Hyundai is a car company that was founded in 1967 by Chung Ju-Yung in South Korea and partnered with Ford Motor Company to produce the Cortina in 1968. Hyundai is present in 196 countries and has dealership of 6,000 all over the world. It has 45 affiliated domestic companies and 254 overseas companies in 200 countries.
Hyundai is the leading exporter of cars from India exporting 55,552 units. Domestic sales grew 23.1 percent in 2010 but exports, fell by 8.5 percent. The company sold 4.6 million vehicles in 2009 all over the world.
Hyundia Motor India Limited produces 600,000 annual units of cars. It has a 315 dealer network and 640 service points across India.
Hyundai’s plant is located in Irungattukottai, 30 km from Chennai. It has a research and development plant in Hyderabad.
In India, Hyundai sells 6 models of passenger cars across segments. The A2 segment includes the, i10, the i20 and the A3 segment includes the Accent and Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe.
Hyundai was founded by Chung Ju-Yung, a South Korean, who was born in a poor family in 1915 and was the eldest of eight children of poor tenant farmers in Asan, Tongchon. Ju-Yung had eight sons and a daughter. Ju-Yung supported himself by peddling rice for a Seoul vendor and later purchased the rice shop in 1937. His company was shutdown when the Japanese made it illegal for Koreans to own rice shops.
After his rice shop closed, Ju-Yung opened three initiatives: the Hyundai auto service, the Hyundai construction company and Hyundai heavy industries. Hyundai Auto Service was a car repair shop that he opened with the help of his brother. Mr. Ju-Yung also secured several construction projects and by 1960 Hyundai had emerged as Korea’s No. 1 construction company. Ju-Yung received many business orders as a result of his well-wisher Park Ching who supported him seeing his hard work, tenacity and perseverance.
Ju-Yung also established a ship building business called Hyundai Heavy Industries.
Ju-Yung built the following companies: Hyundai Engineering (construction), Hyundai Motors (automobiles), Hyundai Merchant Marine (shipping) and oil interests and Hyundai Electronics (computer chips). Ju-Yung used the profits he gained in these companies in order to build hospitals, schools and apartments for Hyundai workers.
Ju-Yung died in 2001 due to a bout of pneumonia.
Hyundai released its Vision 2020 to establish the firm as the global leader in the automobile market. The company focuses on key vision strategies:
“To become a trusted lifetime partner of our customers, we will bring a new perspective to automobiles through innovative mobility solutions based on human-centric, eco-friendly technologies and services.”
“As an eco-friendly, resource-circulating company, we will lead a new era in the steel industry by providing high value-added products and services and realizing world's best competitiveness based on cooperative relations with our stakeholders.”
“As a global leading provider of high-value engineering solutions, we will create the foundation for a better life through cross-business synergy and convergence with future technologies.”
Hyundai focuses on five main values: Customer, Challenge, Collaboration, People and Globality. Providing customers top service will be at the top of their agenda. The company will venture into new areas and not remain traditional. The company will have a spirit of collaboration. People will be respected and valued. The company is not limited to country-centric areas but will be known in the global arena.
H.W Park has been the Chief Executive Officer of Hyundai since 2009. He also served as the Senior Executive Director of Administration. V.D Bhasin is the Senior VP of Sales of Hyundai Motor India. Arvind Saxena is the Senior VP of Marketing and Sales and previously served as the VP of Marketing and Sales. M. Whoo is the Head of R&D and Engineering Operations of Hyundai Motor India since 2007. He served as the MD of Hyundai Motor Engineering. Sanjeev Shukla is the Head of Marketing.
In India, Hyundai has many board members. Mr. Heung-soo Lheem was the CEO and President at Hyundai WIA and served as the MD of Hyundai Motor India Ltd till 2009. Heung-soo Lheem worked with Hyundai Motors Company at local parts development department in 1973. As the Head for Overseas Operation in Canada at Hyundai and a Liaison Officer in between Hyundai Motor Company and Mitsubishi Motor Sales of America in Los Angeles (U.S.A) since 1988, he gained a lot of experience. He looked after the Overseas Export Service Operations. He served as the Managing Director of Turkey operations at Hyundai. He serves as a Director of Hyundai Wia Corp. and Hyundai Motor India Limited. He is a graduate of Yonsei University in Metallurgy.
At Hyundai Motor Company, Steve S. Yang served as the President and Co-Chief Executive Officer. He served as the MD of Hyundai Motor India Limited. In 1977, Mr. Yang joined Hyundai Heavy Industry and in 1999 he entered Hyundai Motor Company.
Hyundai has nine production plants all over the world which include: The Ulsan plant, the Asan Plant, the Jeonju Plant, the America Alabama Plant, the China Plant, the Indian Plant, the Turkey Plant, the Russia Plant and the Brazil Plant.
The Hyundai Indian plant is located in Irungattukottai, 30 kilometers from Chennai, and it produces compact cars like the Santro, i10 and the i20. It has produced 2.5 billion units. The plant was set up in May 1996 and rolled out the first Santro seventeen months afterwards. The plant is built on 500+ acres of land and had an investment of Rs. 2,500 crores. Per year, the plant produces 1,20,000 cars and 1,30,000 engines, sources said.
The Ulsan plant- This is the world’s largest Hyundai plant and employs around 34,000 people and produces 5,400 vehicles in a day.
The Asan Plant – Located South East of Seoul, the Asan plant produces mid to large size passenger cars for export and has an annual capacity of 30,000 units.
The Jeonju Plant produces mid to large size buses, trucks and vehicles that exceed 2.5 tons and has an annual capacity of 125,000 units.
The America Alabama Plant focuses on mid to full size vehicles and is the 10th best plant in terms of product quality in the United States.
