CHAPTER-4 PERFORMANCE EVALUATION OF MARUTI SUZUKI INDIA LIMITED AND HYUNDAI MOTORS INDIA LIMITED

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, 140

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. 8 141

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. 142

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. 143

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. 13 144

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) 145

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 146

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, 38,921 36,679-5.76 A-Star, Wagon R 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. 147

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) Source: Report by Maruti Suzuki India Limited retrieved from www.marutisuzuki.com 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. 148

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) Source: Report by Maruti Suzuki India Limited retrieved from www.marutisuzuki.com 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. 149

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. 150

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 200,000 th car. 26 June 2002 Hyundai Motors rolls out its 300,000 th car & in December 2002, Hyundai rolls out 350,000 th car in a short period of 50 months. 8 May 2003 Hyundai rolls out 400,000 th car. 11 December 2003 Hyundai rolls out 500,000 th car. 13 March 2006 Hyundai rolled out the fastest 10,00,000 th car. September 2007 Hyundai rolled out fastest 15,00,000 th car. 13 November 2008 Hyundai Motors reaches the milestone of manufacturing the fastest 2 million cars in India. 151

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 200,000 th car followed by its 300,000 th and 400,000 th 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 vehicles 25. 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. 152

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. 28 153

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. 154

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 155

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 Hyundai Motors India Limited 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 156

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 Hyundai Motors India Limited 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) Source: Centre for Monitoring Indian Economy, Prowess Database (2009) 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 157

Motor registered negative growth of (-) 11.23 percent over 2006, by earning profit of 466 crore. Overview of Production The performance of Maruti Suzuki India Limited & Hyundai Motors India Limited 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. 158

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 Maruti Suzuki India Limited 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 159

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 2007-08 Hyundai Motors India Limited 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 2008-09 160

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 Midsize 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 The performance of Maruti Suzuki India Limited & Hyundai Motors India Limited about Sales during 1997-2008 is as follows: 161

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) Source: Centre for Monitoring Indian Economy, Prowess Database (2009) 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. 162

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) Source: Centre for Monitoring Indian Economy, Prowess Database (2009) 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. 163

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 Hyundai Motor India Ltd 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. 164

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 2003-04 Hyundai Motors India Limited 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 Maruti Suzuki India Limited 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 B:Utility Vehicles ------- ------- 201 101-49.75 [B1(a)] B:Utility Vehicles 4,713 3,241 3,354 5,103 52.15 [B1(b)] 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 165

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 Hyundai Motors India Limited 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 166

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. 167

The performance of Maruti Suzuki India Limited & Hyundai Motors India Limited 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 Hyundai Motor India Ltd 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. 168

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. Table 4.12: Export of Maruti Suzuki & Hyundai Motors (Financial Year) (In Numbers) Category/Segment 2001-02 2002-03 2003-04 2004-05 % Growth in 2004-05 over 03-04 Hyundai Motors India Limited 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 ----- ----- ------ Maruti Suzuki India Limited 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 B:Utility Vehicles 354 230 73 86 17.81 [B1(b)] 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. 169

The following table focuses on Export of Maruti Suzuki & Hyundai Motors during 2005-2006 to 2008-09. Table 4.13: Export of Maruti Suzuki & Hyundai Motors (Financial Year) (In Numbers) Category/Segment 2005-06 2006-07 2007-08 2008-09 % Growth in 2008-09 over 07-08 Hyundai Motors India Limited 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 Maruti Suzuki India Limited 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- 94 204 103 76-26.21 B1(b) C: Multi Purpose Vehicles 1,093 1,330 1,005 1,112 10.64 Source: Society of Indian Automobile Manufacturers, Statistical Profile 2008-09. 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 170