INTERNSHIP REPORT ON ORGANIZATION OVERVIEW AT

KPR AUTO AGENCY PVT LTD (STAR HYUNDAI)

Submitted By
TEJAS MN
Reg.No. 4MN22BA049

Submitted To

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfilment of the requirements for the awards of the degree of
MASTER OF BUSINESS ADMINISTRATION

(SUBJECT CODE: 20MBA IN 307)

Under The Guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. Shilpa N C Mr. MOHAN KUMAR
.M
Assistant Professor General Manager Human
Department of Management Sciences Resources
MIT, Mysore KPR auto agency pvt ltd

MAHARAJA INSTITUTE OF TECHNOLOGY THANADVAPURA

(Affiliated to VTU, Approved by AICTE, New Delhi & Recognized by Govt. Of
Karnataka )
DEPARTMENT OF MANAGEMENT SCIENCEs

1
(Batch 2023-2024)

2
DECLARATION

I, TEJAS MN (4MN22BA049), a student of Master Of Business Administration at Maharaja

Institute Of Technology , Mysore, hereby declare that the internship report titled
Organizational Study At KPR auto agency pvt ltd(star Hyundai)Mysore, is a record of
independent research carried out by me under the internal guidance of Dr. Shilpa N C an
Assistant Professor, Department Of Management Sciences, Maharaja Institute Of
Technology, Thanadavapura and external guidance of Mr. MOHAN KUMAR.M General
Manager Human Resources at KPR auto agency Pvt. Ltd., Mysore.

I also declare that this internship work is towards the partial fulfilment of the University
regulation for the award of degree Master of Business Administration by Visvesvaraya
Technological University, Belgaum.

I have undergone an internship for the period of four weeks. I further declare that this
internship work is based on the original study undertaken by me and has not been submitted
for the award of any degree/diploma from any other university/ institution.

DATE: Yours
Sincerely

TEJAS MN
PLACE: 4MN22BA049

3
 ACKNOWLEDGEMENT

I TEJAS MN (USN No. 4MN22BA049), I am thankful to my prestigious institute that made

this learning opportunity a part of our education I am thankful to Dr. Nanadan giri k., HOD &
Professor, Department of Management Sciences, MITT for timely suggestion and
encouragement. I also express my gratitude to my internal guide Dr. Shilpa N C Assistant
Professor, MITT. I am also thankful to all faculty as the knowledge imparted by them enables
me to gain knowledge of the organization in the best way.

I hereby express my sincere and heartfelt thanks to Mr. Mohan Kumar. M General Manager
Human Resources at KPR AUTO AGENCY (STAR HYUNDAI) Pvt. Ltd., Mysore, for
giving an opportunity to get internship exposure in KPR AUTO AGENCY (STAR
HYUNDAI) and also providing relevant information with her valuable guidance, her constant
support, inspiration and encouragement throughout even with her busy schedule given time to
me to complete internship report successfully & for assigning me different type of work to
give me maximum exposure in minimum assigned internship period from the University.

4
 TABLE OF CONTENTS

Chapter Title Page. No

No.
1. Industry Profile
2. Company Profile
Background
Nature of the Business
Vision, Mission & Quality Policy
Workflow Model
Product/Service Profile
Ownership Pattern
Future Growth & Prospects

3. Mckinsey’s 7s Framework & Porter’s Five Force

Model
4. SWOT Analysis
5. Analysis of Financial statements
6. Learning Experience
Bibliography & Reference

5
 Abstract

One of the key economic foundations of India is the automobile sector. Strong links both
ahead and backward make it a major growth engine. Over the past few years, legislative
changes and liberalization have brought in multiple new competitors and established a
vibrant, competitive market, which has expanded the automobile industry's capacity and
provided a significant amount of employment.

The automotive sector must constantly adjust to shifting consumer expectations, legal
requirements, technological advancements, and other variables. To adapt to changes and
advancements in the business, auto companies require a staff with high performance levels.

However, assembling a highly qualified team is typically trickier than it looks. Finding and
hiring talent is the first step in the process, but it doesn't stop there. Keeping present staff
members content and motivated is a crucial component of building a strong team. Providing
them with possibilities for job advancement is one method to accomplish this and keep them
working for the organization.

The knowledge and abilities of human resource specialists enable them to create and oversee
a staff that is in line with the aims and objectives of the business. Furthermore, in the
contemporary automobile sector, a robust human resources department can assist companies
in overcoming significant obstacles.

6
CHAPTER 1

7
 INDUSTRY PROFILE

The design, production, and retail of automobiles are all part of the dynamic and well-known
automotive industry worldwide. It has a significant effect on transportation networks,
economies, and technological advancement. The company offers a wide range of aftermarket
services, dealerships, suppliers, and manufacturers. It is heavily regulated with regard to
emissions, safety, and environmental standards, which puts pressure on companies to develop
and use sustainable practices. Mobility services and electrified and self-driving cars are being
prioritized more recently. The industry faces challenges from shifting consumer preferences,
disruptions in the supply chain, and fluctuations in the economy. India's automotive industry
is a significant and growing one, with an emphasis on electric cars and government initiatives
to promote greener modes of transportation.