The China plant has an annual capacity of 600,000 units.
The Turkey plant produces 100,000 units of cars.
The Russia plant produces C-Class models and has an annual capacity of 100,000 – 150,000 units.
The Brazil plant is located in Piracicaba City, Sau Paulo and produces fuel-efficient compact cars for the Brazilian market. The annual capacity of the Sau Paulo plant of Hyundai is 100,000 units of cars.
Hyundai has the Alpha Engine, Theta Engine, S Engine Lambda FR Engine, Theta GDI Engine, class-best power trains, environment friendly exhaust systems, green engines, powertrain center, highest performing power trains, high-performance eco-friendly transmissions, exhaust systems. In the 1980s, the company started working on engines and transmission, in the 1990’s it produced the alpha engine, beta engine, upsilon engine, V6 delta and sigma engine and GDI V8 omega engine. In 2000, they moved to other kinds of engine and produced the Lambda FR and Tau engine in 2008.
The Alpha is a VVT engine. The Theta is an engine for midsize sedans. The V6 is a diesel engine. The Lambda is a rear wheel drive engine. The Theta II engine offers better fuel economy.
The R-engine for passenger diesel cars that meet the Euro-5 Environmental Regulation standards is developed by Hyundai and the company received certification for “low-pollution emitting vehicle in the metropolitan area.” The company’s TAU engine received the honor of being named as the Ward’s 10 Best Engines for the past two consecutive years.
Santa Fe was awarded the import SUV of the Year by CNBC TV 18 Over Drive Awards 2011. It was also given the SUV of the Year by Business Standard Motoring Awards 2011. Santa Fe was awarded SUV of the Year by Car India Awards and the Full Size SUV of the Year by NDTV Car and Bike Award 2011.
Hyundai Elantra got the Top Safety Pick - Insurance Institute for Highway Safety, the Best Compact Car - AutoPacific Vehicle Satisfaction Awards, the Best Aspirational Luxury Car by AutoPacific Vehicle Satisfaction Awards, the Best Premium Mid-size Car by AutoPacific Vehicle Satisfaction Awards, the Top Urban Cars of 2011 by Cars.com, the Best Economy Sedan of 2011 by Consumer Search, the Best Cars for Families 2011 by Kiplinger’s Personal Finance, the Top Safety Pick - Insurance Institute for Highway Safety, the Top 10 Green Cars for 2011 by Kelley Blue Book, the One of the 10 Best Interiors by Ward’s, the 2011 Ukranian Car of the Year by Autocentre, the International Car of the Year - Road and Travel Magazine, the Special Total Value Award - Strategic Vision, the Top Safety Pick - Insurance Institute for Highway Safety, the Top Pick for 2011, and the One of the Car and Driver’s 10Best by Car and Driver award.
Hyundai was started in 1967 when the founders decided to assemble someone else’s vehicles. The founder developed his own vehicles and succeeding in exporting vehicles to other countries. Even though Hyundai started in Korea in 1967, they have expanded their production facilities worldwide. There are 50,000 strategists, engineers, designers, marketing, PR and sales specialists, line workers distributors and dealers in 193 countries.
Hyundai sources very few components from India but is on the verge of increasing that level. However, the company wants India to improve the quality of its products. In order to make India a global hub, the company needs consistent quality. India is Hyundai’s second largest market in the world.
In terms of worldwide sales, the US, Chinese and Indian marketing are doing well. The company does not plan to introduce commercial vehicles in India.
India is the worldwide hub for small cars of Hyundai, the larger exporter of cars from India. Hyundai has also developed a model in India for sales.
Hyundai has a production plant in Tamil Nadu which will double its production capacity to 600,000 units per annum.
Hyundai will grab a large share of the car market by turning its operations in India and China into key design, manufacturing, and export hubs for its entire global operations.
Hyundai Motor India Ltd. Exports is the largest car exporter from India, contributing to 66 per cent of the total passenger exports. The company exported 247,102 cars in 2010 to 110 countries. The cars that it exported include the Santro, i10, i20 and Accent. The exports grew by 10.7 per cent over the previous year. Hyundai Motor India Limited has a strong export market, which includes European Union, Africa, Middle East, Latin America, Asia and Australia. By 2010, Hyundai had exported 10 lakh cars.
Hyundai Motor India Limited began exporting cars in 1999 when it shipped 20 Santros to Nepal. By 2004, the company exported 1,00,000 cars, by 2005, it exported 2,00,000 cars and by 2006, it had exported 5,00,000 cars.
Apart from achieving milestones in terms of numbers, in terms of specific cars and countries, Hyundai exported the first Getz on March 26, 2007, according to the company website. Additionally, it’s first shipment to the United Kingdom was on November 29, 2005, to Latin America was on March 13, 2003, to Algeria on July 21, 2000.
Hyundai plans to launch not one but six cars in the next three years. The company plans to launch two cars per year for the next few years. Among the six cars that are going to be launched, Hyundai Elantra Avante will be the first car to hit the road.
The other cars that the company plans to launch is the Hyundai i10, the i20 and the i30 really soon. The company might also launch the Verna, another variant of cars. The i20 mini MPV is made by Hyundai’s European design center. It will have a unique exterior and interior look to differentiate it from its Kia counterpart. Two other cars that will hit the road will be the Hyundai Sonata or the i40. The wagon model will be introduced first followed by the sedan variant. It will have powertrain technology and diesel and gasoline engines. The car will have a 2.4 litre Theta engine.
Finally the most impressive car of the year for 2011, is the Hyundai Veloster. It’s a two door coupe that replaces the Hyundai Coupe/Tiburon.
The company also plans to expand to the domestic market by establishing more dealerships in India.