Indian Institute of Planning & Management, Lucknow

INFORMATION TECHNOLOGY FOR MANAGERS

A Project Report on Analysis of various International Car Brands entering Indian Market & a Comparative Analysis between the products of Top 5 Automobile Brands available in India
Submitted To Prof. Tushar Sharma Submitted By Ajeet Pratap Singh Amit Dubey Ashray Adhikari Manoj Kumar Verma Nikhil Raj Keshri Rajiv Ranjan Singh (PG/SS/11-13)
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Dated: 16 September, 2011

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DECLARATION
We hereby declare that the report entitled Analysis of various International Car Brands entering Indian market & a comparative analysis between the products of top 5 Automobile brands available in India submitted to Prof. Tushar Sharma at Indian Institute of Planning and Management, Lucknow is an authentic record of our original work.

Amit Dubey Ashray Adhikari Ajeet Pratap Singh Manoj Kumar Verma Nikhil Raj Keshri Rajiv Ranjan Singh (PG/SS/11-13)

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ACKNOWLEDGEM ENT
We would like to express our gratitude to our IT Prof. Tushar Sharma who gave us a golden opportunity to present this report. We are greatly indebted to Prof. Tushar Sharma, who not only served as a Project Guide and Mentor but also encouraged and challenged us throughout this project for devoting his valuable time and efforts towards our project. We thank him for being a constant source of knowledge, inspiration and help during this period of making project.

Amit Dubey Ashray Adhikari Ajeet Pratap Singh Manoj Kumar Verma Nikhil Raj Keshri Rajiv Ranjan Singh (PG/SS/11-13)

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EXECUTIVE SUMMARY
The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and globa4lization. The sector seems to be optimistic of posting strong sales in the couple of years in the view of a reasonable surge in demand. The Indian automobile market is gearing towards international standards to meet the needs of the global automobile giants and become a global hub. A detailed analysis of Automobile industry has been covered in respect of both domestic and foreign car manufacturers in India while taking look at their respective top brands and models. To develop a better understanding and a much clearer analysis this project has been divided into two parts. The first half deals with the Analysis of various International Car Brands entering Indian market. We take a look at established International Car Brands as well as new entrants into the Indian car market. We look that why these brands are successful car manufacturers in the international market and how they are fairing in the Indian market. The second half deals with the comparative analysis between the products of top 5 Automobile brands available in India. Here we take a look at the top five leading car manufacturers with respect to their top selling models in the Indian market.

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OBJECTIVE OF THE PROJECT

The objective of this project is deeply analyze the Indian Automobile Industry with respect to current market leaders and their top selling brands and the new international entrants that are looking to challenge them. The main objectives of the Project study are:

1. Analysis of various International Car Brands entering Indian market 2. Analysis between the products of top 5 Automobile brands available in India

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HISTORY OF INDIAN AUTO INDUSTRY

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its jointventure to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. On the other hand several foreign car manufactures like Ford , Hyundai , General Motors has made India an integral part of their global markets.

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INTRODUCTION TO INDIAN AUTO INDUSTRY

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020.By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. India's largest car manufacturing industry hub is based in and around Chennai, also known as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent of the country's automotive exports.

Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are

manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad
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with the Tata Nano plant and planned Ford and Peugeot-Citroen plants, Halol again with General Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country. Tapping into India's car market has always been a challenge for foreign automakers. Despite India's blistering economy, manufacturers have discovered a historic preference for cars that are small, fuelefficient and cheap. The sensation that is the Nano is well-known; its unveiling two years ago at the New Delhi Auto Expo by Indian automaker Tata captured the world's imagination and further focused attention on India's growing role in the global car market. To be successful in India, small-car manufacturers have had to tailor their product to Indian tastes and conditions. When General Motors launched a new small car called the Chevy Beat in New Delhi last week, the company "Indianized it," says Karl Slym, president and managing director of General Motors India. That meant toughening the car's suspension to deal with erratic road conditions. It also meant accommodating a slightly different driving style. "People like to drive away quick [from traffic lights]," says Slym. "They don't like anyone to get in front of them so your transmission has to allow you to move away from the lights quickly, but also has to allow you to drive in traffic in second gear.

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PART I:
Analysis of various International Car Brands entering Indian market

Why Indian market is so important for foreign car manufacturers?