The automotive industry has been a dynamic and crucial force in influencing global
economies and transportation for almost a century. An overview of the key elements of the
automotive industry, including its historical development, contemporary problems, and
potential futures, is provided in this synopsis. The industry's significant contributions to
employment, technological advancement, and economic growth are highlighted, and
important topics including environmental sustainability, the rise of electric and self-driving
automobiles, and the impact of changing customer tastes are also covered. As the industry
develops, it must address the dual challenge of meeting consumer demand for cutting-edge
technology and minimizing its environmental impact.

From 2.77% in 1992–1993, this sector's share of the national GDP has increased to almost
7.1% currently. It employs about 19 million people directly and indirectly.

In the Indian automotive industry, between 2021 and 2022, two-wheelers and passenger
automobiles held 77% and 18% of the market share, respectively. Small and medium-sized
cars account for the majority of passenger car sales. Between 2020 and 2021, the total
number of autos exported climbed from 4,134,047 to 5,617,246; this represents a positive
gain of 35.9%.

By the end of 2024, India wants to have doubled the size of its auto sector to Rs. 15 lakh
crores. From April 2000 to September 2022, the industry saw $33.77 billion in foreign direct
investment (FDI), or roughly 5.48% of all FDI inflows into India during that time.

8
9
Historical Development:

The automotive industry's origins may be traced back to the late nineteenth century, when
visionary inventors such as Karl Benz and Henry Ford pioneered the construction of powered
vehicles. The assembly line, introduced by Henry Ford in the early twentieth century,
transformed the manufacturing process, making vehicles more inexpensive and accessible to
the public. This crucial breakthrough launched the sector on a path of growth.

The automotive industry is not only a symbol of industrial strength, but it is also a vital
generator of economic progress. It includes a wide network of manufacturers, suppliers,
dealerships, and service providers, contributing significantly to the GDP of many countries
and employing millions. As a result, it is critical in both established and developing
economies.

Over the past 20 years, the Indian automotive sector has advanced significantly, drawing
attention from around the world and positioning itself as a strong challenger for the top table.
Globally, the manufacturing output of two-wheelers ranks second, commercial vehicles ranks
seventh, passenger vehicles ranks sixth, and tractors ranks first. India has closed the gap over
a number of established locales to become one of the most sought-after locations in the world
for producing premium automotive components and vehicles of all types over the last ten
years.

Globally, the automotive sector is probably going to undergo some major changes during the
next ten years. The primary changes include the growth in automobile demand shifting from
developed to developing countries (primarily BRICS); a sharp rise in the percentage of
electronics in cars, turning them into "computers on wheels and connected to the Internet";
and an unrelenting pursuit of economies of scale and scope in the design and engineering of
cars and their components, while simultaneously looking for low-cost manufacturing
locations.

10
Types of cars

 Sedans: Sedans are four-door cars with a separate trunk. They are typically
designed for everyday use and are known for their practicality, comfort, and fuel
efficiency.
 SUV (Sports Utility Vehicle): SUVs are known for their versatility and
spacious interiors. They are available in various sizes, from compact to full-size, and
are designed for both on-road and off-road use.

 Hybrid Car: Hybrid cars combine an internal combustion engine with an electric
motor to improve fuel efficiency and reduce emissions. They can run on gasoline and
electric power or a combination of both.

 Hatchback: Hatchbacks are similar to sedans but have a rear door that includes the
rear window and allows access to the cargo area. They are often more versatile for
carrying cargo.
 Minivan: Minivans are spacious family vehicles with sliding rear doors and three
rows of seating. They are designed for transporting larger groups of passengers and
their cargo.
 Off-Road Vehicle: Off-road vehicles, such as jeeps and all-terrain vehicles
(ATVs), are built to handle rugged and challenging terrains, making them suitable for
outdoor adventures.
 Luxury Car: Luxury cars are known for their high-end features, advanced
technology, and superior comfort. They often come from prestigious automakers and
offer top-notch performance.

Technological Progress:

The vehicle industry has long been a source of technical advancement. The industry is always
pushing the boundaries of what is possible, from the development of more efficient and
environmentally friendly engines to the incorporation of cutting-edge safety features and
advanced communication possibilities. Recent advances in electric and driverless cars are at
the forefront of these technological innovations, promising to transform the transportation
industry.

11
While the car industry has provided unparalleled mobility and convenience to people all over
the world, it also confronts significant obstacles. Environmental sustainability, urban
congestion, and safety issues all necessitate novel solutions. With an increasing emphasis on
sustainability and decreased environmental effect, the emergence of electric cars and
autonomous driving technology gives new opportunity to solve these concerns.

As the twenty-first century progresses, the car industry finds itself at a crossroads, with a
shifting landscape of customer demands, government laws, and technology disruptors. The
adaptability and innovation of this dynamic business will be critical in determining the future
of transportation, urban development, and global trade. We have discussed the historical
history, economic relevance, and legal implications in this introduction.

The car industry depends on a number of things, including powerful R&D centers, affordable
steel manufacturing, and the availability of trained labor at a reasonable cost. Both skilled and
unskilled labor can find direct and indirect employment in this business, as well as excellent
investment opportunities. By 2030, the electric car sector is projected to generate five crore
new jobs.

