chapter-4 performance evaluation of maruti...

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CHAPTER-4

PERFORMANCE EVALUATION OF MARUTI SUZUKI INDIA LIMITED

AND HYUNDAI MOTORS INDIA LIMITED

This chapter particularly involves the study of performance evaluation of Maruti

Suzuki India Limited and Hyundai Motor India Limited. The performance of both the

companies has been carried out by considering the parameters like Production,

Export, Sales, Sales Network, Net Income, Profit after tax, Market Share etc.

Maruti Suzuki India Limited

Maruti Suzuki is India’s leading giant in manufacturing passenger cars. It has been the

leader in of the Indian car market for over two decades. It is largely credited for

having brought in an automobile revolution to India. Since inception Maruti Suzuki is

credited with having catalyzed and led the modernization of the passenger car

segment of India. Presently Maruti Suzuki has occupied prominent it is the market

leader in the Indian automobile industry both in terms of production and revenue

generation. Presently Maruti Suzuki India Limited contributing to about 45 % of the

total industry sales in India.

The company manufactures various models like Maruti 800, Alto 800, Alto K10,

Omni, EECO, Wagon R, Estilo, Swift, Swift Dzire, Ritz, Gypsy, Ertiga, SX4, Kizashi

& Grand Vitara.1

In this 28 years journey, Maruti Suzuki transformed itself from a successful public

sector company to a renowned & listed Multinational company, sustained its

leadership position and remained profitable despite tough competition. Maruti’s

parent Suzuki Motor Corporation played key role in inculcating quality and cost

consciousness among employees, suppliers and in implementing Japanese

manufacturing practices, Kaizen, 5S, QC, Suggestion schemes etc.2

Production

In the last decade, the production of automobiles in India has greatly increased. Due

to increased production capacity, at present India is the largest tractor and three

wheeler vehicle manufacturer, second largest two wheeler vehicle manufacturers,

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fourth largest commercial vehicle manufacturer and eleventh largest passenger car

manufacturer in the world. Presently several renowned automobile companies have

expanded their manufacturing facilities owing to India’s strong engineering base and

expertise in the manufacturing of low cost, fuel efficient cars.3

Maruti Suzuki India Limited has started its production in 1983 by introducing Maruti

800. Presently with two manufacturing facilities and a combined manufacturing

capacity of one million cars a year, Maruti Suzuki produces over 1.2 million units

annually. The manufacturing performance of Maruti Suzuki India Limited can be seen

by following production milestones-

• In August 1986 the company produced 1,00,000 vehicles.

• In March 1994, Maruti Suzuki produced 1 million cars.

• In December 1997, the company produced 2 million cars.

• In April 2003, the company produced 4 million cars.

• In April 2005, the company produced 5 million cars.

• In December 2006, Maruti Suzuki produced 6 million cars.

• In June 2009, Maruti Suzuki produced 8 million cars.4

In the year 2009, Maruti Suzuki has surpassed its Japanese parent Suzuki Motor

Corporation in overall production. During 2009, Maruti Suzuki rolled out 966,399

units, while Suzuki Motor Corporation produced only 908,302 cars.5

In March 2011, Maruti Suzuki India Limited rolled out its historic ten millionth car (1

crore) from its Gurgaon plant.6

Maruti Suzuki has planned to invest Rs.2,000 crore in diesel engine manufacturing

facility at company’s Gurgaon manufacturing plant to meet the growing demand of

Swift and Dzire models.7

After the meeting with Mr.Narendra Modi-Chief Minister, Gujrat, Maruti Suzuki

India Limited very soon is going to set up its manufacturing unit in Gujrat with a

capacity to produce 10 lakh cars per annum with provisions to produce 20 lakh cars

per annum in the second phase.8

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Export

Maruti Suzuki India Limited started export in the late eighties. The company has

exported over one million units cumulatively. In September 1987, Maruti Suzuki

India Limited exported first lot of 500 cars to Hungary and in January 2009, first

shipment of A-Stars dispatched from Mudra port for overseas market. In recent years,

Maruti Suzuki has focused on exports the cars to meet the growing demand of foreign

countries. Some leading overseas markets of Maruti Suzuki includes advanced

western markets like Netherlands, Germany, France, and UK besides non European

markets like Australia, South Africa, Algeria, Chile, Indonesia, Nepal and Sri Lanka.

Presently Maruti Suzuki exports various models such as A-Star, Alto, Estilo, Ritz,

Maruti 800 across to over 125 countries. In year 2011-12, the company exported over

127,300 units.9

According to Mr.R.S.Kalsi, (Chief General Manager, Maruti Suzuki India Limited) in

year 2009-10, the company achieved robust growth in export by shipping 1.47 lakh

units against export of 70,000 units in 2008-09. He told that A-Star model has a major

share in Maruti’s export portfolio, followed by Alto and Maruti 800. According to

Maruti Suzuki India Limited, the company would explore new overseas markets

including Hong Kong, Taiwan, Australia to export few models of A2 segment.10

In 2009-10, Maruti Suzuki clocked export sales of 147,575 units, its highest ever.

This was 111 percent growth over the previous year’s total of 70,023 units. Europe

has accounted for over 77 percent of the sales.11

In the month of April 2012, Maruti Suzuki India Limited has added one golden

feather in its crown. The company’s cumulative exports have crossed one million

units with the milestone car headed for Denmark. This one millionth vehicle was a red

colored A-Star. In international market the A-Star, marketed under ‘Suzuki Alto’ and

‘Suzuki Celario’ badge in international markets.

A-Star is the company’s flagship export model. Within 38 months of its first shipment

in January 2009, it has clocked exports of over 300,000 units.12

The following table highlights the top 10 export markets of Maruti Suzuki as on 31

March 2010 whereas the exported vehicles are in unit’s i.e in numbers.

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Table 4.1: Export Markets of Maruti Suzuki (As on 31 March 2010)

Sr.No. Name of Country No.of Vehicles Exported

(In Units)

1 Netherlands 78,514

2 Algeria 68,506

3 Italy 52,250

4 United Kingdom 48,641

5 Chile 45,029

6 Germany 38,423

7 Srilanka 30,078

8 Hungary 22,924

9 Nepal 22,368

10 Egypt 18,523

Source: Maruti Suzuki Sustainability Report, 2009-10

The above table depicted that, Maruti Suzuki exported 78,514 vehicles to Netherlands

as on 31 March 2010 i.e for Maruti Suzuki, Netherland was the highest potential

market for export of vehicles. It was disclosed that, as far as export is concerned

Algeria and Italy was another potential markets for Maruti Suzuki. The company

exported 68,506 vehicles to Algeria whereas 52,250 vehicles to Italy as on 31 March

2010.

It was also observed that as compared to other countries, Nepal and Egypt was having

less potential markets for exporting of vehicle. Maruti Suzuki exported only 22,368

vehicles to Nepal whereas 18,523 vehicles to Egypt as on 31 March 2010.

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The following chart focuses on Maruti Suzuki’s Export during 2004-05 to 2011-12.

The Y axis defines the year whereas the X axis defines number of vehicles in units (in

number)

Chart 4.1: Export of Maruti Suzuki

Source: Report by Maruti Suzuki retrieved from www.marutisuzuki.com

The bove chart depicted that the export of Maruti Suzuki in year 2009-10 was

147,575 vehicles whereas the company exported 138,266 vehicles in year 2010-11 i.e

the year 2010-11 recorded negative growth by (-) 6.30 percent over 2009-10. The year

2011-12 had recorded negative growth by (-) 7.87 percent over 2010-11 whereas the

year 2009-10, recorded marvellous growth of 110.75 percent over 2008-09.

