ACKNOWLEDGEMENT

After successfully completion of marketing research program, I am in the position to

offer my sincere gratitude to all.

First I would like to extend my special thanks to my management of DR.K.N.M.I.E.T, for

giving me the opportunity to do the Marketing Research program.

I am also very grateful to my project guide MR.UMESH SISHODIA whose

experience; guidance & support helped me in the successful completion of the project.

I am grateful to him for his keen interest, valuable suggestion and encouragement in the

endeavor.

I am also thankful to all the respondents & other persons who gave us their valuable

cooperation & also to those who directly or indirectly helped me during the project.

Without the help of all these respectable people, I would not have been able to undertake

this project successfully.

ANKIT KANSAL

B.B.A.

STUDENT DECLARATION -

I am ANKIT KANSAL student of BBA here by declares that the project report titled “COMPARATIVE ADVANTAGES OF HYUNDAI OVER HONDA CITY” is completed and submitted under the guidance of “MR.UMESH SISHODIA (Marketing Dept., K.N.M.I.E.T.),” is my original work.

The imperial findings in this report are based on the data collected by me. This project has not been submitted to C.C.S.University, Meerut or any other university for the purpose of compliance of any requirement of any examination or degree.

ANKIT KANSALB.B.A.

1

PREFACE

The motive behind this project is to know the retail marketing strategy adopted by the

companies in the market. I researched about companies’. In this project I analyze these

strategy and done the survey and give some recommendation and their benefits to

increase their effectiveness.

I dedicate this Project Report to my loving family, who gives me inspiration to do hard

work in the life.

This project report highlights the company profile, their group of companies, and survey

about the strategy.

I am surveying the different market and residential areas in Delhi. There we find out the

consumer awareness about the Network Marketing

2

HISTORY -

ABOUT HONDA SIEL CARS INDIA LTD. (HSCI)

HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd.

(India) being the key promoters. The company figures among the top players in the

Indian premium and luxury car market.

HSCI started commercial production in December 1997 with its indigenous level at over

50%, which has been raised progressively and is currently over 72%.

Honda Siel introduced the Honda City car, an extremely successful engineering marvel,

in India in December 1997. In August 2000, Honda Siel added to the line-up by

introducing the Honda City VTEC.

The internationally successful Honda Accord was launched in July 2001. The company

introduced its latest version, the all-new Seventh Generation Honda Accord, in July 2003.

Simultaneously, the company also introduced CR-V, offering a unique combination of

'sedan and SUV', thus creating a new segment in the Indian car industry.

HONDA AND TECHNOLOGY

Honda has always believed in giving more excitement and more joy. Be it designing high

performance sports cars that are a pleasure to behold and a joy to drive or creating the

world's first humanoid robot to walk on two legs or countless other technologies that

astonish and delight Honda's spirit of exploration frequently invents the future.

Not surprisingly, millions of people worldwide often respond to Honda's spirit of

innovation with a sense of delight and amazement. Honda's obsession for technology that

continuously improves upon the performance and safety of all Honda vehicles is what

sets it apart from other names in the car industry.

In the year 2003, Honda has delivered products with cutting edge technologies and

breathtaking new designs. And set a new standard of world-class service that will

astonish and delight. In the years to come, Honda will surpass your highest expectations

3

and provide an experience that goes beyond belief. So don't be surprised if you hear

someone say "What a Honda!" It may be you.

READ IN DETAIL ABOUT HONDA'S INNOVATIONS -

Engines

FIT

NSX & S-2000

FCX

Dolphin

Dream

J-VX Hybrid

CR-V LAUNCH -

Our effort will be to provide Honda’s world-class products and services to our current

and

Take a closer look at the stylish new CR-V.

4

potential customers in the city.

The company has recently pioneered a new segment in the Indian automobile industry

with the launch of Honda CR-V, which offers its customers a distinctive combination of

‘the comfort of a Sedan with the thrills of an SUV.’

Powered by a 2.0 litre, all new I-VTEC engine and Honda’s exclusive real time 4-wheel

drive, CR-V feels at ease in any driving conditions. The CR-V exceeds the world’s

toughest safety standards for frontal, offset, side and rear-end collisions as well as roll-

over accidents. The vehicle would be available at all exclusive Honda dealerships, across

the country, from July 2003 onwards, at an approximate price of Rs. 15 lakh (ex-

showroom Delhi).

TWO SHIFT OPERATION -

The Honda Siel Cars India Ltd. (HSCI) plant - located at Greater Noida - has an

installed capacity of manufacturing 30,000 units in a year. HSCI has started two shift

operations since November 17, 2003 with the target of manufacturing 12,000 units of its

new City model and 2,100 units of its new Accord model.

5

EMPLOYMENT -

As a result of the two-shift operation and three launches this fiscal (year 2003), HSCI

now employs around 1,362 employees - which is a significant increase from the earlier

number of 900.

INVESTMENT -

The total investment envisaged in this project is about Rs. 850 crores in a span of 5-7

years, out of which Rs. 450 crores have already been invested. The authorized and paid-

up equity capital of the company is Rs. 360 crores.

SALES -

The sales record in the past has been good.

The company sold 9631 units of Honda City in 1998-99, 9698 units in 1999-2000, 10011

units in 2000-2001 and 10,920 cars in 2001-02. By the end of the financial year 2002-03,

the cumulative sales achieved by the company during the year have also jumped to

13,300 units, showing an impressive growth of 21.79 per cent over the corresponding

period in the previous fiscal.