India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers India is also the second fastest growing automobile market in the world after China. In February 2009, a monthly sale of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor. Passenger vehicle production during the period April 2010 to August 2010 increased by nearly a third from a year ago. For the year ending March 2011, passenger vehicle output is expected to exceed 2.5 million. India is emerging as a major production base for small cars, with output expected to reach 3 million units by 2016. The country is building a reputation in designing and manufacturing low cost cars. The auto parts industry is also scaling up, as global car manufacturers are increasing their component sourcing from India, due to cost and engineering competencies. The low penetration of cars combined with a huge population , projected industry growth and booming economy in short make India one of the if not the most preferred destination for all kinds of car manufacturers.

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VOLKSWAGEN

Volkswagen offers 5 new car models in Luxury segment, 1 in Midsize segment, 1 in Small segment in India. Headquarters in Pune, Maharashtra Volkswagen India Private Limited operates a manufacturing plant in Chakan, Maharashtra which is capable of producing 110,000 vehicles per annum. The plant is also shared by koda Auto India Private Limited for assembling the koda Fabia.

Manufactured/Assembled Locally (In India) Car Snaps Model Name Volkswagen Passat Launched 2007

Volkswagen Jetta

2008

Volkswagen Polo

2010

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Volkswagen Vento

2010

Imported (In India) Car Snaps Model Name Launched

Volkswagen Touareg

2009

Volkswagen New Beetle

2009

Volkswagen Phaeton

2010

Sales Performance
Volkswagen India Private Limited has registered a sales growth of over 1,000%. Volkswagen India Private Limited currently has more than 70 dealerships in 56 cities across 18 states and 2 union territories of India.

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NISSAN

Nissan Motor Company, Ltd., is a multinational automaker headquartered in Japan. It formerly marketed vehicles under the Datsun brand name and is one of the largest car manufacturers. The car's name was an acronym of the company's partners' family names: Kenjiro Den, Rokuro Aoyama and Meitaro Takeuchi (DAT). It was renamed as Kwaishinsha Motorcar Co. in 1918, and DAT Motorcar Co. in 1925. DAT Motors built trucks in addition to the DAT and Datsun passenger cars. The vast majority of its output were trucks, due to an almost non-existent consumer market for passenger cars at the time. In 1926 the Tokyo-based DAT Motors merged with the Osaka-based Jitsuyo Jidosha Co., Ltd. to become DAT Automobile Manufacturing Co., Ltd. in Osaka until 1932. In 1928, Yoshisuke Aikawa founded the holding company Nippon Sangyo (Japan Industries or Nippon Industries). The name Nissan originated during the 1930s as an abbreviation was used on the Tokyo stock market for Nippon Sangyo. In 1931, DAT came out with a new smaller car, the first "Datson", meaning "Son of DAT". Later in 1933 after Nissan took control of DAT Motors, the last syllable of Datson was changed to "sun", because "son" also means "loss" in Japanese, hence the name "Datsun." In 1931, Aikawa purchased controlling shares in DAT Motors, and then in 1933 it merged Tobata Casting's automobile parts department with DAT Motors. As Tobata Casting was a Nissan company, this was the beginning of Nissan's automobile manufacturing. The company was formerly a core member of the Nissan Group, but has now become more independent after its restructuring under its current CEO, Carlos Ghosn.
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As of August 2009, the company's global headquarters are located in Nishi-ku Yokohama. In 1999, Nissan entered a two way alliance with Renault S.A. of France, which owns 44.4% of Nissan while Nissan holds 15% of Renault shares, as of 2008. The current market share of Nissan, along with Honda and Toyota, in American auto sales represent the largest of the automotive firms based in Asia that have been increasingly encroaching on the historically dominant US-based "Big Three" consisting of GM, Ford and Chrysler. In its home market Nissan is the third largest car manufacturer, with Honda being second by a small margin and Toyota in a very dominant first. Along with its normal range of models, the auto major also produces a range of luxury models branded as Infiniti. In 1999, with Nissan facing severe financial difficulties, it entered an alliance with Renault S.A. of France. Signed on March 27, 1999, the Renault-Nissan Alliance is the first of its kind involving a Japanese and French car manufacturer, each with its own distinct corporate culture and brand identity. The same year, Renault appointed its own Chief Operating Officer, Carlos Ghosn, as Chief Operating Officer of Nissan and took a 22.5% stake in Nissan Diesel. Later that year, the automaker fired its top Japanese executives. The Renault-Nissan Alliance has evolved over years to Renault holding 44.3% of Nissan shares, while Nissan holds 15% of Renault shares which does not give Nissan a voting or board representation due to legal restriction in France. Under CEO Ghosn's "Nissan Revival Plan" (NRP), the company has rebounded in what many leading economists consider to be one of the most spectacular corporate turnarounds in history, catapulting Nissan to record profits and a dramatic revitalization of both its Nissan and Infiniti model line-ups. Despite the turnaround, Infiniti sales have been a disappointment. In 2001, the company initiated Nissan 180, capitalizing on the success of the NRP. The targets set with 180 were an additional sale of 1 million cars, achieving operating margins of 8%, and to have zero automotive debts. Ghosn has been recognized in Japan for the company's turnaround in the midst of an ailing Japanese economy. Ghosn and the Nissan turnaround were featured in Japanese Manga and popular culture. His achievements in revitalizing the company were noted by Japanese Government, which awarded him the Japan Medal with Blue Ribbon in 2004. The first product of the Nissan-Renault alliance was the Primera, launched in 2001 and shared chassis with Renault Laguna that had been launched in 2000. Subsequently, Nissan's Micra, Note and Versa models have shared the same mechanical design as the Renault Clio.
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Nissan Motors India Private Ltd (NMIPL) incorporated in 2005 as a 100% subsidiary of Nissan Motor Co., Japan, was set up with the objective of bettering the lives of people through latest Nissans Technology and products. The company started off by bringing Completely Built Units (CBUs) to India. The first product that the company brought in to India, for the Indian buyer, was the X-Trail which was in 2005. This was followed by Teana which was introduced in 2007 and the Micra which was introduced in 2010. Nissan has built a manufacturing capacity of 2,00,000 cars at its facilities in Chennai and is investing about Rs 4500 crores along with Renault in the Indian operations.