Sales

Maruti Suzuki India Limited is the leading automobile manufacturer in India which

offers 15 brands and over 150 variants. In terms of numbers of cars sold, Maruti

Suzuki is the largest subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki is

the only one Indian company who has crossed the 10 million sales mark since its

inception. Maruti Suzuki’s sales and service network is the largest among car

manufacturers in India.13

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Maruti Suzuki sold total 115,433 vehicles in January 2012 and registered growth of

5.18 percent over January 2011. In January 2011, Maruti Suzuki sold 109,743

vehicles.14

In 2009-10, Maruti Suzuki sold total 10,18,365 vehicles. This was the first time in

Indian automobile history that a car company had sold over a million units in a

financial year. The company sold 870,790 vehicles in the domestic market. The total

sales in year 2009-10 mark a growth of 28.55 percent over 2008-09. In 2008-09,

Maruti Suzuki sold 792,167 vehicles. In March 2010, Maruti Suzuki sold 95,123

vehicles which includes domestic sales of 79,530 vehicles.15

In September 2012, the company sold 93,988 vehicles whereas in September 2011 the

company had sold 85,565 vehicles i.e in September 2012; Maruti Suzuki witnessed

growth of 9.84 percent over September 2011. The domestic sale during September

2012 was 88,801 vehicles, compared to 78,816 vehicles in September 2011. The

company had reported 41 percent decline in total sales for August 2012 at 54,154

vehicles on year on year basis due to a long lockout at its Manesar plant.16

In September 2012, Maruti Suzuki’s total passenger car sales in the domestic market

rose by 3.43 percent to 68,957 vehicles from 66,667 vehicles in September 2011. In

mini segment, Maruti Suzuki’s sales increased by 4.89 percent to 39,150 vehicles

during the month from 37,324 vehicles in September 2011. In compact segment (Ritz,

Swift & Estilo models) by selling 17,813 vehicles, Maruti Suzuki witnessed negative

growth of 9.68 percent in September 2012 from 19,722 vehicles in September 2011.

Maruti Suzuki sold 288 SX4 in the month of September 2012 and recorded growth of

46.93 percent over September 2011. In September 2011, Maruti Suzuki sold 196 SX4

vehicles.17

In the month of October 2012, Maruti Suzuki reported 85.46 percent increase in total

sales at 103,108 vehicles, whereas in same month i.e October 2012, the company had

recorded domestic sales of 96,002 vehicles as compared to 51,458 vehicles in the year

2011.18

In October 2012, Maruti Suzuki sold 42,233 vehicles which consisted Maruti 800,

Alto, A-Star & Wagon R, whereas in October 2011, the company sold 25,009

vehicles i.e in October 2012, the company recorded growth of 68.87 percent over

October 2011. In October 2012, the company sold 695 vehicles in mid-size (SX4)

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segment i.e in October 2012, the company recorded growth of 117.18 percent over

October 2011. In super compact segment (Dzire), the company sold 14,389 vehicles

in October 2012 whereas in October 2011, the company sold only 5,001 vehicles i.e

in super compact segment, Maruti Suzuki recorded growth of 187.72 percent in

October 2012 over October 2011.

In Utility vehicle segment, Maruti Suzuki sold 7400 vehicles in October 2012

whereas in year 2011 the company sold only 270 vehicles.

In November 2012, Maruti Suzuki sold total 1,03,200 vehicles whereas in November

2011 the company sold 91,772 vehicles i.e in November 2012, Maruti Suzuki

recorded growth of 12.45 percent over November 2011.

The following chart focuses on the performance of Maruti Suzuki with respect to

Domestic Sales. The domestic sales are during 2004-05 to 2011-12. The Y axis

denotes the year whereas the scale of X axis denotes the number of vehicles in units.

Chart 4.2: Domestic Sales of Maruti Suzuki

Source: Report by Maruti Suzuki India Limited retrieved from www.marutisuzuki.com

From the above chart it was revealed that Maruti Suzuki sold 711,818 vehicles in year

2007-08 and recorded growth of 11.98 percent over 2006-07. In year 2006-07 the

company sold 635,629 vehicles. It was found that the domestic sales of Maruti Suzuki

India Limited in year 2009-10 was 870,790 vehicles i.e year 2009-10 registered

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growth of 20.58 percent over 2008-09. In year 2011-12 Maruti Suzuki sold 10,06,316

vehicles i.e year 2011-12 registered negative growth of (-) 11.16 percent over 2010-

11. In year 2010-11, the company sold 11,32,739 vehicles.

Overall it was observed that, as far as domestic sales is concerned; Maruti Suzuki

registered gradual growth since year 2004-05 till 2010-11.

The following table depicts the comparative sales of Maruti Suzuki in the month of

November 2012, over November 2011.

Table 4.2: Model wise sales of Maruti Suzuki in 2012 (Vehicle in Number)

Segment Models Nov.2011 Nov. 2012 % Change

(Over 2011)

Passenger Vehicles

Mini Maruti 800, Alto, A-Star, Wagon R

38,921 36,679 -5.76

Compact Swift, Estilo, Ritz 22,159 23,849 7.62 Super Compact Dzire 10,403 13,502 29.78 Mid Size SX4 1,433 692 -51.70 Passenger Executive

Kizashi 162 71 -56.17

Passenger Cars Utility Vehicles Gypsy, Grand

Vitara, Ertiga*

180 7,439 4032

Vans Omni, Eeco 9,612 8,650 -10.00 Total Domestic Sales 82,870 90,882 Total Export Sales 8,902 12,318 Total Sales (Domestic + Export) 91,772 103,200

Source: Report by Maruti Suzuki (www.marutisuzuki.com) *Ertiga launched in April 2012

The above table depicted that in mini segment Maruti Suzuki’s sales in month of

November 2012 has been decreased by (-) 5.76 percent as compared to sales of

November 2011. It was observed that the total domestic sales of Maruti Suzuki in

November 2012 have been increased by 9.66 percent over November 2011. In

November 2012, Maruti Suzuki sold 90,882 vehicles.

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As far as mid size segment is concerned, it was found that Maruti Suzuki sold 692

vehicles in November 2012 i.e the mid size segment registered negative growth of (-)

51.70 percent in November 2012 over November 2011.

It was also observed that in November 2012, Maruti Suzuki’s super compact segment

recorded growth of 29.78 percent by selling 13,502 vehicles over November 2011.

The following chart describes the net sales of Maruti Suzuki during 2004-05 to 2011-

12.

Chart 4.3: Net Sales of Maruti Suzuki (Rs.in Million)


The above pie chart revealed that Maruti Suzuki’s total Net Sales in year 2004-05 was

109,108 million whereas the net sales in year 2005-06 was Rs.120,034 million i.e year

2005-06 registered growth of 10.01 percent over 2004-05. In year 2010-11, Maruti

Suzuki’s total net sale was Rs.361,282 million whereas the total net sale in year 2011-

12 was 347,059 million..

It was observed that in year 2011-12 Maruti Suzuki’s net sale was decreased by (-)

3.93 percent over 2010-11 whereas in year 2010-11, the company’s net sales was

increased by 24.75 percent over 2009-10. It was also revealed that in year 2007-08,

Maruti Suzuki’s net sales was 178,603 million i.e this year recorded growth of 22.39

percent over 2006-07.

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Sales Network

Maruti Suzuki has the largest sales and service network amongst car manufacturers in

India. It had 802 sales outlets in 555 cities and 2740 service workshops in 1335 cities.

The service network of the Maruti Suzuki includes Dealer workshops, Authorized

service stations and Maruti service zones.19

The following pie chart clearly describes the sales network of Maruti Suzuki.

Chart 4.4: Sales Network of Maruti Suzuki (in Number)


The above pie chart depicted that the sales network of Maruti Suzuki gradually

increased since 2005-06 to 2011-12. In year 2005-06, there was 375 sales network of

Maruti Suzuki whereas in year 2006-07 the number of sales network reached to 491.

In year 2009-10 Maruti Suzuki’s sales network increased by 121 and reached to 802

sales networks over previous year.

It was also observed that in year 2011-12 the total number of sales network of

company was 1100 i.e as far as sales network is concerned, in year 2011-12, Maruti

Suzuki registered growth of 17.89 percent over 2010-11 whereas in year 2010-11, the

company recorded growth of 16.33 percent over 2009-10.

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Hyundai Motor India Limited

Hyundai Motor India Limited is India’s second biggest car producer & largest

passenger car exporter. Hyundai currently markets eight passenger car models across

segments which include popular brands like Eon, Santro, i10, i20, Accent & Verna.

The A2 segment of Hyundai consists of Eon, Santro, i10 & i20, the A3 segment

consists of Accent & Verna. The A5 segment includes Sonata, and in the SUV (Sports

Utility Vehicle) segment the Santa Fe.

Since inception, Hyundai Motors India Limited has dominated the automobile market

with the reputation of being the fastest growing automobile manufacturer in India.

Hyundai’s growth has been driven by volume oriented revenues coupled with

technological soundness and superior designs. Focusing on the latest technologies and

innovative marketing strategies, Hyundai Motor India Limited has carved out a niche

for itself in the market today with most of its models leading in their respective

segments. It has been a long journey from just 8,447 units in the year 1998.

