Professional Documents
Culture Documents
Recruitment and Selection - Hyundai
Recruitment and Selection - Hyundai
STUDY
ON
AT
Dr B N Sivakumar
Asst. Professor
The project report was submitted in partial fulfillment for the award of
NSB BANGALORE
BATCH 2021-2023
1
DECLARATION
2
ACKNOWLEDGEMENT
I express my sincere thanks to Our President
SRIDHARAMURTHY, for his cheerful motivation and
encouragement at each stage of this Endeavour.
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ABSTRACT
4
CHAPTERS CONTENTS PAGE NO
INTRODUCTION 1-4
I 8
1.1 Introduction of the study
1.2 Need of the study 9
1.3 Objectives of the study 9
1.4 Research Methodology
1.4.1Research Design 2
1.3.2 Scope of Study 3
1.4.3 SampleDesing 3
1.4.3.1Sample Size 3
1.4.3.2 Sampling Technique 3
1.4.4 Data Sources 3
1.4.5 Tools and Techniques of Data Analysis 3
1.5.Structure of the Study 4
5
INDUSTRY & COMPANY PROFILE 28-45
3.1 Industry Profile
III 3.2 Company Profile 28
3.2.1 History of The Company 29
3.2.2 Mission And Vission of The Company 29
3.2.3 Organization Structure 30
3.2.4 Products And Services 31
3.2.5 Financial Growth And Performance 32
3.2.6 Achievements And Awards
36
37
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CHAPTER-I
INTRODUCTION
INTRODUCTION
This study helps the organization to identify the area of problem and suggest ways to
improve the screening and recruitment process, this study focuses on understanding the screening
and recruitment process this study helps to manage a manpower budget for the screening and
recruitment process, study helps evaluate the time constrain for the recruitment process. The
study stratified sampling technique is used.
Recruitment is concerned with the process of attracting qualified and components personnel for
different jobs. This includes the identification of existing sources of the labor market, the
development of new sources, and the need to attract a large number of potential applications so
that good selections may be possible.
The selection process is concerned with the development of selection policies and procedures
and the evaluation of potential employees in terms of job specifications. This process includes
the development of application blanks, valid and reliable tests, interview techniques employee
reversal systems, evaluations, and selections of personnel in terms of job specifications the
making up of final recommendations to the hire management, and the sending of offers and
rejection letters.
Human Resources Management refers to the systematic approach to the problems in any
organization. It is concerned with the recruitment, training, and Development of personnel.
Human resources is the most important asset of an organization. It ensures sufficient supply,
proper quantity, and as well as effective utilization of human resources. To meet human resources
needs, an organization will have to plan about the requirements and the sources, etc. The
organization may also have to undertake recruiting selecting and training processes. Human
Resources Management includes the inventory of present manpower in the organization. In cases
a sufficient number of persons is not available in the organization then external sources are also
identified for employing them.
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A part of Human Resources Management is assigned to personnel who perform some of the
staffing functions. The staffing process is a flow of events, which results in a continuous
management organizational position at, all levels from the top management to the operatives’
level. This process includes manpower-planning, planning authorization; developing sources of
applicant evaluation of applications employment decision (selection) offers (placement)
induction and orientation, transfers, demotions, promotions, and separations.
NEED OF THE STUDY
• The purpose of the study is to learn the practical applicability of the theoretical
knowledge gained about the screening and recruitment process.
• To gain knowledge about, the process of screening and recruitment in HYUNDAI
MOTORS LTD.
• To know the effectiveness or ineffectiveness of the process of screening and recruitment
in HYUNDAI MOTORS LTD.
• Determine the present and future requirements of the organization's personnel planning
and job analysis activities. Understanding the screening and recruitment process in an
organization. Analysis of manpower budget analysis of the for the recruitment in the
recruitment process
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7) To suggest new ways of improving the present recruitment procedure.
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RESEARCH METHODOLOGY DATA COLLECTION METHODS
The data for the study was collected through primary and secondary METHODS Primary Data:
Primary methods are those methods that provide firsthand information. The methods followed
were interview methods and questionnaire method (a) Interview method:
By this method, the employees and managers of HYUNDAI MOTORS LTD were asked
questions regarding the screening and recruitment process, its effectiveness, and the relevant or
required changes they intended to have in the present screening and recruitment process of the
company. The managers of different departments were the majority to be interviewed in the
entire sample taken.
Secondary Data:
Secondary methods are those methods that provide already existing information of the past, also
called second-hand information. The information was obtained from the different HR journals
published by the organization for various purposes like HR 'department personal use, reference
by any other department about the performance of various activities that have been started by the
HR department, to know about the performance appraisal system or the bonus system, etc.
Sampling technique:
The sampling technique is adopted in multiple stages.
Stage 1:
The company is selected from a particular region only.
Stage 2:
A Sample of 100 is selected through convenient random sampling.
Population Size:487.
Sample Size: 100
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LIMITATIONS:
There are certain limitations to the concept of empowerment. It may be cost-consuming to select
personnel, and training costs, and labor costs may be high, which may result in slower or
inconsistent services and poor use of the technique of empowerment.
At the outset, Managers must also accept the fact that not all employees want To be empowered.
Many workers just work better in jobs that are clearly defined and closely supervised. Once both
employees and managers have received proper training, the next step is to give employees
control of the resources needed to make improvements in their jobs and work processes. By
giving employees information, resources, and training and by following with measurements and
reinforcement, Human Resources can create an empowered environment. But Empowerment
should be a continuous process like quality improvement and it is like a race without a finish
line. Those companies that take the first step by creating an environment conducive to
empowerment will be at the head of the pack
As the period of study is limited to 45 days the data collected is very limited.
Due to time constraints, data is collected from the limited number of employees of the
Company.