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Nissan Car Models (Launched in India)

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Nissan 37 0Z

It comes with good performance, cuttingedge technology and stylish flowing design. Standard features includes push button start, power windows with one-touch auto up/down, etc.

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Nissan Micr a

It has been developed on the new V (versatile) Nissan platform keeping the Indian consumers needs in mind and is yet a global car. The engine comes with a 5-speed manual transmission that makes the car easy to drive and control. It is Nissans 2nd offering to the Indian market. Notable comfort and convenience features include drive computer, comfy leather upholstery, intelligent key system, and a premium 6-speaker 6disc CD changer audio system. A stunning SUV with amazing off-road capability and awesome power suited for Indian roads. Executive sedansized seats with plenty of cabin space and a twodesk luggage compartment make the ride comfortable and convenient.

Nissan Tea na

Nissan XTrail

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Renault

French automaker Renault has slated an aggressive outlook since its break up of ties with homegrown SUV maker Mahindra in India. On May 23, 2011, it launched the flagship sedan Renault Fluence in India and has slated to launch four more cars until 2012 end. The Renault Koleos, an SUV is the second offering by the carmaker in India. Koleos, a seemingly full-grown SUV is a blend of power delivery, driving pleasure and style. Its relentless 4x4 capabilities are able to take on any terrain. Stunning exteriors and inspiringly comfortable and exceptionally silent interiors is what Renault Koleos promises. French carmaker Renault SA aims to make India the exclusive manufacturing and export hub of its right-hand sport utility vehicle (SUV) Duster, according to people close to the development. Renault plans to launch the low-cost SUV in India, Asia's third-biggest automobile market, by the middle of next year. "India will be the exclusive manufacturing hub for all the right hand drive markets for Duster, including UK," one of the people involved in the project said on condition of anonymity. This will make Renault the first foreign carmaker to use India as an export base for SUVs. Automakers such as Suzuki Motor and Hyundai use their Indian plants for export of small cars. Renault plans to export Duster to the UK under the Dacia badge by the end of 2012, people involved in the project said, adding, that South Africa could be the next export destination, although the plan was not yet final. Conceptualized essentially for the Indian market, Duster is likely to be introduced in a price band of 810 lakh to take on market leader Mahindra & Mahindra's Scorpio

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Renault Laguna

Renault Sandero

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PART II:
Analysis between the products of top 5 Automobile brands available in India

