proposition in monopolies as well as in competitive market structures.
Likewise, industries in general are found to have a high level of customer satisfaction
if they are highly dependent on satisfaction for repeat business. The opposite is found
for industries in which companies have more captive markets. For Sweden, the 1991
results show a slight increase in CSB, which should have a positive effect on the
general economic climate.

Richard Oliver (2000) Response determinants in satisfaction judgement, examines

that Theeffects of five determinants of satisfaction are tested as well as individual
differences in satisfaction formation. Manipulations of attribution, expectancy,
performance, disconfirmation, and equity are written into stock market trading
scenarios in a full factorial design. Results show that all main effects and four ordinal
two-way interactions are significant. Then, an individual-level analysis is performed
on the repeated measures data. Three clusters of subjects sharing similar response
tendencies (disconfirmation, performance, and equity) are identified and related to
investment attitudes, outcome attitudes, and demographics. No consistent
relationships are discovered, suggesting that the response differences reflect deeper
behavioral tendencies. Implications of this approach for satisfaction paradigms,
satisfaction theory, and individual satisfaction response orientations are presented

49
Profitability / Growth

Customer Loyalty

Customer Satisfaction

Value

Employee Productivity

Employee Loyalty

Internal Quality

Leadership

Management Philosophy

With the spirit of creative challenge, we will strive to create a more affluent lifestyle
for humanity, and contribute to the harmony and co-prosperity with shareholders,
customers, employees and other stakeholders in the automobile industry.

The spirit of creative challenge has been a driving force in leading Hyundai to where
it is today.

50
It is the permanent key factor for Hyundai to actively respond to change in the
management system and seek creative and self–innovative system. With the spirit of
creative challenge, we create profits, the primary objective of a private enterprise.
Furthermore, we take responsibility for the environment and society we belong to, and
offer sustainable mobility in order to implement our corporate philosophy and provide
benefits to all stakeholders including shareholders, customers, executives, employees,
suppliers, and communities. Vision We announced "Innovation for Customers" as
our mid–to long–term vision with five core strategies: global orientation, respect for
human values, customer satisfaction, technology innovation, and cultural creation. We
desire to create an automobile culture of putting customer first via developing human–
centered and environment–friendly .

Management Policy

Based on a respect for human dignity, we make efforts to meet the expectations of all
stakeholders including customers and business partners by building a constructive
relationship amongst management, labor, executives and employees. Also, we focus
on communicating our corporate values both internally and externally, and gaining
confidence from all stakeholders.

51
Mid-and Long-term Strategies. We developed five mid–and long–term strategies:
global management, higher brand values, business innovation, environmental
management, and strengthening product competitiveness. Especially, we selected
environmental management as one of our strategies to meet the needs of our
stakeholders and the society we belong to. We also intend to promote sustainability
development and preservation of the environment.

52
 Chapter-III
Research Methodology

53
 RESEARCH METHODOLOGY

Preliminary stage of study- a pilot survey, personal interview of sales consultants,

potential customers and existing customer numbering 20 was conducted to arrive at
key deliverables which would ensure customer satisfaction. The research tool
(questionnaire) was designed by inducing the various queries, based on the key
deliverables, which would reflect the customer satisfaction.

The research was based on a study of a sample, sized 100, using simple random
sample selected from the existing database of Orion Hyundai. The research included
collection of data from the primary sources using the research tool
(questionnaire). Final stage was to analyze, interpret and draw conclusions from the
data collected

Date Sources:

Primary Data:

The data is collected directly from each and every customer.

Pilot Survey

A pilot survey was conducted to understand the factors, which would positively
influence the customer. Personal Interviews totaling 20 were conducted for the sales
team, potential customers and the existing customers of Orion Hyundai. The factors
scoring high in the interviews were considered to be the key deliverables.

Survey Research:

The research was done to learn about people’s preferences and satisfaction of the
Orion Hyundai customer.

Research Tool:

Questionnaire (primary tool- attachment 1)

Interview through questionnaire method was employed for the research purpose. The
questionnaires were individually administered to each customer to ensure minimum

54
scope for faulty data entry and error of understanding. This method also gave the
interviewer the scope of entering into a dialogue and understanding the customer’s
perception better.

The questionnaire tried to capture the responses of the customers mainly on the key
deliverables, derived from the pilot survey conducted, and a few questions have been
included to gauge the level of satisfaction and to gain insight into customer
expectations.

Unstructured interview

The interview complemented the primary research tool and helped delver into details
of responses provided by the customers. This not only validated the responses of the
customers but also helped the interviewer understand the expectations of the
customers.

Sampling Unit: In this study the sampling unit used is the existing customer base of
Orion Hyundai. Selection is made from the list of Customers during the two months.

Sampling Size: Sample size was chosen to be 100.