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CHARACTERISATION
CHAPTER -1 - INTRODUCTION
This chapter includes the introduction of the topic, need, scope, objectives of the study, Project
This chapter includes the theoretical background and articles written by different authors and a
This chapter includes the five years data and it also includes the interpretation based on the study.
This chapter includes the overall summary of the project and the conclusion based on the study
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CHAPTER-II
REVIEW OF LITERATURE
The different kinds of internal sources are:
(a) Present permanent employees:
Organizations consider candidates from this source for higher-level jobs due to the availability of
the most suitable candidates for jobs relatively or equally to the external source, to meet the trade
union demands, and due to the policy of the organization to motivate the present employees.
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The long-run benefit to the organization is in the sense that qualitative human resources
can be brought. Placed in the minimum pay scale.
Different kinds of External sources are:
(a) Campus recruitment:
Different types of organizations like industries, business firms, service organizations, and social
or religious organizations can get fresh candidates for different types of jobs from various
educational institutions like colleges and universities imparting education in science, commerce,
arts, engineering and technology, agriculture, medicine, management studies, etc.,
Internal sources:
(a) Employee referrals:
Present employees are well aware of the qualifications, attitudes, experience, and emotions of
their friends and relatives. They are also aware of the job requirements and organizational culture
of their company. As such, they can make preliminary judgments regarding the match between
the job and their friends or relatives. Hence, the HR Managers of the company depend on the
present employees for reference of the candidates for various jobs. This source reduces the cost
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and the time required for recruitment. Further, this source enhances the effectiveness of
recruitment.
External sources:
(a) Walk-in interviews and tests:
The busy and rapidly changing organizations do not find time to perform various functions of
recruitment. Therefore, they advise the potential candidates to attend an interview directly and
without a prior application on a specified date, time, and at a specified place.
(c) E-Recruitment:
The technological revolution in telecommunications helped organizations to use the Internet as a
source of recruitment. Organizations advertise job vacancies through the World Wide Web
(www). Job seekers send their applications through e-mail using the Internet. Alternatively, job
seekers place their CVs on the world wide web/ Internet, which can be drawn by the prospective
employers depending upon their requirements. For eg: Monsterindia.com, timesjobs.com,
naukri.com, Chckjobs.com
(d) Outsourcing:
Some organizations recently started developing human resources pools by employing candidates
for them. These organizations do not utilize human resources instead they supply HRs to various
companies based on their needs on a temporary or ad-hoc basis. Various companies, rather than
employing HRs draw HRs from these organizations on a commission basis.
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organizations face critical problems in choosing the people. Selection techniques and methods
reduce the complexities in choosing the right candidates for the job.
After identifying the sources of human resources, searching for prospective employees, and
stimulating them to apply for jobs in an organization, the management has to perform the
function of selecting the right employees at the right time. The obvious guiding policy in
selection is the intention to choose the best qualified and suitable job candidate for each unfilled
job.
The objective of the selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified candidates. The selection procedure is the system of
functions and devices adopted in a given company to ascertain whether the candidate's
specifications match the job specifications and requirements or not. The selection process can be
successful if the following requirements are satisfied:
Someone should have the authority to select. This authority comes from the employment
requisition, as developed by an analysis of the workload and workforce.
There must be some standard of personnel with which a prospective employee may be compared,
i.e. a comprehensive job description and job specification should be available beforehand. There
must be a sufficient number of applicants from whom the '' required number of employees may
be selected.
The selection of personnel to manage the organization is a crucial, complex, and continuing
function. The ability of an organization to attain its goal effectively and to develop in a dynamic
environment largely depends upon the effectiveness of its selection programmer. If the right
person is selected, he is a valuable asset to the organization.
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SELECTION PROCEDURE:
The selection procedure employs several methods of collecting information about the candidate's
qualifications, experience, physical and mental ability, nature and behaviors, knowledge, and
aptitude for judging whether a given applicant is suitable or not for the job. Therefore, the
selection procedure is not a single act but is essentially a series of methods or stages by which
different types of information can be secured through various selection techniques. At each step,
facts may come to light, which is useful for comparison with the job requirements and employee
specifications.
IN DETAILED EXPLANATION:
(A) JOB ANALYSIS:
Job analysis is the basis for selecting the right candidates. Every organization should finalize the
job analysis, job. Description, job specification, and employee specifications before proceeding
to the next step of selection
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formulate their style of application forms depending upon the requirement of information based
on the size of the company, nature of business activities, type and level of the job, etc.
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Types of Psychological Tests
(I) Aptitude Tests:
(a) Intelligence Test (IQ)
(b) Emotional Quotient
(c) Skill Tests
(d) Mechanical Aptitude
(e) Psychometric Tests
(f) Clerical Aptitude Tests
Type of Test
(ii) Achievement Tests:
(a) Job Knowledge Test
(b) Work Sample Test
(iii) Situational Tests:
(a) Group discussions
(b) In Basket
(iv) Interest Test:
(v) Personality Tests:
(a) Objective Tests
(b) Protective Tests
(vi) Multi- Dimensional testing
Types of test:
Tests are classified into six classes; each class is again divided into different types of tests. They
are:
APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a given job if
given adequate training. Aptitudes can be divided into general and mental ability or intelligence
and specific aptitudes such as mechanical, clerical, manipulative capacity, etc. General aptitude
test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ).
ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something- as these tests are concerned
with what one has accomplished. These tests are more useful to measure the value of a specific
achievement when an organization wishes to employ experienced candidates. These tests are
classified into (a) job knowledge test and (b) work sample test.
SITUATIONAL TESTS: This test evaluates a candidate in a similar life situation. In this test, the
candidate is asked either to cope with the situation or solve clerical situations on the job
(1) Group discussion (GD):
This test is administered through the group discussion approach to solve a problem under which
candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating
skills, oral communicating skills, coordinating, and concluding skills.
INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates about work, jobs, occupations,
hobbies, and recreational activities. The purpose of this test is to find out whether a candidate, is
interested or disinterested in the
Job for which he is a candidate and to find out in which area of the job range/occupation the
candidate is interested. This test assumes that there is a high correlation between the interest of a
candidate in a job and job success. Interest inventories are less faked, and they may not fluctuate
after the age of 30.
MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt by most of the companies consequent upon
globalization, competitiveness, and the consequent customer-centered strategies. Organizations
have to develop multidimensional testing to find out whether the candidates possess a variety of
skills or not, the candidate's ability to integrate the multi-skills, and the potentiality to apply them
based on situational and functional requirements.
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PRELIMINARY INTERVIEW:
(1) Informal interview:
This is the interview, which can be conducted at any place by the person to secure basic and non-
job-related information. The interaction between the candidate and the personnel manager when
the former meets the latter to enquire about vacancies or additional particulars in connection with
the employment advertisement is an example of an informal interview.
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CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive
Or experts on various areas of job knowledge, skill, talent, etc. This
interview May take various forms:
(1) Background information interview:
This interview is intended to collect information, that is not available in the application blank,
and to check that information provided in the application blank regarding education, place of
domicile, family, health, interest, hobbies, likes, dislikes, and extracurricular activities of the
applicant.
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(N) JOB OFFER:
Thus, after making the final decision, the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization offers the job to the successful
candidates either immediately or after some time depending upon its schedule. The candidate
after receiving a job offer communicates his acceptance of the offer or requests the company to
modify the terms and conditions of employment or rejects the offer.
EMPLOYMENT:
The company may modify the terms and conditions of employment as requested by the
candidate. However, the alteration purely depends on the sole discretion of the
Management/company. The company employs those candidates who accept the job offer with or
without modification of terms and conditions of employment and places them on the job.
With the employment of the candidate the screening and recruitment process is completed.
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1. ARTICLE
Abstract: According to Korsten (2003) and Jones et al. (2006), Human Resource Management
theories emphasize techniques of screening and recruitment and outline the benefits of
interviews, assessment, and psychometric examinations in the employee selection process. They
further stated that the recruitment process may be internal or external or may also be conducted
online. Typically, this process is based on the levels of recruitment policies, job postings, and
details, advertising, job application and interviewing process, assessments, decision-making,
formal selection, and training.
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2. ARTICLE
Title: Demonstration of the relationship between the HRM practices.
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3. ARTICLE
Title: Action learning and reflective practice in project environments that are related to
leadership development
Author: Peter A.C. Smith, First Published 1st March 2020
Abstract: This article draws on the author’s experience in attempting to facilitate the acquisition
of reflective habits by individuals undergoing leadership development in business-related project
environments. Notes that such communities accept only very practical interventions Highlights
the links between reflection and action learning are applied in the author’s practice characterizes
the actions learning methodology used and contends that this approach forms a sound setting for
reflective inquiry Explains how the author informally embeds the principles of action learning in
the project related tasks of individuals undergoing leadership development Describes a reflective
learning framework and tools that are used by project participants for frame and facilitate the
action learning approach to bundling a learning organization and the development of leaders for
the such an organization. Gives particulars of a case study to confirm that these various elements
can be successfully woven together in a real-life leadership development initiative
4. ARTICLE
Title: Planning for Career and family an instrument development study
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Author: Heather Victoria Ganginis, Master of Science, 2019
Directed By: Dr. Karen O’Brien, Psychology Department
Abstract: The purpose of the present study was to develop a scale to measure the extent to
which people take into consideration future children and romantic relationships when deciding
on a career (i.e. The Planning for Career and Family Scale) and to assess the psychometric
properties of this instrument. Participants included 325 women. Data suggested that two
subscales comprise the measure, the Incorporating Future Family Scale and the Choosing a
Career Independent of the Family Scale. Internal consistency estimates of subscales ranged
from .78 to .83. Convergent and discriminant validity was supported for the Incorporating Future
Family in Career Plans subscale and the Choosing a Career Independent of Future Family
subscale. Test-retest reliability estimates were adequate, suggesting stability regarding the
measurement of these constructs. Directions for future research and the limitations of this study
are discussed.
5 . ARTICLE
Title: Screening and Recruitment Practices in SMEs: Empirical Evidence from a Developing
Country Perspective
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Author: Ongori Henry AND TemtimeZ.
Abstract: This paper purports to investigate the screening and recruitment practices of SMEs and
suggests appropriate strategies on how to improve human resource management practices to
enhance organizational performance. Screening and recruitment practices are the key factors to
the entry point of human resources to any organization which also tends to determine the success
and sustainability of SMEs. These practices are said to encourage innovation, survival, and
growth of SMEs if taken seriously by owners/ managers.
6. ARTICLE
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Abstract: This article explores HRM issues in Chinese multinational enterprises (MNEs), in
particular, the recruitment, selection, and repatriation of expatriate management in ten Chinese
MNEs. Owing to the rapid growth of the internationalization of Chinese firms, IHRM in the
Chinese context has been attracting both academic and practitioner interest. The approach of
Chinese MNEs to IHRM has become an urgent area of management study. This article represents
one part of the results of a recent study of Chinese IHRM. It concludes that, even though
screening and recruitment policies and practices in Chinese MNEs are more progressive in
adopting modern HRM concepts than is the case in domestic Chinese firms, current practices are
still divergent from those of major Western MNEs.
