Hyundai India worried. Very worried (Euro trade pact)

appuchan · 6th August 2009, 08:50

The labor management by Hyundai in their Chennai based planned is pathetic. The salaries are very bad, and in most cases they overcome many labor laws by having a large number of contractors. They already have enough problems there with many groups in strike or planning to strike. It is very clear that they had setup their manufacturing base in India with an eye on low labor cost and now they are finding it difficult to sustain. The duties are only making it worse. Hence they decided to shift some of the assemblies to eastern European countries.

The arbitrage they get here may be worsening. But by threatening to move out of country or by putting pressure on government they are not creating the right image for them here. They dont seem to have a long term vision of what they want to do and where. The only concern for them is cost and I dont think that's the right thing for any business which seeks to create long term value. They cannot forget that fact that its countries like India that is going to give them big business in the future.

vineethvazhayil · 6th August 2009, 09:25

I spotted a Hyundai Azera today near the Chennai Airport.. The rear side looks typical Hyundai from distance, but up close it is far more curvaceous than any other Hyundai I have seen.. Are they bringing that here?

nithi · 6th August 2009, 11:37

When they are so worried, why will they want to hire 1000 more people?

Hyundai to up production by 20 pc; will hire 1,000 people- Automobiles-Auto-News By Industry-News-The Economic Times

To me, it is a good news to Indian Customer. Hyundai will try to sell more cars in India and will take the Indian Market [more] seriously.

Regards!

1968chensaro · 6th August 2009, 12:31

Quote:

Originally Posted by .anshuman

Most hyundai dealers are not equipped to sell a sonata,2 months back we were looking for a sonata diesel automatic for my uncle,3 dealers in gurgaon and hyundai motor plaza in Delhi were not able to provide us a test drive for automatic for a month,we cancelled the car.

Friend,

Is it possible to get a test drive vehicle for a Month?? very interesting. Can you say which other vehicles are available in this way?

CarsPG · 6th August 2009, 13:35

Quote:

Originally Posted by .anshuman

Most hyundai dealers are not equipped to sell a sonata,2 months back we were looking for a sonata diesel automatic for my uncle,3 dealers in gurgaon and hyundai motor plaza in Delhi were not able to provide us a test drive for automatic for a month,we cancelled the car.

In November of last year I called Hyundai dealers to get a test drive of the Sonata. None of them had the car in stock. I think one of them even told me that the diesel variant had been discontinued. I called Hyundai who said that they are still selling the diesel Sonata and they would call me back to arrange a test drive. I never heard back from them! I assumed since a new model was around the corner they might not be producing it anymore. If they are still doing the same thing I guess they really don't have an interest in selling the car.

Gandhi · 6th August 2009, 13:44

Quote:

Originally Posted by 1968chensaro

Friend,

Is it possible to get a test drive vehicle for a Month?? very interesting. Can you say which other vehicles are available in this way?

I think what Anshuman meant was, he waited for a month to get a test drive of the car which didn't happen.

sandeepmdas · 6th August 2009, 20:27

Quote:

Originally Posted by LastActionHero

The i20 production is already being moved to Europe. Source.

AFAIK, (I am not working in HMIL

) the main reason for the move is to reduce/bypass the skyrocketing cost of shipping.

.anshuman · 6th August 2009, 23:32

Quote:

Originally Posted by 1968chensaro

Friend,

Is it possible to get a test drive vehicle for a Month?? very interesting. Can you say which other vehicles are available in this way?

We did not want the car for a month

we waited for a long time for the testdrive .

But i am very positive about the service support from hyundai,they got me my ac control panel from korea in less time than mahindra takes to source parts from india(it took a month for my friend to get a radiator for his scorpio slx last year)

GTO · 7th August 2009, 12:59

Quote:

Originally Posted by mohandas

Please don't take this personally. I have NO INTENTION to show you down. If my statement makes you feel so, please accept my apology.

Absolutely not, Mohandas. But I believe his comments were toward the following of my statements, which no ET has made

Quote:

Can a No.2 player fight on the basis of only two best seller products? I mean, Tata is only 1.6 market share points behind and has the Nano, Indigo Vista and an Xylo-beater lined up!

Quote:

Where are the small diesels (Santro & i10), a perfectly positioned 10 - 12 lakh sedan, an MUV and a 15 - 20 lakh SUV?

Quote:

Originally Posted by kcstheg

The amount of automation in their korean and japanese plants is much much higher than those in india.

Quote:

Originally Posted by greenhorn

India is going to sign an FTA with korea this week right?

Interesting comments, both. This is a better drama than the rubbish that hindi tv channels dish out in prime time. Sach ka saamna, Hyundai!

Quote:

Originally Posted by CarsPG

In November of last year I called Hyundai dealers to get a test drive of the Sonata. None of them had the car in stock. I think one of them even told me that the diesel variant had been discontinued.

Exactly. The Sonatas and Tucsons marketing, branding & overall promotions were so terribly handled, you'd think Hyundai simply didn't want to sell either of them. Sure, I agree that the Sonata's success was limited by its badge. But the car was murdered by Hyundai themselves!

.anshuman · 7th August 2009, 13:41

Quote:

Originally Posted by GTO

Exactly. The Sonatas and Tucsons marketing, branding & overall promotions were so terribly handled, you'd think Hyundai simply didn't want to sell either of them.

how many of us here know that tucson is still available in showrooms?same thing applied for Elantra when it was in production,Sonata sells in decent numbers in US then why not india?