In calendar year 2010 (Jan-Dec), Hyundai Motor India Limited grew by 7.84 percent

cumulatively registering total sales of 603,819 units as against 559,880 units of 2009

with domestic sales surging by 23.06 percent over 2009. Domestic sales accounted for

356,717 units in 2010 as against 289,863 in the year 2009.

Hyundai Motors fully integrated state of the art manufacturing plant near Chennai

boasts of advanced production, quality and testing capabilities. In the year March

2012, Hyundai Motors India Limited touched 1.5 million in exports.

With an intention to Support Company’s growth and expansion plans Hyundai Motors

India Limited currently have 346 dealers and around 800 service points across India.

In its commitment to provide customers with cutting edge global technology, the

company set up a modern multi-million dollar R&D facility in Hyderabad.

Today Hyundai Motors India Limited has grabbed major market share in India

because of its world class technology, style & continuous innovations and up

gradations in vehicles. As per company’s punch line, Hyundai has achieved lot of

success & awards because it always focuses on new thinking, due to which new

possibilities can be discovered.

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Production

Hyundai Motors India Limited has started its production in the year 1998. Presently

Hyundai Motors is India’s second largest passenger car manufacturer. In a short span

of time, Hyundai has achieved this success because of its world class manufacturing

excellence. On 23 September 1998, Hyundai Santro makes its world debut in India.

Because of its world class production facilities, on 14 January 2003, Hyundai Motors

India Limited awarded “Manufacturer of the Year” at the CNBC Auto car India

awards. On 4 August 2010, Hyundai Motors India Limited touches milestone of 30

Lakh cars production & on 30 November 2010, the company reaches milestone of 20

Lakh domestic productions in a span of 12 years. 20

Hyundai was also the fastest to reach the sales mark of 20 lakh (2 million) units in the

domestic market in November 2010. On 30 December 2010, Hyundai Motors India

Limited achieved a historic milestone by reaching the production of 6 lakh units, the

highest since its inception.21

Hyundai Motors India Limited has two plants at Irrungattukottai, around 45 km from

Chennai with a capacity to roll out 630,000 units per year.22

According to Mr.Park-Managing Director & Chief Executive Officer, Hyundai

Motors India Limited plans to increase production capacity from 6.3 lakh units a year

to 6.7 units, in a year and 10 new models will be launched by 2015 in the mid

segment.23

The following are few production milestones of Hyundai Motors India Limited.

• 12 June 2001 – Hyundai Motors rolls out its 200,000th car.

• 26 June 2002 – Hyundai Motors rolls out its 300,000th car & in December

2002, Hyundai rolls out 350,000th car in a short period of 50 months.

• 8 May 2003 – Hyundai rolls out 400,000th car.

• 11 December 2003 – Hyundai rolls out 500,000th car.

• 13 March 2006 – Hyundai rolled out the fastest 10,00,000th car.

• September 2007 – Hyundai rolled out fastest 15,00,000th car.

• 13 November 2008 – Hyundai Motors reaches the milestone of manufacturing

the fastest 2 million cars in India.

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Hyundai Motor’s production department consists of Press Shop, Body Shop, Paint

Shop, Assembly Shop and Engine & Transmission Shop. Hyundai’s Engine &

Transmission shop is one of the biggest engine shops in the country and this unit is

equipped with the modern tooling and testing facilities to make a wide range of

engines in-house.

Export

Since inception, Hyundai Motor India Limited has become the leading exporter of

passenger cars with a market share of 48 percent of the total exports of passenger cars

from India. Hyundai Motor India Limited is India’s largest passenger car exporter.

Hyundai Motor began exporting cars in 1999 by shipping a batch of 20 Santro’s to

Nepal and it reached the first milestone of exporting 100,000 cars in four years and

ten months in October, 2004. In October 2005, the company exported its 200,000th car

followed by its 300,000th and 400,000th car in October 2006 and August 2007

respectively.

Hyundai Motor India Limited becomes the fastest Indian passenger car manufacturer

to achieve this stupendous milestone in record time.

Presently, Hyundai Motors India is exporting six of its popular models namely-

Santro, i10, i20, Accent, Eon and Verna to 119 countries across East Europe, Africa,

Middle East, Latin America and the Asia Pacific. Hyundai Motor India Limited has

been India’s number one exporter for seven years in a row. 24

In the month of August 2011, Hyundai Motor India Limited’s exports grew by 10.53

percent. In August 2011, the company exported 24,353 vehicles whereas in the same

month last year i.e in August 2010, the company exported 22,032 vehicles25. In

September 2012, Hyundai Motors export grew by 3.92 percent to 22,707 units

whereas the company exported 21,849 vehicles in September 2011.26 Hyundai Motor

exported 23,007 vehicles in October 2012 & recorded growth of 50.16 percent over

October 2011. In October 2011, the company had exported 15,321 vehicles.

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The following chart highlights the growth of Hyundai Motors India Limited in Export

during 1999-2012.

Chart 4.5: Growth of Hyundai Motors in Export

Source: Report by Hyundai Motor India Limited retrieved from www.hyundai.com

From the above chart it was disclosed that in year 2009, Hyundai Motors exported

270,077 vehicles whereas in 2008, the company exported 243,919 vehicles i.e the

year 2009 recorded growth of 10.72 percent over 2008. Hyundai Motors exported

247,102 vehicles in year 2010 i.e in this year; Hyundai Motor saw a decrease of (-)

8.50 percent over 2009. The year 2011, also recorded a negative growth of (-) 1.93

percent by exporting 242,330 vehicles over 2010.

Sales

Hyundai Motor India Limited, the India’s second largest passenger car manufacturer,

reported 17.69 percent decline in sales of January 2011 at 43,316 units, compared to

52,628 units in the same month last year i.e January 2010. Hyundai Motor’s domestic

sales registered growth of 2.38 percent at 30,306 units sold during January 2011,

against 29,601 units sold in the January 2010.27

In September 2011, Hyundai Motor India Limited reported 12.4 percent increase in

total sales to 57,808 units. In the A2 segment the company sold 49,552 units, while in

the A3 segment, Hyundai Motor’s sales stood at 8,051 units. 28

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In December 2011, Hyundai reported 3.6 percent jump in total sales to 48,949 units.

In the domestic market, Hyundai Motor registered growth of 12.79 percent by selling

29,516 units in December 2011 from 26,168 units in December 2010. In December

2011 Hyundai Motor sold 42,624 units in A2 segment while 6,247 units in A3

segment. In the same month, in A5 segment the company sold 11 units of Sonata

Transform model.29

In October 2012, the company recorded 21.65 percent increase in total sales at 58,785

units while the company had sold 48,322 units in October 2011. In the domestic

market, Hyundai Motor recorded growth of 8.41 percent by selling 35,778 units in

October 2012 over 33,001 units in October 2011. It was observed that in October

2012, in A2 segment (Eon, Santro, i10, i20) the company sold 50,146 units, while

sales in the A3 segment (Accent & Verna) stood at 7,895 units. The company sold

668 units in A4 segment (Elantra), 56 units of Sports Utility Vehicle Santa Fe and 20

units of luxury sedan Sonata.30

In the month of November 2012, Hyundai Motors India Limited registered 2.29

percent fall in total sales at 55,762 units while the company sold 57,071 units in same

month last year i.e November 2011. In the domestic market, in November 2012

Hyundai recorded a marginal decline in sales at 34,751 units compared to 35,000

units in November 2011. Hyundai Motors sold 48,650 units in A2 segment while

sales in the A3 segment stood at 6,526 units. During November 2012, the company

sold 53 units of Santa Fe and 20 units of luxury sedan Sonata.

As per the statement of Mr.Rakesh Srivastava, HMIL- Vice President (Marketing &

Sales), “The adverse market conditions due to high interest rates and inflation

continued to pose challenges for growth. Mr.Srivastava further opined that increased

diesel fuel price temporarily affected the strong momentum of diesel car sales”. 31

The following chart shows the performance of Hyundai Motors India Limited during

1998 to 2010 in Domestic sales. The X axis denotes the number of domestic vehicles

sold whereas the Y axis denotes the year.

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Chart 4.6: Domestic sales of Hyundai Motors

Source: Report by Hyundai Motor India Limited retrieved from www.hyundai.com

The above chart depicted that the domestic sales of Hyundai Motors India Limited

gradually increased since year 1998 to year 2010. In year 1998 Hyundai sold 8,447

vehicles whereas in year 1999, Hyundai Motors domestic sales reached to 60,321

vehicles. It was observed that in year 2000 the company recorded growth of 35.32

percent over year 1999.