7. ARTICLE
Abstract: Although the role of green screening and recruitment(GRS) has been widely
recognized as an important dimension of green human resource management, no study has ever
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mapped the terrain of GRS and reviewed the literature. The purpose of this paper is to fill this
gap while exploring the following questions: How do organizations select candidates in line with
their pro-environmental stance? What impact do a company’s corporate environmental
sustainability (CES) practices have on attracting pro-environmental job seekers? This paper
provides a systematic review of 22 peer-reviewed articles published during the period 2008–2017. The
articles were included in the review if they addressed at least one of the two research questions. Some
companies choose to apply green criteria when selecting candidates while others do not.
8. ARTICLE
Title: Screening and recruitment services: Efficiency and competitive reasons in the outsourcing
of HR practices
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Abstract: While human resource (HR) activities have traditionally been performed internally, the
outsourcing of HR practices is a rapidly increasing phenomenon. The accelerated rate of HR
outsourcing also corresponds to a sweeping change in which non-transactional activities, such as
recruitment, selection, and training, are among the most outsourced HR practices. This article
investigates the outsourcing decisions of recruiting and selection (R&S). It develops a predictive
model based on efficiency drivers, rooted in transaction cost economy (TCE), and competitive
motivations, derived from the resource-based view. The model has been tested in a sample of 276
medium and large enterprises in two specific contexts: the outsourcing of administrative R&S
practices (job advertisement and pre-screening) and that of the more strategic R&S practices
(colloquia and selection). Findings confirm the relevance of both categories of predictors, but
they reveal how efficiency motivations are more important for the decisions to outsource
administrative R&S practices while competitive issues matter more for the strategic side of R&S
activity. Theoretical and managerial implications are offered based on such evidence.
9. ARTICLE
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Abstract: Taking into consideration the eugenic nature and perspective of high-performance
human resource management functions on organizational effectiveness, the authors examined
managerial and employee levels of screening and recruitment on operational performance with
emphasis on human capital and three indicators of organizational commitment (affective,
normative, and continuous) as mediators. Questionnaires totaling 282, 122 for managerial level
and 160 for employee level, were administered. A multilevel analysis of data was conducted on a
selected number of Ghanaian NGOs using the Statistical Package for Social Sciences (SPSS).
The study revealed that screening and recruitment ideally lead to improved operational
performance, however, this affiliation can be enhanced through the inescapable role of human
capital and the three commitment indicators (affective, normative, and continuous). It was also
exposed that effective screening and recruitment leads to a desirable employee’s level of
affective, normative, and continuous commitment, which also has a greater influence on
operational performance. The study is thus considered very significant contextual support to
existing literature and practitioners since not much of such work has been done in the Ghanaian
context. Therefore, the current study implicates recruitment and selection, human capital, and the
three commitment levels as a core value-creating ability that drives non-governmental
organizations' performance.
10. ARTICLE
Title: SMEs have only concentrated on large and multinational firms.
Abstract: (Korsten 2003). Many studies that have been conducted on screening and recruitment
practices by SMEs have only concentrated on large and multinational firms in the West and little
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has been done on screening and recruitment of SMEs in developing economies and yet SMEs
tend to contribute a lot to employment creation and economic growth. This research therefore
tries to develop unique screening and recruitment practices that apply to the needs of SMEs in
developing countries. The random samplings of eighty managers/owners of SMEs were selected
for the study, in which data were analyzed by using descriptive statistics. The paper contributes
to the body of knowledge, especially in provoking a debate amongst managers/owners to come
up with appropriate strategies to encourage SMEs to develop formal ways of screening and
recruitment practices in organizations. The finding from the study shows that most SMEs tend to
practice both informal and formal approaches in hiring their employees. The limitation of the
study is that the sample size selected was not large enough to generalize the results.
CHAPTER-III
INDUSTRY PROFILE
&
COMPANY PROFILE
INDUSTRY PROFILE
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Introduction
The automobile industry is one of India’s most vibrant and growing industries. This industry accounts for
22 percent of the country's manufacturing gross domestic product (GDP). The auto sector is one of the
biggest job creators, both directly and indirectly. It is estimated that every job created in an auto company
leads to three to five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many global automakers.
India is presently the world's third largest exporter of two-wheelers after China and Japan. According to a
report by Standard Chartered Bank, India is likely to overtake Thailand's global auto-export market share
by the year 2020.
The next few years are projected to show solid but cautious growth due to improved affordability, rising
incomes, and untapped markets. With the government’s backing, and trends in the international scenario
such as the decline in prices of natural rubber, the Indian automobile industry is slated to witness some
major growth.
Market size
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during the
period April 2005 – August 2019 were recorded at US$ 10,119.68 million, as per data from the
Department of Industrial Policy and Promotion (DIPP).
Data from the industry body Society of Indian Automobile Manufacturers (SIAM) showed that 137,873
passenger cars were sold in July 2018 compared to 131,257 units during the corresponding month of
2019. Among the automakers, Maruti Suzuki, Hyundai Motor India, and Honda Cars India emerged as the
top three gainers with sales growth of 15.45 percent, 12 percent, and 11 percent, respectively.
The three-wheeler segment posted a 24 percent growth to 51,461 units on the back of increased demands
from the urban market. Total sales across different vehicle segments grew 12 percent year on year (y-o-y)
to 1,586,123 units.
Scooter sales have jumped by 29 percent in the ongoing fiscal, and now form 27 percent of the total two-
wheeler market from just 8 percent a decade back. The ever-rising demand for scooters, which has far
outstripped supply has prompted Honda to set up its first dedicated scooter plant in Ahmedabad. Tractor
sales in the country are expected to grow at a compound annual growth rate (CAGR) of 8–9 percent in the
next five years making India a high-potential market for many international brands.
Investments
To match production with demand, many automakers have started to invest heavily in various segments of
the industry in the last few months. Some of the major investments and developments in the automobile
sector in India are as follows:
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• Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million) in India, by way of
capital expenditure (capex) and investment during FY20. The company is required to manage Rs
6,000 crore (US$ 980.56 million) of assets in seven locations across the world, for which
maintenance capex is needed.