By 2023, the Indian government anticipates that the automotive industry will draw $8–10
billion in domestic and foreign investments. By 2030, India may lead the world in shared
mobility, opening doors for electric and driverless cars.

After recovering from the COVID-19 pandemic's effects, the Indian auto sector is predicted
to see rapid growth in 2022–2023. In 2022–2023, sales of electric vehicles—especially two-
wheelers—are probably going to increase.

12
Market Size

The Indian passenger automobile market was estimated to be worth US$ 32.70 billion in
2021, and between 2022 and 2027, it is projected to grow at a compound annual growth rate
(CAGR) of more than 9%, reaching a value of US$ 54.84 billion. The global EV market is
expected to rise five times to US$ 1,318 billion by 2028 from an estimated US$ 250 billion in
2021.

2.22 million passenger vehicles*, three-wheelers, two-wheelers, and quadricycles were

produced as of November 2023. 15.56 million passenger cars, commercial vehicles, two-
wheelers, three-wheelers, and quadricycles were produced in total between April and
November of 2023–2024.

6.01 million passenger cars, commercial vehicles, two- and three-wheelers, and quadricycles
were produced overall in the first quarter of 2023–2024*.

India achieved a noteworthy achievement in 2023–24 (through August 2023) by selling

8,32,434 EVs.

The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore (US$ 7.09 billion) in
India by 2025. A study by CEEW Centre for Energy Finance recognised a US$ 206 billion
opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion
investment in vehicle manufacturing and charging infrastructure.

13
According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance
industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) by 2030. A report by the India
Energy Storage Alliance estimated that the EV market in India is likely to increase at a
CAGR of 36% until 2026. In addition, the projection for the EV battery market is expected to
expand at a CAGR of 30% during the same period.

Indian automotive industry is targeting to increase the export of vehicles by five times during
2016-26. In FY23, total automobile exports from India stood at 47,61,487. Indian automobile
exports of two-wheelers stood at 36,52,122 in FY23.

Automobile Clusters

 Mumbai-Pune-Nashik-Aurangabad
 Chennai-Bengaluru-Hosur
 Delhi-Gurgaon-Faridabad
 Kolkata-Jamshedpur
 Sanand-Hansalpur-Vithalpur

Industry Contacts

 Automotive Component Manufacturers of India (ACMA)

 Society of Indian Automobile Manufacturers (SIAM)
 Automotive Research Association of India (ARAI)
 Automobile Association of Southern India (AASI)

Government Initiatives

The Indian government has approved 100% FDI under the automatic method and actively
promotes foreign investment in the auto industry. The Indian government has recently
undertaken a number of initiatives, including:

 The FAME Scheme was extended for a further period of 2 years up to 31st March,
2024
 In January 2023, under the FAME-II scheme, the Centre approves US$ 97.77 million
(Rs. 800 crore) for 7432 public fast charging stations.
 In July 2022, Gujarat government announced a semiconductor policy, where it will set
up Dholera Semicon City and offered incentives for investment in this sector.

14
 In July 2022, the Government amended the National Policy on Biofuels – 2018. The
target of 20% blending of ethanol in petrol and 5% blending of biodiesel in a diesel by
2030 was brought forward to 2025-26.
 The Indian government has planned US$ 3.5 billion in incentives over five years until
2026 under a revamped scheme to encourage the production and export of clean
technology vehicles.
 As of June 2021, Rs. 871 crore (US$ 117 million) have been spent under the FAME-
II scheme, 87,659 electric vehicles have been supported through incentives, and 6,265
electric buses have been sanctioned for various state/city transportation undertakings.

15
Chapter 2

16
 Organization Profile

HYUNDAI GLOBAL

The first company in India to offer smart mobility solutions is Hyundai Motor India Ltd.
(HMIL), a fully owned subsidiary of Hyundai Motor Company (HMC). Hyundai's global
brand vision of "Progress for Humanity" offers transportation solutions with cutting-edge
technology, paving the way for a sustainable future for future generations.

HMIL currently has a strong network of 1,366 sales locations and 1,548 service locations
throughout India. Thirteen automobile models in all, including the Grand i10 NIOS, i20, i20
N-Line, AURA, EXTER, VENUE, VENUE N-Line, VERNA, CRETA, ALCAZAR,
TUCSON, KONA Electric, and all-electric SUV IONIQ 5, make up the robust product
lineup. Modern, fully integrated HMIL manufacturing facility close to Chennai has
exceptional production, quality, and testing capabilities. Along with being a vital component
of HMC's worldwide export base, Hyundai Motor India Ltd. exports to 88 countries in
Africa, the Middle East, Latin America, Australia, and Asia Pacific.

Hyundai is a well-known automaker with global recognition that has its headquarters in
South Korea. It produces a broad variety of vehicles, including as electric cars, SUVs, and
sedans. The company has a significant global footprint, with production facilities and sales
networks spread over many nations. If you have any specific questions about Hyundai's
international activities, goods, or any other relevant information

17
MD & CEO

At Hyundai Motor India Limited, Mr. Unsoo Kim serves as the company's managing director
and chief executive officer. In 1991, he started working for Hyundai Motor Company in
Korea. Over the course of his thirty years with Hyundai, he has worked on many tasks at
Global Locations. He has extensive experience in business planning, strategy, and operations
in a variety of areas. Mr. Kim held the position of Executive Vice President of Global
Operations at Hyundai Motor Company before taking on a leadership role at Hyundai Motor
India.