Like most other markets, much of the excitement in India is in the passenger vehicle segment. Robust growth in middle class income levels and easier credit availability has sustained demand growth for passenger cars. Most major global manufacturers are already present in the country, while some of the domestic manufacturers are entering overseas markets. Despite increased competition, Maruti Suzuki, which is now majority owned by Suzuki Motor Corp, remains the market leader in India with a share of over 45%. Its strength lies in its wide range of small car models, which form the bulk of the Indian car market. Maruti Suzuki also has the largest dealer network and its annual manufacturing capacity is now over 1 million vehicles. Korean firm Hyundai and domestic major Tata Motors have been in a tight race for the second and third places for a while now. Hyundai is now marginally ahead with a market share of 14% as compared to over 12% for Tata Motors. Small hatchbacks dominate Hyundais model line-up and the firm has built up a strong brand reputation over the last several years. Tata Motors has a wider product range, from SUVs to the worlds cheapest car, the Nano. Tata products are positioned as value-for-money and run predominantly on diesel, which is nearly a third less expensive than gasoline in India because of government subsidies. The firm also jointly owns an assembly line with European carmaker Fiat and markets Fiat cars in India. Mahindra & Mahindra, another large local manufacturer, derives the bulk of its sales from the SUV segment where it is the market leader. The firm recently bought out European manufacturer Renault in a passenger car joint venture, which has not performed well. Several global manufacturers have struggled in India, though they have been present in the
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market for more than a decade. General Motors has seen a revival over the last year, after the firm launched low-priced hatchbacks under the Chevrolet brand. GM also sells small sedans and SUVs, but volumes remain very low. The firm sold half of its Indian operations to Chinese Automaker SAIC Group last year, and the joint venture is planning to introduce utility vehicles, besides passenger cars. Ford has been more successful in the small sedan segment in India. The company has gained make share recently after the launch of a competitively priced small hatchback from its assembly line and engine plant near Chennai, in south India. Though their product offerings in the Indian market are limited, Japanese manufacturers Toyota and Honda enjoy leadership in their segments. Honda is a clear leader in the mid-sized sedan category, while Toyota sells the most minivans. In a bid to expand their market share, both firms are expected to launch small hatchbacks and sedans shortly. Among European manufacturers, Skoda Auto, the Czech subsidiary of Volkswagen, has built a relatively good position in the mid-sized sedan market. Volkswagen itself has been a recent entrant in the Indian market and has expanded its product range by launching a small hatchback and a mid-sized sedan. Fiats record in India has been patchy and it now relies on the Tata Motors dealer network to sell its products. While its venture with Mahindra has not been successful, French automaker Renault has opened a large assembly line, jointly owned by its Japanese associate Nissan. The Renault-Nissan alliance is expected to launch several models in the near future, with Nissan focusing more on the small car segment. Luxury passenger cars have seen excellent demand growth, especially in recent years. However, the luxury segment now accounts for only about a percent of the total passenger vehicle market. Mercedes Benz and BMW have almost identical market shares while Audi has made rapid gains over the last year. All three manufacturers assemble cars in India from imported kits, which attract high import taxes, and hence product prices are higher than other markets. Jaguar and Land Rover, now owned by Tata Motors, are gradually expanding their dealerships in the country.

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MARUTI UDYOG: The Undisputed Market Leader

Type Public Traded as BSE: 532500 NSE: MARUTI Industry Automotive Founded 1981 (as Maruti Udyog Limited) Headquarters New Delhi, India Mr. Shinzo Nakanishi, Managing Director and CEO Products Automobiles Revenue 37,522.4 crore (US$8.37 billion) (2010-2011) Net income 2,288.6 crore (US$510.36 million) (2010-2011) Employees 6,903 Parent Suzuki Motor Corporation Website MarutiSuzuki.com

Profile

The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it

'To Munsiyari on a Maruti 800', Uttarakhand Himalayas

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Maruti Suzuki plant in Manesar

Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts.

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Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model ("Maruti" is another name of the Hindu god, Hanuman). Maruti Suzuki has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 14 models, 1. Alto 2. WagonR 3. Estilo 4. A-star 5. Ritz 6. Swift 7. Swift DZire 8. SX4 9. Omni 10. Grand Vitara 11. Kizashi Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.
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Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.