Sampling Procedure: Simple Random Sampling.

Research Area: NCR Delhi and Gurgaon

In simple random sampling, each member of the target population has the same
chance of being selected for participation in the study. For a sample to truly be a
simple random sample we need to develop a list or sampling frame that includes
almost all of the population, then from this we randomly pull names from the
sampling frame using some kind of random method such as a random number table or
a random number generator. Finally, numbers are assigned to all members of the
population and pull the names of those members whose numbers are pulled from the
table or generator.

The biggest advantage to a simple random sample is that we get a pretty good
unbiased sample fairly easily. The biggest downside is that we may not get all
elements of the population that are of interest.

55
 Chapter-IV
Presentation & Analysis

56
 PRESENTATION & ANALYSIS

1. Age Group
Sl.No Age Group No of people
A 20 to 30 9
B 30 to 40 25
C 40 to 50 25
D Above 50 22

25

20
20-30years
15 30-40years
40-50years
10
above 50
5

INTERPRETAION:

From the above table shows that the respondents of the age group of years above 50 i.e. 22,
the next group is 40-50 years i.e.25, the remaining age groups are 30-40 and 20-30 years
having 25 and 9 respectively.

57
 2) Occupation

Sl.No occupation No of people

A Pvt Employee 35
B Business 20
C Govt employee 15
D Others 30

35

30

25

20

15

10

INTERPRETAION:

From the above table shows that the respondents of the occupation are mostly private
employees numbered 35, business people numbering 20 , Government employees 15
and others 30 people.

58
 3) Which model of hyundai car do you own?

Sl.No Brand No of people

A I10 35
B I20 18
C Santro 27
D Others 20

No of people
D
20%
A
35%

C
27%

B
18%

Interpretation :-
The following graph shows the number of cars in the total of 100 persons i10 is
owned by 35 people, and I20 owned by 18 and Santro owned by 27 people and others
by 27 people.

59
 4) Which feature is the best one in Hyundai car ?

Sl.No feature NO of people

A Mileage 20
B Price and style 28
C Quality 40
D All 12

40

35

30

25

20

15

10

0
Mileage Price & Style Quality All

Interpretation:-
The following graph shows the number of what features you consider while you
purchase in the total persons Mileage by 20, and Price And style by 28 and by
quality 40,and all by 12.

60
 5) how do you feel when you drive Hyundai car?

Sl.No RANK No of people

A Good 35
B Better 20
C Best 35
D Poor 10

35

30

25 good
20 better

15 best

10 poor

INTERPRETAION:

From the above table shows that the respondents of the experience of people while
driving Hyundai cars is good i.e. 25, the next group is better i.e.20, the remaining
people who feel best is 40 and others who feel poor experience are 5 respectively.

61
 6) Are you satisfied with your vehicle’s mileage?

Sl.No Vehicle’s mileage No of percentage

A Good 60
B Better 20
C Best 13
D Poor 7

Poor
7%

Best
13%

Better
Good
20%
60%

Interpretation :-
The following graph shows the number of people who satisfied with mileage of the
vehicle in the total respondents response given by persons Yes by 61 and No by 14.

62
 7) Will you recommend Hyundai product to anybody?

Sl.No Recommendation No of percentage

A Yes 70
B No 30

Sales

No
30%

Yes
70%

Interpretation :-
The following graph shows the number of people who recommend Hyundai cars in
the total persons yes by 45 and No by 30.

63
 8) What do you think about hyundai’s customer service?
Sl.No RANK No of people
A Excellent 40
B Good 20
C Better 30
D Poor 10

40
35
30
25
20
15
10
5
0
excellent 40
good 20
better 30
poor 10

INTERPRETAION:

From the above table shows that the respondents of the people about Hyundai’s customer
service is excellent i.e. 40, the next group is good i.e.20, the remaining people who feel better
is 30 and others who feel poor experience are 5 respectively.

64
 9) How do you feel about company’s response towards customers?

Sl.No Source No of percentage

A Excellent 25
B Good 45
C Better 20
D Poor 10

Poor

Better

West
Good

Excellent

0 10 20 30 40 50

Interpretation :-
The following graph shows the number of response of customers towards the
products from the total number of 100 people good are good 17, Excellent 38, better
10 and poor are 7.

65
10. Did you receive the product on delivery time?

Sl.No Delivery time No of percentage

A Yes 75
B No 25

Sales

25

Yes
No

75

Interpretation :-
The following graph shows the number of customers who receive the product on
delivery time is yes by 55 customers and no by 20 customers.

66
11) Are you satisfied with company’s after sales service?

Sl.No After sales service No of percentage

A Satisfied 90
B Not satisfied 10

90

80

70

60

50
satisfied not satisfied
40

30

20

10

Interpretation:
The number of customers who satisfy/not satisfied with the after sales service of the
company from a number of 100 customers are satisfied 75 and not satisfied 5.