Because of continuous innovations & up gradations in vehicles presently Hyundai

became the second largest passenger car manufacturer in India. In year 2008, by

selling 245,397 vehicles Hyundai recorded growth of 22.44 percent over 2007

whereas in year 2009, the company by selling 289,863 vehicles recorded growth of

18.12 percent over 2008. In 2010, the company sold 356,717 vehicles & recorded

growth of 23.06 percent over 2009.

Performance Evaluation of Maruti Suzuki India Limited and Hyundai Motors

India Limited during 1997-2008.

Presently, Maruti Suzuki India Limited & Hyundai Motors India Limited is

considered the leaders of Indian automobile market. Lot of awards, achievements &

accolades received by those companies tell the truth of their performance. We can

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measure their performance by focusing on their past & present Production, Sales,

Export, Market Share, Net Income, Profit after tax.

Overview of Net Income & Profit after Tax

The performance of Maruti Suzuki India Limited & Hyundai Motors India Limited

regarding Net Income & Profit after Tax during 1997-2008 are summarized below-

Table 4.3: Net Income of Maruti & Hyundai (Annual) (Rs.in Crore)

Year Maruti Suzuki India Limited

Hyundai Motors India Limited

Mar 1997 6,042.77 0

Mar 1998 6,417.05 0.16

Mar 1999 6,184.78 376.22

Mar 2000 7,266.1 1,702.58

Mar 2001 6,930.4 2,263.38

Mar 2002 7,305.2 2,633.49

Mar 2003 7,531.7 3,161.11

Mar 2004 9,336.1 4,978.31

Mar 2005 11,228.1 6,607.87

Mar 2006 12,576.6 7,816.54

Mar 2007 15,250.5 9,253.61

Mar 2008 18,490.7 (N.A)

Source: Centre for Monitoring Indian Economy, Prowess Database (2009)

From the above table it was revealed that the net income of Maruti Suzuki India

Limited has gradually increased except year 1999 & 2001. In year 1999 the company

registered negative growth of (-) 3.63 percent over 1998. It was observed that in year

2001, Maruti Suzuki’s net income was 6,930.4 crore where as in year 2000, Maruti’s

net income was 7,266.1 crore i.e in year 2001, the company’s net income decreased

by (-) 4.62 percent. In year 2008, Maruti Suzuki recorded growth of 21.24 percent

over 2007.

As far as net income was concerned, Hyundai Motors India Limited, recorded steady

growth during year 1997 to 2008. In year 2005, the company by earning 6,607.87

crore net income recorded growth of 32.72 percent over 2004. The company’s total

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net income in year 2007 was 9,253 crore i.e in this year Hyundai Motors India

Limited registered growth of 18.38 percent over 2006.

The following table highlights the profit after tax of Maruti Suzuki India Ltd and

Hyundai Motors India Ltd during 1997-2008.

Table 4.4: Maruti & Hyundai’s Profit after Tax (Annual) (Rs.in Crore)

Year Maruti Suzuki India Limited


Mar 1997 510.07 0

Mar 1998 651.91 -4.99

Mar 1999 522.99 -50.44

Mar 2000 330.1 59.34

Mar 2001 -269.4 171.96

Mar 2002 104.5 274.61

Mar 2003 146.4 164.75

Mar 2004 542.1 378.85

Mar 2005 853.6 406.92

Mar 2006 1,189.1 525.1

Mar 2007 1562 466.75

Mar 2008 1730 (N.A)


The above table disclosed that, in year 1999 Maruti Suzuki’s profit after tax was

522.99 crore whereas in year 1998, Maruti’s profit after tax was 651.91 crore i.e in

year 1999, Maruti Suzuki’s profit after tax decreased by (-) 19.77 percent over 1998.

It was revealed that, in year 2001, Maruti Suzuki’s profit after tax was (-) 269.4 crore.

In year 2006, the company registered growth of 39.39 percent over 2005 whereas the

year 2008 recorded growth of 10.75 percent over 2007.

As far as Hyundai Motors’s performance is concerned, it was observed that Hyundai

has done well except year 1998 & 1999 as those days were struggling days of

Hyundai Motors. It was observed that Hyundai’s profit after tax in year 1999 was (-)

Rupees 50.44 crore. In year 2006, the company recorded growth of 29.31 percent over

2005 by earning profit after tax of Rupees 525 crore whereas in year 2007, Hyundai

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Motor registered negative growth of (-) 11.23 percent over 2006, by earning profit of

466 crore.

Overview of Production


during 1997-2008 is summarized below-

Table 4.5: Vehicle Production of Maruti Suzuki & Hyundai Motors (Financial Year) (In Numbers)

Category/ Segment

1996-97 1997-98 1998-99 1999-00 2000-01 % change in 2000-01

over 1999-00

Hyundai Motor India Ltd

Cars ----- ----- 18,056 72,556 81,740 12.65

Maruti Udyog Ltd

Cars 281,271 289,608 270,782 315,208 282,533 -10.36

Vans 47,577 57,026 59,613 83,461 59,715 -28.45

Multi Utility Vehicles (Gypsy)

7,963 7,702 7,704 8,899 5,869 -34.04

Source: Society of Indian Automobile Manufacturers (SIAM), Statistical Profile-2000-01

Note- After year 2000-2001, the nomenclature of category/segment/sub segment in

automobile sector has been changed and as per the report of society of Indian

automobile manufacturer, cars have been categorized in Mini (A1), Compact (A2),

Mid-Size (A3), Executive (A4), Premium (A5) and Luxury (A6) segment under

passenger vehicles. Further after 2000-2001, Gypsy was treated as Utility vehicles

(UV) whereas Vans was treated as multipurpose vehicle (MPV).

The above table depicted that in year 1999-2000, Hyundai Motor India Limited

produced 72,556 vehicles and recorded drastic growth over previous year. In year

2000-2001, by producing 81,740 vehicles the company recorded growth of 12.65

percent over 1999-2000.

159

It was observed that in passenger car segment, Maruti Suzuki recorded growth of

16.40 percent in year 1999-2000 over 1998-1999, whereas year 1998-99 recorded

negative growth of -6.50 percent over 1997-98. It was found that the company

produced 282,533 vehicles in year 2000-2001 and recorded negative growth of -10.36

percent over 1999-2000. As far as Van is concerned, it was found that the production

of van has been decreased by (-) 28.45 percent in year 2000-2001 over 1999-2000.

The company produced 59,715 vans in year 2000-2001. In year 2000-2001, Multi

Utility vehicle segment registered negative growth of (-) 34.04 percent over 1999-

2000. In 2000-2001, the company produced 5,869 vehicles whereas in 1999-2000, the

company produced 8,899 multi utility vehicles i.e Gypsies.

The following table focuses on growth & production of Maruti Suzuki & Hyundai

Motors during 2001-02 to 2004-05.

Table 4.6: Vehicle Production of Maruti Suzuki & Hyundai Motors (Financial Year) (Vehicles in Number)

Category/Segment 2001-02 2002-03 2003-04 2004-05 % Growth in

04-05 over

2003-04 Hyundai Motors India Limited

A2: Compact 72,870 90,236 135,008 189,633 40.46

A3: Mid-size 18,707 20,865 34,698 30,712 -11.49

A4: Executive ----- ----- ----- 5,162 ----

A5: Premium 2,311 1,426 1,236 1,025 -17.07


A1:Mini 149,424 148,187 178,364 127,175 -28.70

A2: Compact 125,927 146,305 216,163 309,068 42.98

A3: Mid-size 13,086 10,751 14,384 31,491 118.93

B:Utility Vehicles 5,153 3,503 3,433 5,324 55.08

C:Multi Purpose Vehicles, Van type

63,537 51,214 60,564 67,303 11.13

Source: Society of Indian Automobile Manufacturers (SIAM), Statistical Profile- 2005-06.

The above table disclosed that as far as compact segment is concerned Hyundai

Motors have recorded continuous growth in production since 2001-02 to 2004-05 than

other segments. It was found that in year 2004-05 by producing 189,633 vehicles

160

Hyundai Motors have registered growth of 40.46 percent in compact segment over

2003-04. Hyundai Motor’s premium segment recorded gradual decrease in production

since 2001 to 2005. In premium segment the company recorded negative growth of (-)

17.07 percent in year 2004-05 over 2003-04 whereas in year 2004-05, Hyundai

registered negative growth of (-) 11.49 percent in mid-size segment over 2003-04.

It was found that, Maruti Suzuki India Limited recorded positive growth in compact

segment, in this segment the company by producing 309,068 vehicles recorded a

growth of 42.98 percent in year 2004-05 over 2003-04.

