Page

10

Summer Internship in Harsali HundaiA Project Report on

VEHICAL INSURANCE AND TYPE OF INSTALLMENTS

For Partial Fulfillment of theDegree of Masters of Business Administration

ByPUNEET SHARMA

(Y14282041-3)MBA 3rd Semester

Under the Guidance ofShri Prashant Mehta

General ManagerSagar Office

Department of Business Management

Dr. Hari Singh GourVishwavidyalaya(A Central University)

Sagar (M.P.)Batch of 2014-16

Page

10

Declaration

I hereby declare that the project report titled “Vehicle Insurance and Type of Installments is my own work conducted for the esteemed Harsali Hundai for the period of Summer Internship from 15th May to 30th June 2015, under the guidance of Shri Prasant Mehta , General Manager, Harshali Hundai – A unit of Jainam Auto Links. Pvt. Ltd. Sagar (M.P.).

To the best of my knowledge this report does not contain any work which has been submitted for the award of any degree anywhere.

Puneet Sharma (Y14282041-3)

MBA 3rd Semester

Page

10

Preface

The project report on “Vehicle Insurance and Type of Installments was allotted to me by Shri Prasant Mehta , General Manager, Harshali Hundai, Sagar. I am highly obliged to Shri Kuleep Singh Rajpoot Manager Operation Harshali Hundai Office for guiding me in various aspects of this project.

The main aim of this project is to know the background of the Customer who are buying Vehicle in Harshali Hundai in Sagar Branch. Descriptive research and qualitative survey has been used in this project.

The idea behind this project is to give practical knowledge and to make me face real life situation. I tried my best to explore the truth and facts in my survey report and reality regarding the survey and understanding practical experience of the survey. This project survey is not only with my own efforts but also that of others.

Puneet Sharma (Y14282041-3)

MBA 3rd Semester

Page

10

Acknowledgement

I would like to whole heartily thank and express my sincere gratitude to Shri Prasant Mehta , General Manager, Harshali Hundai, Sagar for suggesting me this problem and for giving an insight in dealing with the subject.

I am highly obliged to Shri Kuleep Singh Rajpoot Manager Operation Harshali Hundai Office for guiding me in various aspects of this project like conducting field work and designing schedule for interviews and suggesting me the Project Work and helping me in finalizing the Report. I express my gratitude to all the small Customer in Sagar, Madhya Pradesh to discuss the various aspects of this study and provided useful suggestions.

I express my heartfelt indebtedness and owe a deep sense of gratitude to my teacher and my Faculty guide Dr. Shree Baghwat, Assistant Professor, Dr. Hari Singh GourVishwavidyalaya, Sagar, Madhya Pradesh and to my Corporate guide Shri Prasant Mehta , General Manager, Harshali Hundai, Sagar Madhya Pradesh for their sincere guidance and inspiration in completing this project.

Lastly, I must express my gratitude to all the elders of the family and citizens of the city who blessed me in course of discussion. I also extend my sincere thanks to my family and my friends for their encouragement and support.

Puneet Sharma (Y14282041-3)

MBA 3rd Semester

Page

10

Letter of Transmittal

To :From :Puneet Sharma Date : Friday 10th June 2015Subject: “VEHICAL INSURANCE AND TYPE OF

INSTALLMENTS ”

As per the requirement, I am submitting the enclosed Project Report on the topic “Vechical Insurance and types of Installment”.

The report is meant to provide a direction to the management about identifying their customer

base in Harshali Hundai and making it more attractive for them. The major findings of the report

are that Customer are a great source for the Automobile in their selling.

There are several expectations that can be fulfilled to meet the needs of the prospective Customer

which can be categorized based on their income, Social Status, and their purpose of buying

Vehicle. A deeper analysis of such features is mentioned in the report.

The Automobile Industry in India is much more prominent today than even before. The future of

sustainable Automobile growth in India depends on the performance of Automobile Industry

with their contribution in sustainable growth in Indian economy.

I hope, you find this report satisfactory.

Page

10

Executive Summary

A PROJECT REPORTON VEHICAL INSURANCE AND TYPE OF INSTALLMENTS

PUNEET SHARMA

30 JUNE 2015

History of The Indian Automobile Industry

The Indian automobile industry can be viewed in terms of the pre-1991 (before

liberalization) and post-1991 (after liberalization) phase.

Before Liberalization (Before 1991) 1880

About hundred years ago the first motorcar was imported and Import duty on vehicles

was introduced. Indian Great Royal Road (Predecessor of the Grand Trunk Road) was

conceived. First car brought in India by a princely ruler in 1898. Simpson & Co established in

1840. They were the first to build a steam car and a steam bus, to attempt

motorcar manufacture, to build and operate petrol driven passenger service and to import

American Chassis in India. Railways first came to India in 1850's. In 1865 Col. Rookes

Crompton introduced public transport wagons strapped to and pulled by imported steam road

rollers called streamers. The maximum speed of these buses was

33kms/hr.