All three Honda products have been well accepted in the market. Since the launch of the

7th generation Accord in July 2003, we have sold 861 units till October 2003. It still has

a waiting period of 4 weeks in the market. The CR-V has also been doing very well in the

market and we have delivered about 400 CR-Vs till October 2003, since its launch. The

CR-V too has a waiting period of 4-5 weeks in the market. The latest Honda launch in

this fiscal - the new City - has sold 813 units within 2 days from its launch on October 30,

2003. It now has a waiting period of 4-6 weeks.

6

FOUNDERS -

The history of the Honda Motor Company began with the vision of one man - Soichiro

Honda. His dream was personal mobility for everyone.

Soichiro Honda founded the Honda Motor Company in 1948. In the same year, he

designed and engineered the first product of this company - a 50 cc motorized bike on a

bicycle frame - in his small shed at Hamamatsu. Today, as we celebrate our 50th

Anniversary, Honda is a global company with a global viewpoint and a five-region global

strategy that is reflected in a solid commitment to local markets and economies.

CHALLENGING THE LIMITS -

'Challenging the Limits' is a phrase commonly heard across the length and breadth of

Honda. It was made popular by its founder, Soichiro Honda, who knew that his fledgling

company had to out-think and out-perform its competitors every step of the way in order

to survive. After all, he started out at a time when his country was devastated by war.

HONDA'S GLOBAL VISION -

Soichiro's vision was international in character. His desire was to lead the world in

technology, and make a significant contribution to the creation of a better society. As a

result, most of the products that Honda developed started out by making a difference.

Whether it was the CVCC engine in the sixties or the solar powered car of the nineties,

they all sought to challenge and overcome conventional wisdom.

WORLD'S TOUGHEST TRAINING TRACKS -

7

No story of Honda is complete without the mention of motor sports. Honda started

participating in racing at the highest level much before it found international acclaim as a

manufacturer. Once again, it was Soichiro Honda who was the driving force. He

considered the highly competitive world of motor sports as the ideal training ground for

his people. Through racing, Honda engineers learnt to accomplish more than they ever

dreamed possible within limited amounts of time. They become quicker at responding to

the technological challenges that arise in the commercial world.

Honda's belief in the benefits of racing is sincere and unwavering. The company has

invested millions of dollars in building two world-class racing circuits. The Suzuka

opened its gates in September 1962. Located in northern Japan, it has become an integral

part of the Grand Prix calendar. The Twin Ring Motegi, on the other hand, is a racing

circuit for fans. Inaugurated in August 1997, it offers an oval-shaped Super Speedway, an

Active Safety Training Park and the extremely popular Honda automobile museum.

INNOVATION EVERYWHERE -

Honda is already, and literally, making big strides in the development of the world's first

humanoid robot. Christened ASIMO, it is designed on the presumption that if a robot

could walk like a human, it may be able to work like one. Honda is also taking to the

skies with its very own aircraft technology. It took a 30-man team only six years to

develop a prototype. Typical of Honda, the project leader was not quite 30 years of age

when the experimental aircraft was first unveiled in 1993. Together, these diverse ideas

prove the one central maxim that is dear to everyone at Honda - Challenging the Limits.

8

RESEARCH AND DEVELOPMENT -

The true value of R&D lies in the

exploration of uncharted territory.

Honda believes in approaching new challenges without fear of failure.

We believe in setting the bar high and then finding a way to get over it.

It is this spirit that gives rise to our innovative products and technologies.

Honda’s Driving Force: The Research Lab

Honda has brought the world a myriad of leading-edge technologies, such as the CVCC

(Compound Vortex Controlled Combustion), the first automobile engine to meet US

Clean Air Act requirements. More recently, we led the world in bringing to market a fuel

cell vehicle, the FCX.

Our ongoing efforts in research and development play a central role in helping us to

create original, innovative products that meet both the expectations of our customers and

the needs of society. The Wako Research Center focuses on fundamental research in such

fields as electronics, biotechnology and new materials. Four facilities share the initiative

in developing new products for tomorrow, with a focus on increased durability,

reliability, and performance. The Asaka R&D Center handles motorcycle R&D; the

9

Wako R&D Center is primarily responsible for automotive design development; the

Tochigi R&D Center handles automobile R&D; and the Asaka Higashi R&D Center

oversees power product R&D.

DEVELOPING LOCAL MODELS-LOCALLY -

Honda’s R&D operations in Japan form the hub for R&D activities at major regional

centers around the globe, where products are developed in a timely way to meet local

needs. The MDX and Element, for example, were originally developed for North

America, then later introduced to Japan. Built in Thailand, the City was first developed

for sale in Asian markets and is now sold in Japan as the Fit Aria. We continue to

globalize, establishing networked facilities in the UK, Germany and Italy to promote

more independent European

10

R&D, and a motorcycle research facility in China charged with developing products

tailored to that country’s growing market.

EVOLVING ROBOT TECHNOLOGY -

Starting robot development in 1986, Honda was the first in the world to introduce a

humanoid robot capable of autonomous, bipedal motion: P2, in 1996. Honda’s advanced

humanoid robot, ASIMO, was introduced in 2000 and rang the opening bell at the New

York Stock Exchange in February 2002 to commemorate the 25th anniversary of

Honda’s listing. In December 2002, Honda unveiled a new ASIMO that incorporates

artificial intelligence, enabling the robot to understand and independently respond to

body language and gestures. Our goal is to create a robot that will be a true partner to

humankind.