• Honda Motors plans to set up the world's largest scooter plant in Gujarat to roll out 1.2 million
units annually and achieve a leadership position in the Indian two-wheeler market. The company
plans to spend around Rs 1,100 crore (US$ 179.76 million) on the new plant in Ahmedabad and
expand its range with a few more offerings.
• Yamaha Motor Co has restructured its business in India. Now, Yamaha Motor India (YMI) will
take care of its India operations. “The restructuring is part of Yamaha’s mid-term plan aimed at
improving organizational efficiency,” as per Mr Hiroyuki Suzuki, Chief Executive and Managing
Director. YMI would be responsible for corporate planning and strategy, business planning and
business expansion, quality control, and regional control of Yamaha India Business.
• Hyundai Motors plans to use the 'hub-and-spoke' model in which India will be the key
manufacturing base while it will have mini-hubs in overseas markets. The company also plans to
set up mini hubs in potential markets like Africa, the Middle East, and South East Asia.
• Hero Cycles through its unit OPM Global has acquired a majority stake in German bicycle
company Mitteldeutsche Fahrradwerke AG (MIFA) for €15 million (US$ 19.11 million). The
company plans to invest an additional €4 million (US$ 5.09 million) as capital expenses in
restructuring the acquired company.
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and allows 100 percent
FDI under the automatic route. To boost manufacturing, the government had lowered excise duty on small
cars, motorcycles, scooters, and commercial vehicles to eight percent from 12 percent, on sports utility
vehicles to 24 percent from 30 percent, on mid-segment cars to 20 percent from 24 percent, and on large-
segment cars to 24 percent from 27 percent.
The government’s decision to resolve VAT disputes has also resulted in the top Indian automakers namely,
Volkswagen, Bajaj Auto, Mahindra & Mahindra, and Hyundai Motors announcing an investment of
around Rs 11,500 crore (US$ 1.87 billion) in Maharashtra.
The Automobile Mission Plan for the period 2006–2016, designed by the government is aimed at
accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under
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the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector.
The Government of India-appointed SIAM and Automotive Components Manufacturers Association
(ACMA) are responsible for working for the development of the Indian automobile industry.
Road Ahead
The future of the auto industry depends on the positive sentiments and the demand for vehicles in the
market. With the festival season coming up, the Indian auto sector will see a rise in demand which is
expected to bring in major growth. An auto dealer survey by firm UBS suggested that the Indian auto
industry, riding on trends like the upcoming festival season and decline in fuel price, will observe a 12
percent y-o-y growth in FY20.
Also, keeping up with international trends, there is expected to be a surge in the number of hybrid vehicles
in the Indian auto sector in the years to come.
37
The growth story for the Indian automobile industry in 2020 rode on the two-wheeler segment and not on
passenger cars or commercial vehicles, as high-interest rates and a stuttering manufacturing industry kept
a check on demand.
The year also saw the Competition Commission of India (CCI) levying a penalty of Rs.2,544.65 crore
($415) on 14 car makers for their restrictive trade practices by preventing independent repairers from
coming into the market. Some of the leading car makers also had to recall some models over defective
components.
When other segments like passenger cars and commercial vehicles logged negative growth, the two-
wheeler makers registered around 13 percent growth between January and October. Riding on the two-
wheeler sector's growth, the automotive industry grew 9.8 percent by volume year-on-year (YoY)
between January and October.
"The two-wheeler segment is the only one that has clocked positive growth at 12.9 percent YoY (year-on-
year) to reach sales of nearly 13.5 million units by October. This can be attributed to the low cost of two-
wheelers
in India," Vijay Kakade, vice president for automotive and transportation practice at Frost & Sullivan, told
IANS.
He said the light commercial vehicle (LCV) segment has been the worst hit, with sales reducing to
approximately 330,000 units -- an 18.9 percent YoY fall over 2013.
38
"The passenger car, medium, and heavy commercial vehicle segments contracted by 0.8 and 6.5 percent
respectively during the period, compared to 2019. The reduction in sales can be attributed to the
slowdown and the high-interest rates set by the RBI (Reserve Bank of India) reducing the availability of
finance options to the public," Kakade added.
"These segments have shown positive signs over the past few months, which is expected to lead to growth
in the next year."
" 2019 has been a year of stagnation, a positive sign as the decline has stopped. The industry has shown
signs of growth, albeit slower than expected, over the past few months," Kakade remarked.
P. Balendran, vice president, of General Motors India, had similar views to share with IANS:
Of late, we have seen some movements in new entries driven by novelty factors and some
select manufacturers have been getting the benefits too."
He said the market has not shown any movement forward, despite the excise duty reduction, while the
customer sentiment has not picked up due to sticky interest rates, which remain at high levels. "Although
fuel prices have started coming down significantly, the inquiry levels at showrooms have come down
and conversions are not taking place at all. The sales of diesel vehicles are also tapering off because of
the narrowing price gap vis-a-vis petrol," Balendran added.
Expecting the government to continue with a lower excise duty regime for small/mid-sized/big cars and
sports utility vehicles (SUV) till March 2019, Balendran said the rates should be continued till the
Goods and Services Tax ( GST) is introduced -- aiding the turnaround of the auto sector.
Terming 2019 a mixed bag for the automobile industry, Sumit Sawhney, chief executive and managing
director of Renault India, said that while there has been a sea change in the consumer sentiment with a
gradually improving economic climate in the country, the optimism has still to translate into sustained
sales growth.
"The industry is looking forward to the budget for pro-business policies to reignite the automobile
industry in India."
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* Excise duty reduction on automobiles
* Competition Commission of India (CCI) fines 14 car-makers Rs.2,544.65 crore for restrictive trade
practices.