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HYUNDAI: The Korean Giants

Hyundai is a group of companies, part of the Korean chaebol that was founded in South Korea by one of the most famous businessmen in Korean history: Chung Ju-yung. The first Hyundai Company was founded in 1947 as a construction company. Two of the best-known Hyundai divisions are Hyundai Motor Company, the world's fourth largest automobile manufacturer by volume as of January 2011, and Hyundai Heavy Industries, the world's largest shipbuilder. Other companies currently or formerly controlled by members of Chung's extended family may be loosely referred to as a part of the Hyundai chaebol. In 1998 Hyundai bought Kia Motors, the oldest South Korean car company which had to file for bankruptcy due to the 1997 Asian financial crisis. Kia is (as of 2011) somewhat independent of Hyundai motors, as Hyundai no longer owns an outright majority of Kia shares. Hyundai Group underwent a massive restructuring following the 1997 East Asian financial crisis and Chung Ju-yung's death in 2001. Chung was the CEO and directly in control of the company until the end of his life. Today many companies bearing the name Hyundai are not part of or legally connected to the Hyundai Group. These companies include Hyundai Kia Automotive Group, Hyundai Department Store Group, Hyundai Heavy Industries Group, and Hyundai Development Group. However, all of the named companies are run by Chung's sons or their heirs. Following the break-up, Hyundai Group's business was reduced to manufacturing of elevators, container shipping services, and tourism. If Hyundai is considered as a family business, then it remains the single largest company in South Korea and it appears to wield enormous economic and political power in the country. The current president of South Korea, Lee Myung-bak, was a former CEO of Hyundai Construction.

Hyundai Automobiles
Hyundai branded vehicles are manufactured by Hyundai Motor Company, which along with Kia comprises the Hyundai KIA Automotive Group. Headquartered in Seoul, South Korea, Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, which is capable of producing 1.6 million units annually. Hyundai vehicles are sold in 193 countries through

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some 6,000 dealerships and showrooms worldwide. In 2010, Hyundai sold over 1.7 million vehicles worldwide.

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TATA MOTORS: The Indian Thoroughbred

Tata Motors Limited is a multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors is Indias largest automobile company, with consolidated net profit of 9,274 crore (US$2.07 billion) in 201011. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 50,000 workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4 million vehicles in India. Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005, was ranked among the top 10 corporations in India with an annual revenue exceeding INR320 billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa and Thailand.

History
Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy.

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MAHINDRA AND MAHINDRA: The SUV King

History
Mahindra & Mahindra was set up as a steel trading company in 1945. It soon expanded into manufacturing general-purpose utility vehicles, starting with assembly under license of the iconic Willys Jeep in India. Soon established as the Jeep manufacturers of India, M&M later branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in the utility vehicle segment in India with its flagship UV Scorpio and enjoys a growing global market presence in both the automotive and tractor businesses. Over the past few years, M&M has expanded into new industries and geographies. They entered into the twowheeler segment by taking over Kinetic Motors in India. M&M also has controlling stake in REVA Electric Car Company and acquired South Korea's Ssang Yong Motor Company in 2011. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.

Automotive

Mahindra Scorpio

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Mahindra & Mahindra is a major automobile manufacturer of utility vehicles, passenger cars, pickups, commercial vehicles, and two wheelers. Its tractors are sold on six continents It has acquired plants in China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA. M&M has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. M&M made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra Renault joint venture. M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA. M&M's automotive division makes a wide range of vehicles including MUVs, LCVs and three wheelers. It offers over 20 models including new generation multi-utility vehicles like the Scorpio and the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build passenger cars. At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive product expansion program that would see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbo diesel engine. True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 units. Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pick Ups in single and double cab pick-up body styles as well as SUVs. Mahindra & Mahindra has controlling stakes in Reva electric and has submitted letter of Intent for South Korea's Ssangyong Mahindra plans to sell the diesel SUVs and pickup trucks starting in late 2010 in North America through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia. Mahindra announced it will import pickup trucks from India in knockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the U.S. from kits of parts shipped in crates. On 18 October 2010, however, it was reported that Mahindra had indefinitely delayed the launch of vehicles into the North American market, citing legal issues between it and Global Vehicles after Mahindra retracted its contract with Global Vehicles earlier in 2010, due to a decision to sell the vehicles directly to consumers instead of through Global Vehicles. However, a November 2010 report quoted John Perez, the CEO of Global Vehicles USA, as estimating that he expects Mahindras small diesel pickups to go on sale in the U.S. by spring 2011, although legal
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complications remain, and Perez, while hopeful, admits that arbitration could take more than a year. Later reports suggest that the delays may be due to a Mahindra scrapping the original model of the truck and replacing it with an upgraded one before selling them to Americans. In 2010, India's Mahindra & Mahindra Limited was named as the preferred bidder to acquire the bankruptcy-protected Ssang Yong Motor Company. Mahindra is expected to gain a controlling stake in the company by March 2011 and the planned acquisition has been approved by South Korea's Free Trade Commission.

