1. Name of the Company : M.G.

Car Company Limited

2. Type: Automobile Company

3. Location (pune India): Wakad, Pune, Maharashtra 411057

4. Details about CEO & Board of Directors:

President & MD: Rajeev Chaba

5. Number of employees: 1000+

6. Details about products:

MG Hector

In India, the 530 was marketed as the MG Hector as SAIC's first model in India. MG Hector
is based on an unreleased 530 facelift which sports a honeycomb grille, dual-projector LED
headlight, rear LED lights, chrome finish elements in some exterior parts instead of a matte
silver finish, and a taillamp extension garnish. The Hector is equipped with a 10.4" head unit
with more features than Almaz such as a e-SIM support, navigation system, extensive
smartphone integration such as car functionality remote control including remote engine
start, Apple CarPlay and Android Auto support, Gaana music streaming service support, and
over-the-air (OTA) software update all dubbed as the iSMART technology. As the result, all
MG Hector (except the Style variant) gained an 'Internet Inside' branding emblem.

The Hector is available in four trim levels: Style, Super, Smart and Sharp, and available in
three different engine options: 1.5 L petrol turbo, 1.5 L petrol turbo with mild hybrid
technology, and a 2.0 L turbodiesel sourced from FCA. Only the former engine received an
automatic transmission option, specifically dual-clutch transmission. It received 21,000
bookings only 23 days after launch.[18] In July 18, 2019, MG Motor India stopped taking
bookings for the Hector, citing limited production capacity while they already received over
21,000 bookings.[19] A 7-seater version would arrive in 2020.[20]

The promotional videos for MG Hector was filmed in London, United Kingdom,[21]
featuring British actor Benedict Cumberbatch as the MG Motor brand ambassador.
MG RX5
The ultimate combination of sporty elegance and practical design, the new MG RX5 is a
versatile and capable SUV that incorporates some of the latest automotive technology
available. Intelligent and spacious, comfortable and stylish, you can discover more about the
MG RX5 by booking a test drive at your local MG distributor today. A vehicle like the new
MG RX5 is exciting in any guise so, while there are Five trim levels available to purchase,
each can be relied upon to provide a driving experience that is unforgettable. Choose from
the 1.5T STD, 1.5T COM, 1.5T LUX, 2.0T COM, and 2.0T LUX, and take advantage of
ever-more choice in technology the further up the range you go.

ZS EV
MG Motor will introduce the pure electric version of the ZS SUV, called the ZS EV, in India
in December. The pure electric vehicle was officially unveiled at the 2018 Guangzhou motor
show for the Chinese market.
As seen at the event, the MG ZS EV looks identical to the standard model. However, high-
quality materials with glossy finish were seen inside the MG’s cockpit layout. The alloy
wheels are new and reduce the drag in order to increase the range. The electric charging port
is expected to be under the MG badge.
The Chinese-owned British carmaker has not revealed the details for the powertrain yet.
However, it is believed that the vehicle will be powered by a single electric motor that
generates 148bhp and 350Nm to the front wheels. The electric range is expected to be
around 400kilometres under the NEDC cycle with the facility of fast-charging. The e-SUV
will be built in India to keep the cost in check except for the powertrain which will be
imported from SAIC China.
7. Sales revenue of last five years
MG Motor India on Friday reported retail sales of 3,536 units of its SUV Hector in October.
The first model of the company, which was launched in June this year, has crossed bookings
of 38,000 units, MG Motor India said in a statement.

The company had temporarily suspended bookings in July after receiving orders for around
21,000 units. It re-opened bookings on September 29 with plans, backed by its plans to ramp
up production. "With increased supplies from its global and local component suppliers, the
company is starting second shift operations from November 2019," the statement added.

Commenting on the sales performance, MG Motor India Director - Sales Rakesh Sidana
said,"MG Hector continues to further strengthen its position in its segment and win hearts of
our customers. As we gradually ramp up our production, we aim to ensure the highest levels
of customer satisfaction through timely vehicle deliveries."

8. Market share in India and abroad

Last year, MG sold over 15,000 cars in the international markets such as UK, Thailand,
Philippines, Australia, and the Middle East. And it also sold 1,50,000 MG badge cars in
China in 2017, clocking 36 per cent growth over 2016. In China alone, the popular MG
brand sold 1,80,000 cars in January to September period this year, growing 89 per cent
compared with the previous year.