Auto manufacturers have been trying to cope with an economic rough patch in the last two years. Trying
to boost sales and implementing cost-effective schemes just wasn’t enough. They also had to cut many of
their employees loose to stay somewhat balanced, in some cases. On a fashionable note, senior employees
were asked to take voluntary retirement (not sure what ‘voluntary’ is doing in that sentence).
Hyundai Motors apart from giving customers attractive offers, gave 600 of their employee's early
retirement offers, last month. Ashok Leyland too offered 500 of their employees with irresistible
retirement schemes, last year (pun intended).
Sales of Cars, SUVs, Vans, pick-ups, and the entire commercial vehicle segment went south, with the
passenger vehicle market encountering its first decline in the decade. But what saved the overall scenario
was the two-wheeler market. It took a 7.31% hike with motorcycle sales going 3.91% up and scooter sales
riding 23% north. Export sales figures also contributed to somewhat saving the year with a rise of 7.21%.
The downtrend left auto manufacturers with piled-up inventory and stagnation. The interim budget
announced in February, gave a minor boost as all vehicle prices were reduced marginally, but it hasn’t
exactly helped boost sales yet. Automakers are expecting aid from the government’s new budget by way
of further tax cuts.
Sales figures for March 2019 show 12.83% overall growth also using increased two-wheeler sales.
Commercial Vehicles have further dipped compared to March 2019 and passenger cars stagnated below
the graph. However, overall production has increased by 9.95% comparing March figures of both years,
suggesting auto makers’ confidence in ongoing fiscal to make better.
The launch of new A-segment compact cars by various auto majors seems to be helpful in this economy,
for customers as well as value chain entities. Maruti Suzuki finished top on the podium with a 42% share
in overall car sales, followed by Hyundai with a 15% share.
Society of Indian Automobile Manufacturers (SIAM) expects a 6% growth over the fiscal 2018-19, with a
boost in the manufacturing sector, new investment, and fresh capacities in the industry. Vikram
Kirloskar, president of SIAM says, “Whichever government comes in…I am looking for stability in
excise duty and some reduction in taxes. We are an over-taxed industry.”
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PESTLE ANALYSIS
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PESTLE Analysis of Hyundai analyses the brand on its business tactics. Hyundai PESTLE
Analysis examines the various external factors like political, economic, social, and technological
(PEST) which impact its business along with legal & environmental factors. The PESTLE
Analysis highlights the different extrinsic scenarios that impact the business of the brand.
PESTLE analysis is a framework that is imperative for companies such as Hyundai, as it helps to
understand market dynamics & improve its business continuously. PESTLE analysis is also
referred to as PESTEL analysis.
Let us start the Hyundai PESTLE Analysis:
Published by MBA Skool Team, Last Updated: June 22, 2022
PESTLE Analysis of Hyundai analyses the brand on its business tactics. Hyundai PESTLE Analysis
examines the various external factors like political, economic, social, and technological (PEST) which
impact its business along with legal & environmental factors. The PESTLE Analysis highlights the
different extrinsic scenarios that impact the business of the brand.
PESTLE analysis is a framework that is imperative for companies such as Hyundai, as it helps to
understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as
PESTEL analysis.
Let us start the Hyundai PESTLE Analysis:
In this article:
Political Factors:
The political factors in the Hyundai PESTLE Analysis can be explained as follows:
Hyundai is an international car brand that has its business spread across geographies. The Political
Stability Index data shows a constant increase in the political stability in the Asian – Pacific market which
is a good indicator for Hyundai. The political relations between the two nations can also become an
important factor in deciding which country to invest in. Unfriendly relations with a nation can lead to
higher taxes and regular and strict checks. Changes in governments and their policies can impact the
business of Hyundai as a brand.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Hyundai:
The world keeps on witnessing a growth & slowdown in the market.
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The economic slowdown has taken a toll on one of the prominent markets Hyundai i.e. India. More than
3.5 lakh jobs have been lost. Various automobile giants are trying to nullify this slowdown by offering
hefty discounts and other schemes to get their sales back on track. Although the other variants of Hyundai
seem to be affected by the present economic situation, Hyundai cars are doing considerably well. Due to
its amazing design and new features, it gives an exceptional experience. That is why even though the
Compact SUV space is a late entrant, it has successfully captured a significant market share. With the
unemployment rates as high as 6% i.e. 30 million unemployed people, cheap labor will be easily available
hence cutting the costs for Hyundai.
Social Factors:
Following are the social factors impacting Hyundai PESTLE Analysis:
Since both males and females share a significant ratio of several drivers, i.e. 60:40, Hyundai
should cater to the wants of both genders and customize its products accordingly. Hyundai
targets people from the middle class and upper class as well. For example:
Hyundai has more than 15 variants with prices ranging from $6000 to $35000.
Technological Factors:
The technological factors in the PESTLE Analysis of Hyundai are mentioned below:
Gasoline Direct Injection (GDI) – Hyundai uses GDI technology which improves fuel efficiency
and reduces carbon emissions. But Hyundai’s vehicles provide less mileage as compared to
Maruti Suzuki’s vehicles which fall under the same category. Also, many companies have started
working on this Artificial Intelligence.
COMPANY PROFILE
HISTORY:
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The Company is an authorized Dealer of Hyundai Motors India Limited (HMIL) for the sale of its
entire range of motor vehicles. It is also authorized to service & repair all Hyundai cars and also deals in
spare parts of Hyundai cars.
Lakshmi Hyundai was established in the year 1998 in Himayathnagar with the launch of
Hyundai’s first car in India- the evergreen SANTRO. The entire business is managed under the able
leadership and guidance of the Managing Director Shri K.Rama Mohana Rao.