Farm Equipment
M&M is one of the leading tractor brands in the world by volume. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures, and markets tractors as well as farm implements. Mahindra Tractors China Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products for the American market.

Models
Mahindra MM540DP Mahindra MM550DP Mahindra Armada Mahindra Commander Mahindra Marshal Mahindra Major Mahindra Legend Mahindra Thar Mahindra Invader Mahindra Bolero Mahindra Xylo Mahindra Scorpio Mahindra Verito

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Volkswagen Vento

Vs

Honda City

Vs

Maruti SX4

Vs

Hyundai Verna Fluidic

Volkswagen Vento

Honda City

Maruti SX4

Hyundai Verna Fluidic

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Engine Comparison Of Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
On the engine front, Maruti SX4 comes with a Petrol, Petrol + CNG, and a Diesel Engine option. The Honda City comes with a petrol engine only. Volkswagen Vento comes with one Diesel and one Petrol Engine options, whereas the Hyundais latest offering Verna Fluidic features two Petrol and two Diesel engine options. Honda City Engine Option

Honda City 1.5 Litre Petrol Engine

Engine Type- 1.5 Litre 4 Cylinder SOHC Petrol Engine with I-VTEC (VVTI) Technology Max Power- 116.3 BHP @ 6600 RPM Max Torque 146 Nm @ 4800 RPM Transmission Options 5 Speed Manual Transmission Or 5 Speed Automatic Transmission Option Maruti SX4 Engine Options

Maruti SX4 1.6 Litre Petrol Engine

Engine Type- 1.6 Litre 4 Cylinder DOHC Petrol Engine VVTI Technology Max Power- 103.3 BHP @ 5600 RPM Max Torque 145 Nm @ 4100 RPM Transmission Options 5 Speed Manual Transmission Or 4 Speed Automatic Transmission Option

Maruti SX4 1.3 Diesel Petrol Engine

Engine Type- 1.3 Litre 4 Cylinder DOHC DDiS Multi-jet Diesel Engine Max Power- 88.8 BHP @ 4000 RPM Max Torque 200 Nm @ 1750 RPM Transmission Options 5 Speed Manual Transmissions Only Volkswagen Vento Engine Options

Volkswagen Vento 1.6 Litre Petrol Engine

Engine Type- 1.6 Litre 4 Cylinder DOHC Petrol Engine Max Power- 103.6 BHP @ 5250 RPM Max Torque 153 Nm @ 3800 RPM
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Transmission Options 5 Speed Manual Transmission Or 6 Speed Triptronic Automatic Transmission Option

Volkswagen Vento 1.6 Litre Diesel Engine

Engine Type- 1.6 Litre 4 Cylinder DOHC CRDI Diesel Engine Max Power- 103.6 BHP @ 4400 RPM Max Torque 250 Nm @ 1500-2000 RPM Transmission Options 5 Speed Manual Transmission Only Hyundai Verna Fluidic 2011 Engine Options

Hyundai Verna Fluidic 1.4 Litre Petrol Engine

Engine Type- 1.4 Litre 4 Cylinder MPFI Petrol Engine with VVTI Max Power- 105.5 BHP @ 6300 RPM Max Torque 135.4 Nm @ 5000 RPM Transmission Options 5 Speed Manual Transmission Only

Hyundai Verna Fluidic 1.6 Litre Petrol Engine

Engine Type- 1.6 Litre 4 Cylinder MPFI Petrol Engine with VVTI Max Power- 121.4 BHP @ 6300 RPM Max Torque 155 Nm @ 4200 RPM Transmission Options 5 Speed Manual Transmission Or 4 Speed Automatic Transmission Option

Hyundai Verna Fluidic 1.4 Litre Diesel Engine

Engine Type- 1.4 Litre 4 Cylinder CRDI Diesel Engine Max Power- 88.8 BHP @ 4000 RPM Max Torque 220 Nm @ 1750-2750 RPM Transmission Options 6 Speed Manual Transmission Only

