Hyundai 2004 Annual Report Download - page 20

International
1. Hyundai Kia Design and Technical
Center in Chiba, Japan
2. Tucson wins the 2004 Good Design
Award sponsored by the Japanese
Industrial Design Promotion
Organization (JIDPO)
3. Hyundai Motor India’s (HMI)
production plant in Chennai
Global Report
Japan
Hyundai Motor Company has strengthened its position in the East Asian market by
investing in research opportunities in Japan. The Hyundai Kia Design and Technical
Center, located in Chiba, focuses on developing cutting-edge technologies in chal-
lenging new fields such as telematics. This Institute is enhanced by its proximity to the
Namyang Design and Technical Center in Korea and will help position Hyundai as the
world leader in futuristic design.
Through forward-thinking design, Hyundai Motor Company has increased its brand
recognition in Japan. The Tucson was awarded the prize for “Best Design” for its cre-
ativity and excellence in product design in a competition organized by the Japan
Industrial Design Promotional Association. This accomplishment, achieved within 4
years of being introduced into the Japanese market, enables Hyundai Japan to
increase the sales volume of the Tucson, and puts the company in a favorable market
position.
India
Hyundai Motor India Limited (HMI) is poised to take on the
newly emerging Indian market with great success. India has
become one of the fastest growing car markets in the world.
In 2003, HMI made news when cumulative sales reached
500,000 units, a growth rate as yet unprecedented in the
Indian car industry. In 2004, car sales in India grew to
800,000 units. HMI sold 215,630 units, an increase of 43
percent over the previous year. If recent growth trends con-
tinue, India’s car market is estimated to reach 1.62 million
units by 2010. Hyundai expects to take a large part of that
market.
HMI has an aggressive strategy that will ensure its growth
prospects and leadership in the market. HMI has set rigorous
sales targets for the coming years. In 2005, HMI expects to
sell 250,000 units; by 2007, 310,000 units; and 400,000
units by 2010. To compensate for this expected increase in
sales, HMI will increase its dealer network from 146 to 180
sales outlets this year. In addition, HMI will continue its focus
on after-sales service by expanding its network from the cur-
rent 408 outlets to 480 this year. HMI will capitalize on India’s
recent surge in middle-class disposable income by establish-
ing brand recognition and penetrating the market early on.
Models & Brand Recognition
A fully owned subsidiary of Hyundai Motor Co., HMI began to
manufacture in Sept. 1998 with the Santro minicar as its first
model. We quickly established a reputation among Indian
new car buyers as a high quality brand offering the latest
technology at an affordable price, and soon, the Santro
became India’s best-selling minicar. Since HMI’s introduction
to the market seven years ago, we have added the Accent,
the Elantra, the Sonata, and the Getz to our line of Indian-built
Hyundai cars. The Getz, introduced in Sept. 2004, is quickly
growing in popularity. In 2005, the Getz was voted Car of the
Year by CNBC India. In addition, the Elantra, our strategic
export model, was named “Most Valuable Car.”
In 2005, HMI plans on introducing two new models to the
Indian market: the Tucson SUV, and the Matrix. The Matrix
was unveiled at the Auto Expo 2004 Motor Show in New
Delhi. Initially, we plan on exporting completely built-up units
(CBUs) to our distributors in India. However, once sales of the
Matrix have been established, we will consider assembling
this model at our factory in Chennai.
Production
The Hyundai Motor India plant, (HMI) established in
September 1998 in Chennai, is a consolidated motor manu-
Hyundai Motor Company Annual Report 2004_38