In year 2002-03, Maruti Suzuki recorded negative growth of (-) 19.39 percent over

2001-02 in multi purpose vehicle segment, whereas in utility vehicle segment by

producing 3,433 vehicles the company registered negative growth of (-) 1.99 percent

in year 2003-04 over 2002-03. In year 04-05, by producing 31,491 vehicles- the

company recorded historical growth of 118.93 percent in mid-size segment over

2003-04.

The following table highlights the vehicle production of Maruti & Hyundai during

2005-06 to 2008-09.

Table 4.7: Vehicle Production of Maruti Suzuki & Hyundai Motors (Financial Year) (Vehicles in Number)

Category/Segment 2005-06 2006-07 2007-08 2008-09 % Growth in 08-09 over


A2: Compact 2,15,792 2,71,597 3,19,634 4,42,894 38.56

A3: Mid-size 42,288 41,071 47,040 58,873 25.15 A4: Executive 1,605 1,683 ---- ----- ------ A5: Premium 566 253 568 451 -20.59 B: Utility Vehicles B1(a)

215 50 ---- ---- ------

Maruti Suzuki India Limited A1: Mini 98,047 99,400 81,179 62,323 -23.22 A2: Compact 3,72,222 4,48,717 5,37,549 5,55,086 3.26 A3: Mid-size 31,062 30,465 50,596 73,926 46.11 B:Utility Vehicles B1(b)

4,105 3,646 3,001 8,073 169.01

C: Multi Purpose Vehicles

66,661 84,707 93,940 75,215 -19.93

Source: Society of Indian Automobile Manufacturers, Statistical Profile 2008-09

161

Note- After year 2000-2001, the nomenclature of category/segment/sub segment in

automobile sector has been changed and as per the report of society of Indian

automobile manufacturers, Utility vehicles have been categorized in B1 (a) i.e

Maximum mass less than or equal to 3.5 tonnes and number of seats including driver

is less than or equal to 7, B1 (b) i.e maximum mass up to 3.5 tonnes and number of

seats including driver greater than 7 but less than or equal to 9, B2 (a) i.e maximum

mass up to 5 tonnes and number of seats including driver less than or equal to 13.

The above table illustrates that, Hyundai Motors had excelled in compact segment

than other segments. In compact segment, the company registered growth of 38.56

percent in year 2008-09 over 2007-08 while the mid-size segment recorded growth of

25.15 percent in year 2008-09 over 2007-08.

It was observed that in year 2008-09 Hyundai Motor produced 451 vehicles in

premium segment and registered negative growth of (-) 20.59 percent over 2007-08

whereas in year 2006-07, Hyundai Motor recorded negative growth of (-)76.74

percent in Utility vehicle segment over 2005-06.

It was disclosed that, Maruti Suzuki India Limited, in Mini segment recorded negative

growth of -23.22 percent in year 2008-09 over 2007-08 whereas in Compact segment,

the company recorded growth of 3.26 percent in year 2008-09 over 2007-08. In Mid-

size segment, the company recorded growth of 46.11 percent in year 2008-09 over

2007-08 & in Multi purpose vehicle segment, Maruti Suzuki produced 75,215

vehicles in year 2008-09 and registered negative growth of (-) 19.93 percent over

2007-08.

In Utility vehicle segment, Maruti Suzuki produced 8,073 vehicles in year 2008-09

and registered growth of 169.01 percent over 2007-08.

Overview of Sales


about Sales during 1997-2008 is as follows:

162

The following pie chart clearly shows the Sales of Maruti Suzuki India Limited in

Crore.

Chart 4.7: Sales of Maruti Suzuki (Rs.in Crore)


From the above chart it was observed that Maruti Suzuki had performed well except

year 1999, 2001 & 2003. In year 1999, the sales of Maruti Suzuki was 7,885.56 crore

while in year 1998 the sales was 8,305.95 crore i.e in year 1999-Maruti recorded

negative growth of (-) 5.05 percent over 1998. It was observed that- in year 2006, the

sales of Maruti Suzuki was 15,125 crore i.e in this year the company registered

growth of 12.16 percent over 2005.

It was also disclosed that in year 2008, Maruti Suzuki recorded growth of 21.55

percent over 2007. In 2008, the sales of Maruti Suzuki was 21,221.2 crore.

163

The following pie chart focuses on Sales of Hyundai Motors India Limited during

March 1997 to March 2007.

Chart 4.8: Sales of Hyundai Motors (Rs.in Crore)


The above pie chart disclosed that since 1997 to 2007, Hyundai Motor India Limited

have performed excellent & recorded gradual growth in sales. In 2002, the company’s

sale was 3,385.94 crore, i.e in this year- Hyundai Motor registered growth of 11.56

percent over 2001.

It was found that in year 2004, companies sales was 5,842.6 crore i.e in year 2004

Hyundai Motor recorded growth of 46.31 percent over 2003. In year 2007, the

company registered growth of 16.35 percent over 2006. In this year Hyundai’s sales

was 10,353.91 crore where as the sale of Hyundai in year 2006 was 8,898.75 crore.

As far as market share are concerned, various automobile reports, expert opinion and

company figures of Hyundai Motor highlighted that Hyundai Motor grabbed major

market share in Indian automobile sector. In a very short span of time, Hyundai

became popular in India in passenger car segment.

164

The following table highlights the Sales of Maruti Suzuki & Hyundai Motors during

1996-97 to 2000-01.

Table 4.8: Sales of Maruti & Hyundai (Financial Year) (In Numbers)

Category/ Segment

1996-97 1997-98 1998-99 1999-00 2000-01 % growth

in 2000-01

over 99-00


Cars ----- ------- 17,648 75,690 86,719 14.57

Maruti Udyog Ltd

Cars 282,856 288,421 267,020 314,156 284,661 -9.38

Vans 47,558 56,882 59,503 83,430 59,802 -28.32

Multi Utility Vehicles (Gypsy)

8,332 7,785 7,250 8,705 6,161 -29.22

Source: Society of Indian Automobile Manufacturers, Statistical Profile 2000-01, Page No.36

Note: Maruti Suzuki changed its name from Maruti Udyog Limited to Maruti Suzuki

India Limited with effect from 17 September 2007.

The above table indicates that Hyundai Motors have registered excellent growth of

328 percent by selling 75,690 cars in year 1999-2000 over 1998-99 whereas in year

2000-01, the company sold 86,719 vehicles and registered growth of 14.57 percent

over 1999-2000.

It was observed that, in car segment-Maruti Udyog Ltd registered a growth of 17.65

percent in year 1999-2000 over 1998-99 whereas in Van segment, the company

recorded negative growth of (-) 28.32 percent in year 2000-01 over 1999-2000.

It was also disclosed that in Multi Utility vehicles segment, Maruti sold 6,161 Gypsies

in year 2000-2001 & recorded negative growth of (-) 29.22 percent over 1999-2000.

The following table describes the Sales of Maruti Suzuki & Hyundai Motors during

2001-02 to 2004-05 along with percentage growth in year 2004-05 over 2003-04.

165

Table 4.9: Sales of Maruti Suzuki & Hyundai Motors (Financial Year) (In Numbers)

Category/Segment 2001-02 2002-03 2003-04 2004-05 % Growth in 2004-05 over


A2: Compact 67,909 82,892 100,017 113,269 13.25

A3: Mid-size 17,700 19,152 28,231 22,917 -18.82

A4: Executive ------ ------ ------- 4,771 ------

A5: Premium 2,213 1,492 1,224 873 -28.68

B:Utility Vehicles [B1(a)]

----- ----- 318 316 -0.63


A1:Mini 144,389 143,342 167,561 116,262 -30.62

A2: Compact 116,587 120,603 176,132 271,280 54.02

A3: Mid-size 12,908 11,086 14,173 29,637 109.11


------- ------- 201 101 -49.75

B:Utility Vehicles [B1(b)]

4,713 3,241 3,354 5,103 52.15

C:Multi Purpose Vehicles, Van type

61,586 51,910 59,526 65,019 9.23

Source: Society of Indian Automobile Manufacturers, Statistical Profile 2005-06.

The above table depicted that Hyundai Motor’s compact segment recorded gradual

growth during year 2001-02 to 2004-05. In compact segment, Hyundai sold 113,269

vehicles and registered a growth of 13.25 percent in year 2004-05 over 2003-04. In

year 2003-04, the company recorded a growth of 47.41 percent in mid size segment

over 2002-03 whereas in premium segment-Hyundai Motor registered negative

growth of (-) 17.96 percent in year 2003-04 over 2002-03. It was found that in Utility

vehicle segment, the company sold 316 vehicles and recorded negative growth of -

0.63 percent in year 2004-05 over 2003-04.