Mr. Unsoo Kim has worked at Hyundai Motor India for four years in the past, including two
years as the Executive Director of the Corporate Planning Division in 2014 and 2015.

Hyundai's global presence in India:

 Manufacturing Facilities: Hyundai has a strong manufacturing presence in India.

The company operates a state-of-the-art manufacturing plant in Chennai, Tamil Nadu.
This facility produces a wide range of Hyundai vehicles, including popular models
like the Hyundai Creta, Hyundai i20, Hyundai Venue, and more.
 Product Portfolio: Hyundai offers a diverse range of cars in India, catering to
various segments of the market. These include compact cars, sedans, SUVs, and
electric vehicles. The company has a reputation for offering stylish and feature-rich
vehicles that have gained popularity among Indian consumers.
 Sales and Service Network: Hyundai has an extensive sales and service network in
India. The company has a widespread presence with dealerships and service centers in
major cities and towns across the country, ensuring accessibility to customers.
 Investment in Innovation: Hyundai is also committed to innovation and
sustainability. The company has been actively exploring electric and hybrid vehicle

18
 technologies to align with India's growing interest in green and sustainable
transportation.
 Corporate Social Responsibility (CSR): Like many global corporations, Hyundai
also engages in various CSR initiatives in India. These initiatives focus on education,
healthcare, and community development.

Competitors of Hyundai

 Toyota: Toyota is a Japanese automaker known for its reliable and fuel-efficient
vehicles. It is one of the largest automakers in the world and competes with Hyundai
in various market segments.
 Honda: Another Japanese automaker, Honda, produces a wide range of vehicles,
including cars, motorcycles, and power equipment. It competes with Hyundai in the
compact and midsize car segments.
 Ford: Ford is an American automaker with a long history in the industry. It competes
with Hyundai in various markets, including SUVs, trucks, and crossover vehicles.
 General Motors (Chevrolet, GMC, Buick, Cadillac): General Motors, an American
automotive company, has several brands under its umbrella. Chevrolet, GMC, Buick,
and Cadillac all compete with Hyundai in different segments.
 Volkswagen Group (Volkswagen, Audi, Porsche): The Volkswagen Group, a
German automotive conglomerate, has multiple brands, including Volkswagen, Audi,
and Porsche, which compete with Hyundai in different markets.
 Nissan: Nissan, a Japanese automaker, competes with Hyundai in various segments,
including compact cars and SUVs
 Kia: Kia is a subsidiary of Hyundai Motor Group, and while they share some
technologies and platforms, they also compete with each other, particularly in the
affordable and mid-range car segments.
 Subaru: Subaru, a Japanese automaker, is known for its all-wheel-drive vehicles and
competes with Hyundai in the compact SUV and crossover segments.
 Mazda: Mazda, another Japanese automaker, competes with Hyundai in the compact
and midsize car segments, emphasizing driving dynamics and design.
 Mercedes-Benz and BMW: These German luxury automakers compete with
Hyundai's luxury division, Genesis, in the premium car and SUV segments.
 Tesla: Tesla, an American electric vehicle manufacturer, competes with Hyundai in
the growing electric vehicle market.

19
Rural Sales Outlet Organization Structure

What we do
Press Shop

A computer-controlled line that consistently and precisely cuts sheet metal into body panels.

20
Body shop

This high-tech line constructs entire body shells out of panels. For complex welding tasks,
automated robotic arms are employed, ensuring excellent and reliable construction quality.

Paint shop

This environmentally friendly paint company employs a water-based method to create

exceptional and long-lasting exteriors, making it one of the most advanced in the nation.
Here, we employ a special process management system that enables us to provide the widest
color range, regardless of minimum batch needs, benefiting clients.

Assembly Shop

All of the car's electrical, mechanical, suspension, and underbody components are installed in
the assembly shop. The vehicles are thoroughly tested in the assembly shop.

21
The Trim Line, Chassis Line, Final Line, and OK Line are the components that make up the
Assembly Shop.

Engine & Transmission Shop

Comprising one of the largest engine shops in the nation, this facility is outfitted with cutting-
edge equipment and testing capabilities to enable it to produce an extensive array of engines
internally.