67
12. how do you feel the experience at show room?
Sl.No Best Brand Ambassadors No of percentage
A Satisfied 80
B Not satisfied 20

90
80
80

70

60

50

40

30
20
20

10

0
Satisfied Not satisfied
A B

Interpretation :-
The following graph shows the consumer’s experience at show room the number of
customers who satisfy is 55 and who does not satisfy is 29

68
 12) Were you offered test drive?

Sl.No Test drive No of people

A Yes 70
B No 12
C Not remember 18

18

Yes
12 Not
Not remember

70

Interpretation :-
The following graph shows the number of customers who were offered test drive for
the product is yes by 80 customers and no by 7 customers.

69
14) Are you satisfied with the Performance of Hyundai cars?

Sl.no Customer response percentage

A Satisfied 74
B Not satisfied 26

80
70
60
50
fully satisfied
40
just satisfied
30
not satisfied
20
10
0

INTERPRETAION:

The following table shows that the respondents who satisfied with dealer’s
performance is better71,good 15 and Poor is 4.

70
 Chapter-V
Data Interpretation

71
 DATA INTERPRETATION

 Orion Hyundai enjoys a high patronage from its customers.

 Most of the customers had a good experience of shopping at Orion Hyundai.

 The satisfaction levels can also measured with the level of recommendations
to friends and associates; It is evident that more than 80% customers are
satisfied with the service offered at Orion Hyundai.

 The probability that the customers would repeat that purchase at the same
showroom is high, which is a good sign.

 The sale satisfaction index of Orion Hyundai showroom is 8.4 on scale of ten
(refer page 32), which is exceptionally good, the showroom should persist on
high levels of commitment to maintain the good image it has created. The
industry SSI (2003) is 104 out of 126 according to J D Power Asia pacific.
And Hyundai scores 105 out of 125.

 In the interview it was found that the customers are happy about the
training programs under taken by the showroom, which train the customers
to negotiate minor breakdowns comfortably.

 It has been observed that 25% of customers have reported a slack in the
delivery process.

This is the only area of concern that has emerged form the city.

72
 Chapter-VI
Summary & Conclusions

73
 SUMMARY & CONCLUSIONS

The objective of this thesis is to study the consumer’s buying behaviour of hyundai
cars with extensive research on their perceptions and attitudes towards a variety of
attributes and factors, which help them in decision-making.

Firstly, we took two brands of small cars for a comparative study of small car
segment. We got the companies’ broad background; their entry into the segment, their
positioning strategies of cars and other factors affecting the consumer’s buying
behavior. Later we went through the process of filling the questionnaires, to know
exactly what the customer’s of small cars perceived about their cars. A sample size of
hundred respondents was taken. Sample unit was a customer who owned a small car.
Secondary data from various sources like magazines, internet etc was also collected.

The findings showed that the consumer’s who owned small cars basically wanted
good performance, after sales service and a car at their budget, a less expensive one.
All the cars taken for the sample showed that the consumers perceived them as almost
same in all the attributes like safety, comfort and luxury. Respondents liked cars more
for its looks, after sales service was perceived to be good. But, at the end the research
was limited due to small sample size, small sample area and time constraints.

6.1 Results of the Study

The research was based on a study of a sample, sized 100, using simple random
sample selected from the existing database of Orion Hyundai. The research included
collection of data from the primary sources using the research tool
(questionnaire). Final stage was to analyze, interpret and draw conclusions from the
data collected

A pilot survey was conducted to understand the factors, which would positively
influence the customer. Personal Interviews totaling 20 were conducted for the sales
team, potential customers and the existing customers of Orion Hyundai. The factors
scoring high in the interviews were considered to be the key deliverables.

74
In simple random sampling, each member of the target population has the same
chance of being selected for participation in the study. For a sample to truly be a
simple random sample we need to develop a list or sampling frame that includes
almost all of the population, then from this we randomly pull names from the
sampling frame using some kind of random method such as a random number table or
a random number generator. Finally, numbers are assigned to all members of the
population and pull the names of those members whose numbers are pulled from the
table or generator.

The biggest advantage to a simple random sample is that we get a pretty good
unbiased sample fairly easily. The biggest downside is that we may not get all
elements of the population that are of interest.

6.1 Limitations:
The study is restricted in scope of owing to the following limitations:
 Due to constraint of time only city of Hyderabad is selected and so it cannot
claim to be a comprehensive study of the population.
 The sample size is restricted to 100 respondents.

6.3 Suggestions, Scope for further Study & Conclusion

6.4 CONCLUSION

From the findings and analysis it is clear that Orion Hyundai Car is highly preferred
when compared to the other brands of car in the same segment.