It was disclosed that during 2001-02 to 2004-05, Maruti Suzuki has performed well in

compact car segment. In compact segment Maruti Suzuki sold 271,280 vehicles in

year 2004-05 and recorded growth of 54.02 percent in year 2004-05 over 2003-04

whereas in Utility vehicle segment (B1-a), the company sold 101 utility vehicles in

2004-05 and registered negative growth of (-) 49.75 percent in year 2004-05 over

166

2003-04. In year 2004-05, Maruti Suzuki sold 5,103 Utility vehicles (B1-b) &

recorded growth of 52.15 percent over 2003-04. In Mini segment, Maruti Suzuki sold

116,262 vehicles in year 2004-05 and sold 167,561 vehicles in year 2003-04 i.e the

company recorded negative growth of (-) 30.62 percent in year 2004-05 over 2003-04.

It was found that in multi purpose vehicle segment- Maruti Suzuki recorded a growth

of 14.67 percent in year 2003-04 over 2002-03 whereas in year 2004-05, in same

segment by selling 65,019 vehicles, the company recorded growth of 9.23 percent in

year 2004-05 over 2003-04.

The following table describes the Sales of Maruti Suzuki & Hyundai Motors during

2005-2006 to 2008-09.

Table 4.10: Domestic Sales of Maruti & Hyundai (Financial Year) (In Numbers)

Category/Segment 2005-06 2006-07 2007-08 2008-09 % growth

in 2008-09

over 07-08


A2: Compact 124,541 163,838 182,775 212,001 15.99

A3: Mid-size 30,301 28,980 32,791 31,579 -3.69

A4: Executive 2,160 1,482 203 19 -90.64

A5: Premium 729 570 538 431 -19.88

B: Utility Vehicles- B1(a) 1,253 391 188 50 -73.40 Maruti Suzuki India Limited

A1: Mini 89,223 79,245 69,553 49,383 -28.99

A2: Compact 335,136 440,375 499,280 511,396 2.42

A3: Mid-size 31,939 29,697 49,335 75,928 53.90

B:Utility Vehicles-B1(a) 34 ---- 795 270 -66.03 B:Utility Vehicles-B1(b) 4,340 3,221 3,132 7,219 130.49 C: Multi Purpose Vehicles

66,366 83,091 89,729 77,948 -13.12

Source: Society of Indian Automobile Manufacturers (SIAM), Statistical Profile 2008-09.

The above table disclosed that during 2005-06 to 2008-09, the compact segment of

Hyundai Motors recorded continuous growth than other segments. In compact

segment the company sold 212,001 vehicles in 2008-09 and witnessed a growth of

167

15.99 percent in year 2008-09 over 2007-08 whereas in mid size segment, the

company recorded negative growth of (-) 3.69 percent in year 2008-09 over 2007-08.

It was found that in year 2008-09 Hyundai Motors sold 19 vehicles and recorded

negative growth of (-) 90.64 percent in executive segment over previous year whereas

in year 2008-09, Hyundai Motor’s Utility vehicle segment (B1-a) also recorded

negative growth of (-) 73.40 percent over 2007-08.

It was observed that during 2005-06 to 2008-09, the sales of Maruti Suzuki in mini

segment has continuously decreased & in year 2008-09 the company in same segment

recorded negative growth of (-) 28.99 percent over 2007-08. It was noticed that the

compact segment of Maruti Suzuki have performed well during 2005 to 2009 & in

year 2008-09, the company sold 511,396 vehicles in this segment and witnessed

growth of 2.42 percent over 2007-08.

It was observed that in year 2008-09- Maruti Suzuki sold 270 utility vehicles (B1-a)

and registered negative growth of (-) 66.03 percent over 2007-08 whereas in year

2008-09, Maruti’s multipurpose vehicle segment sold 77,948 vehicles and registered

negative growth of (-) 13.12 percent in 2008-09 over 2007-08.

In year 2008-09, Maruti Suzuki sold 7,219 Utility vehicles (B1-b) and registered

excellent growth of 130.49 percent over 2007-08.

Overview of Export

In this, the performance of Maruti Suzuki India Limited & Hyundai Motor India

Limited about Export has been highlighted in general.

168


about Export during 1996-97 to 2000-01 is highlighted in following table.

Table 4.11: Export of Maruti Suzuki & Hyundai Motors (Financial Year) (In Numbers)

Category/ Segment

1996-97 1997-98 1998-99 1999-00 2000-01 % growth

in 2000-01

over 1999-00


Cars ------- ----- ----- 44 5,759 12,988

Maruti Udyog Ltd

Cars 33,853 24,757 23,446 20,943 15,025 -28.75

Multi Utility Vehicles

1,444 1,030 654 505 245 -51.48

Source: Society of Indian Automobile Manufacturer, Statistical Profile 2000-2001, Page 63

The above table depicted that Hyundai’s export has been drastically increased in year

2000-01. In year 2000-01, Hyundai Motors exported 5,759 cars whereas in 1999-

2000, the company had exported only 44 cars.

It was noticed that, Maruti Suzuki’s export has been continuously decreased since

1996-97 to 2000-01. In year 2000-01, in car segment, Maruti Suzuki’s export has

been decreased by (-) 28.25 percent over 1999-2000 whereas in year 2000-01, in

multi utility vehicle segment, Maruti Suzuki had exported 245 vehicles & registered

negative growth of (-) 51.48 percent in year 2000-01 over 1999-2000.

169

The following table focuses on Export of Maruti Suzuki & Hyundai Motors during

year 2001-2002 to 2004-05 along with percentage growth in 2004-05 over 2003-04.


Category/Segment 2001-02 2002-03 2003-04 2004-05 % Growth in

2004-05 over 03-04


A2: Compact 4,513 7,067 35,750 75,182 110.30

A3: Mid-size 905 1,892 6,363 6,911 8.61

A5: Premium ------- 1 ----- ----- ------


A1:Mini 2,993 6,682 10,479 8,185 -21.89

A2: Compact 8,066 24,583 39,454 39,396 -0.15

A3: Mid-size 87 243 315 65 -79.37


354 230 73 86 17.81

C:Multi Purpose Vehicles

731 502 852 1,150 34.98

Source: Society of Indian Automobile Manufacturers (SIAM), Statistical Profile 2005-06.

From the above table it was disclosed that in compact segment, Hyundai Motors

exported 75,182 vehicles in year 2004-05 & registered growth of 110.30 percent in

year 2004-05 over 2003-04. In Mid-size segment, the company exported 6,911

vehicles in year 2004-05 & recorded growth of 8.61 percent over 2003-04.

It was observed that, in compact segment, Maruti Suzuki exported 24,583 vehicles in

year 2002-03 & recorded growth of 204.77 percent over 2001-02 whereas in year

2004-05, the company by exporting 65 vehicles recorded negative growth of (-) 79.37

percent over 2003-04. In Utility vehicle segment (B1-b), Maruti Suzuki exported 86

vehicles in year 2004-05 and recorded growth of 17.81 percent over 2003-04. In Multi

purpose vehicle segment, Maruti Suzuki had exported 1,150 vehicles in year 2004-05

& registered growth of 34.98 percent over 2003-04.

170

The following table focuses on Export of Maruti Suzuki & Hyundai Motors during

2005-2006 to 2008-09.


Category/Segment 2005-06 2006-07 2007-08 2008-09 % Growth in 2008-09 over 07-08


A2: Compact 90,710 105,502 129,060 228,386 76.96

A3: Mid-size 11,382 10,023 15,380 24,959 62.28


A1: Mini 11,199 16,858 17,450 14,624 -16.19

A2: Compact 22,331 20,819 34,399 54,099 57.26

A3: Mid-size 67 84 67 111 65.67

B:Utility Vehicles- B1(b)

94 204 103 76 -26.21


1,093 1,330 1,005 1,112 10.64


The above table depicted that in compact segment, Hyundai Motors exported 228,386

vehicles in year 2008-09 & recorded growth of 76.96 percent over 2007-08. In year

2006-07, in mid size segment- Hyundai Motors recorded negative growth of (-)11.93

percent over 2005-06 whereas in same segment by exporting 24,959 vehicles the

company registered a growth of 62.28 percent in year 2008-09 over 2007-08.