HONDA SIEL CARS’ RECORDS STUPENDOUS SALES GROWTH

(04 July, 2005, New Delhi)

January 2003 Sales Soars 50 %; Cumulative Sales Jumps 31%

Honda Siel Cars India Ltd. (HSCI), one of the leading manufacturers of premium and

luxury cars in the country, today announced an outstanding increase of 49.89 per cent in

11

January 2003 sales. The company sold 1460 units of its City and Accord models during

the month, which is significantly up from 974 units sold during the corresponding period

last year i-e January 2002. With January 2003 ending, the company's cumulative sales for

the period April 2002-January 2003 increased to 11,018 units, up from 8,433 units sold

during the corresponding period last year (April 2001-January 2002), registering a

remarkable increase of 30.65 per cent. Also, the company recorded a sales jump of 55.81

per cent, as compared with sales during the previous month, December 2002 (937 units).

About Honda Siel Cars India Ltd. (HSCI): HSCI was established in December 1995, with

Honda Motor Co., (Japan) and Siel Ltd. (India) being the key promoters. The company

figures among the top players in the Indian premium and luxury car market. HSCI started

commercial production in December 1997 with an indigenisation level of over 50%,

which has been raised progressively and is currently over 72%. Honda Siel introduced the

Honda City car, an extremely successful engineering marvel, in India in December 1997

and the New Honda City in November 1999. In August 2000, Honda Siel added to the

line-up by introducing the Honda City VTEC. The internationally successful Honda

Accord, the latest offering by the company, was launched in July 2001. Accord is

currently available in two variants VTi and VTi-L, each offering a manual and an

automatic transmission.

HONDA SIEL CARS RECORDS A STUPENDOUS GROWTH OF 63 % IN FY

-2004-05

(02 April, 2005, New Delhi)

Accord and CR-V end the year with leadership in their segment.

On the back of the superb response generated by the new launches especially the highly

successful new Honda City, Honda Siel Cars India Ltd., ended the FY 2003-04 with a

phenomenal sales growth of 63%. The company sold a total of 21,703 units as against

13,300 units sold last FY 2002-03. In March, the

12

Company sold 3,218 units, recording an excellent jump of 64 % over corresponding

month last year. Establishes New Leaderships All the three models launched by the

company in the year generated successful response with the company establishing its

leadership in the luxury segment and increasing its market share in the premium segment.

The company sold 2,111 units of the Honda Accord and 1,200 units of CR-V during the

year. The company sold a total of 18,392 units of its City model, recording a growth of

53 % over last year, while the Honda Accord achieved a stunning growth of 76 % over

last year. The company’s most aggressive launch for the year, the new City also attracted

a national success, with the company selling 12107units in 5 months. Commenting on the

company’s successful performance, Mr. Neeraj Garg, Head-Marketing, Honda Siel Cars

India Ltd., said, “All the three models launched in the year have exhibited brilliant

performance in their respective segments. The launch of the new City has helped us in

expanding our reach in

13

Smaller towns after consolidating our leadership in metros. This reflects the company’s

growth strategy and going forward we hope to strengthen the company’s commitment

towards the customers.” Other Records and Achievements The year 2003-04 saw

company’s new launches being applauded by the most prestigious automobile awards in

the country – BS Motoring awards, Auto Car India-CNBC awards and ICICI-Overdrive

awards. While the juries of all the awards honoured the new Honda City with the

prestigious ‘Car of the Year’ award for 2004, the Honda CR-V was adjudged as the ‘SUV

of the year’ by ICICI-Overdrive awards. In addition, Honda City and Honda Accord were

14

ranked the highest in their respective segments, according to the Total Customer

Satisfaction

Study (TCS) conducted by NFO Automotive recently.

HYUNDAI -

HISTORY -

Hyundai's 2005 cars and sport utility vehicles

continue to provide customers a high level of

content and performance at an affordable price. Every vehicle in the lineup

demonstrates Hyundai's emergence as an auto manufacturer whose products compete

successfully in technology, quality, styling and refinement with automobiles from

around the world.

Hyundai sold its first car, the subcompact Excel model, in the U.S. in 1986. At the

time, few Americans had ever heard of Hyundai or its products. Since that time,

15

Hyundai has expanded and upgraded its product line in the U.S. and now accounts for

more than two percent of the U.S. auto market.

Hyundai now markets a full line of vehicles from the subcompact Accent to the

award-winning Santa Fe sport utility vehicle to the luxurious XG350 sedan. The

vehicles were developed exclusively by Hyundai Motor Company and are fitted with

engines and transmissions designed and engineered by Hyundai.

HYUNDAI MOTOR COMPANY –

The late Ju-Yung Chung founded the Hyundai Motor Company (HMC) in 1947 as

Hyundai Engineering and Construction Co.. Hyundai Motor Company, established in

1967, is the auto sales leader in the Korean domestic market and exports vehicles to

190 countries worldwide.

Hyundai Motor Company operates the world's largest integrated automobile

manufacturing facility in Ulsan, on Korea's southeast coast. In 1996, Hyundai opened

the Namyang Technology Research Center, which includes a complete testing facility

with a 2.8-mile oval test track and a new $40 million aero acoustic wind tunnel. That

same year, 1996, HMC began production at its state-of-the-art Asan Plant, located

southeast of Seoul.

16

Hyundai now operates eight research centers in Korea along with four international

centers, including Hyundai America Technical Center, Inc. in Ann Arbor, Michigan,

and the Hyundai California Design Center in Irvine, California. Hyundai's automotive

technology centers employ approximately 4,100 researchers with an annual budget of

five percent of current revenues. Current research projects include: electric-powered

vehicles, low-emission gasoline engines, solar-powered vehicles, hydrogen-powered

fuel cell vehicles and other alternative fuel vehicles.

The Hyundai California Design Center, established in 1990, creates and develops

both production vehicles and cutting-edge design concepts for the automotive market.