1920 to 1950

In 1919 at the end of the war, a large number of military vehicles came on the roads. In 1928

assembly of CKD trucks and cars was started by the wholly owned Indian subsidiary of

American General Motors in Bombay and in 1930-31 by Canadian Ford

Motors in Madras, Bombay and Calcutta. In 1935 the proposals of Sir M Visvesvaraya to

set up an Automobile Industry were disallowed. 1942 Hindustan Motors Ltd. incorporated and

the first vehicle was made in 1950. In 1944 Premier Automobiles Ltd.

incorporated and in 1947 the first vehicle was produced. In 1947 the Government of

Bombay accepted a scheme of Bajaj Auto to replace the cycle rickshaw by the auto and

Page

10

assembly started in a couple of years under a license from Piaggio. Manufacturing

Program for the auto and scooter was submitted in 1953 to the Tariff Commission

and approved by the Government in 1959. In 1953 the Government decreed that only

firms having a manufacturing program should be allowed to operate and mere

assemblers of imported CKD units be asked to terminate operations in three years.

Only seven firms namely Hindustan Motors Limited, Automobile Products of India

Limited, Ashok Leyland Limited, Standard Motors Products of India Limited, Premier

Automobiles Limited, Mahindra & Mahindra and TELCO received approval.

M&M was manufacturing jeeps. Few more companies came up later. Government

continued with its protectionism policies towards the industry.

Emerging Trends In Indian Automobile

Sector

Globalization is pushing auto majors to consolidate, to upgrade technology, enlarge

product range, access new markets and cut costs. They have resorted to common

platforms, modular assemblies and systems integration of component suppliers and

ecommerce.The component industry is undergoing vertical integration resulting into

emergence of systems and assembly suppliers rather than individual component suppliers. Thus,

while most component suppliers are integrating into tier 2 and tier 3

suppliers, larger manufacturers and multinational corporations (MNCs) are

being transformed into tier 1 companies. Environmental and safety concerns are

leading to higher safety and emission norms in the country. India has already charted out

a road-map for reaching EURO-II norms across the country by the year 2005. Seven

metropolitan cities of India would simultaneously move to EURO-III norms in

2005. Most vehicle manufacturers are already producing EURO-II compliant

vehicles in the country to meet special requirements of capital city of New Delhi

where the Supreme Court verdict has already necessitated this.

Page

10

Table of Contents

Declaration Preface Acknowledgement Letter of Transmittal Executive SummarySr. No.

Title Page no.

1. Introduction: Company Profile Overview History Competitors SWOT Analysis of Hundai India Ltd. Different Products of Hundai India Ltd.

2. Objectives of the Study Scope of the Study

3. Research methodology Research Design Data collection Sampling method Sample size Research tools Research Area

4. Automobile Sector in India Indian Economy and Automobile History of Automobile Industry Automobile In India

5. Findings

6. Suggestions

7. Limitations

8. Conclusion

Page

10

9. Annexure Bibliography

Page

10

CHAPTER-1

VEHICLE INSURANCE - GENERAL INFORMATION

Auto Insurance in India deals with the insurance covers for the loss or damage caused to the

automobile or its parts due to natural and man-made calamities. It provides accident cover for

individual owners of the vehicle while driving and also forpassengers and third party legal

liability. There are certain general insurance companies who also offer online insurance service

for the vehicle.

Auto Insurance in India is a compulsory requirement for all new vehicles used whether for

commercial or personal use. The insurance companies have tie-ups with leading automobile

manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a

number of factors and the amount of premium increases with the rise in the price of the vehicle.

The claims of the Auto Insurance in India can be accidental, theft claims or third party claims.

Certain documents are required for claiming Auto Insurance in India, like duly signed claim

form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy

copy.

There are different types of Auto Insurance in India :

Private Car Insurance – In the Auto Insurance in India, Private Car Insurance is the fastest

growing sector as it is compulsory for all the new cars. The amount of premium depends on the

make and value of the car, state where the car is registered and the year of manufacture.

Two Wheeler Insurance – The Two Wheeler Insurance under the Auto Insurance in India covers

accidental insurance for the drivers of the vehicle. The amount of premium depends on the

current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory

Committee at the time of the beginning of policy period.

Commercial Vehicle Insurance – Commercial Vehicle Insurance under the Auto Insurance in

India provides cover for all the vehicles which are not used for personal purposes, like the

Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the

commencement of the insurance period, make of the vehicle and the place of registration of the

vehicle. The auto insurance generally includes:

Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary,

housebreaking or theft, malicious act.

Page

10

Liability for third party injury/death, third party property and liability to paid driver

On payment of appropriate additional premium, loss/damage to electrical/electronic

accessories

The auto insurance does not include:

Consequential loss, depreciation, mechanical and electrical breakdown, failure or

breakage

When vehicle is used outside the geographical area

War or nuclear perils and drunken driving.

TYPE OF INSTALLMENT – GENERAL INFORMATION

Paying auto insurance premiums is not something most of us look forward to. It is a necessary

part of being a responsible driver though. Most insurance companies will allow you to pay your

premiums in installments. Here's what you need to know about doing that.

Easier Monthly Payments

For many people coming up with the full amount of a 6 month or one year policy at one time can

be troublesome. This is especially so if you have several vehicles on a policy. Paying your auto

insurance payments in installments will make it easier for you to pay your insurance without

having a huge gap in your checking account up front. It's a popular option for most people which

is why most insurance companies now offer the option of paying over time.

