Research Article
Hyundai Motor India : Problem Solving in Entry and Management
Woosuk University
Published: February 2002 · Vol. 5 No. 2 · pp. 162-189
Full Text
Abstract
HMI established at Chennai in India on May 1996, is the automobile plant wholly owned by Hyundai Motor Company in Korea and has produced three models of Santro(1,000cc), Accent(1,500cc) and Sonata(2,000cc). The plant had been built on a modest budget of US$ 457 million in the shortest period of 17 months in Indian automobile history. HMI has the production capacity of 120,000 cars by year and the 2,544 employees now. HMI has recorded a excellent performance in indian automobile industry in a very short period. Within a three years from the first production on October 1998, HMI has produced and sold over 200,000 cars, which is 14% of Indian passenger car market and means No.2 position. Also HMI is very good in financial performance. The sales amount is US$ 450 million and operating incomes to sales is 6.2% in 2000 fiscal year. This case deals with HMI's success of problem solving in its entry strategy and management in production, parts sourcing, personnel and labor relations, sales and channel, and the challenges that lie ahead. It highlights the role played by Hyundai's corporate culture and crisis mind faced by a unfamiliar environment.