With the analysis through the survey conducted for a period of 3 months 10 days in
Delhi on the consumer satisfaction of Bird Automotive Orion Hyundai Car Dealer,
the findings and analysis shows that 80% of the consumers are happy with the dealer
and also sales service and rest 20% of them says that they are dissatisfied.

Since each customer is like an asset for an organization the company should try to
improve in the area of dissatisfaction.

75
We know that getting new customer is double the cost of retaining the old customer
so the company should focus on retaining the old customers whom a in the future
purchase the product or recommend others to purchase the product. Thus they help
directly or indirectly for the product sale.

Change is the only think to retain and attract the customers so the company should
identify the needs and dry to fulfill them.

6.5 SUGGESTIONS
The overall sales satisfaction index from the study reveals that the company is
performing very well and customers buying are much satisfied with the service given
to them.

The only couple problem noticed are:

 Some of the customers have complained about the slack in the delivery
process and timings. Therefore, this is the area which I recommend to the
showroom to focus a little bit more. It needs to improve its delivery
process and time. Need to become little quick and fast.

 Some of the customers have also complained about the after purchase
services provided by the showroom. Even though the complaints are
minor, the showroom needs to resolve the customer after purchase service
issues in order to achieve customer satisfaction.

76
 BIBLIOGRAPHY

Reference books:-

1. Marketing Research - G.C. Beri

2. Statistical Methods - S.P. Gupta & M.P. Gupta

3. Chatterjee, Ashoke. (undated). “Marketing by design.”

4. Chaudhuri, S. (2006). “Technological Innovation in a Research Laboratory in

India: A Case Study,” Research Policy, Vol. 25, pp. 89-103.

5. Clark, K. and Fujimoto, T. (1990). “The Power of Product Integrity,” Harvard

Business Review, November-December, pp. 107-118.

6. Economic & Political Weekly, 31 July 1999, pp. M114-M120

7. Clark, K. and Fujimoto, T. (2001). Product Development Performance: Strategy,

Organization and Management in the World Auto Industry. Cambridge: HBS
Press.

8. Clark K. and Wheelwright, S .C. (1993). Managing New Product and Process
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9. As http://automoviteindia.blogspot.com/ viewed on 04-Apr-2013

10. http://www.unescap.org/tid/publication/part_two2223_ind.pdf viewed on 04-Apr-

2013

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.pdf viewed on 04-Apr-2013

12. http://business.mapsofindia.com/automobile/index viewed on 11-Apr-2013

13. Anshuman Khare, ''Strategic Advantages of good supplier relations in the Indian
four wheeler automobile industry'', Research Article, Published in ''Technovation'',
Vol. 17, No. 10, 1997

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14. Sumila Gulyani, ''Effects of Poor Transportation on Lean Production and
Industrial Clustering: Evidence from the Indian Auto Industry'', World
Development Journal, Vol. 29, No. 7, 2001

Journals & Newspapers

Economic times

Hindustan Times

Indian journal of branding

Internet Website links

https://www.scribd.com/doc/.../Indian-Automobile-Industry-Analysis

en.wikipedia.org/wiki/Automotive_industry_in_India

www.zigwheels.com/newcars

www.marutiudyog.com

www.hyundaimotorindia.com

www.autoweb.com

www.google.com

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 ANNEXURE
QUESTIONNAIRE

CUSTOMER SATISFACTION INDEX

Details:
Vehicle No: ___________________________________
Model: _______________________________________
Customer Name: ______________________________
Telephone No: _____________Mobile:_____________
Date: __________________Customer signature: _____

1. Age group
a) 20-30 b) 30-40 c) 40-50 d) Above 50

2. Occupation?
a) Employee b) business c) NRI d) others

3. Which model of hyundai car do you own?

a) Santro b) Verna c) Accent d) i10 e) i20

4.which feature is the best one in Hyundai car?

a) price b) style c) mileage d) quality e) mileage & quality
e) mileage & style

1. How do you feel when you drive hyundai car?

a) Good B) better c) best d) Poor
6. Are you satisfied with your vehicle mileage?
a) Yes b) No

7. will you recommend hyundai product to anybody?

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 a) Yes b) No

8. what do you think about hyundai’s customer service?

a) Excellent b) Good c) Better d) Poor

9. How do you feel about company’s response towards customers?

a) Excellent b) Good c) Better d) Poor

10. did you receive the product on delivery time?

a) Yes b) No

11. are you satisfied company’s after sales service?

a) Satisfied b) not satisfied

12. How do you feel the experience at the showroom?

a) Satisfied b) not satisfied

13. were you offered test drive?

a) Yes b) No

14. Are you satisfy with their usage of the car?

a) fully satisfied b) just satisfied c) not satisfied

15. Please give your comments/suggestions to enable us to improve

satisfaction of customers at this Hyundai authorized showroom.

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