Hyundai Verna Fluidic 1.6 Litre Diesel Engine

Engine Type- 1.6 Litre 4 Cylinder CRDI Diesel Engine with Variable Geometry Turbocharger Max Power- 126.3 BHP @ 4000 RPM Max Torque 260 Nm @ 1900-2750 RPM Transmission Options 6 Speed Manual Transmission Or 4 Speed Automatic Transmission Option
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Best Petrol Engine among Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
Comparing the petrol engine cars, the most power engine in this category is the Hyundai Verna Fluidic 1.6 Litre Petrol option with 121.4 BHP of max power while the Honda City with a smaller 1.5 Litre engine produces 116.3 BHP of power. But the point worth noting is that Maruti SX4 and Volkswagen Vento Petrol engines provide peak power at lower RPMs compared to the City and Verna, this means at lower RPMs, the power delivery will not be strikingly different, but once you push the accelerator pedal hard, Verna will take the lead. Verna also leads in torque marginally than the Vento Petrol followed by Honda City and SX4 with nearly same torque ratings. So if you want a peppy and powerful petrol engine which is fun to drive, our first choice will be Verna 1.6 Litre petrol followed by Vento because of its balanced power and torque ratings. City comes very close to Vento as it churns out more power but lesser torque.

Best Petrol Engine among Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
Comparing diesel engines, Honda city moves out of the league as there is no diesel options available in India as yet, however a Honda City Diesel version will be available by 2013, but thats too far away from now in 2011. The best diesel options come out to be Hyundai Verna Fluidic 1.6 with a max power and torque rating of 125.3 BHP and 260 Nm respectively. The next best options is Vento 1.6 Diesel with 103.6 BHP Power and 250 Nm torque. The specifications of these two engines make them highly competent with the petrol counterparts as diesel engines have always been believed to be powered lower than comparable petrol variants, however the Verna 1.6 diesel with the VGT provides even more power than the Verna 1.6 Petrol, which is a really commendable output. Also mated with a 6 speed manual transmission, it gives a wide choice of gear selection for optimum performance. So if I have to pick a diesel sedan based on performance, I would go for Verna Fluidic 1.6 Diesel.

Mileage Comparison Of Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
ARAI Certified mileage of these cars with various engines is as follows: Honda City with 1.5 Petrol Engine with manual transmission mileage is 16.7 KMPL Honda City with 1.5 Petrol Engine with automatic transmission mileage is 15.5 KMPL Maruti SX4 with 1.6 Petrol Engine with manual transmission mileage is 15.6 KMPL Maruti SX4 with 1.6 Petrol Engine with automatic transmission mileage is 15.5 KMPL Maruti SX4 with 1.3 Diesel Engine with manual transmission mileage is 21.5 KMPL
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 Volkswagen Vento 1.6 Litre Petrol with manual transmission mileage is 15.8 KMPL Volkswagen Vento 1.6 Litre Petrol with automatic transmission mileage is 14.4 KMPL Volkswagen Vento 1.6 Litre Diesel with manual transmission mileage is 20.5 KMPL Hyundai Verna Fluidic 1.4 Litre Petrol with manual transmission mileage is 17.43 KMPL Hyundai Verna Fluidic 1.6 Litre Petrol with manual transmission mileage is17.01 KMPL Hyundai Verna Fluidic 1.6 Litre Petrol with automatic transmission mileage is- Data Not Available (expected to be around 16 KMPL) Hyundai Verna Fluidic 1.4 Litre diesel with manual transmission mileage is 23.5 KMPL Hyundai Verna Fluidic 1.6 Litre diesel with manual transmission mileage is 22.32 KMPL Hyundai Verna Fluidic 1.6 Litre diesel with automatic transmission mileage is Data Not Available (expected to be around 21 KMPL)