Several innovative vehicles have emerged from the design center including three

concept roadsters, HCD-1, HCD-2, HCD-6, a hybrid sport utility vehicle, HCD-3, the

CrossTour sport utility vehicle (HCD-5) and the HCD-7 luxury sedan. The influence

of the California Design Center can be clearly seen in the sleek lines of the first

generation Hyundai Tiburon sporty coupe and the Santa Fe sport utility vehicle.

A LOOK BACK - HYUNDAI'S ENTRY INTO THE U.S. MARKET -

The timing of Hyundai's entry into the U.S. market in 1986 was ideal. At that time, most

automobile manufacturers had abandoned the entry-level market in favor of high-end,

high-priced vehicles and that left a large void in the market. First-time car buyers such as

college students and young families were not able to find adequate, value-equipped cars

17

that met their needs, yet were priced within their economic means.

In February 1986, Hyundai launched its subcompact Excel model in the U.S. market.

Customer response was immediate; in just seven months Hyundai Motor America had

sold its 100,000th Excel. Total 1986 sales numbered 168,882 - an industry record for an

import car distributor in its first year. Hyundai sales averaged 1,431 units per dealer,

another sales record. In 1987, Hyundai sales continued to soar, reaching a record 263,610

units.

What makes this sales performance all the

more remarkable is that it was done with dealers located in only 31 of the 50 states. In

the early years, Hyundai concentrated its sales efforts primarily on the West and East

coasts, as well as in the southern states. In 1987, Hyundai expanded into the central

portion of the United States, opening a central region office near Chicago. Today

there are four regions and more than 600 Hyundai dealerships nationwide.

EXPANDING THE PRODUCT LINE -

18

Sonata

Hyund

ai took

a

major step to becoming a full-line automotive importer/distributor in 1989 with the

introduction of its midsize sedan, the Sonata. This roomy, powerful, front-wheel-

drive sedan expanded Hyundai's appeal to more mature, family-oriented buyers. It

also offered current Excel owners

An opportunity to move up within the Hyundai product line.

In 1995, the Sonata was completely redesigned. It incorporated state-of-the-art

technology that moved it up the scale in the midsize sedan segment. In 1999, the third-

19

generation Sonata was introduced with the company's first all-aluminum V6 engine,

double wishbone front suspension and standard equipment side impact air bags. For

2002, the Sonata was revised with new exterior styling and an available 2.7-liter DOHC

V6 engine and four-speed automatic transmission with Shiftronic manual shift control.

Accent -

 

In

1995, after 10 years in the U.S. market, the Excel was replaced by the all-new

subcompact Accent. With the Accent, Hyundai offered customers high-tech

sophistication and features, but still at an entry-level price. For model year 2000, the

Accent was redesigned to offer buyers even more value and quality. For the 2001 model

year, Accent GS and GL models were upgraded to the powerful 1.6-liter dual overhead

cam four-cylinder engine. In 2002, the GS and GL models were fitted with air

conditioning as standard equipment.

For the 2003 model year, the Accent was extensively revised with new front fenders,

hood, bumper, fascia and headlamp assemblies. The rear deck, tail lamps and bumper

were also revised. The GT package, with revised sport suspension and a 14-inch wheel

and tire package was reintroduced in 2003. The sophisticated 1.6-liter DOHC four-

cylinder engine is now standard equipment in all Accent models. Since January 2003,

every Accent built for sale in the U.S. is equipped with driver and front passenger side-

impact airbags as standard equipment.

20

For 2004, the exciting Hyundai Accent receives only minor changes - the Accent GT 3-

door becomes a model instead of a trim package - and continues to be the value leader in

the entry-level class.

Elantra -

The compact Elantra sedan debuted in 1991 as a 1992 model. It quickly became

Hyundai's best-selling model in the U.S. Elantra was redesigned in the 1997 model year

and a station wagon version was introduced. Elantra

captured the Hyundai sales record in 1997, 1998, 1999, 2000 and 2001.

For

the

2001 model year, Hyundai introduced the all-new third-generation Elantra with a longer

21

wheelbase, a roomier cabin and even more refinements. Side impact air bags were also

made standard on 2001 Elantra models, making them the first cars in their segment to

offer side impact airbags as standard equipment.

For 2002, there were two Elantra models offered -- the Elantra GLS four-door sedan and

the new sporty Elantra GT five-door hatchback. In 2003, the new Elantra GT 4-door

joined the lineup.

22

There are extensive changes for 2004, including both exterior and interior styling and a

significant engine enhancement. The hood, grille, front bumper, headlamp assembly, rear

bumper and tail lamp assembly are all new for 2004. Interior upgrades include a new

instrument cluster, new vents and controls, new center console, new HVAC controls and

more.

In addition for 2004, the 2.0-liter DOHC engine is fitted with Continuously Variable

Valve Timing (CVVT) and is available in SULEV (super ultra low emissions vehicle)

and ULEV (ultra low emissions vehicle)

23

Configuration depending on the states in which it is sold. The Elantra GT models feature

a long list of standard equipment that includes sport-tuned suspension, alloy wheels,

leather seating surfaces, front air dam with fog lamps and handsome rear spoilers.

Tiburon   -

24

In 1997, Hyundai introduced the exciting Tiburon sporty coupe. Based on the HCD-1 and

HCD-2 concept cars, Tiburon combined sleek, eye-catching styling with outstanding

performance and handling.