It was observed that in mini segment, Maruti Suzuki had exported 14,624 vehicles in

year 2008-09 & recorded negative growth of (-) 16.19 percent over 2007-08 whereas

in year 2008-09, Maruti Suzuki’s compact segment by exporting 54,099 vehicles

witnessed positive growth of 57.26 percent over 2007-08. It was noticed that, in mid

size segment, Maruti Suzuki had exported 111 vehicles in year 2008-09 & recorded

growth of 65.67 percent over 2007-08.

In Utility vehicle segment (B1-b), Maruti Suzuki had exported 76 vehicles in year

2008-09 & registered negative growth of (-) 26.21 percent over 2007-08 and in multi

171

purpose vehicle segment, the company registered growth of 10.64 percent in year

2008-09 over 2007-08 whereas in same segment, the company registered negative

growth of (-) 24.43 percent in year 2007-08 over 2006-07.

Overview of Market Share

The Market Share of Maruti Suzuki India Limited & Hyundai Motors India Limited

during 1996-97 to 2000-01 is as follows-

Table 4.14: Market Share of Maruti Suzuki & Hyundai Motors (Financial Year) (In Percentage)

Category/Segment 1996-97 1997-98 1998-99 1999-00 2000-01


Cars ------- ------- 4.31 11.85 14.68

Maruti Udyog Ltd

Cars 68.82 69.04 65.19 49.19 48.19 Vans 11.57 13.62 14.53 13.06 10.12 Multi Utility Vehicles (Gypsy)

6.19 5.83 6.49 7.05 4.85

Source: Society of Indian Automobile Manufacturer, Statistical Profile 2000-2001, Page 47

From the above table it was revealed that in car segment, Hyundai Motor’s market

share in year 2000-01 was 14.68 percent whereas in 1998-99, the market share of

Hyundai Motor was 4.31 percent. The above table illustrates that, since 1998-99, the

company’s market share has been drastically increased. In early years, Hyundai

Motors had deeply studied the Indian automobile market & the needs and wants of

Indian customers. Later Hyundai Motor launched its cars like Santro, Accent, Getz in

Indian Automobile market which hit the market.

It was observed that Maruti Suzuki’s market share in car segment has been gradually

decreased during 1998-99 to 2000-2001. In car segment, the market share of Maruti in

year 2000-2001 was 48.19 percent i.e the market share of this segment in year 2000-

2001 registered negative growth of -2.03 percent over 1999-2000. The market share

of Van in year 2000-2001 was 10.12 percent whereas in year 1999-2000, the market

share of Van was 13.06 i.e the market share of Van segment in year 2000-2001

registered negative growth of -22.51 percent over 1999-2000.

172

It was also disclosed that the market share of multi utility vehicles especially Gypsies

in year 2000-2001 was 4.85 percent whereas the market share of multi utility vehicle

segment in year 1999-2000 was 7.05 i.e in 2000-2001, the market share of Utility

vehicle segment registered negative growth of (-) 31.20 percent over 1999-2000.


during 2001-02 to 2004-05 is as follows:


Category/Segment 2001-02 2002-03 2003-04 2004-05 % Growth

in 2004-05

over 2003-04


A2: Compact 24.66 27.69 27.07 22.82 -15.68

A3: Mid-size 21.09 20.73 20.27 12.82 -36.73

A4: Executive ----- ------ ------ 20.92 --------

A5: Premium 49.70 36.08 22.85 15.29 -33.07


----- ------- 1.04 0.66 -36.38


A1:Mini 100.00 100.00 100.00 100.00 ------

A2: Compact 42.34 40.29 47.67 54.66 14.67

A3: Mid-size 15.38 12.00 10.17 16.58 62.99


------- ------- 0.66 0.21 -68.18


18.06 8.17 6.80 9.08 33.49

C:Multi Purpose Vehicles

99.69 99.66 99.95 99.98 0.03

Source: Society of Indian Automobile Manufacturers, Statistical Profile 2005-06, PP 91-92.

The above table depicted that, in compact segment the market share of Hyundai

Motors in year 2004-05 registered negative growth of (-)15.68 percent over 2003-04

whereas in mid size segment, Hyundai’s market share in year 2004-05 registered

173

negative growth of (-) 36.73 percent over 2003-04. In year 2004-05, in mid size

segment the market share of Hyundai Motor was 12.82 percent.

The market share of Hyundai’s premium segment in year 2004-05 was 15.29 percent

i.e this segment recorded negative growth of (-) 33.07 percent over 2003-04 whereas

in year 2004-05 the market share of Utility vehicle segment (B1-a) was 0.66 percent

i.e this segment recorded negative growth of (-) 36.38 percent in year 2004-05 over

2003-04.

It was found that, in mini segment, Maruti Suzuki’s market share during 2001-02 to

2004-05 was 100 percent whereas the market share of compact car segment in year

2004-05 was 54.66 percent means this compact car segment recorded positive growth

of 14.67 percent in year 2004-05 over 2003-04.

In mid size segment, Maruti Suzuki’s market share in year 2004-05 was 16.58 percent

i.e this segment registered growth of 62.99 percent in year 2004-05 over 2003-04. In

year 2004-05, the market share of Maruti Suzuki’s utility vehicle (B1-a) segment was

0.21 percent means this segment witnessed negative growth of (-) 68.18 percent in

year 2004-05 over 2003-04.

It was also disclosed that the market share of Maruti Suzuki’s multipurpose vehicle

during 2001-02 to 2004-05 witnessed positive growth. In year 2004-05, the market

share of multipurpose vehicle segment was 99.98 percent means this segment

witnessed growth of 0.03 percent in year 2004-05 over 2003-04 whereas in year 2004-

05, the market share of utility vehicle (B1-b) segment was 9.08 percent means Maruti

Suzuki witnessed growth of 33.49 percent in year 2004-05 over 2003-04.

174


during 2005-06 to 2008-09 can be seen as follows-


Category/Segment 2005-06 2006-07 2007-08 2008-09 % Growth

in 2008-09

over 2007-08


A2: Compact 21.74 21.76 21.27 23.94 12.55

A3: Mid-size 16.27 14.71 14.53 13.07 -10.04

A4: Executive 7.85 3.61 0.48 0.06 -87.5

A5: Premium 11.66 9.44 8.68 5.18 -40.32

B:Utility Vehicles-B1(a)

1.91 0.40 0.14 0.04 -71.42


A1: Mini 100.00 100.00 100.00 100.00 ----

A2: Compact 58.50 58.49 58.11 57.74 -0.63

A3: Mid-size 17.15 15.08 21.86 31.41 43.68

B:Utility Vehicles-B1(a)

0.05 ----- 0.61 0.23 -62.29


6.10 4.78 4.44 10.41 134.45


100.00 100.00 88.96 73.12 -17.80


The above table depicted that the market share of Hyundai’s compact segment in year

2008-09 was 23.94 percent i.e in this year the company’s compact segment witnessed

growth of 12.55 percent over 2007-08. In year 2008-09, the market share of

Hyundai’s mid size segment was 13.07 percent means in this year, the market share of

mid size segment witnessed negative growth of (-) 10.04 percent over 2007-08.

In year 2008-09, the market share of Hyundai’s executive segment was 0.06 percent

means this segment recorded negative growth of (-) 87.5 percent over 2007-08

whereas in year 2008-09, the market share of Hyundai’s premium segment was 5.18

175

percent i.e this segment witnessed negative growth of (-) 40.32 percent in 2008-09

over 2007-08.

It was noticed that in year 2008-09, the market share of Utility vehicle segment (B1-a)

was 0.04 percent means this segment witnessed negative growth of -71.42 percent in

year 2008-09 over 2007-08.

It was disclosed that, during 2005-06 to 2008-09, Maruti Suzuki has performed well

& tried to balance its market share in all segment. During 2005-06 to 2008-09, the

market share of Maruti Suzuki’s mini segment was 100 percent whereas in year 2008-

09, the market shares of compact segment was 57.74 percent i.e this segment

witnessed negative growth of (-) 0.63 percent in year 2008-09 over 2007-08.

In year 2008-09, the market share of Maruti Suzuki’s mid size segment was 31.41

percent means this segment witnessed growth of 43.68 percent in year 2008-09 over

2007-08 whereas in year 2008-09, the market share of utility vehicle segment (B1-b)

was 10.41 percent i.e this segment registered drastic growth of 134.45 percent in year

2008-09 over 2007-08.