Sawyer · 8th August 2009, 08:47

Hyundai has a problem in that it will not find it easy to move up the price segments where user needs change radically from the ones in which they have been eminently successful. It is a problem that Maruti has as well, as does Tata. Considering that Hyundai came into India only ten years ago with the second wave - Maruti being the first, 25 years ago, I'd say they have been clearly the most successful at rattling the Maruti cage. And in providing a very viable alternate to the Maruti customer, except in the 800/Alto segment. And they continue to do so with the i 10, and slowly but steadily, with the i 20 as well. In one sense their inability to make a dent in the higher segments is a price to be paid for that success. One has to focused to be successful, and that means deciding what to not concentrate on - by definition. And for sure, there have been missteps on the way, the Getz failure is the biggest I can think of in the volume segments in which they are Maruti's most feared competitor. Their failure with the Getz allowed the Swift to be the success it turned out to be, rattles, poor rear seat comfort and all. From a pure product perspective, I believe that the Getz was better suited to the market needs.
And regardless of the motives, their manufacturing commitment to India has been much stronger than any of the other entrants, in a manner similar to the LGs and the Samsungs. Korean companies looked at India as a place they need to be a lot earlier, and executed on their plans in a focused manner a lot better than the Japanese did, or even the US/Europeans for that matter.
As far as their labour practices are concerned, my guess would be that they are par for the course. Hiring large amounts of contract labour to avoid additions to the permanent unionized workforce is a practice to which I do not know of a single exception in any large company in any industry. Some "manage" this situation better than others. It is a root cause for what ails Indian manufacturing, because it is hard for a temp to take any pride in what he does, or feel a sense of ownership or belonging in the place he works, which is the basis for building a quality conscious culture. Given that, if they still are able to build cars that are better put together than Maruti, or other supposedly more respectable and older/wiser Indian companies I can think of, kudos to them.

6th August 2009, 08:50	#31
appuchan BHPian Join Date: Jan 2006 Location: Bangy Posts: 642 Thanked: 27 Times	The labor management by Hyundai in their Chennai based planned is pathetic. The salaries are very bad, and in most cases they overcome many labor laws by having a large number of contractors. They already have enough problems there with many groups in strike or planning to strike. It is very clear that they had setup their manufacturing base in India with an eye on low labor cost and now they are finding it difficult to sustain. The duties are only making it worse. Hence they decided to shift some of the assemblies to eastern European countries. The arbitrage they get here may be worsening. But by threatening to move out of country or by putting pressure on government they are not creating the right image for them here. They dont seem to have a long term vision of what they want to do and where. The only concern for them is cost and I dont think that's the right thing for any business which seeks to create long term value. They cannot forget that fact that its countries like India that is going to give them big business in the future.
	() Thanks

6th August 2009, 09:25	#32
vineethvazhayil Senior - BHPian Join Date: Apr 2007 Location: Chicagoland Posts: 1,513 Thanked: 456 Times View My Garage	I spotted a Hyundai Azera today near the Chennai Airport.. The rear side looks typical Hyundai from distance, but up close it is far more curvaceous than any other Hyundai I have seen.. Are they bringing that here?
	() Thanks

6th August 2009, 11:37	#33
nithi BHPian Join Date: Sep 2004 Location: Chennai Posts: 104 Thanked: 32 Times	When they are so worried, why will they want to hire 1000 more people? Hyundai to up production by 20 pc; will hire 1,000 people- Automobiles-Auto-News By Industry-News-The Economic Times To me, it is a good news to Indian Customer. Hyundai will try to sell more cars in India and will take the Indian Market [more] seriously. Regards!
	() Thanks

8th August 2009, 08:47	#41
Sawyer Senior - BHPian Join Date: Jul 2009 Location: Pune Posts: 2,677 Thanked: 1,786 Times	Hyundai has a problem in that it will not find it easy to move up the price segments where user needs change radically from the ones in which they have been eminently successful. It is a problem that Maruti has as well, as does Tata. Considering that Hyundai came into India only ten years ago with the second wave - Maruti being the first, 25 years ago, I'd say they have been clearly the most successful at rattling the Maruti cage. And in providing a very viable alternate to the Maruti customer, except in the 800/Alto segment. And they continue to do so with the i 10, and slowly but steadily, with the i 20 as well. In one sense their inability to make a dent in the higher segments is a price to be paid for that success. One has to focused to be successful, and that means deciding what to not concentrate on - by definition. And for sure, there have been missteps on the way, the Getz failure is the biggest I can think of in the volume segments in which they are Maruti's most feared competitor. Their failure with the Getz allowed the Swift to be the success it turned out to be, rattles, poor rear seat comfort and all. From a pure product perspective, I believe that the Getz was better suited to the market needs. And regardless of the motives, their manufacturing commitment to India has been much stronger than any of the other entrants, in a manner similar to the LGs and the Samsungs. Korean companies looked at India as a place they need to be a lot earlier, and executed on their plans in a focused manner a lot better than the Japanese did, or even the US/Europeans for that matter. As far as their labour practices are concerned, my guess would be that they are par for the course. Hiring large amounts of contract labour to avoid additions to the permanent unionized workforce is a practice to which I do not know of a single exception in any large company in any industry. Some "manage" this situation better than others. It is a root cause for what ails Indian manufacturing, because it is hard for a temp to take any pride in what he does, or feel a sense of ownership or belonging in the place he works, which is the basis for building a quality conscious culture. Given that, if they still are able to build cars that are better put together than Maruti, or other supposedly more respectable and older/wiser Indian companies I can think of, kudos to them.
	() Thanks