Soon after the Himayathnagar showroom, came the ‘state-of-the-art service facilities at
Kukatpally, Banjarahills, and L.B.Nagar. These service centers are well-equipped to cater to the needs of
valued customers. The management left no stone unturned to review, research, and implement the latest
technologies and methodologies to improve sales, service on customer satisfaction. Continuous up
gradation of the facilities at the sales and service outlets and adding to the service agenda each time, add
been sales graph go high by the year.'
ORGANIZATION STRUCTURE
The awards received “ Best in Sales” in the south region, “Best in Finance”, and “Top Performer” in
2005, and their technicians were awarded a Gold Medal for standing No.1 in the world at the World Skill
Olympics held at Korea-stand testimony to the recognition that received at the global level.
According to popular belief, a customer walking into LAKSHMI HYUNDAI is treated like an asset.
His/her needs are assessed in the first stage and the customer is educated subsequently about the product
line, service range, allied services, etc., ample information and time is given to the prospective buyer to
make up his/her mind on which car to buy.
A focused customer-centric approach, unparalleled service motto, top-end facilities, a bouquet of
allied services, solid after-sales backup, quality assurance, unconditional warranty promise, and desire to
excel through service are some of the threads that blend in effectively to give birth to the fabric called
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LAKSHMI HYUNDAI LAKSHMI HYUNDAI’s success is just beginning and more to expect spectacular
chapters in the preamble “Winning Edges”.
LAKSHMI HYUNDAI MANPOWER:
Department Own Contract Total
Sales 57 0 57
Service 126 49 175
Spaces 15 0 15
Finance & 98 0 98
HR/Administration
Total 296 49 345
The recruitment process involves both internal and external methods. Internal methods namely are
employee referrals, promotions, and inter-company transfers.
Employee referrals;
This is the most common method of recruitment used by the organization. Last year the organization
recruited 16 employees by employee referrals.
Promotions
Posts falling vacant due to be filled will be notified within the division/office, giving educational
qualifications and experience laid down for the post and the extent to which these will be relaxed for
promotion and inviting applications from eligible employees in the lower group, who have rendered the
requisite qualifying service and who have requisite higher post.
External methods of recruitment followed by the organization are employment exchange, paper
advertisements, and campus recruitment.
Employment Exchange: All vacancies are to be notified to the Local Employment Exchange. If
employment exchanges are unable to sponsor suitable candidates within the prescribed time limits, the
vacancies may be advertised in the press on a local/regional advertisement the vacancies may be
advertised on an India Basis. A minimum of two weeks' notice is to be given to the Local Employment
Exchange for sponsoring suitable candidates.
Paper advertisements:
Of the external methods this method is mostly adopted by the organization. This method of recruitment
involves advertising the requirements of personnel in two of the leading newspapers one being in English
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language and the other being in the regional language. For recruitment in Hyderabad, Eenadu and Deccan
Chronicle are the two leading newspapers where the requirement of personnel is advertised.
SELECTION PROCESS AT LAKSHMI HYUNDAI:
After the recruitment process next step is the selection process in employing a suitable candidate into the
organization. At Hindustan Aeronautics Limited the selection process mainly includes tests/interviews.
Suppose a candidate passes through the different rounds of interviews/tests then he is employed in the
organization. The Personnel Department of each division or the corporate office will screen the
applications received and categorize them into those that satisfy prescribed minimum educational
qualifications and experience and those that do not.
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PRODUCTS AND SERVICES PROVIDED BY THE COMPANY:
APPOINTMENT OF SELECTED CANDIDATES
Candidates who are selected for appointment to post will be issued with a letter proposing to offer the
post or offering the post. If they accept an appointment offer they are to reply to the form.
SALES TEAM PERFORMANCE BONUS POINTS
Universal Factors Sub-Factors No. of Points Total points
Appearance 50
Selling Skills 50
Company Dress 50
Attendance Record 75
Hyundai Motor India Limited (HMIL) is a wholly-owned subsidiary of Hyundai Motor Company (HMC),
South Korea is the largest passenger car exporter and the second largest car manufacturer in India.
HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the
Santro, i10, and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the
Sonata Transform and the SUV segment includes the Santa Fe.
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HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts the most advanced
production, quality, and testing capabilities in the country. To cater to rising demand, HMIL
commissioned its second plant in February 2008, which produces an additional 300,000 units per annum,
raising HMIL’s total production capacity to 600,000 units per annum.
In continuation with its commitment to providing Indian customers with cutting-edge global technology,
HMIL has set up a modern multi-million dollar research and development facility in the cyber city of
Hyderabad. It aims to become a center of excellence for automobile engineering and ensure quick
turnaround time to changing consumer needs.
As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve
the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 110 countries
across the EU, Africa, the Middle East, Latin America, Asia, and Australia. It has been the number one
exporter of passenger cars in the country for the sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 315-strong dealer network and 640-
strong service points across India, which will see further expansion in 2010.
Mr. Han Woo Park joined Hyundai Motor Company in Seoul, South Korea, in 1982 in the finance
department, and ever since he has been involved with costing, auditing, and the financial operations of the
company.
He joined Hyundai Motor India Limited in 2003 as the Chief Financial Officer and since then he has
played a pivotal role in HMIL as he was involved in all aspects of the company in his capacity as a CFO.
Mr. Park has vast experience and understanding of Hyundai Motor India Ltd and the Indian culture and
has successfully led his team for the last seven years. Mr. Park holds a degree in Business Administration
from the University of Dankook in Seoul, South Korea.
Before he became the Managing Director of HMIL he held the position of CFO and Senior Executive
Director. Mr Park lives in Chennai with his wife. He has two children, a son and a daughter. The son is
studying at the University of Texas, Austin, and the daughter is studying at SUNY Buffalo. Mr Park was
born in South Korea on January 29, 1958.
Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary of Hyundai Motor Company, South
Korea, which has set up the R&D Centre in Hyderabad. HMIE is a centre with one of the most advanced
research and development facilities which focuses on state-of-the-art product and design engineering and
rigorous quality enhancement. The new R&D Centre at Hyderabad in India is Hyundai Motor Company’s
fourth overseas R&D center.
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Set up with an investment of Rs. 184 crores, the new 200,000 square-foot facility R&D Centre, is aimed
at further accelerating local content development and enabling Hyundai to respond even more quickly to
changing customer needs across the world. The R&D Centre will further facilitate the development of
India is Hyundai’s global hub for the manufacturing and engineering of small cars. The new R&D Centre
in Hyderabad will support all back-end operations like computer-aided engineering (CAE), and computer-
aided design (CAD) and help the R&D work taking place across Hyundai’s car line-up. The R&D Centre
will help in developing vehicles which includes their styling, design engineering, and vehicle test &
evaluation. The R&D Centre will play a pivotal role in cars manufactured in India to satisfy the specific
needs of Indian customers.
Hyundai Motor Company’s other overseas R&D centers are located in the United States, Germany, Japan
& Korea.
Management Philosophy With the spirit of creative challenge, we will strive to create a more affluent
lifestyle for humanity, and contribute to the harmony and co-prosperity with shareholders, customers,
employees, and other stakeholders in the automobile industry.
The spirit of creative challenge has been a driving force in leading HMC to where it is today. It is the
permanent key factor for HMC to actively respond to a change in the management system and seek
creative and self–enovative systems. With the spirit of creative challenge, we create profits, the primary
objective of a private enterprise. Furthermore, we take responsibility for the environment and society we
belong to and offer sustainable mobility to implement our corporate philosophy and provide benefits to all
stakeholders including shareholders, customers, executives, employees, suppliers, and communities.
Vision We announced "Innovation for Customers" as our mid–to long–term vision with five core
strategies: global orientation, respect for human values, customer satisfaction, technology innovation, and
cultural creation. We desire to create an automobile culture of putting the customer first via developing
human-centered and environment–friendly technological innovation.
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Management Policy Based on respect for
human dignity, we make efforts to meet the expectations of all stakeholders including customers and
business partners by building a constructive relationship amongst management, labor, executives, and
employees. Also, we focus on communicating our corporate values both internally and externally and
gaining confidence from all stakeholders.
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Mid-and Long-term Strategies We developed five mid–and long–term strategies: global management,
higher brand values, business innovation, environmental management, and strengthening product
competitiveness. Especially, we selected environmental management as one of our strategies to meet the
needs of our stakeholders and the society we belong to. We also intend to promote sustainable
development and preservation of the environment.
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MOST LIKED SMALL CAR IS SANDBOXING
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New Arrivals
EON
Santro Xing
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i10
i20
Accent
Fluidic Verna
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3. Effective research and development (R&D) spending resulting in new innovative cars.
4. Low cost to drive and durable cars.
5. Strong presence in China’s market.
Weaknesses
1. Poor brand portfolio, leading to fewer sales
2. Low presence in the strongest U.S. vehicle market and no presence in Japan’s vehicle market
3. Declining quality of company’s management
4. Product recalls damaging brand reputation
Opportunities
1. Improving U.S. economy
2. Timing and frequency of new model releases
3. Low fuel prices opening new markets for Hyundai
Threats
1. Increased competition
2. Rising Korean Won exchange rates
3. Increasing government regulations may raise the costs
Corporate Social Responsibility:
H-Social Creator is a youth contact program under HMC’s Global CSR direction of ‘Continue’
conceptualized by Hyundai Motor India Foundation (HMIF). The program provides a platform for young
minds to showcase innovative ideas that have the potential to drive large-scale social impact. Across the
three editions, the program has reached out to millions of students from highly respected institutions in
India with a focus on generating impact across social categories of Road Safety, Environment, Clean
India, and Healthcare.
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• Hyundai EON Won the 'Saloon Car of the Year' Award at 'Bloomberg UTV Auto Car India 2017'
• Hyundai Elantra Won the 'Car of the Year' Award at 'Car India & Bike India Awards 2016'
• Hyundai Elantra Won the 'Best Design and Styling' Award at 'Bloomberg UTV Auto Car India
2016'
• Hyundai Elantra Won the 'Saloon Car of the Year' Award at 'Bloomberg UTV Auto Car India
2017'
• Hyundai Elantra Won the 'Executive Car of the Year' Award at 'Car India & Bike India Awards
2019'
• Hyundai Elantra Won the 'Design of the Year' Award at 'Car India & Bike India Awards 2018'
• Hyundai Elantra Won the 'Car of the Year' Award at 'CNBC TV18 Overdrive Awards 2017'
• Hyundai Elantra Won the 'Executive Sedan of the Year' Award at 'CNBC TV18 Overdrive Awards
2016'
• Hyundai Elantra won the 'Design of the Year' award at 'NDTV Car & Bike Awards 2013'
• Hyundai Sonata won the 'Full-Size Sedan of the Year' award at 'NDTV Car & Bike Awards 2013'
• Hyundai Elantra won the 'Mid Size Sedan of the Year' award at 'NDTV Car & Bike Awards 2013'
• Hyundai Elantra won the 'CNB Viewers' Choice Car of the Year award at 'NDTV Car & Bike
Awards 2013'
• Hyundai Elantra won the 'Saloon Car of the Year 2012' by BBC Top Gear Magazine Awards 2012
• Verna gets the 'Sedan Of The Year 2016' Golden Steering Award
• HMIL gets the 'Automotive Company Of The Year 2017' Golden Steering Award
• Eon gets the 'Entry-Level Hatchback Of The Year' at ET Zigwheels Awards 2011
• HMIL gets the 'Best Car Manufacturer 2016' award by Motor Vikatan magazine
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