The Tiburon's performance lives up to its sporty styling. Competing in the tough

Michelin SCCA Pro Rally series, a specially prepared Hyundai Tiburon, driven by Paul

Choiniere and Mark Higgins who joined the team for the 2002 season, won the

Manufacturer's Championship in 1997, 1998, 1999, 2000, 2001 and again in 2002. In

1997, Choiniere captured the Driver's Championship and he also piloted the Tiburon on

its winning run up Pike's Peak in the annual Pike's Peak Open "Race to the Clouds."

The Tiburon was extensively revised in 2000 with revamped front, rear and interior

styling. There was no 2002 model Tiburon. The 2001 model was sold until the spring of

2002, when the exciting all-new 2003 Tiburon replaced it. The new Tiburon GTV6

model offered some exciting new features -- a V6 engine, 6-speed manual transmission

and a high

Performance 17-inch wheel and tire package. For 2004, the Tiburon received only minor

interior trim changes and simplified packaging.

25

In the fall of 2000, Hyundai Motor America added two new vehicles to its lineup; the

Santa Fe sport utility vehicle and the XG300 sedan. The Santa Fe is a car-based crossover

utility vehicle (XUT) that provides car-like ride and handling with the seating position

and utility of a sport utility vehicle. The XG sedan instantly became Hyundai's flagship

vehicle in the U.S. - it's larger and more luxurious than the Sonata.

Santa Fe-

The Santa Fe was an instant hit with consumers and for the first time in many years,

Hyundai dealers were taking orders and putting customer's names on waiting lists. For

2002, the Santa Fe received minor refinements and upgrades. In mid-2002, the Santa Fe

was again upgraded with a revised center stack design with relocated clock and larger air

conditioning vents and a power sliding moonroof option was added.

26

For 2003, driver and passenger side impact airbags were added as standard equipment on

the Santa Fe. Then, near the end of the 2003 model year, the Santa Fe 3.5-liter was

introduced with the 3.5-liter DOHC V6 engine, 5-speed automatic transmission with

Shiftronic manual shift control and an available electronic 4WD system from Borg-

Warner. For 2004, there are only minimal changes and upgrades to the Hyundai Santa Fe.

XG300/XG350-

 

The XG300 was a hit as well, selling well For 2002, the engine displacement of the

XG300 moved from 3.0 liters up to 3.5 liters resulting in a name change from XG300 to

XG350. For 2003, changes to the XG350 included a new instrument panel design and

new trip computer display.

The 2004 XG was extensively revised and went on sale in July of 2003. Both front and

rear styling was changed for 2004, and the front disc brake rotor diameter was increased

as well. The XG350L now features a new 12-spoke design alloy road wheel and all

XG350 models are fitted with a full-size spare tire mounted on matching alloy wheel.

There are also many interior enhancements for the 2004 Hyundai XG350 to make it even

more luxurious.

Sonata GL Sedan Drivetrain -      

2.4L DOHC 16-valve 4-cylinder engine   

Available 2.7L DOHC 24-valve V6 engine   

5-speed manual transmission  

Available 4-speed automatic transmission with SHIFTRONIC™   manual-shift mode

Exterior -    

  15-inch steel wheels with full wheel covers   

Michelin® tires  

Projector-beam headlights  

27

Front fog lights

Tinted glass     

Power-adjustable outside mirrors      

Speed-sensing,

windshield wipers      

Front mudguards        

Interior -    

Air conditioning      

Rear-seat heater ducts      

Cruise control      

Power windows with driver's one-touch auto-down      

Power door locks      

5-passenger seating      

Leather-wrapped steering wheel and shift knob (w/automatic transmission)      

Front bucket seats

Front center armrest with storage compartment      

Cloth seating surfaces      

Dual front cup holder      

60/40 split fold-down rear seatback      

Rear center armrest      

Rear window defroster with timer      

Digital clock      

Remote fuel-filler door release      

Remote trunk release      

Carpeted floor mats (w/V6 engine)     

 

  Audio -

AM/FM stereo and CD player with 6 speakers     

Safety & Security** -

Dual front airbags   

Front seat-mounted side-impact airbags   

28

3-point front seat belts with pre-tensioners, force limiters and  

Adjustable-height shoulder-belt anchors   

3-point rear seat belts, including rear-center position     

Rear-seat LATCH (Lower Anchors and Tethers for Children) system for  

Securing a child-restraint seat

Front and rear crumple zones  

Side-door guard beams  

Energy-absorbing steering column

Hood buckling creases with safety stops

Remote keyless entry system with alarm  

Sonata GLS (adds to GL) -

     2.7L DOHC 24-valve V6 engine

4-speed automatic transmission with SHIFTRONIC™ manual-shift mode   

16-inch, 10-spoke aluminum-alloy wheels

H-rated Michelin® tires

In-cabin air filtration   

Power heated outside mirrors   

Chrome exterior trim  

Premium AM/FM stereo and cassette, CD player with 6 speakers  

Wood grain interior trim

Adjustable lumbar support for driver seat

Premium cloth seating surfaces  

Front center console with armrest and two-level storage compartment  

Rear armrest with dual cup holder and storage compartment  

Front map lights

Carpeted floor mats   

Power antenna     

SONATA GLS SPECIAL VALUE MODEL (ADDS TO GLS) -

     Unique 16-inch, 6-spoke aluminum-alloy wheels   

29

Automatic temperature control  

Heated front seats  

Electro chromic (auto-dimming) inside mirror

Home Link® Universal Transceiver  

SONATA LX (ADDS TO GLS SPECIAL VALUE MODEL) -

16-inch, 10-spoke aluminum-alloy wheels     

Leather seating surfaces   

8-way power driver seat  

Heated front seats are optional

MECHANICAL LAYOUT -

Front engine, front-wheel drive 4-door sedan

ENGINE (4-CYLINDER) -

2.4L DOHC 16-valve inline-4-cylinder engine

Iron engine block, aluminum cylinder head

Electronically controlled fuel injection

138 hp @ 5,500 rpm

147 lb-ft. of torque @ 3,000 rpm

     