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Price Comparison of Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
Price of Honda City Petrol 1.5 manual transmission is between Rs. 8.15 Lakhs to Rs. 9.6 Lakhs Ex-showroom Delhi Price of Honda City Petrol 1.5 automatic transmission is between Rs. 9.82 Lakhs to Rs. 10.33 Lakhs Ex-showroom Delhi Price Of Maruti SX4 Petrol 1.6 manual transmission is between Rs. 7 Lakhs to Rs. 8.09 Lakhs Exshowroom Delhi Price Of Maruti SX4 Petrol 1.6 automatic transmission is between Rs. 8.41 Lakhs to Rs. 8.75 Lakhs Ex-showroom Delhi Price Of Maruti SX4 Diesel 1.3 manual transmission is between Rs. 7.79 Lakhs to Rs. 9.01 Lakhs Ex-showroom Delhi Price Of Volkswagen Vento 1.6 Petrol with manual transmission is between Rs. 6.99 Lakhs to Rs. 8.23 Lakhs Ex-showroom Delhi Price Of Volkswagen Vento 1.6 Petrol with automatic transmission is Rs. 9.22 Lakhs Exshowroom Delhi Price Of Volkswagen Vento 1.6 Diesel with manual transmission is between Rs. 7.99 Lakhs to Rs. 9.23 Lakhs Ex-showroom Delhi Price of Hyundai Verna Fluidic 1.4 Petrol with manual transmission is Rs. 6.99 Lakhs Exshowroom Delhi Price of Hyundai Verna Fluidic 1.6 Petrol with manual transmission is between Rs. 7.64 Lakhs to Rs. 9.65 Lakhs Ex-showroom Delhi Price of Hyundai Verna Fluidic 1.6 Petrol with automatic transmission is Rs. 9.65 Lakhs Exshowroom Delhi Price of Hyundai Verna Fluidic 1.4 Diesel with manual transmission is Rs. 8.09 Lakhs Exshowroom Delhi Price of Hyundai Verna Fluidic 1.6 Diesel with manual transmission is between Rs. 8.74 Lakhs to Rs. 10.04 Lakhs Ex-showroom Delhi Price of Hyundai Verna Fluidic 1.6 Diesel with automatic transmission is Rs. 10.74 Lakhs Exshowroom Delhi

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Features Comparison Of Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
All these cars come with basic comfort features like power steering and air conditioning, so in this section we will focus on comparing the important or unique comfort and safety features offered by these cars.

Comfort Features comparison among Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
Automatic Climate Control
Maruti SX4 provides climate control in the high end ZXi and Zdi variants. Volkswagen Vento also has climate control in the Highline high end variants. Honda City does not have Climate Control even on the top end variant of the City. Hyundai Verna Fluidic offers Automatic climate control in all of 1.6 Litre engine options in both petrol as well as diesel. Along with it, the Verna has first in segment Cluster ionizer for purifying air of any odour. There are some features offered by Hyundai Verna Fluidic which are first in segment and are not offered by other three cars. From convenience perspective, these features are: Smart Key with engine start stop button Rear parking sensors Bluetooth connectivity with phone with controls on steering Integrated display of in the rear view camera in inside rear view mirror Electrically foldable outside mirrors

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Best Choice Among Honda City Vs Volkswagen Vento Vs Hyundai Verna Fluidic Vs Maruti SX4
Considering various factors like engine performance, safety features, price, and convenience features of these cars, we can come out with the following choices: Best Performance Car
If you are looking for performance, features and style and not worried about spending some extra bucks, you can go for the Hyundai Verna 1.6 Diesel automatic. Along with the performance, it comes with 6 airbags for safety, rear disk brakes and comes at a price of 10.74 Lakhs ex-showroom Delhi. Our second choice will be Honda City with manual or auto transmission depending on your needs for a manual or auto.

Best Value For Money Car

If you want best value for your money, you can get either a Hyundai Verna 1.4 Petrol with a price tag of Rs. 6.99 lakhs and mileage of 17.43 KMPL. You can also go for Maruti SX4 1.6 Petrol with manual transmission which also comes at Rs. 7 Lakhs and offers a decent mileage of 15.6 KMPL along with high riding position and ground clearance. I would recommend you to go for Maruti if you want to sell it in less than 5 years as the re-sale value of Maruti cars is better compared to other brands.

Safest Car
As far as safety is concerned, the Hyundai Verna top end variants come loaded with 6 airbags and all four disk brakes, which is our first choice on safety. The second place will be a tie between the City and Vento as City features G-Con design elements to distribute the crash impact in a safe manner as well as comes with ABS dual airbags as standard on all variants, which is really appreciable, but at the same time comes at a price premium compared to the price of base variant of all the competing cars we are comparing here.

Best Fuel Economy Car

If we talk of the fuel economy, the 1.4 Litre Diesel engine of Hyundai Verna with 6 speed manual transmission delivers a jaw-dropping 23.5 KMPL of mileage as per ARAI test data. It cines at 8.09 Lakhs ex-showroom price, is one of the most frugal sedans in this segment. But from safety perspective, I would suggest you to spend extra (Rs. 8.87 lakhs for 1.6 Diesel) bucks to get a 1.6 Litre diesel with slightly lower mileage but added safety like ABS, airbags, rear disk brakes etc., because money is not more precious than life. Second best options will be Maruti SX4 Diesel with an amazing 21.5 KMPL mileage.

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