9. Competitors and their details

Talking about INDIA MG’s biggest competitor is HYUNDAI

Name of company: HYUNDAI

Type of company: Automobile Manufacturer
Location: Wakad, Pune, Maharashtra
CEO & Board of Directors:
 WON HEE LEE- President & CEO
 osé Munoz Global Chief Operating Officer.
 Byeong-Cheol Choi Chief Financial Officer.
 Albert Biermann Director & Head-Research.
 Moon-Sik Kwon Vice Chairman-Executive Board, Head-R&D.

Number of employees: 118,320 worldwide

Details about products:

Hyundai Elite i20-

The engine options on the Elite i20 remain the same as before and in the same states of tune.
The petrol variants are still powered by the 1.2-litre 4-cylinder engine that makes 83PS of
max power and 115Nm of peak torque whereas the diesel variants are powered by the same
1.4-litre diesel making 90PS and 220Nm. Both engines can be paired with 5-speed and 6-
speed manual transmissions. The diesel automatic has been discontinued but the i20 will get
an automatic box in May. Hyundai claims that fuel efficiency has improved by 9 per cent;
tank capacity, on the other hand, has been reduced by 5 litres to 40 litres. According to our
tests, the diesel returns 15.32kmpl in the city and 21.29kmpl on the highway.

Hyundai Verna-
The Venue comes in five variants and three engine options. The 1.0-litre 3-cylinder turbo-
petrol, good for 120PS/172Nm, comes paired with either a 6-speed manual or a 7-speed
DCT. The 1.2-litre petrol makes 83PS/115Nm and comes mated to a 5-speed manual as
standard. The oil burner is the 1.4-litre unit which makes 90PS/220Nm paired with a 6-speed
manual.
The Venue gets a host of features along with the connected car features called Blue Link
which works with a Vodafone e-SIM. The SUV is priced between Rs 6.5 lakh and Rs 11.11
lakh (ex-showroom India). The Venue rivals the Vitara Brezza, Tata Nexon, Ford EcoSport,
and Mahindra XUV300 in India.

Hyundai Creta
Hyundai Creta is available in 6 petrol and 7 diesel variants. The claimed mileage for the
Creta Petrol is 15.8 kmpl and for Creta Diesel is 22.1 kmpl. In technical specification,
Hyundai Creta 1.6 E (Base Petrol) is powered by 1591 cc engine delivering 121.3 PS power
and 151 Nm torque whereas Creta 1.4 E Plus (Base Diesel) is powered by 1396 cc engine
delivering 88.7 PS power and 220 Nm torque. Dimensionally, Creta stacks under 4.27-metre
of length and features 400-liter of boot space. It also comes with 10 manual and 3 automatic
transmission variants at a staring price of Rs. 9.44 lakh and Rs. 13.20 lakh respectively.
, sales, ravenue etc.)

Minimum 3 critical success factors

‘Localization’

Once Hyundai Capital enters a foreign market, it caters to the local market and customer needs through customized products and
services, strengthening the competitiveness of the financial products for Hyundai and Kia vehicles. For instance, Hyundai Capital
America (HCA) launched the ‘Hyundai PLUS’ in July of 2018, which is a subscription based product bundling lease, maintenance
and insurance into a single product. Currently the pilot program is being conducted in New Mexico, Ohio, Texas and Wisconsin.
As a subscription service where the customer pays a fixed monthly payment to use a car of their choice, the subscription fee starts
at $279 a month and consumers can choose any car amongst Tucson, Santa Fe, Sonata and Elantra. The monthly fee includes
usage of the car, insurance fee as well as service maintenance and repair, which allows for customers to drive a car at a lower cost.
Moving away from car ownership to sharing, and now with growing needs for car subscription services in the U.S. market,
‘Hyundai PLUS’ is deemed as one of the core businesses of Hyundai Motors, which is evolving into a mobility solution company.

Last but not least, striking a joint venture (JV) with local financial companies to ensure stable management of risk and operation
systems alongside securing funding capabilities is another important pillar of Hyundai Capital’s localization strategy.
‘Global partnerships’

Hyundai Capital’s solid localization strategy is possible thanks to its long standing global partnerships. Such partnerships with
globally renowned financial companies established since the early days of Hyundai Capital’s global business contributed greatly
to enhance understanding about local markets and to swiftly settle. Furthermore, it promotes the internalization of Hyundai
Capital’s genuine global business capabilities.