Pay 8 Months for 1-Year Policy

Most insurance companies will be able to split up the payments so that you pay for 8 months,

then not pay anything for the last 4 months of your policy. This can feel like a benefit since you

will have several months payment free. Some companies will offer something similar to this on

shorter policies as well. It's not uncommon to pay for 4 months on a 6 month policy.

More Money out of Pocket

If you are paying your insurance on monthly installments you need to be aware that most

insurance companies will tack on a fee to do this. It can be as much as $10 a month additional for

Page

10

the privilege of paying over time. So a policy that would only cost $360 for a full year could end

up costing you $480 total after these fees are applied. If your policy is low enough for you to

comfortably afford paying it at one time, this is a good money saving option.

Chance of Cancellation

With an installment plan the insurance companies don't show a lot of leniency if you are late or

miss a payment. If you pay your premiums in advance you can be assured of having coverage for

the full amount of time. With an installment plan your policy can be cancelled after just one

missed payment. Some companies will cancel the policy as early as 5 days after the payment due

date.

Down Payments

Most insurance companies will require a down payment if you are making installment payments.

This is the case even after you've established yourself with the company. You could have had 3

policies with them in the past and the first payment on the renewal policy will still require a

down payment.

Automatic Drafts

This can be seen as a pro or a con depending on your situation and how you generally pay your

bills. When you make installment payments most insurance companies will require you to pay

your monthly premiums by automatic debit. This means that the money comes out of your

checking account each month on the same day. If you keep your account at the bare minimum

and the payment comes out, you can easily overdraw your account. Automatic payments are

great for those who can keep up with their bills and plan properly, not so great for those who

have a hard time remembering or writing down their other purchases.

Whichever method you choose is up to you. You need car insurance to drive. Having the option

of paying the policy over time can be a great benefit to many people.

Page

10

CHAPTER -2

Research Methodology

Research is an art of scientific investigation through search for new facts in any branch of

knowledge. It is a moment from known to unknown. In this research the research method used

was the Descriptive research.

Research design

Descriptive research design

Descriptive Research Design

Sometimes an individual wants to know something about a group of people. Maybe the

individual is a would-be senator and wants to know who they're representing or a surveyor who

is looking to see if there is a need for a mental health program.

Descriptive research is a study designed to depict the participants in an accurate way. More

simply put, descriptive research is all about describing people who take part in the study.

There are three ways a researcher can go about doing a descriptive research project, and they are:

Observational, defined as a method of viewing and recording the participants

Case study, defined as an in-depth study of an individual or group of individuals

Survey, defined as a brief interview or discussion with an individual about a specific

topic

Data collection

In this project report used both primary and secondary data collection method.

Primary data

These data were collected by personal interview with Customer and the GM of the Harshali

Hundai Sagar region.

Secondary data

Page

10

These data were collected from various sources of the internet, magazines and newspapers.

Sampling method

Convenience sampling

Sample size

One Automobile Company Harshali Hundai, Sagar region

Research tools

Interview Schedule

Research area

Sagar

Page

10

CHAPTER -3

Introduction: Company Profile

Overview

The automobile industry today is one of the most lucrative industries. Due to the increase in

disposable income in both rural and urban sector and easy finance being provided by all the

financial institutes, the passenger car sales have increased at the rate of 45% per annum in 2010-

2011 over the corresponding period in the previous year. Further competition is heating up in the

sector with a host of new players coming in and other like Porsche, Bentley, Audi, Mercedes,

and BMW all set to venture in the Indian markets. One factor that could help the companies in

the marketing of their product is by knowing and creating a personality for their brands.

Automotive industry in India

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile

Industry of India has come a long way. With HM establishing the first automobile factory way

back in 1948, the Indian passenger vehicle industry was for long dominated by Ambassadors and

the Premier Padmini’s. Then in the year 1985, following the liberalization and various tax reliefs,

the Government of India in collaboration with Suzuki motor corporation of Japan formed Maruti

Suzuki ; a powerful alliance which changed the face of the Indian roads. The only car with the

latest technology then was the Maruti 800. It became very popular because of the low price, high

fuel efficiency and good reliability. Since then the market has grown with over 20 manufacturers

and hundreds of models and variants.

The Indian automobile industry has matured over the years and is now highly comptetitive with

major Japanese, Korean, American, European and Indian companies all holding significant

market shares. Indian auto industry has become a hot destination for global auto players like

Volvo, General Motors, Daimler-Chrysler, Volkswagen, Toyota and Ford. Global players have

either entered or are eyeing India as a strategic target for future development

A well developed transportation system plays a key role in the development of an economy, and

India is no exception to it. With the growth of transportation system the Automotive Industry of

India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian

economy.

Page

10

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can

be divided into 3 broad categories: Two-wheelers, Four-wheelers (Cars) and Heavy vehicles.

Growth Drivers for auto industry in India

Segments of the Indian Auto market

The market for any product is normally made up of several segments. A ‘market’ after all is the

aggregate of consumers of a given product. And, consumer (the end user), who makes a market,

are of varying characteristics and buying behaviour. There are different factors contributing for

varying mind set of consumers. It is thus natural that many differing segments occur within a

market. In order to capture this heterogeneous market for any product, marketers usually divide

or disintegrate the market into a number of sub-markets/segments. This report attempts to

analyze and understands how Indian carmaker have successfully segmented the market and how

they are leveraging these segmentation to introduce new product and grow their market share.

