INDUSTRY PROFILE
AUTOMOBILE INDUSTRY
Automobile Industry, industry that produces automobiles and other gasoline-powered vehicles, such as buses, trucks, and motorcycles. The automobile industry is one of the most important industries in the world, affecting not only the economy but also the cultures of the world. It provides jobs for millions of people, generates billions of dollars in worldwide revenues, and provides the basis for a multitude of related service and support industries. Automobiles revolutionized transportation in the 20th century, changing forever the way people live, travel, and do business.
The automobile has enabled people to travel and transport goods farther and faster, and has opened wider market areas for business and commerce. The auto industry has also reduced the overall cost of transportation by using methods such as mass production (making several products at once, rather than one at a time), mass marketing (selling products nationally rather than locally), and globalization of production (assembling products with parts made worldwide). Between 1886 and 1898, about 300 automobiles were built, but there was no real established industry. A century later, with automakers and auto buyers expanding globally, auto making became the world's largest manufacturing activity, with nearly 58 million new vehicles built each year worldwide.
As a result of easier and faster transportation, the United States and world economies have become dependent on the mobility that automobiles, trucks, and buses provide. This mobility allowed remote populations to interact with one another, which increased commerce. The transportation of goods to consumers and consumers to goods has become an industry in itself. The automobile has also brought related problems, such as air pollution, congested traffic, and highway fatalities. Nevertheless, the automobile industry continues to be an important source of employment and transportation for millions of people worldwide.
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 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 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 2003-04.
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 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 of Automobiles in India
* Maruti Udyog Ltd.
* General Motors India
* Ford India Ltd.
* Eicher Motors
* Bajaj Auto
* Daewoo Motors India
* Hero Motors
* Hindustan Motors
* Hyundai Motor India Ltd.
* Royal Enfield Motors
* Telco
* TVS Motors
* DC Designs
* 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 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.
COMPANY PROFILE
ABOUT HYUNDAI MOTORS INDIA LIMITED
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 25 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata in the E segment and the Terracan in the SUV segment.
The company recorded combined sales of 215,630 cars during the calendar year 2004 with a growth of 43% over year 2003. HMIL is India's fastest growing car company having rolled-out over 700,000 cars in just over 70 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,700 crores. HMIL has recorded a staggering growth of 149% in exports over the year 2003.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 150,000 units per annum, raising HMIL's total production capacity to 400,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment of $450-$500 million on its new integrated facility. HMIL is investing to expand capacity in line with its positioning as HMC's global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the company's greater focus on the quality of its after-sales service, HMIL's service network will be expanded to over 1,000 in 2005.
ABOUT HYUNDAI MOTOR COMPANY
The parent company of HMIL is the Korean Car giant Hyundai Motor Company (HMC), a part of the Hyundai Motor Group comprising Hyundai Motor Company, Kia Motors, Hyundai Mobis and other affiliated companies, with a combined turnover of over US$ 50 Billion. The Hyundai Motor Group with a presence in over 185 countries and with a combined annual sale of over 3 million units is one of the fastest growing auto manufacturers in the world.
Hyundai Motor and its sister concern Kia Motor achieved global sales of over 3.16 million cars worldwide in 2004. The target for 2005 is an ambitious 3.7 million vehicles.
HYUNDAI'S FULLY INTEGRATED MANUFACTURING CAPABILITIES
The Press Shop
A computer controlled line that converts sheet metal to body panels of high dimensional accuracy and consistency.
The Body Shop
A hi-tech line that builds full body shells from panels. Automated robotic arms are used for intricate welding operations that ensure superior and consistent build quality.
The Paint Shop
This is one of the most modern paint shops in the country and uses the environment friendly water based process for superior and lasting exteriors. A unique process management system followed here helps us deliver the most extensive colour range, independent of minimum batch requirements, helping customers get their preferred colour anytime.
The Aluminium foundry
Forges the engine cylinder blocks for our cars to exacting design specifications.
The Engine and Transmission Shop
One of the biggest engine shops in the country, this unit is equipped with the most modern tooling and testing facilities to make a wide range of engines in house.
The Plastic Extrusion Unit
Moulds the dashes, bumpers and other plastic components to perfect fit and finish.
The Plastic Paint Shop
One of the very few manufacturing units in India to have this facility in-house, Hyundai's plastic paint shop delivers a high grade finish on exterior plastic components.
The Test Track
With comprehensive performance testing facilities like rattle testing and ABS brake testing; this track is designed to meet pre-delivery (PDI) certification standards to exacting Euro specifications.
R&D FACILITIES
Hyundai and Kia together have R&D centres in the United States, Europe, and Japan apart from the global R&D headquarters at Ulsan, Korea.
The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$ 2 Billion, up from US$ 1.2 Billion to enhance its thrust on new product development and achieve global quality benchmarks by year 2005. This includes the $30 Mn Hyundai-Kia Design and Technical Center in Irvive, California.
ENVIRONMENT MANAGEMENT
Hyundai Motor India has been awarded the benchmark ISO 14001 certification for its sustainable environment management practices. Living up to its commitment of providing global standards of qualityand process management in India, Hyundai had put in place an Environment Management System (EMS) at its manufacturing plant in Chennai right from its project stage. The certification process was completed in a record time of 10 months with 'Zero NCRs'. The assessment was done by TUV SUDDEUTSCHLAND and covered areas like Awareness Training, Technology Upgradation, Recycling, Waste Management and fulfilling Government Regulations.
HMI is also working on a backward integration strategy that will support vendors of the company in implementing EMS.
Hyundai Motor Company, S.Korea, the parent of HMI, has been doing considerable work on sustainable Environment Management. The company has a well-defined framework in place for developing products that reduce pollutant emissions and processes for preservation of natural resources and energy along all the stages of the product lifecycle from production, sales, and use to disposal. The company has also been in the forefront of development of environment friendly technologies like Hybrid Electric Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001 certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.
SOCIAL RESPONSIBILITY
Hyundai, as a responsible corporate citizen is committed to sustainable social development and the preservation of the environment. All the company's key manufacturing units, including the Indian plant has the ISO 14001 certification for its Environment management practices. As a part of its social responsibility programs, the company conducts various campaigns to spread awareness of in-car safety and safe driving practices, particularly targeted against drunken driving, speeding, etc.
As a part of its community development projects, the company has adopted a few villages around its factory in Tamilnadu and has been working towards the social and economic development of these villages, assisting them in the areas of primary health care, education, basic amenities and employment opportunities.