ENGINE (V6) -  

2.7L DOHC 24-valve V6 engine

Aluminum block and cylinder heads

Electronically controlled fuel injection

170 hp @ 6,000 rpm

181 lb-ft. of torque @ 4,000 rpm

     

TRANSMISSION -

30

5-speed manual transmission (4-cylinder engine)

Electronically controlled 4-speed automatic   transmission (V6 engine, optional w/4-

cylinder engine)

BRAKES -

Ventilated front disc/solid rear disc brakes

Available Anti-lock Braking System

Traction Control System (TCS):   

Optional TCS (GLS, GLS Special Value Model, LX)

     

SUSPENSION -

Independent double-wishbone front suspension   with stabilizer bar

Independent multi-link rear suspension with stabilizer bar

     

STEERING -

Engine-speed-sensitive power-assisted   rack-and-pinion steering

Turning diameter: 34.4 feet (curb-to-curb)

     

  WHEELS & TIRES -

15-inch steel wheels with full wheel covers (GL)

205/65R15 Michelin® tires (GL)

16-inch alloy wheels (GLS, GLS Special Value Model, LX)

205/60R16 Michelin® tires (GLS, GLS Special   Value Model, LX)

CURB WEIGHTS -

4-cylinder GL w/manual transmission (lb.)  -- 3181

4-cylinder GL w/automatic transmission (lb.)  -- 3217

V6 GL w/automatic transmission (lb.)  -- 3212

GLS/GLS Special Value Model/LX (lb.)  -- 3254

     

EXTERIOR -

31

Length (in.)   186.9

Wheelbase (in.)   106.3

Width (excl. mirrors)(in.)   71.1

Height (in.)   56

Tread width, front/rear (in.)   60.6/60.2

 INTERIOR -

Head room, front/rear (in.)   39.3/37.6

Legroom, front/rear (in.)   43.3/36.2

Hip room, front/rear (in.)   55.8/54.4

Shoulder room, front/rear (in.)   56.9/55.7

Passenger volume    100

Cargo volume   (trunk, rear seats upright, cu. ft.)   14.1

FUEL ECONOMY AND CAPACITY -

Fuel tank (gallons)    17.2

Fuel economy (city/highway)*   

4-cylinder w/5-speed manual   22/30

4-cylinder w/4-speed automatic   22/30

V6 (all models)   19/27

    

HYUNDAI IN INDIA - INDIA to educe new car models

Saturday, April 03,2004

32

NEW DELHI, April 2 (Reuters) - Hyundai Motor India Ltd, the country's second-

biggest carmaker, will introduce the Elantra family sedan and Getz compact car in

India this year to boost sales in a fast-growing market, its president said on

Friday. The automaker, wholly owned by South Korea's Hyundai Motor Co

<005380.KS>, has been in India since October 1998 and makes the Santro

hatchback, the Accent and Sonata sedans at its car plant on the outskirts of

Madras. It also sells the imported Terracan utility vehicle.” Later this month, we

will introduce the Elantra. The big volume model, Getz, will have to wait for our

new capacity to come in, say by September," B.V.R. Subbu told a news

conference. Thirteen firms make cars and utility vehicles in India, most of them

local units of global automakers like General Motors, Toyota and Ford. Total

industry sales are estimated to touch a million units in the financial year ended

March 31. Subbu said the Elantra would be introduced in both petrol and diesel

versions and most likely with 1.8 liter and 2.0 liter engine options. The car is

expected to be priced between the mid-sized Accent and the larger Sonata family

sedan. The Getz will be introduced in the July-September quarter after new

capacity at its plant is commissioned, he said. Hyundai, whose main competitors

in the Indian market include top-ranked Maruti Udyog Ltd, a unit of Japan's

Suzuki Motor <7269.T> and local firm Tata Motors, has faced production

constraints through 2003/04 as local demand surged. It is now boosting annual

capacity to 250,000 vehicles from 150,000 to keep pace with galloping domestic

sales and booming exports to markets to Europe, Central and South America.

Subbu estimated Hyundai's sales to have jumped 35 percent in the financial year

ended March 31 to some 172,000 units. Hyundai will also raise car prices -- at

different times for different models -- beginning later this month to neutralize a

three percent cost increase. He said India's car market could expand by 15

percent a year if its GDP grew seven to eight percent as falling interest rates had

sharply cut the cost of owning a car. Nearly 90 percent of cars bought these days

use consumer financing schemes. India's passenger vehicle sales surged 34

percent this year driven by GDP growth forecast at over 8.0 percent and interest

rates near three-decade lows. Source: (4/2/04)

33

Hyundai Motor Shares Fall as Currency Lowers Earnings (Update2)

April 28 (Bloomberg) -- Shares of Hyundai Motor Co., South Korea's largest carmaker,

declined after the company's operating profit fell more than expected in the first quarter

as the South Korean won rose against the dollar.

Shares fell as much as 2.2 percent to 53,100 won in Seoul and traded 1.3 percent lower at

11:34 a.m. The carmaker reported today operating profit fell 30 percent to 322.7 billion

won ($322 million), more than the 21 percent decline forecast by analysts. Sales fell 0.6

percent to 6.17 trillion won.

The won has gained 13 percent against the dollar over the past 52 weeks, eroding the

value of Hyundai Motor's exports of Sonata sedans and Santa Fe sport-utility vehicles.