Hyundai Capital currently operates JVs with Santander, the largest bank in Europe, in the UK, Germany and Brazil. The
partnership between Santander and Hyundai Capital was possible thanks to Hyundai Capital’s successful partnership with GE in
the past, its high global credit ratings and ever expanding business in the global financial markets, benefits of being a captive
finance of Hyundai Motor Group and extensive expertise in auto financing, among others.
 Hyundai Capital’s Chinese entity, Beijing Hyundai Auto Finance, is run in partnership with Beijing Automobile Investment, a
financial investment subsidiary of the Chinese state-owned company BAIC. China is the largest market for automobile sales, yet
one of the harder markets to enter. In spite of this, Hyundai Capital set up an office in Beijing back in 2005 to study the changing
financial markets and regulations in China; and after 7 years of preparation earned trust from its local partner Beijing Automobile
Investment to establish a JV in 2012, signaling a successful entry into the Chinese market.
In addition Hyundai Capital has other diverse global partners including BNP Paribas, Société Générale and UniCredit to further
expand its global businesses through close collaboration.

 ‘Global One Company’

As its global business and the number of global employees grew in size, Hyundai Capital placed greater importance on a common
corporate culture, alongside localization, so as to move forward the shared goal of becoming a Global One Company. The
rationale behind this was that corporate culture is not only about the way employees think and work but also a strategic
competitiveness that enables new attempts and innovation. In response, Hyundai Capital is formulating innovative and advanced
HR policies fit for a global financial company while offering diverse programs to enable effective sharing among employees
around the world.

As the organization became more globalized, Hyundai Capital introduced the ‘Global Band’ in 2016 which is a standardized job
position system applicable to all entities. Since 2010, more than 260 employees participated in the Global Mobility Program
which offers new career opportunities to employees worldwide. Other programs such as the GEP (Global Exchange Program) and
TD (Talent Development) enable employees to gain experience overseas and cultivate global leadership through mid to long term
projects that take place across different entities around the world.

For example, Alex Gurin who was dispatched to HCA from Hyundai Capital Russia back in 2017 through the TD program, made
great contributions in the successful launch of ‘Hyundai PLUS’, a car subscription service customized for the U.S. market thanks
to his experiences of testing related products in Russia.

Programs such as the Global Internship Program which began in 2013 and the GCCA (Global Corporate Culture Ambassador)
initiative which aims to exchange corporate culture among different entities encourage global employees who differ in nationality,
language and culture to better understand each other.

As its global business expansion accelerates and collaboration with global partners increase, Hyundai Capital plans to create
synergistic effects by harmonizing the way of working and the corporate culture at the partner company as well as at Hyundai
Capital.

SWOT analysis

MG Motors SWOT analysis

Strengths Weaknesses

1. Joint ventures with local Chinese 1. Dependence on U.S. to generate most

automotive companies of the revenue
2. Strong position in the U.S. 2. Brand awareness
automotive market
3. Sustainability and environmental 3. Reliance on Sedan and SUVs for sales
policies growth
4. Safe and eco-friendly vehicles
5. Strong brand portfolio
6. OnStar all-in-one assistant
7. Rare product recalls

Opportunities Threats

1. Low fuel prices are increasing the1. Increased competition

demand for Sedan and SUVs 2. The rising U.S. dollar exchange rate
2. Timing and frequency of the new3. Increasing government regulations
model releases may raise the costs
3. Demand for autonomous vehicles4. U.S. automotive market is poised to
slow down or even decline

12. ETOP Profile

A Porter’s Five Forces Analysis of the Luxury Cars Industry

Suppliers’ bargaining power: between low and medium

The balance of power between supplier and car manufacturer in the car industry is
generally tilted in favor of the latter, since the suppliers are numerous and often of small-
medium size, whereas car companies are much larger and globalized. Many suppliers are
dependent on a single car manufacturer, which in turn has several suppliers. There is no
threat of forward integration by a supplier.

In the luxury segment suppliers are less weak, since luxury cars require exclusive materials
and manufactured parts of high quality (such as real leather and real wood interiors, high-
technology devices for entertainment) which only a smaller number of suppliers are able to
deliver. This makes the switching costs for luxury car makers higher than those of mass
market manufacturers. International sourcing is less of a threat too, since the need to
preserve an image of excellence and prestige can restrict the ability to purchase parts from
firms located in emerging countries (for instance Rolls Royce and Bentley cars are
manufactured totally in the United Kingdom)
Customers’ bargaining power: medium-high

Customers have substantial power, mainly because of the large variety of luxury brands and
product to choose from, and because of the presence of substitutes.