With proper segmentation carmakers could look at the differences among the customer groups

and decide on appropriate strategies/offers for each group. These strategies then helped them in

dividing the markets for conquering them. Every buyer has individual needs, preferences,

resources and behaviours. Since it is virtually impossible to cater for every customer’s individual

characteristics, carmakers grouped customers to market segments by variables they have in

common. These common characteristics allowed developing a standardized marketing mix for all

customers in that segment.

Page

10

This segmentation helped the carmaker to increase their profit by tapping the market through

adapting the offer to that segment. They brought the necessary changes in the product to suit to

the particular segment.

COMPANY NAME: - HYUNDAI MOTORS INDIA LIMITED.

COMPANY ADDRESS:-

HYUNDAI MOTORS INDIA LIMITED, A-30, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi-110044. Tel :(011) 4167-8800 Fax:(011)4167-8811

BRANCH SAGAR

HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )

JABALPUR ROAD, SUDGUWAN BAHIRIA SAGAR (M.P.) 470004

MISSION STATEMENT:-

To create exceptional automotive value for our customers by harmoniously blending safety, quality and efficiency. With our diverse team, we will provide responsible stewardship to our community and environment while achieving stability and security now and for future generation.

VISION STATEMENT:-

Our team provides value for your future.

SLOGAN:- DRIVE YOUR WAY.

LOGO:-

LOGO EXPLANATION:-

Page

10

ABOUT HMC (Hyundai Motor Company)

Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive Group

which was ranked as the world’s fifth-largest automaker in 2007 and includes over two dozen

auto-related subsidiaries and affiliates. Employing over 75,000 people worldwide, Hyundai

Motor posted sales of US$74.9 billion in 2007 on a consolidated-basis and US$32.8 billion on a

non-consolidated basis (using the average currency exchange of 929 won per US dollar).

Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms

The Hyundai Motor Company, a division of the Hyundai Kia Automotive Group, is

South Korea’s largest and the world’s fifth largest automaker in terms of units sold per year.

Headquartered in Seoul, Hyundai operates the world’s largest integrated automobile

manufacturing facility in Ulsan, which is capable of producing 1.6 million units annually. The

Hyundai logo, a slanted, stylized 'H', is said to be symbolic of two people (the company and

customer) shaking hands. Hyundai means "modernity" in Korean.

DEALER’S SHOWROOM NAME:-

HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )

JABALPUR ROAD, SUDGUWAN BAHIRIA SAGAR (M.P.) 470004

SHOWROOM ADDRESS:-

HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )

JABALPUR ROAD, SUDGUWAN BAHIRIA SAGAR (M.P.) 470004

DEALER’S NAME:-

HONOURABLE Mr. GULAB CHAND JAIN

Page

10

Key Players in Indian Market

The largest player in the Indian automobile industry and launched new and exciting products in the Indian markets.

The third largest passenger car manufacturer in India and one of the largest exporters of vehicles.Has established in India as one of its manufacturing bases in the world.

Has vision of capturing 10 % share of the Indian passenger car market by 2010

Suzuki’s JV in India and the largest passenger car manufacturer in India

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment. GM entered the

small car segment by re-launching the Matiz

One of the largest players in the UV / MUV segment

Page

10

CHAPTER -4

COMPARATIVE ANALYSIS OF AUTOMOBILE INDUSTRIES IN INDIA

Market Share Of Automobile Companies

Page

10

CHAPTER -5

INTRODUCTION

The introduction of the project is very essential for research purpose. First we study the

demography of customers of Hyundai motors in Sagar region. The Demography of customers is

the overall study of customers related to age, sex, occupation and income. This study helps to

know the prospective customers.

Further the study of customer satisfaction level of Hyundai motors is the study of

satisfaction and delightedness to the Hyundai motors. This study helps to know the likeliness,

brand image, strength & weakness of the product. This determines the sales promotion. This

project would be beneficial to know the feedback of the customers & also the way to provide

better facilities and services to the customers.

Since the four wheelers are generally used by high profile people, they look towards the

luxurious look, safety and the beautiful interior. In this project their satisfaction towards their

demand is checked out.

REASON FOR CHOOSING THIS INDUSTRY:

The automobile sector is very booming sector. There are lots of competitors in this

industry. There is always modifications, innovations and new technology used in automobile

industry.

REASON FOR CHOOSING THIS COMPANY:

The reason behind choosing this company for doing summer project is that, I thought It

will be helpful for my career in automobile sector. I have chosen this company to get the full

knowledge about the demography, satisfaction and prospective customers. Hyundai motor is the

South Korea’s largest & India’s largest exporter of cars. Hyundai cars have its own brand image

in the heart of the customers.

Page

10

Today’s Hyundai Motors is concentrating on customer satisfaction through high quality,

high utility and high technology products.

Hyundai Motors India Limited (HMIL) sales cars through their showrooms and

authorized dealers. Jaya Hyundai is one of the authorized dealers of the Hyundai motors which

look after the sales and services of four districts namely Sagar ,

With the help of this project, I will make it possible to expose myself to the corporate

world and learn the practical knowledge related to my topic and customer feedback about the

Hyundai cars.

LOCATION OF THE PROJECT:

Jaya Hyundai is located near the Reliance petrol pump, Sagar . For doing the project the

location given to me is the Sagar region.