Chairman Chung Mong-Koo opened the company's first U.S. factory in Alabama this

year, shifting production to the world's largest car market to reduce risks from currency

fluctuations. The Seoul-based company also paid more for steel last quarter.

``The won caused a pretty big blow,'' said Eun Hyo Sang, who manages the equivalent of

$100 million at Seoul Investment Trust Management Co. ``The won will probably

continue to move in an unfavorable direction.'' He sold Hyundai Motor shares earlier this

year.

Net income unexpectedly rose 14 percent to 509.8 billion won ($503.2 million) in the

first quarter from 463 billion won the year earlier, the carmaker said to the Korea Stock

Exchange today, as income from overseas affiliates rose to 128 billion won from 68

billion won. Under South Korean accounting standards, profit from overseas affiliates is

booked as non-operating profit.

U.S. EXPORTS –

Hyundai Motor's exports to the U.S. account for about 37 percent of total sales, Kim

Hagju, an auto analyst at Samsung Securities Co., who rates the company ``buy'', said in

a report on April 26. About 65 to 70 percent of Hyundai's exports were paid for with U.S.

dollars, he said.

34

The carmaker's raw material costs in the first quarter accounted for 67 percent of revenue;

compared with 59 percent a year earlier, it said in the release. Hyundai Hysco, the steel

making unit of Hyundai Motor, agreed to pay $600 a ton for the steel in the first quarter,

almost double what it paid a year earlier.

U.S. Plant

Hyundai Motor will begin selling cars manufactured at its U.S. plant next month. The

$1.1 billion plant will make 150,000 cars this year, and the company plans to increase

output to 400,000 units a year. The Sonata competes with Toyota Motor Corp.'s Camry

and Honda Motor Co.'s Accord models.

Hyundai Motor sold a total of 583,463 vehicles in the first three months of 2005, a rise of

19 percent from a year earlier. Exports rose 28 percent to 464,274 units while domestic

sales fell 6 percent to 119,189 vehicles.

Hyundai aims to be one of the world's five largest carmakers by 2010, aided by gains in

the U.S. where its sales more than quadrupled to 418,615 last years from 90,217 in 1998.

The company will begin selling a luxury car in the U.S. in 2007 to compete with Toyota's

Lexus.

Hyundai Motor more than doubled its sales in China in the first quarter to 56,064 cars. It

plans to sell 1 million cars in China by 2010, taking a fifth of the country's market share

for passenger cars. The carmaker said on April 14 it aims to raise its sales in China by 53

percent to $6.6 billion this year.

The carmaker sold and exported a record 23,669 Santro, Sonata and other cars last month

in India, 23 percent more than a year earlier. Hyundai, India's third-biggest automaker is

selling new models and investing $500 million by 2008 to compete in Asia's fourth-

biggest automobile market.

To contact the reporter on this story:

Yunsuk Lim in Seoul ylim1@bloomberg.net

Last Updated: April 27, 2005 22:39

SEOUL, APRIL 28 - Hyundai Motor Co, South Korea’s top automaker, posted a

surprise 14% jump in first-quarter profit on Thursday on better-than-expected

35

contributions from its Chinese and Indian operations. But operating profit tumbled by

almost a third, hit by a strong won, higher steel prices and a sluggish local economy that

could continue to undermine its performance, sending its shares down 2% to a four-

month low.

Hyundai is due to hold wage talks with its powerful 40,000-strong Union. Big pay rises

could further dent profits.

However, the second-quarter profit outlook is picking up as the company pushed through

vehicle price rises at home and abroad, said Hwang Yoo-no, head of Hyundai’s investor

relations.

“The result was better than expected. It seemed like the impact of the rising won was

modest,” said Cho Se-hoon, a fund manager at Prudential Asset Management.

“Our focus is how Hyundai will bear the impact of the won’s appreciation and which

strategy it will take in China where Hyundai has been trying to build market share at the

expense of margins.” Full-year profit is forecast to rise 12% to 1.99 trillion won and then

jump 23% to 2.44 trillion won in 2006, according to 19 analysts surveyed by Reuters

Estimates.

27/4/2005: HYUNDAI BEATS FORECASTS BUT NET PROFIT DOWN -

Hyundai Motor posted a 14 percent jump in first-quarter net profit helped by strong

contributions from its operations in China and India but operating profit slumped nearly a

third as the company grappled with a stronger won, high steel prices and a domestic

market that remains in the doldrums.

OBJECTIVES OF STUDY -

Evaluate the comparative advantages of Hyundai over Honda city.

Critical analysis of the factor, which make influence to buy Hyundai

Facilitates provided by Hyundai

36

RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of action steps,

necessary to effectively carry out research and the desired sequencing to these steps. The

marketing research is a process of involves a no. of inter-related activities, which overlap

and do rigidly follow a particular sequence. It consists of the following steps: -

Formulating the objective of the study

Designing the methods of data collection

Selecting the sample plan

Collecting the data

Processing and analyzing the data

Reporting the findings

37

RESEARCH DESIGN -

Research design specifies the methods and procedures for conducting a particular

study.

A research design is the arrangement of conditions for collection and analysis of the

data in a manner that aims to combine relevance to the research purpose with economy in

procedure. Research design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Causal Research Design

I have chosen the descriptive research design .

DESCRIPTIVE RESEARCH DESIGN -

Descriptive research studies are those studies that are concerned with described the

characteristics of particular individual.