The market offers customers many different brands and car models, with widely differing
performance, quality, appearance, pricing, additional features. The customer can freely
choose the product that best fits its preferences, status and lifestyle among many. The
Internet has improved customers’ access to information about the characteristics of car
models, and to the experience and reviews of past users and experts. That forces premium
car makers to improve continuously quality in order to not fail to meet the high
expectations of customers and also to not fall behind competitors’ innovations.

Another favorable factor for car companies is that the size of buyers and of their individual
orders are small, since most of the customers buy only one car every some years, reducing
the significance of the behavior of an individual customer.

Threat of substitutes: medium-high

Luxury cars fulfill basically two needs for customers: provide a means of transportation, and
assert the privileged status of their owner.

As for the first need, there is a variety of other products to fulfill it, such as other types of
cars, motorbikes, bicycles, public transportation systems, planes. The most obvious
substitutes for the mid-luxury cars of  Audi, BMW and Mercedes-Benz are either higher-end
cars from ultra-luxury brands (such as Ferrari, Lamborghini, Rolls Royce, Bentley), or at the
other end of the spectrum, less expensive cars from non-luxury brands (such as Toyota,
Ford, Fiat, GM). Actually, the distinction between luxury cars and non-luxury cars itself is
rather blurred sometimes.

Higher-end brands can exert additional pressure by introducing some car models with
lower-than-usual prices or special discounts to allure customers with lower incomes than
their traditional customer base. At the same time, technological progress allows non-luxury
car makers to include in their cars more and more of the features and amenities initially
reserved to luxury cars (for instance driving-assisting systems and touch screens), forcing
luxury brands to innovate at a fast pace to keep the appropriate level of differentiation and
superiority. As previously said, a bad economic climate induces customers to choose less
expensive cars, as their income decreases and expectations on the future worsen.
Threat of new entrants: between low and medium

The luxury car industry is protected by significant barriers to entry. One of the most
significant consists in the brand equity the most established brands can enjoy. The
reputation of the brand is extremely important to customers; luxury brands such as
Mercedes-Benz and Audi have a long and glorious history to boast.

Although several Asian companies have developed new luxury brands to compete with the
traditional European and American ones since the 80s and 90s, it is extremely difficult for
challengers to match the prestige of brands with decades of history.

Another formidable barrier to entry is the huge initial investment required to enter car
markets in general. Large amounts of capital are required to set up manufacturing facilities
and invest in R&D, among other large expenses. This also generates large sunk costs and
makes it hard to achieve economies of scale. The capital requirements are one of the main
reasons why new luxury brands have been created by companies which were already
present in the market as large car manufacturers (such as Toyota’s Lexus and Nissan’s
Infiniti) and not by new, free-standing, companies.

Competition between established firms: high

Concentration in the luxury cars industry is not high in the advanced markets, and a variety
of very different brands with different origins and strategies compete. The rivalry between
companies is rather intense, especially between the three global leaders: Audi, BMW and
Mercedes-Benz (and in the U.S. market, also Toyota’s Lexus

The three companies explicitly recognize each other as competitors, and their public
statements and advertising campaigns make provocative comparison between the cars as
to performance and innovativeness. Technological innovation is one of the fields of fiercer
competition, as each of them claims to be technological leader in the industry. Competition
on pricing has intensified too.

In addition to the old rivalries between the market leaders, we must not forget the
challenge posed by the luxury brands developed by the large Asian companies, such as
Lexus, Infiniti and Acura. Successful Asian carmakers such as Hyundai, Honda, Toyota and
Nissan Asian  have challenged the Western brands in their home markets by developing
new brands and offering customers cars with lower prices and better fuel efficiency.

The presence of significant sunk costs is a barrier to exit which induces even companies in
loss to stay in the market, and so increases the degree of competition in the industry.
Conclusions

To sum up, the mid-luxury cars industry is moderately attractive if we consider the
relatively low suppliers’ buying power and threat of new entrants alone; but when we take
into account the high buyers’ bargaining power, the high threat of substitutes and the
intense degree of competition between the top companies, we have to conclude that the
overall profile of industry is rather unattractive.