HOW DID I CARRY OUT THE PROJECT?

Page

10

The research objective is to find out the demography of customers & customer satisfaction level

of Hyundai motors in Sagar region, customer feedback and personal customer visit which

involves feedback of customers. The customer requirement & finding new customer for my

project & I also took their suggestions.in the project, there are many things to learn in the

process& the market knowledge & concrete finding new segment for my products. My project is

to study the demography of customers & customer satisfaction level of Hyundai motors in Sagar

region. The demography study concludes that customers are Businessmen, High Income Group

People, Middle income Group people. The other part concludes that customers are highly

satisfied with the quality, interiors, safety and minimum maintenance & repairing.

HISTORY

Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947.

Hyundai Motor Company was later established in 1967. The company’s first model, the Cortina,

was released in cooperation with Ford Motor Company in 1968. In 1975, the Pony, the first

Korean car, was released, with styling by Giorgio Giugiaro of ItalDesign and powertrain

technology provided by Japan’s Mitsubishi Motors. Exports began in the following year to

Ecuador and soon thereafter to the Benelux countries. In 1991, the company succeeded in

developing its first proprietary gasoline engine, the four-cylinder Alpha, and transmission, thus

paving the way for technological independence.

In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated

"Best Product #10" by Fortune magazine, largely because of its affordability. The company

began to produce models with its own technology in 1988, beginning with the midsize Sonata.

In 1998, Hyundai began to overhaul its image in an attempt to establish itself as a world-

class brand. Chung Ju Yung transferred leadership of Hyundai Motor to his son, Chung Mong

Koo, in 1999. Hyundai’s parent company, Hyundai Motor Group, invested heavily in the quality,

design, manufacturing, and long-term research of its vehicles. It added a 10-year or 100,000-mile

(160,000 km) warranty to cars sold in the United States and launched an aggressive marketing

campaign.

Page

10

In 2004, Hyundai was ranked second in "initial quality" in a survey/study by J.D. Power

and Associates. Hyundai is now one of the top 100 most valuable brands worldwide. Since 2002,

Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup.

In 2006, the South Korean government initiated an investigation of Chung Mong Koo’s

practices as head of Hyundai, suspecting him of corruption. On April 28, 2006, Chung was

arrested, and charged for embezzlement of 100 billion won (US$106 million), with Hyundai

Vice Chairman and CEO, Kim Dong-jin taking over as head of the company.

Business

In 1998, after a shake-up in the Korean auto industry caused by overambitious expansion and the

Asian financial crisis, Hyundai acquired rival Kia Motors. In 2000, the company established a

strategic alliance with DaimlerChrysler and severed its partnership with the Hyundai Group. In

2001, the Daimler-Hyundai Truck Corporation was formed. In 2004, however, DaimlerChrysler

divested its interest in the company by selling its 10.5 percent stake for $900 million.

Hyundai has invested in manufacturing plants in the North America, China, India, and Turkey as

well as research and development centers in Europe, North America, and Japan.

In 2004, Hyundai Motor Company had $57.2 billion in sales in South Korea making it the

country’s second largest corporation, or chaebol. Worldwide sales in 2005 reached 2,533,695

units, an 11 percent increase over the previous year. Hyundai has set as its 2006 target worldwide

sales of 2.7 million units (excluding exports of CKD kits).

Hyundai motor vehicles are sold in 193 countries through some 5,000 dealerships and

showrooms. After a recent survey of global automotive sales by Automotive News, Hyundai is

now the sixth largest automaker in the world, surpassing Nissan, Honda, and many other major

brands, selling 3,715,096 units in 2005.

Hyundai Motor Company’s brand power continues to rise as it was ranked 72nd in the 2007 Best

Global Brands by Interbrand and BusinessWeek survey. brand value estimated at $4.5 billion.

Page

10

Public perception of the Hyundai brand has been transformed as a result of dramatic

improvements in the quality of Hyundai vehicles.

Hyundai America Technical Center completed construction of its Hyundai/Kia proving ground

in California City, California in 2004. The 4,300-acre (17 km²) facility is located in the Mojave

Desert and features a 6.4-mile (10.3 km) oval track, a Vehicle Dynamics Area, a vehicle-

handling course inside the oval track, a paved hill road, and several special surface roads. A

30,000-square-foot (2,800 m²) complex featuring offices and indoor testing areas is located on

the premises as well. The facility was built at a cost of $50 million. An aerial view can be found

here.

Hyundai completed an assembly plant just outside Montgomery, Alabama in 2004, with a grand

opening on May 20, 2005, at a cost of $1.1 billion. It is Hyundai’s second attempt at producing

cars in North America (The Hyundai Auto Canada Inc. plant in Quebec closed down in 1993). At

full capacity, the plant will employ 2,000 workers. Currently, the plant assembles the Hyundai

Sonata and the Hyundai Santa Fe. In 2003, According to Consumer Reports, Hyundai’s

reliability rankings tied Honda’s.

In 2005, Hyundai allowed Ed Voyles Hyundai in Smyrna, Georgia to become the first "deaf

friendly" dealership in the entire world. The staff in this dealership are able to accommodate deaf

customers with the use of American Sign Language and video conferencing phones.

In 2006 JD Power and associates quality ranking, overall the Hyundai brand ranked 3rd, just

behind Porsche and Lexus, and beating long time rival Toyota. The brand overall is ranked much

higher than the average industry and resale value continues to improve; a comparable 2003

Hyundai Sonata sedan ranks just $2200 below similarly equipped Honda Accord, according to

Kelley Blue Book Pricing 2006.

In 2006, Hyundai’s minivan Entourage earned a five-star safety rating – the highest honor the

National Highway Traffic Safety Administration bestows – for all seating positions in frontal and

side-impact crashes. The Insurance Institute for Highway Safety also rates “Good” – its highest

rating – in front, side and rear impacts. The IIHS (Insurance Institute for Highway Safety, US),

Page

10

in fact, has christened the 2006 Hyundai Entourage and Kia Sedona a “Gold Top Safety Pick,”

making the safest minivan ever tested.

In 2006, Hyundai was awarded 'Top-rated 2006 Ideal Vehicle' by Autopacific, Marketing

research and consultancy firm for the automobile industry. In 2007, Hyundai’s midsize

SUVSanta Fe earns 2007 TOP SAFETY PICK award by IIHS.

In 2007 at the New York International Auto Show, Hyundai unveiled its V8 rear-drive luxury

sedan called Concept Genesis to be slotted above the Azera in the Hyundai line-up. This concept

will make its American debut in mid 2008.

In 2007 at the Los Angeles International Auto Show, Hyundai unveiled its second rear-drive

concept car, this car, called Concept Genesis Coupe, will be Hyundai’s first sports car due to

make its debut in early 2009.

In 2008, Hyundai Santa Fe and Hyundai Elantra awarded 2008 Consumer Reports "top pick"

which was among the top 10 vehicles for 2008 unveiled in the magazine's issue. The magazine's

annual ratings, based on road tests and predicted safety and reliability are considered highly

influential among consumers.

In 2008, at the North American International Auto Show, the production version of the luxury &

performance-oriented Hyundai Genesis sedan made its debut, dealerships will have the Genesis

as soon as Summer 2008.

2009, Hyundai has announced the five-door hatchback variant of the Elantra compact sedan will

carry the name Elantra Touring when it goes on sale in the spring as a 2009 model.

Page

10

CHAPTER – 6

OBJECTIVES OF THE STUDY

In the current scenario of cutthroat competition, every company invest in some new

technology for their expansion & to maintain the quality, reduce the cost & to produce the new

product. My objective in this survey is to study the demography of customers in Sagar region

and determining the satisfaction level of customers in Sagar region.

PRIMARY OBJECTIVES:-

To study the demography of customers in Sagar region.

To segment the potential customers in Sagar for Hyundai Motors.

To study the customers choice regarding the finance of Hyundai motors in Sagar region.

SECONDARY OBJECTIVES:-

To study / identify the potential customers.

To study the services given by Harshali Hyundai Pvt.Ltd. In terms of servicing, warranty,

maintenance and repairing.

To study the factors influencing on the buying behaviour of the customers.

To know the grievances of customer, if any.

To study the eagerness to buy Hyundai motors among the customers.

To find out the brand awareness/perception in society about Hyundai motors.

Page

10

SCOPE OF THE PROJECT

The area of operation is around the Sagar city. The survey is conducted through the

Personal Interview with the customer as well as GM Mr. Prashant Mehta that is having the

information of overall ownership experience of the vehicle & their suggestions.The operations

are performed in & around Sagar city.

For every research work the study may have geographical conceptual scope. As subject to

the products limited to the study to the Sagar district. The survey conducted will give the details

about the customer satisfaction level responding product and services with helping in vehicle

insurance and understanding the procedure of financing the Vehicle.

The study of level of satisfaction is also helpful to the management and marketing head

to decide new policies for well established brand and as well as new product range. The level of

satisfaction for the Hyundai cars' user can be measured in terms of look, speeds, mileage,

maintenance, safety, price and services and post sales services.

The benefit of this study to the company and dealer is that they can understand the level

of customer's satisfaction and can make new policies to satisfy all the new and current users.

With the help of the conclusion from this study the company can able for the range selling, if the

Customers are very much satisfied with the cars and the services provided by them.

Page

10

CHAPTER - 7

SOURCE OF FINANCE OF HYUNDAI MOTORS INDIA LIMITED

Prior to the start of this service HUNDAI had started two joint ventures Citicorp

HUNDAI and HUNDAI Countrywide with Citi Group and GE Countrywide

respectively to assist its client in securing loan.

HUNDAI tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak

Mahindra, Standard Chartered Bank, and Sundaram to start this venture including

its strategic partners in car finance.

Again the company entered into a strategic partnership with SBI in March 2003

Since March 2003, HUNDAI has sold over 12,000 vehicles through SBI-HUNDAI

Finance.

SOURCE OF FINANCE OF HARSHALI HUNDAI, SAGAR

There are mainly 6 companies for insurance in financing Vehicles of Harshali Hundai in

Sagar but main company for insurance the Newly Vechicle is New India Insurance Pvt.

Ltd.

There are two types of Finical Bank which proved loan for Vechicles. :-

1. Private Bank

2. Public Bank

Page

10

3. Financial Institute. such as Mahindra Finance, Suderam Finance, Cholamandalam

Finance, Shriram Finance for Auto Loans.

CHAPTER – 8

COMPANY PROFILE

BRANCH SAGAR

HARSHALI HUNDAI (A UNIT OF JAINAM,.AUTO LINK PVT. LTD. )

JABALPUR ROAD, SUDGUWAN BAHERIA SAGAR (M.P.) 470004

History of Harshali Hyundai – A Unit of Jainam, Established at

26April 2008

Dealership name - Harshali Hyundai

Company Name - Jainam Outolink Pvt. Ltd.

Head Office - Delhi, HMIL, also Known as Coprate Office

Page

10

Plant is situated at - Chennai It is an Biggest exporter manufacturing in Automobiles in India

COMPANY STAFF

(EMPLOYEES NAME )

1. CHAIRMAN (DIRECTOR - Mr. Gulab Chand Jain

2. Managing Director - Mr. Manish Jain

3. General Manager - Mr. Prashant Mehta

4. Sales Head - Mr. Deep Jain

5. G.M. Service - Mr. L.P. Singh

6. Insurance Incharge - Mr. Sourabh Nayak

7, CCM - Miss Pratibha Jain

8. Account Manager - Mr. Pramod Kumar

Vishwakarma

9. Operation Manager - Mr. Kuldeep Singh Rajput

10 Cashier - Mr. Vivek Soni

Page

10

PRODUCTS (MODELS) AVALIABLE AT

HARSHALI HYUNDAI (A UNIT OF JAINAM )

1. EON

2. I-10

3. GRAND I10

4. XCENT

5. ELLITE I20

6. I20 ACTIVE

7. FLUDIC VERNA

8. ELENTRA

9. SANTA-FE

Page

10

CUSTOMER ANALYSIS

SAMPLE SIZE 1

Customer Name - Mr. Anil Kumar Jain

Address - Banda (Sagar)

Fist Visited - 4 June 2015

Sales Consultant - 4 June 2015

Interested Model - Xcent

Finance Company - Mahindra Finance

Document Required -

4. Form No 16/IT Return

Latest Salary Slip – 3 Months

Salary Credit Bank Statement – 6 Months

ID & Signature Proof (Pan Card / DL / Passport)

Address Proof – Telephone Bill / Rental Agreement

Credit Card Statement

Own House Proof

1 Photo

Post dated cheques

Security Cheques (2/4/6/8/10/12)

Loan Repayment Track Record

Finance Company Investigation- 6 June 2015

Loan Sanction By Mahindra Finance 7 June 2015

Deliver of Vehicle - 8 June 2015

Page

10

FINANCING PROCEDURE OF VEHICLE

1. X-cent Model Ex Showroom Price = 6,00,984.00

2. Required Financing amount = 4,00,000.00

3. + Finance Charges = xxxxxxx

4. + Insurance , RTO = xxxxxx

Ex Showroom Price = 6,00,984.00

(-) Financing Amount = 4,00,000.00

Amount to be paid at the time of delivery = 2,00,984.00

of Vehicle

5. + Finance Charges (Applied by Mahindra Finance For 3 Yrs :-

4,00,000 x 6.5 % ( Interest Charged by Company) = 26,000.00 (one Year)

6. 26,000.00 x 3 Yrs = 78,000.00

7. + 1 % Stamp Duty 4,00,000 x 1% = 4,000.00

8. 1.5 % of Documentation Charges 4,00,000x 1.5% = 6000.00

9. Other Charges (By Mahindra Finance) = 2,000.00

10. Total Amount Paid by the Customer at = 2,12,984.00

the time of Delivery to the company

Page

10

INSTALLMENT AMOUNT PAID BY THE CUSTOMER TO MAHINDRA

FINANCE :-

Total Number of EMI’s for three yrs = 12x3=36

Total Financing Amount = 4,00,000.00

(+) (78,000) Interest Charges

= 4,78,000.00 ( To pay)

Per Months Amount Paid by the customer = 4,78,000.00 / 36

= 12,278.00 (per Month)

Page

10

CHAPTER – 9

SWOT ANALYSIS OF HARSHALI INDIA MOTOR LIMITED

Strengths Entry Timing

Hyundai entered the U.S. market as a late starter, giving its rivals ranging from 20~50

years of early start in the industry. Although there are downsides to late entry, Hyundai was

successfully able to monitor and follow the strategies of the companies that succeeded prior

to Hyundai’s arrival, such as Toyota and Honda. Hyundai was able to modify and use the

strategies that these companies used in each step of their growth to ensure similar growth for

itself. Also, Hyundai could also monitor histories of companies that have declined in

American market, such as GM/Ford/Chrysler and ensure that it doesn’t follow their path,

such as unmonitored inefficiencies in production and resource management.

Low Cost for Implement Newer TechnologySince other rival firms have invested huge amounts of capital to discover new technology,

Hyundai can implement similar technology with less cost. Combined with being flexible

mentioned above, Hyundai can quickly manufacture cars equipped with newer technology

with less cost, making it more efficient.

FlexibilityHyundai Motors, compared to BIG 3 or Toyota, is still considered to be small in

American market. Given that, Hyundai can be very flexible, financially and strategically, in

many different situations. Therefore, whenever Hyundai chooses to implement its strategy, it

can be quicker and more efficient than its rivals. For example, if Hyundai chooses to produce

a new line of vehicle, it can produce enough to meet the market requirements, whereas other

bigger firms must produce much more than that. Also,

whenever there is a financial crisis, Hyundai can alter its labor force and production

capacity without causing a huge impact, whereas these larger firms might have to close down

few plants, layoff thousands of workers, etc…

Page

10

Weakness

Low Brand Recognition and Brand Power (Late Entrant) As mentioned above, brand image

is a significant entry barrier in the automobile industry. Many factors, such as target buyers

and used car pricing, are dependent mostly upon the firm’s brand image. Hyundai Motors

still have low brand recognition compared to other larger firms, making it harder for Hyundai

to grab a wide range of consumers. Also, since brand recognition is low, price depreciation

rate is very high in comparison to Toyota or Honda, which curbs new car buyers from buying

Hyundai.

Technological Advancement

Given that Hyundai is smaller in size compared to its rivals, Hyundai’s investments are

geared toward increasing the market share and larger advertisement schemes, rather than

making drastic technological advancement. When all the rivals have already begun to

produce Hybrid vehicles are looking forward to finding a next-gen alternative to gasoline

vehicles, Hyundai is still a runner-up in these areas. Therefore, Hyundai cannot compete in

some areas of the market where technological advancement is critical.

Small Pool of Previous Buyers

Most consumers to a lot of research prior to purchasing an automobile, and feedbacks

from prior buyers can be a determining factor for many consumers. However, Hyundai does

not have a huge pool of previous buyers to provide feedback, thus many careful consumers

hesitate to buy Hyundai.

Opportunities

Increasing Shares in Targeted Markets Hyundai currently carries a very loyal pool of buyers

in certain specialized markets, such as used car markets, low-income consumers and retired

seniors. Given that the size of these markets have not decreased, but is predicted to increase

in the next few years, Hyundai can find itself with more consumers in its loyal target

markets.

Product Life Cycle Not Reaching Maturity

Unlike other brands that have been in the U.S. market for long periods of time,

Hyundai is fairly new to American consumers. Given that the product life cycle exists for any

product out in the market, automobiles from other incumbent companies have reached or

Page

10

even passed their maturity phase, tending toward the decline phase. Unlike them, Hyundai

products are far from reaching the maturity cycle, thus there is huge room in the market

where Hyundai can bring from other firms.

Current Financial Crisis Provides Room for GrowthDue to the current economic crisis, many failing automobile companies are working

toward to decrease in size and trying to reduce their losses. If strategically positioned well,

Hyundai can take advantage of this opportunity and grow.

ThreatsOverflow of Used Vehicles Current U.S. used car market is very saturated due to

the huge influx of lease returned vehicles and car owners looking to sell their vehicles. This

causes an overall drop of all used car available. This drives the residual values of Hyundai

vehicles much lower than before. Given that this was Hyundai’s weakness for a long time,

further losses in the market share from the pool of consumers looking forward to sell their

vehicles are inevitable.

Chinese Automakers

Chinese automakers are presenting the greatest threats for Hyundai, since they plan to arrive at

the American market, threatening many present competing firms. Chinese automakers are

capable of making huge amount of vehicles at very low cost, thus having the capability of taking

a huge market share away from Hyundai’s target consumers.

Saturated Market with Overflow of Similar Line-Ups

Hyundai’s main product, Sonata, is a mid-size sedan. However, American auto market is

oversaturated and is still increasing in numbers with mid-size sedan line-ups. Therefore, Hyundai

is threatened by multiple lineups from multiple automakers at once.

Page

10

CHAPTER -10

FINDINGS

In this era of tough competition in the market it is compulsory for company to provide some

types of facilities to the customers to acquire the best level of Customer satisfaction.

During this study I came across some points which if consider would surely enhance the

market share and customer satisfaction.

Company should design new and more attractive policies for

a) credit policies

b) cash discounts

c) warranty terms

Company should try to enhance its post sales services as preventive measures.

the preventive maintenance should be monitored on regular basis.

1) Price features: - as Hyundai cars are more costly as compared to other competitors, if

they want to capture the automobile market, they have to reduce the price slightly.

2) For Santro: - four door power windows is needed.

3) For i-10, more power in c.c. is needed

4) For Verna: - inbuilt spoiler is needed.

5) For Accent: - inbuilt LPG gas kit & music system is required.

6) Late service, loose delivery and unavailibity of spare parts should be avoided. The quick,

fast and timely service facility is to be maintained

7) Free check up camps, more free servicing and extended warranty are needed to attract

more customer

Page

10

LIMITATIONS

Although the study was carried out with extreme enthusiasm and careful planning there are

several limitations which handicapped the research viz. The research done was purely

convenience based. Therefore, some of the assumptions and results would be biased.

1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are

chances that some information might have been left out, however due care is taken to include all

the relevant information needed.

2. Sample size:

Due to time constraints the sample size was relatively small and would

definitely have been more representative if I had collected information from more respondents.

3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some

respondents tend to give misleading information. Many of the respondents behave artificially

when they came to know that they are being surveyed.

Page

10

Page

10

WEBSITES

www.hyundai-motors.com

www.hyundai.co.in

www.google.com

MAGAZINES AND OTHERS:-

Monthly Hyundai Magazine:- ON THE MOVE.

Product Brochures.

Annual reports or magazines of Hyundai Motor India Limited

Auto India Magazine