In descriptive as well as in diagnostic studies, the researcher must be able to define

clearly, what he wants to measure and must find adequate methods for measuring it

along with a clear cut definition of population he want to study. Since the aim is to

obtain complete and accurate information in the said studies, the procedure to be

used must be carefully planned. The research design must make enough provision for

protection against bias and must maximize reliability, with due concern for the

economical completion of the research study.

38

SAMPLE DESIGN -

A Sample Design is a definite plan for obtaining a sample from a given population. It

refers to the technique to the procedure adopted in selecting items for the sampling

designs are as below:

Sample size

Sample method

Survey period

SAMPLE SIZE - The substantial portions of the target customer that are sampled to

achieve reliable result are 100.

The cost and time limitation compelled me to select 100 respondents as sample size

SAMPLING METHOD -

In this marketing research project, I am using

Random sampling method

SAMPLE DESIGN -

As complete enumeration of all the members of the population (Member and Non-

member) I have understate sampling technique.

39

SAMPLE SIZE -

50 members

50 Non - members

SAMPLE TYPE

AREA SAMPLING -

Sample area –

Modinagar

Ghaziabad

SAMPLE SELECTION -

Simple random selection sampling

SAMPLE TECHNIQUE -

I have taken the Statistical tool of percentage method to analysis and interpretation of

the collected data.

RANDOM SAMPLING -

A random sample gives every unit of the population a known and non-zero

probability of being selected. Since random sampling implies equal probability to every

unit in the population, it is necessary that the selection of the sample must be free from

human judgment.

There is some confusion between the two terms ‘random sampling’ and ‘unrestricted’

random sampling. In the latter case, each unit in the population has an equal chance of

being selected in the sample. Such a sample is drawn ‘ with replacement’, which means

that the unit selected at each draw is replaced into the population before another draw is

made from it, ‘as such, a unit can be included more than once in the sample. Most

40

statically theory relates to ‘unrestricted random sampling. In order to distinguish

between these two sample. i.e. sample, without replacement and sample with

replacement, the terms ‘sample random sample’ and ‘unrestricted random sample’ are

used. If the latter is devised in such a manner that no unit can be included more than

once, it will then be known as the simple random sampling.

It may be noted that while both sample random sampling and unrestricted random

sampling give an equal probability to each unit of the population for being included in the

sample, there are other sample design too, which provide equal probability to the units.

The process of randomness is the very core of simple and unrestricted random sampling.

The selection of a sample must be free from bias, which can be ensured only when the

process of selection is free from human judgment.

41

COLLECTION OF DATA

The study was conducted by the means of personal interview with respondents and the

information given by them were directly recorded on questionnaire.

For the purpose of analyzing the data it is necessary to collect the vital information. There

are two types of data, this are-

Primary Data

Secondary data

PRIMARY DATA -

Primary data can be collected through questionnaire. The questionnaire can be classified

into four main types-

A) Structured non disguised questionnaire

B) Structured disguised questionnaire.

C) Non structured non disguised questionnaire

D) Non –structured disguised questionnaire.

For my market study, I have sleeted structured non-disguised questionnaire because my

questionnaire is well structured, listing of questions are in a prearranged order and where

the object of enquiry is revealed to the respondents.

To making a well-structured questionnaire, we have adopted three type of questions-

a) Open ended question

b) Dichotomous questions

c) Multiple choice questions

42

These types of questions are easy to understand and easy to give required answers.

SECONDARY DATA -

Secondary data means data that are already available i.e. they refer the data which have

already been collected and analyzed by someone else. When the researcher utilizes

secondary data, than he has to look into various sources from where h e can obtain them,

in this case he is certainly not confronted with the problems that are usually associated

with the collection of original data. Secondary data may either be published data or

unpublished data. Usually published data are available in:

a) Various publications of the central, state and local government;

b) Various publications of foreign government or of international bodies and their

subsidiary organizational;

c) Technical and trade journals;

d) Books, magazines and newspapers;

e) Reports and publications of various associations connected with business san

industry, stock exchanges etc.;

f) Reports prepared by research scholars, universities, economists etc;

g) Public records and statistics, historical document and other source of published

information.

The source of unpublished data are many; they may be found in diaries, letters,

unpublished biographies and autobiographies and also may be available with scholars and

research workers, trade associations, labor because and other public private individuals

and organization.

COLLECTION TECHNIQUE –

Questionnaire method is used in collection the data.

43

PROCESSING & ANALYSIS THE COLLECTED DATA –

Once the field survey is over and questionnaire has been received, the next task is to

aggregate the data in a meaningful manner. A number of tables are prepared to bring out

the main characteristics of the data. The researcher should have a well thought out

framework for processing and analyzing data, and this should be done prior to the

collection. It includes the following activities—

(i) EDITING - The first task in data processing is the editing. Editing is the process of

examining errors and omissions in the collected data and making necessary corrections in

the same.

(ii) CODING - Coding is the procedure of classifying the answer to a question into

meaningful categories. Coding is necessary to carry out the subsequent operations of

tabulating and analyzing data. If coding is not done, it will not be possible to reduce a

large number of heterogeneous responses into meaningful categories with the result that

the analysis of data would be weak and ineffective, and without proper focus.

(iii) TABULATION - tabulation comprises sorting of the data into different categories

and counting the number of cases that belong to each category. The simplest way to

tabulate is to count the number of responses to one question. This is also called universal

tabulation. The analysis based on just one variable is obviously meager. Where two or

more variables are involved in tabulation, it is called bivariate or multivariate

tabulation.

(iv) ANALYSIS -

After the all three above steps, the most important step is analysis of the data. Under this

step, they can use the various tools of the analysis such as Central Tendency, Dispersion,

Correlation co-efficient, Regression Analysis, and Test of Hypothesis etc.

44