In year 2005-06 and 2006-07, the market share of Maruti Suzuki’s multipurpose

vehicle segment was 100 percent whereas in year 2008-09, the market share of

multipurpose segment was 73.12 percent i.e in year 2008-09, the market share of

multipurpose vehicle segment witnessed negative growth of (-) 17.80 percent over

2007-08.

On the basis of above discussions few observations are summarized as follows-

1. It was observed that since last decade, the Indian automobile industry has

registered positive growth and has been remarkably contributed to Indian

economy. In every segment i.e two wheeler, three wheeler, passenger vehicle

and commercial vehicle, the Indian automobile industry has achieved marvelous

success.

2. It was revealed that as far as production is concerned, India is the largest

manufacturer of tractor and three wheeler vehicle, second largest two wheeler

vehicle manufacturer, fourth largest commercial vehicle manufacturer and

eleventh largest passenger car manufacturer in the world.

176

3. In vehicle production, it was disclosed that in compact segment, Hyundai Motor

by producing 4,42,894 vehicles registered growth of 38.56 percent in year 2008-

09 over 2007-08 and Hyundai’s mid size segment recorded growth of 25.15

percent in year 2008-09 over 2007-08. In mini segment, Maruti Suzuki by

producing 62,323 vehicles recorded negative growth of 23.22 percent in year

2008-09 over 2007-08 whereas in mid size segment, Maruti Suzuki recorded

growth of 46.11 percent by producing 73,926 vehicles in year 2008-09 over

2007-08. (Table 4.7)

4. It was revealed that in year 1999 the net income of Maruti Suzuki was 6,184.78

crore and the net income of Hyundai Motor in same year was 376.22 crore

whereas in year 2008, Maruti Suzuki recorded growth of 21.24 percent over

year 2007 by gaining 18,490.7 crore net income and in year 2007, Hyundai

Motor registered growth of 18.38 percent over 2006. (Table 4.3)

5. As far as domestic sales is concerned, it was noticed that in compact segment,

Hyundai Motors by selling 212,001 vehicles registered growth of 15.99 percent

in year 2008-09 over 2007-08 and in mid size segment, by selling 31,579

vehicles the company registered negative growth of -3.69 percent in year 2008-

09 over 2007-08. In mini segment, Maruti Suzuki by selling 49,383 vehicles

registered negative growth of -28.99 percent in year 2008-09 over 2007-08

whereas in mid size segment, by selling 75,928 vehicles Maruti Suzuki recorded

growth of 53.90 percent in year 2008-09 over 2007-08. (Table 4.10)

6. It was observed that in export, Hyundai Motor is ahead than Maruti Suzuki. In

compact segment, Hyundai Motor exported 228,386 vehicles and recorded

positive growth of 76.96 percent over 2007-08 and in mid size segment,

Hyundai Motors exported 24,959 vehicles and registered growth of 62.28

percent in year 2008-09 over 2007-08. In compact segment, Maruti Suzuki

exported 54,099 vehicles and witnessed growth of 57.26 percent in year 2008-09

over 2007-08 whereas in utility vehicle segment (B1-b), Maruti had exported

only 76 vehicles and recorded negative growth of -26.21 percent in year 2008-

09 over 2007-08. (Table 4.13)

7. It was noticed that in year 2008-09, Hyundai Motor’s market share in compact

segment was 23.94 percent and in same year the market share of mid size

segment was 13.07 percent. As far as premium segment was concerned,

Hyundai motors’ market share was decreased since 2005-06 and in the same

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segment Hyundai Motors market share in year 2008-09 was 5.18 percent. It was

observed that, the market share of Maruti Suzuki in mini segment during 2005-

06 to 2008-09 was 100 percent and Maruti Suzuki’s market share during 2005-

06 to 2008-09 in compact segment had gradually declined. In 2008-09, Maruti’s

market share in compact segment was 57.74 percent whereas in same year,

Maruti Suzuki’s market share in multi purpose vehicle segment was 73.12

percent. (Table 4.16)

Select References-

1. Lokhande, M. A., & Rana, V. S. (2013). Marketing Strategies of Indian automobile companies: a case study of Maruti Suzuki India Limited. (D. Deshmukh, Ed.) Pratibha International Journal of Science, Spirituality, Business & Technology , I (2), 40-45.

2. Maruti Suzuki India Limited. (2009). Sustainability Annual Report 2009-10. Delhi: Maruti Suzuki India Limited.

3. Zareen, S. (2011). The role of automobile industry in the economy of Pakistan its growth. Its impact negative as well as positive. Lahore: Director General of Training & Research, Federal Board of Revenue, Pakistan.

4. Maruti Suzuki India Limited. (2010). Sustainability Report 2010-11; Company Milestone. Delhi: Maruti Suzuki.

5. Maruti production surpasses parent Suzuki's in 2009. (2010, January 26). The Hindu, New Delhi .

6. Maruti Suzuki rolls out 10 millionth car. (2011, March 15). Deccan Herald, New Delhi .

7. Maruti Suzuki to invest Rs.2000 crore in Gurgaon facility. (2012, April 15). The Hindu, New Delhi .

8. Maruti Suzuki India to set up manufacturing unit in Gujrat. (2012, June 1). Deccan Herald, Ahmedabad.

9. Exports. (2012). Retrieved January 24, 2013, from Maruti Suzuki India Limited: www.marutisuzuki.com

10. Maruti to explore new export markets. (2010, April). Retrieved August 24, 2011, from The Hindu, Chandigarh: thehindu.com

11. Maruti Suzuki India Limited. (2009). Give, Get & Grow;Sustainability Report-2009-10. New Delhi: Maruti Suzuki India Limited.

12. Maruti's cumulative exports cross one million mark. (2012, April 30). Retrieved November 17, 2012, from Deccan Herald, New Delhi: www.deccanherald.com

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13. About Us. (2012). Retrieved February 11, 2013, from Maruti Suzuki India limited: www.marutisuzuki.com

14. Maruti Suzuki sales in January 2012, New Delhi. (2012, February 1). Retrieved September 15, 2012, from Maruti Suzuki India Limited: marutisuzuki.com

15. Maruti Suzuki sales in 2009-10, New Delhi. (2010, April 1). Retrieved March 24, 2012, from Maruti Suzuki India Limited: www.marutisuzuki.com

16. Maruti Suzuki rises post September sales figures. (2012, October 1). Retrieved March 18, 2013, from Business Standard, Mumbai: www.business-standard.com

17. Maruti Suzuki sales up 10 % in September. (2012, October 1). Hindustan Times, PTI, New Delhi .

18. Maruti Suzuki sales up 85 % in October. (2012, November 1). Retrieved January 21, 2013, from The Times of India, PTI: timesofindia.indiatimes.com

19. Service network, Domestic sales. (2012). Retrieved April 3, 2013, from Maruti Suzuki India Limited: www.marutisuzuki.com

20. Production. (2012). Retrieved April 4, 2013, from Hyundai Motor : http://www.hyundai.com

21. Hyundai Motor India production touches 6 lakh units in 2010. (2010, December 30). Retrieved May 21, 2011, from Hyundai Motors: www.hyundai.com

22. Strike hits production at Hyundai Motor India. (2012, October 31). Retrieved February 15, 2013, from Business Today, Chennai: businesstoday.intoday.in

23. Hyundai Motor India launches Eon in Chennai. (2011, October 17). Retrieved March 19, 2012, from The Hindu BusinessLine: www.thehindubusinessline.com

24. Export. (2012). Retrieved April 4, 2013, from Hyundai Motor : www.hyundai.com

25. Hyundai Exports grew by 10.5 %, Press release. (2011, January 9). Retrieved November 12, 2011, from Hyundai Motors: www.hyundai.com

26. Hyundai Motor India sales down 7.3 percent in September 2012. (2012, October 1). Retrieved March 24, 2013, from The Financial Express, New Delhi: www.financialexpress.com

27. Hyundai Motor India sales down 17.7 % in January. (2011, February 1). Retrieved September 18, 2012, from The Economic Times, PTI New Delhi: articles.economictimes.indiatimes.com

28. Hyundai Motor India September sales up 12 %. (2011, October 1). Retrieved December 13, 2012, from Business Standard, PTI, New Delhi: www.business-standard.com

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29. Hyundai Motor India sales up 3.6 percent. (2012, January 2). The Indian Express, New Delhi .

30. Hyundai Motor India Sales up 21 % Oct. (2012, November 1). The Financial Express, New Delhi .

31. Hyundai Motor India sales down 2.2 % in November. (2012, December 1). Retrieved December 22, 2012, from The Financial Express: www.financialexpress.com

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