Key persons of Hyundai

 Euisun Chung - Chairman of Hyundai Motor Group

 Jaeyong Yang - Vice Chairman and CEO of Hyundai Motor Group
 Albert Biermann - President and Head of Research and Development Division
 Yong-woo Lee - President and Head of Hyundai Motor Company
 Shailesh Chandra - President of Hyundai Motor India Ltd

22
Milestones of Hyundai Motor India
2018-2022

2018 milestones of Hyundai

year Date Milestones

2018 December Hyundai’s Super Performer & Best Seller ‘i20’ Crosses 1.3
27, 2018 Million Mark in 10 years

2018 September Hyundai Introduces Next Gen VERNA Anniversary Edition

14, 2018
2018 July 16, 2018 Hyundai Brilliant Moments – Emotional Recalling Digital
Campaign Records More Than ‘100 Million’ Views in Just 17
Days
2018 June 11, 2018 Hyundai Motor India Rolls out Fastest 8 Millionth Car in 19
Years 6 Months
2018 May 21, 2018 Hyundai Launches Most Preferred Perfect SUV - 'The New
2018 CRETA'
2018 February 06, Hyundai’s Next Gen VERNA received “Sedan of the Year
2018 2018” award by Motoring World.
2018 January 10, Hyundai Introduces 1.4 L Petrol Engine in the Super Sedan Next
2018 Gen VERNA

2019 milestones of Hyundai

years date Milestones

2019 December Hyundai Motor India Limited wins ‘Indian Manufacturer of the
26, 2019 Year – 2019’ and ‘Smart Factory Awardon Mark in 10 years
2019 June Hyundai Motor India crosses over 1,000 retail deliveries to
21,2019 customers of VENUE across the country
2019 May 5, Hyundai Motor India rolls- out its First – Made in India
2019 Connected SUV- Hyundai VENUE.
2019 April 1, All New SANTRO- received “Best Entry Level Car” Award by
2019 Motor Octane

23
2019 March All New SANTRO- received “Urban Car of the Year ” Award by
3,2019 TopGear India
2019 February 8, All New SANTRO- received “Entry Level Hatchback of The
2019 Year ” Award by Car India & Bike India
2019 January 1, Hyundai Registers Highest-Ever Cumulative Sales of 710,012
2019 Units in CY 2018

2020 milestones of Hyundai

years date Milestones

2020 December Hyundai Motor India Foundation Announces the 2nd Edition of
28, 2020 H-Social Creator
2020 November Hyundai Launches the Blockbuster of 2020-the-all-new i20
05, 2020
2020 October 21, Hyundai Rises to Top Five Automotive Brands in Interbrand
2020 Ranking, Achieving $14.3 Billion Global Brand Value
2020 September Hyundai KONA Electric SUV Becomes the Brand of Choice for
3, 2020 Energy Efficiency Services Limited - Earns 100 Units Order
2020 August 11, Hyundai CRETA sets a new benchmark Crosses 500 000 Sales in
2020 Domestic Market
2020 July 29, Hyundai All New CRETA Establishes Supremacy Records 55
2020 000 plus Bookings
2020 February HMIL Opens Customer Bookings For 3 More BS 6 Compliant
01,2020 Models (Elite i20, VENUE & GRAND i10)

2021 milestones of Hyundai

year date Milestones

2021 September Hyundai makes exciting driving experiences accessible to all,
2, 2021 Launches i20 N-LINE
2021 Hyundai takes Fun Driving to a New Level: Announces
August 9, introduction of N-LINE range for India
2021

24
2021 May 19, Hyundai Motor India Foundation Pledges Support to Tamil Nadu
2021 Government-Donates a package of Rs. 10 Crores towards
Pandemic Relief in the State
2021 Hyundai Records Landmark Achievement of over 1 Million
April 05, ‘Made in India’ SUVs
2021

2021 March 05, Hyundai Motor India Crosses 1 Million Followers on Instagram
2021
2021 February Hyundai Motor India Limited Celebrates 25 Years of Excellence
17, 2021 in India
2021 January 1, Hyundai Registers Highest-Ever December Month Sales with 47
2021 400 Units

2022 milestones of Hyundai

Year Date Milestone

2022 September Hyundai launches the VENUE N-LINE, India's first mass
6,2022 market performance oriented SUV
2022 September HMI becomes the first OEM in India offering in-app digital
1,2022 payment services for fuel with Indian Oil Corporation Ltd.
2022 August All-new Hyundai TUCSON is launched, redefining the
10,2022 premium SUV space in India
2022 June 16, 2022 India's favorite compact SUV, Hyundai VENUE is refreshed
2022 April 13, 2022 Hyundai IONIQ 5 wins the '2022 World Car of the Year'
(WCOTY) Award
2022 April 12, 2022 Hyundai Motor India is conferred the award for 'Editor's
Choice Manufacturer of the Year' at BBC Top Gear India
Awards 2022
2022 January 1, i20 N-LINE wins award for the 'Best Premium Hatchback
2022 2022' at Motor Vikatan Awards

25
Hyundai Car Models

Hyundai Compact Cars:

 Hyundai Grand i10: A compact hatchback known for its practicality and fuel
efficiency.
 Hyundai i20: A popular hatchback offering a blend of style and technology.
 Hyundai Santro: A small and budget-friendly hatchback with a focus on affordability.

Hyundai Sedans:

 Hyundai Aura: A compact sedan with a stylish design and features.

 Hyundai Verna: A midsize sedan known for its performance and comfort.
 Hyundai Elantra: A premium sedan offering advanced features and a sophisticated
design.

Hyundai SUVs:

 Hyundai Venue: A subcompact SUV with a trendy design and a range of features.
 Hyundai Creta: A popular compact SUV known for its versatility and technology.
 Hyundai Tucson: A midsize SUV with a spacious interior and advanced safety
features.
 Hyundai Santa Fe: A larger SUV with an emphasis on comfort and performance.

Hyundai Electric and Hybrid Vehicles:

 Hyundai Kona Electric: An electric SUV known for its long-range capabilities.
 Hyundai Ioniq: Available in hybrid, plug-in hybrid, and electric variants, the Ioniq
focuses on sustainability and efficiency

26
Chapter 3

27
 Mckinsey’s 7S framework and Porter's Five Force Model
Of Hyundai company

 Mckinsey’s 7s Framework Model:

The McKinsey 7s model is a strategic tool and framework that helps managers and
businesses assess their performance. The McKinsey 7s model identifies 7 key elements for an
organization that need to be focused and aligned for successful change management
processes as well as for regular performance enhancements. The central idea to this
framework is that of organizational effectiveness, which stems from the interaction of several
factors and not just a single factor. KPR AUTO AGENCY (STAR HYUNDAI) makes use of
the McKinsey 7s model to regularly enhance its performance, and implement successful
change management processes. KPR AUTO AGENCY (STAR HYUNDAI) focuses on the 7
elements identified in the model to ensure that its performance levels are consistently
maintained, and improved for the offerings.

McKinsey 7S Framework:

The hard elements of the McKinsey 7s model comprise of strategy, structure, and
systems. The hard elements of the model are easier to identify, more tangible in nature

28
 I. Structure
 Organizational Hierarchy

KPR AUTO AGENCY (STAR HYUNDAI) has a flatter organizational hierarchy that is
supported by learning and progressive organizations. With lesser managerial levels in
between and more access to the senior management and leadership, the employees feel more
secure and confident and also have higher access to information. Moreover, the flatter
hierarchy also allows quicker decision-making processes for KPR AUTO AGENCY (STAR
HYUNDAI) and increases organizational commitment in the employees.

 Centralization vs Decentralization

KPR AUTO AGENCY (STAR HYUNDAI) has a hybrid structure between centralization
and decentralization. Like many progressive organizations, KPR AUTO AGENCY (STAR
HYUNDAI) largely supports decentralized decision making. Job roles at KPR AUTO
AGENCY (STAR HYUNDAI) are designed to be carried out with responsibility and
employees often set their goals with mutual co-ordination and understanding with the
supervisors. However, it is also centralized in making sure that supervisors oversee and
approve of the various efforts, and tactics that employees choose to ensure that they are
aligned with the organizational strategy values.

II. Systems

 Organizational systems in place

KPR AUTO AGENCY (STAR HYUNDAI) has defined and well-demarcated systems in
place to ensure that the business operations are managed effectively and that there are no
conflicts or disputes. The systems at NH are largely departmental in nature, and include:
human resource management, finance, marketing, operations, sales, supply chain
management, public relation management & strategic leadership.

 Defined controls for systems

Each of the defined and demarcated systems at KPR AUTO AGENCY (STAR HYUNDAI)
has especially designed tools and methods as controls for evaluating performance and goal
attainment. These controls and measures are designed specifically in different departments

29
based on the nature of their tasks and responsibilities. Moreover, each department also
designs specific controls for members for performance evaluation, as well as for inter-
departmental tasks and responsibilities.

 Monitoring and evaluating controls

KPR AUTO AGENCY (STAR HYUNDAI) continually evaluates its systems through the
designed controls. This monitoring of the performance is continual and on-going. This is
largely done through observation and informal discussions. Feedback to employees and
overall department heads is informally given regularly as and when is required. Formal
evaluation of performance is also conducted semi-annually or quarterly, 33 depending on the
need and the urgency of the projects and assigned tasks. This is a formal process that is
undertaken by supervisors and managers to ensure the identification of the performance lags
and suggestive means of improvement.

III. Shared Values

 core values

The core values of KPR AUTO AGENCY (STAR HYUNDAI) are defined and
communicated to foster a creative and supportive organizational structure that will allow
employees to perform optimally and enhance their motivation and organizational
commitment. The core values at KPR AUTO AGENCY (STAR HYUNDAI) include, but are
not limited to: creativity, honesty, transparency, accountability, trust, quality and heritage.
KPR AUTO AGENCY (STAR HYUNDAI) business also ensures that all its activities and
operations are conducted with high ethical and moral standards that redefined and
benchmarked against international criteria.

 Tasks alignment with values

KPR AUTO AGENCY (STAR HYUNDAI) ensures that all its jobs tasks and roles are
aligned with the core values that the company propagates. This means that all activities,
tactics and strategic tactics employed by KPR AUTO AGENCY (STAR HYUNDAI) will
reflect its core values and will not deviate away from these and to maintain consistency and a
brand image.

30
IV. Skills:
 Employee skills vs. Skill management

KPR AUTO AGENCY (STAR HYUNDAI) has a commendable workforce with high skills
and capacities. All employees are recruited based on their merit and qualifications. KPR
AUTO AGENCY (STAR HYUNDAI) prides itself on hiring the best professionals and
grooming them further to facilitate growth and development. It arranges regular training and
workshops- internally as well as externally managed-to provide growth and development
opportunities for its employees.

 Company’s competitive advantage

The human resource is one of the core competitive advantages of the company. The skills of
employees are developed specifically for jobs and requirements at KPR AUTO AGENCY
(STAR HYUNDAI) and provide a competitive benefit to the company. This creates a unique
and non-substitutable competency for KPR AUTO AGENCY (STAR HYUNDAI)

V. Style
 Management & effectiveness of leadership style

KPR AUTO AGENCY (STAR HYUNDAI) has a participative leadership style. Through a
participative leadership style, KPR AUTO AGENCY (STAR HYUNDAI) is able to engage
and involve its employees in decision making processes and managerial decisions. This also
allows the leadership to regularly interact with the employees and different managerial
groups to identify any potential conflicts for resolution, as well as for feedback regarding
strategic tactics and operations. And hence enhance employee participant and motivation.

 Co-operation vs. competition-internally

With its supportive and encouraging organizational culture KPR AUTO AGENCY (STAR
HYUNDAI) gives way to internal collaboration and co-operation between employee systems,
teams and departments. This co-operation and collaboration at KPR AUTO AGENCY
(STAR HYUNDAI) are important since its operations are spread globally and also because
tasks and responsibilities within the company often require inter-departmental feedback and
input. Moreover, with increased expansion and synergy, the business also regularly forms
projects teams- which function effectively because of the cooperative and collaborative
culture within the organization.

31
  Team vs. Groups

KPR AUTO AGENCY (STAR HYUNDAI) has effective and functional teams and works
with them internally to achieve its various business goals and objectives and complete tasks.
The human resources management system, as well as the organizational training supports all
employees in their growth fairly and transparently. This leads to effective team formation
instead of nominal groups within the organization for various projects as well as department
specific tasks and roles.

VI. Staff:
 Employee skill level vs. business goals

KPR AUTO AGENCY (STAR HYUNDAI) has a sufficient number of employees employed
across its global operations. There are around 593 employees in showroom 475 permanent
employees, 82 housekeeping, 15 outsourcing & 21security (50 among the overall staff are on
contractual basis). Employees for different job roles and positions are hired internally as well
as externally depending on the urgency, job roles and the skill levels required. Based on this,
it is seen that star Hyundai has employees who are skilled as per the requirements of their job
roles and positions. All the employees are given in house training to familiarize themselves
with the company and its values. External training along with in-house training is provided
for skill level enhancements

VII. Strategy
 Clearly defined

The strategic direction and the overall business strategy for KPR AUTO AGENCY (STAR
HYUNDAI) are clearly defined and communicated to all the employees and stakeholders
which leads to better performance by applying tactics & strategy. Hence facilitates
transparency & aligns the actions & responsibilities of the company.

 Guiding behaviour for goal attainment

The strategic direction for KPR AUTO AGENCY (STAR HYUNDAI) is vital in helping the
business guide employee, staff, and stakeholder behaviour towards the attainment and
achievement of goals. SMART Goals are set with short- and long-term deadlines in
accordance with the business strategy. The business strategy helps employees decide
behaviours for attaining the set goals and targets to help the business grow.

32
  Competitive pressures & Changing Consumer NeedsKPR AUTO AGENCY
(STAR HYUNDAI) strategy also takes into consideration the competitive pressures
and activities of competitors. The strategy addresses these competitive pressures
through suggestive measures and actions to address competition via strategic tactics
and activities that ensure sustainability & adaptability to market changes and evolving
consumer trends and demands it allows the company to remain competitive and
relevant to its target consumer groups, as well as allows the company to identify
demand gaps in the consumer market. The company then strategically addresses these
gaps through product offerings and marketing activities which give the company
successful and leading-edge over other patterns in the market.

Porter's Five Forces Model

Porter's Five Forces is a business analysis model that helps to explain why various industries
are able to sustain different levels of profitability. The Five Forces model is widely used to
analyse the industry structure of a company as well as its corporate strategy which are
frequently used to measure competition intensity, attractiveness and profitability of an
industry or market.

1.Bargaining Power of Suppliers: Hyundai sources various components and materials from
suppliers. The bargaining power of suppliers may be moderate, but Hyundai's global presence
and strong relationships with suppliers could mitigate this.

Bargaining Power of Buyers: In the automotive industry, buyers have a moderate to high
level of bargaining power due to the availability of many choices and the influence of price

33
and quality. Hyundai needs to maintain customer loyalty and offer competitive pricing and
quality.

2.Rivalry Among Existing Competitors: This force examines how intense the competition
is in the marketplace. It considers the number of existing competitors and what each one can
do. Rivalry competition is high when there are just a few businesses selling a product or
service, when the industry is growing and when consumers can easily switch to a competitor's
offering for little cost. When rivalry competition is high, advertising and price wars ensue,
which can hurt a business's bottom line. If competition is intense then it becomes difficult for
existing players such as star Hyundai to earn sustainable profits.

3.Bargaining power of buyers:

This force examines the power of the consumer, and their effect on pricing and quality.
Consumers have power when they are fewer in number but there are plentiful sellers and it's
easy for consumers to switch. Conversely, buying power is low when consumers purchase
products in small amounts and the seller's product are very different from that of its
competitors. If the buyers have strong bargaining power then they usually tend to drive price
down thus limiting the potential of the star Hyundai to earn sustainable profits.

4.Threat of new entrants:

This force considers how easy or difficult it is for competitors to join the marketplace. The
easier it is for a new competitor to gain entry, the greater the risk is of an established
business's market share being depleted. Barriers to entry include absolute cost advantages,
access to inputs, economies of scale and strong brand identity. If there is strong threat of new
entrants then current players will be willing to earn fewer profits to reduce the threats.

5.Threat of substitute products and services:

This force studies how easy it is for consumers to switch from a business's product or service
to that of a competitor. It examines the number of competitors, how their prices and quality
compare to the business being examined, and how much of a profit those competitors are
earning, which would determine if they can lower their costs even more. The threat of
substitutes is informed by switching costs, both immediate 38 and long-term, as well as
consumers' inclination to change. If the threat of substitute is high then star Hyundai has to
either continuously invest into R&D or it risks losing out to disruptors in the industry

34
Chapter 4

35
 SWOT Analysis

The four key elements of SWOT analysis are - Strengths, Weaknesses, and Opportunities
& Threats. Star Hyundai can use strengths to create niche positioning in the market, can
strive to reduce & remove weaknesses so that it can better compete with competitors, look
out to leverage opportunities provided by industry structure, regulations and other
development in external environment, and finally make provisions and develop strategies to
mitigate threats that can undermine the business model of Star Hyundai.

Strengths:

 Global Presence: Hyundai has a strong international presence, with manufacturing

facilities and sales operations in various countries, making it a global brand.
 Product Innovation: The company has a history of investing in research and
development, leading to the development of innovative and fuel-efficient vehicles,
including hybrid and electric models.
 Quality and Reliability: Hyundai has improved its reputation for quality and
reliability, which has enhanced customer trust and loyalty.
 Cost Efficiency: Hyundai has a reputation for efficient production processes and cost
control, allowing it to offer competitive pricing to consumers.
 Diverse Product Line: Hyundai offers a diverse range of vehicles, from compact
cars to SUVs and luxury models, catering to a broad customer base.
 Strong Market Position: Hyundai holds a significant market share in many regions,
including Asia, Europe, and North America.

Weaknesses:

 Perception of Quality: While Hyundai has made significant strides in improving

quality, some consumers still perceive its vehicles as being of lower quality compared
to certain competitors.

36
  Dependence on Economic Conditions: The automotive industry is sensitive to
economic cycles, which can impact Hyundai's sales and profitability.
 Environmental Concerns: Increasing environmental regulations and consumer
preferences for eco-friendly vehicles may pose challenges for Hyundai, although the
company is actively working on electric and hybrid solutions.
 Dependence on Imports: In some markets, Hyundai relies on imported vehicles,
which can lead to currency exchange risks and import duties.

Opportunities:

 Electric Vehicles (EVs): The growing demand for electric vehicles provides Hyundai
with opportunities to expand its EV product offerings and increase market share in
this segment.
 Autonomous Vehicles: As autonomous technology advances, Hyundai can invest in
autonomous vehicle research and development to remain competitive in the market.
 Emerging Markets: Entering or expanding in emerging markets like India, Africa,
and South America can lead to substantial growth opportunities.
 Sustainable Practices: Hyundai can further enhance its sustainability efforts by
promoting green manufacturing and environmentally friendly technologies.

Threats:

Competition: Intense competition in the automotive industry from both established players
and new entrants can erode market share and profitability.

Economic Downturn: Economic recessions and market downturns can negatively impact car
sales and profitability.

Regulatory Changes: Stringent environmental and safety regulations may require significant
investments in compliance, impacting production costs.

Supply Chain Disruptions: Disruptions in the supply chain, such as natural disasters or
political events, can affect Hyundai's production and operations.

Consumer Preferences: Shifts in consumer preferences towards ride-sharing services, urban

mobility solutions, and away from car ownership could affect traditional car sales.

37
Chapter 5

38
 Analysis of Financial Statements

Financial Statement Analysis:

The process of examining and evaluating a company's financial statements in order to

improve financial decisions and generate future revenue is known as financial statement
analysis, or financial analysis. The income statement, balance sheet, statement of cash flows,
notes to accounts, and, if relevant, a statement of changes in equity are among these
statements. An approach or procedure for assessing an organization's risks, performance,
financial health, and prospects for the future is financial statement analysis.

Many parties use it, including the government, the public, decision-makers within the
company, and investors in credit and equity. These stakeholders use a range of strategies to
satisfy their demands, each with a distinct set of interests. The process of examining a
company's financial statements in order to make decisions is known as financial statement
analysis. It is used by external stakeholders to assess financial performance and economic
value in addition to comprehending the general well-being of an organization. It serves as a
financial management monitoring tool for internal constituents. Important financial
information about every facet of a business's operations is documented in the financial
statements of the organization. They can therefore be assessed based on their performance in
the past, present, and future.

Generally accepted accounting principles (GAAP) are the foundation of financial reporting in
the United States. The balance sheet, income statement, and cash flow statement are the three
primary financial statements that a business must prepare and keep up to date in accordance
with certain guidelines. