ppm 2

24
The Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea. The company was founded in 1967 and, along with its 32.8% owned subsidiary, Kia Motors, together comprise the Hyundai Motor Group, which is the world's fifth largest automaker based on annual vehicle sales in 2012 In 2008, Hyundai Motor (without Kia) was ranked as the eighth largest automaker As of 2012, the Company sold over 4.4 million vehicles worldwide in that year, and together with Kia, total sales were 7.12 million. Hyundai is currently the fourth largest vehicle manufacturer in the world. Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, South Korea, which has an annual production capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai

Upload: shruti-shukla

Post on 14-Apr-2017

86 views

Category:

Business


0 download

TRANSCRIPT

The Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea. The company was founded

in 1967 and, along with its 32.8% owned subsidiary, Kia Motors, together comprise the Hyundai Motor Group, which is the world's fifth largest

automaker based on annual vehicle sales in 2012 In 2008, Hyundai Motor (without Kia) was ranked as the eighth largest automaker As of 2012, the

Company sold over 4.4 million vehicles worldwide in that year, and together with Kia, total sales were 7.12 million.

Hyundai is currently the fourth largest vehicle manufacturer in the world. Hyundai operates the world's largest integrated automobile manufacturing

facility in Ulsan, South Korea, which has an annual production capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai

vehicles are sold in 193 countries through some 5,000 dealerships and showrooms.

On 4 November 2015, Hyundai announced Genesis Motors as a new luxury car brand.

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.When Hyundai wanted to develop their own car ,

they hired George Turnbull in February 1974, the former Managing Director of Austin Morris at British Leyland. He in turn hired five other top British car

engineers. They were Kenneth Barnett body design, engineers John Simpson and Edward Chapman, John Crosthwaite ex-BRM as chassis engineer and Peter Slater as chief development engineer. In 1975, the Pony, the first Korean car, was released, with styling by Giorgio Giugiaro of Ital Design 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 1984, Hyundai exported the Pony to Canada, but not to the United States, because the Pony didn't pass emissions standards there. Canadian sales greatly

exceeded expectations, and it was at one point the top-selling car on the Canadian market. In 1985, the one millionth Hyundai cars were built.

In 1986, Hyundai began to sell cars in the United States, and the Excel was nominated as "Best Product" 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 the spring of 1990, aggregate

production of Hyundai automobiles reached the four million mark.In 1991, the company succeeded in developing its first proprietary gasoline engine, the four-cylinder Alpha, and also its own transmission, thus paving the way for

technological independence.

In 1996, Hyundai Motor India Limited was established with a production plant in Irungattukottai near Chennai, India.

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.

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 28 April 2006, Chung was arrested, and charged for embezzlement of 100 billion South Korean won (US$106 million) As a result, Hyundai Vice Chairman and CEO, Kim Dong-jin, replaced him as head of the company. On 30 September

2011, Yang Seung Suk announced his retirement as CEO of Hyundai Motor Co. In the interim replacement period, Chung Mong-koo and Kim Eok-jo will divide

the duties of the CEO position.

Research and development:

Hyundai has 6 centres worldwide, located in Korea (three offices), Germany, Japan and India. Additionally, there is an American design centre in California

that develops designs for US markets.

Hyundai has made an app with augmented reality, showing users how to operate and maintain the car.

Business:

In 1998, after a shake-up in the Korean auto industry caused by overambitious expansion and the Asian financial crisis, Hyundai acquired the majority of rival

Kia Motors. Currently Hyundai owns 33,88% of 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% stake for $900 million.

Hyundai has invested in manufacturing plants in North America, India, the Czech Republic, Russia, China and Turkey as well as research and development centres in Europe, Asia, North America and the Pacific Rim. 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. In

2011, Hyundai sold 4.05 million cars worldwide and the Hyundai Motor Group was the world's fourth largest automaker behind GM, Volkswagen and Toyota -

a distinction it earned when it surpassed Ford Auto Group in 2009. Hyundai vehicles are sold in 193 countries through some 5,000 dealerships.

The Hyundai brand power continues to rise as it was ranked 65th in the 2007 Best Global Brands by Interbrand and BusinessWeek survey, with brand value

estimated at $5.0 billion. Public perception of the Hyundai brand has been transformed as a result of dramatic improvements in the quality of Hyundai vehicles. As of 2011, it is the world's fastest growing car brand for two years

running.

Global Operations Employing over 78,000 people worldwide, Hyundai Motor is implementing a new global policy aimed at localization. This includes product development, design, sales, marketing, and consumer services to satisfy local customers’

tastes as well as that of the global market.

Currently Hyundai Motor has six overseas plants in the U.S., India, China, Turkey, the Czech Republic and Russia. The company will add a seventh plant

by 2012, in Brazil. Hyundai Motor today has a combined global production capacity of about 3.91 million units a year (Korea Domestic: 1.86 million /

Overseas: 2.05 million).

Korea Production

Hyundai has three plants in Korea that have a combined capacity of about 1.86 million units a year. The plants are located in Ulsan, Asan and Jeonju.

The Ulsan plant is the world’s single largest automobile plant. The mammoth-sized Ulsan complex sits on 1,200 acres and is Hyundai Motor’s main

production plant, comprising five independent plants. It employs over 34,000 workers capable of producing 5,600 vehicles daily. The plant also has its own

port where up to three 42,000 ton ships can anchor at the same time. The plant is the birthplace of the Korean automobile industry and is a self-

contained facility that operates its own fire station, hospital and security vehicles. The plant is also equipped with cutting-edge facilities to protect the environment, such as a waste water and sewage treatment facilities securing

Hyundai Motor’s position as an eco-friendly company.

The Asan Plant, which mainly produces passenger vehicles for export, rests on 440 acres with a 4 million sq. ft. building that consists of production lines for

machine press, auto frames, paint, assembly, engine and a materials plant. It is an entirely self-contained, independent automobile production complex that is

capable of producing 260,000 mid- to large-size passenger vehicles annually.

The Jeonju Plant occupies a total of 317 acres of land and has 4.3 million sq. ft. in production space. It specializes in producing mid- to large-sized buses of 2.5

tons or more, trucks, and specialty vehicles. The Jeonju plant is capable of

producing 70,000 units per year and in terms of the plant’s scale, it is deemed to be the world’s largest commercial vehicle production plant.

Board of directors in

South Korea:

INSIDE DIRECTOR

HYUNDAI MOTOR

Mong Koo Chung Chairman & CEO

Hyundai Motor Company, 12 Heolleung-ro, Seocho-Gu, Seoul, 06797, Korea

National University of Mongolia Honorary Ph.D in Business Management

Tsinghua University Honorary Professorship in Business Administration

Central Conneticut State University Honorary Ph.D in Human Science

Hanyang University, B.S in Industry Business Administration

Chairman & CEO of Kia Motors Corporation

Vice Chairman of the Federation of Korean Industries

Chairman of the Bidding Committee for the 2010 World Expo

Awarded the Distinguished Service Citation from the Automotive Hall of Fame on Feb. 2001

Eui Sun Chung Vice Chairman

Hyundai Motor Company, 12 Heolleung-ro, Seocho-Gu, Seoul, 06797, Korea

University of San Francisco, Masters in Business Administration

2006 World Economic Forum (WEF) Next Generation Leaders

President of Kia Motors

Won Hee Lee

President & CEO Hyundai Motor Company, 12 Heolleung-ro, Seocho-Gu, Seoul, 06797, Korea

Western Illinois University, Masters in Accounting

President of Hyundai Motor Company (Current)

Gap Han Yoon

President & CEO Hyundai Motor Company Ulsan Plant, 700 Yeompo-ro, Buk-Gu, Ulsan, 44259,

Korea

Graduated from Keimyung University

President of HMC Ulsan Plant (Current)

OUTSIDE DIRECTOR HYUNDAI MOTOR

Se Bin Oh

Lawyer, Dongin Law

Seoul National University, Master in Law

President of Seoul High Court

Sung Il Nam

Professor of Economics, Sogang University

Rochester University, Ph. D. in Economics

Chairman of Korea Labor Economic Association

You Jae Yi

Professor of Business Administration, Seoul National University

Seoul National University, Business Administration

President of the Korean Marketing Association

Byung Kook Lee

Chairmen of e-Chon Tax Accounting Corp

Commissioner of Seoul Regional Tax Office

Dong Kyu Lee

Advisor of Kim and Chang Law Group

Brand Slogan:

Hyundai’s NEW THINKING and

NEW POSSIBILITIES can also be felt in its design

philosophy and technologies. Cars as living works

of art that convey the flowing dynamism of nature

that is Hyundai’s Fluidic Sculpture design aesthetic.

Not only that, Hyundai sponsors many sports games,

and constantly explores new ways to communicate

with customers using new media. Its ongoing

environmental management and contributions to

society are now more than just a slogan, and are

becoming a way of life that is uniquely Hyundai.

Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor Company in India. It is the second largest automobile manufacturer in India.

Hyundai Motor India Limited was formed on 6 May 1996 by the Hyundai Motor Company of South Korea. When Hyundai Motor Company entered

the Indian Automobile Market in 1996 the Hyundai brand was almost unknown throughout India. During the entry of Hyundai in 1996, there were only five

major automobile manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo had entered the

Indian automobile market with Cielo just three years back while Ford, Opel and Honda had entered less than a year back.

For more than a decade till Hyundai arrived, Maruti Suzuki had near monopoly over the passenger cars segment because Tata

Motors and Mahindra & Mahindra were solely utility and commercial vehicle manufacturers, while Hindustan and Premier both built outdated and

uncompetitive products.

HISTORY: HMIL's first car, the Hyundai Santro was launched on 23 September 1998 and

was a runaway success. Within a few months of its inception HMIL became the second largest automobile manufacturer and the largest automobile exporter in India. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of

Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 10 models - Eon, i10, Grand i10, Xcent, Elite i20, Active i20, Verna

Fludic 4S, Neo Elantra, Creta and Santa Fe.

HMIL’s manufacturing plant near Chennai claims to have the most advanced production, quality and testing capabilities in the country. To cater to rising

demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMIL’s total

production capacity to 600,000 units per annum. Current Production Capacity with these 2 plants in Kancheepuram increased to 670,000 cars per year.

HMC has set up a research and development facility (Hyundai Motor India Engineering - HMIE) in the cyber city of Hyderabad.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade.

HMIL currently exports cars to more than 120 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been the number one

exporter of passenger cars of the country for the eighth year in a row.

To support its growth and expansion plans, HMIL currently has 388 strong dealer network and more than 1000 strong service points across India, which

will see further expansion in 2014.

In July 2012, Arvind Saxena, the Director of Marketing and Sales stepped down from the position after serving the company for 7 years.

HMIL has 449 dealers and more than 1,150 service points across India.HMIL

also operates its own dealerships known as Hyundai Motor Plazas in large

metros across India. HMIL has the second largest sales and service network in

India after Maruti Suzuki.

HMIL currently exports vehicles to over 92 countries across Africa, Middle

East, Latin America, Australia and Asia. It has been India’s number one

exporter for the last 10 years consecutively.

Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer

and the largest passenger car exporter, registered 4.6% growth in exports for

the month of May 2013. The domestic sales accounted for 32,102 units and

exports stood at 24,754 units , sales 476000 in 2015 domestic sales 17.1%

market share.

Hyundai Motor India Limited Annual Sales

Year Domestic sales Exports Total

1998 8,447 0 8,447

1999 17,627 20 17,647

2000 82,896 3,823 86,719

2001 87,175 6,092 93,267

2002 102,806 8,245 111,051

2003 120,325 30,416 150,741

2004 139,759 75,871 215,630

2005 156,291 96,560 252,851

2006 186,174 113,339 299,513

2007 200,411 126,749 327,160

2008 245,397 243,919 489,316

2009 289,863 270,017 559,880

Hyundai Motor India Limited Annual Sales

Year Domestic sales Exports Total

2010 356,717 247,102 603,819

2011 373,709 242,330 616,039

2012 391,276 250,005 641,281

FUNCTIONS: Hyundai motor india limited is currently the second largest auto exporter

from India.[80] It is making India the global manufacturing base for small cars.

Hyundai sells several models in India, the most popular being the Santro Xing, i10, Hyundai EON and the i20. On 3 September 2013, Hyundai launched its much-awaited car, Grand i10 in petrol and diesel variants. Other models include the Getz, Accent, Elantra, second generation Verna, Santa Fe and

the Sonata Transform. Hyundai has two manufacturing plants in India located at Sriperumbudur in the Indian state of Tamil Nadu. Both plants have a

combined annual capacity of 600,000 units. In the year 2007, Hyundai opened its R&D facility in Hyderabad, employing now nearly 450 engineers from

different parts of the country. Hyundai Motor India Engineering (HMIE) gives technical & engineering support in vehicle development and CAD & CAE support to Hyundai's main R&D centre in Namyang, Korea. In mid 2014,

Hyundai launched Xcent, a sedan based on successful Grand i10. Recently, on 11 August 2014, Hyundai India Motor Limited launched the Elite i20 in petrol

and diesel variants.

In 2007, Hyundai started its support engineering centre with CAD/CAE teams in

Hyderabad, India. Hyundai expanded its engineering activities in India with

Vehicle Engineering team in 2010. In 2011, Hyundai started its design activities

at Hyderabad R&D Centre with Styling, Digital Design & Skin CAD Teams and

Packaging team . Indian engineers are heavily involved in making of Indian

vehicles like Grand i10, Elite i20 along with other Global cars.

Products: Hyundai EON

Hyundai i10

Hyundai Grand i10

Hyundai Xcent

Hyundai Elite i20

Hyundai i20 Active

Hyundai Verna

Hyundai Elantra

Hyundai CRETA

Hyundai Santa Fe

Board of directors In

India:

Bo Shin Seo: CEO of Hyundai motor India Limited

He has a vast experience of 30 years and has held various positions in the

company. He holds a degree in Mechanical Engineering from the Hanyang

University, Korea.

R. Sethuraman: CFO of Hyundai motor India limited Senior Vice President of Finance and Corporate Affairs at Hyundai Motor India Limited .He has been a Director of Hyundai Motor India Limited since August

14, 2012.

Rakesh Srivastava: CMO of Hyundai motor India limited

Post graduation in marketing and sales from Indian Institute Of Management ,

Ahmedabad.

Relationship between both companies:

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai

Motor Company (HMC).

Both companies work independently and manufacture their own products and

sell their products within and outside countries.

HMIL forms a critical part of HMC’s global export hub. It currently exports to

over 92 countries across Africa, Middle East, Latin America, Australia and the

Asia Pacific. HMIL has been India’s number one exporter for the last 10 years

consecutively. To support its growth and expansion plans, HMIL currently has

445 dealers and more than 1,100 service points across India.

Subsidiaries List

Hyundai Motor India Hyundai Motor of North America

Hyundai Motor America Hyundai of Canada

Hyundai Motor of South America Hyundai do Brazil

Hyundai China Beijing Hyundai Hyundai Japan

Hyundai Motor Europe

Employee Speaks:

Devdatta Mulchandani

Deputy General Manager

“When I took up my present role at Hyundai Motor India limited, I was a bit apprehensive. Wouldn’t life at a manufacturing company be slow and boring? Would I get hemmed in by dealing with just , well cars and cars and more cars

? But, I found to my pleasant surprise that the maxim “New Thinking New possibilities” is much more than a lip service.

There has been plenty of scope to invent, re- invent and create. Face

challenges head on, a multi- cultural work environment provides a plethora of

opportunities. If one thought, that one had seen it all, time to think again. For at Hyundai there are plenty of opportunities waiting to be grabbed. How you

use them is upto you.”

Puneet Anand

General Manager

“When I look down upon the last 18 years of my life at Hyundai, it seems as if it was yesterday that I joined this organization thanks to the happening, action

packed and aggressive work culture in this organization.

It was here that I got the unique opportunity to improve my management skills through a 1 year Global MBA program at the University of Korea, Seoul fully funded and supported by HMIL. This gave me an international exposure and

ability to work in a different mix of culture and traditions.

Career at Hyundai has been quite eventful given the fact that I had the privilege of working in multifunctional profiles and such versatile experience has made me confident, strong and ready to take on any challenge be it in

professional or personal life.”

Sekar S

Senior Manager

“I Joined Hyundai fresh from college, the first day of my corporate life was a feeling mixed with fear & excitement. But it was one to be cherished and now

my corporate life in Hyundai has entered into the Twelfth Year.

From a Graduate Engineer Trainee to Head of department at a young age, is what Hyundai has offered me. My experience in Hyundai helped me to gain great insight into the hard work going into running a huge organization and

how every individual’s work contributes towards the growth of the organization.”

Recent NEWS: On 19th of May, Hyundai Motor Group’s Chairman Mong-Koo Chung met with India’s Prime Minister Narendra Modi to exchange ideas on Korea-India’s auto

industry’s cooperation and mutual development.

India’s Prime Minister, Mr. Narendra Modi has promoted market-friendly policies to boost growth in India’s economy. India’s auto industry’s annual

sales have increased 3.2% under Mr. Modi’s strong leadership, this year projected to be 2.74 million units, a 7.8% increase from last year.

Chairman Chung mentioned, “Hyundai Motor’s Chennai plant is a symbol of Korea-India economic cooperation and I thank the Indian government for its

support in Hyundai Motor’s growth in the Indian Market.”

Chairman Chung commented “I hope in the future Hyundai Motor Group will be able to continue its cooperation with India in other areas such as

construction and railway to play a more meaningful role in Korea-India’s mutual economic development.”

India’s Prime Minister Mr. Narendra Modi replied “It is a great pleasure to meet with Chairman Chung. Hyundai Motor plays a key role in India’s auto

industry. India will actively seek possible ways to continue its cooperation with Hyundai Motor. I hope Hyundai Motor will become a leading global company

through its success in India.”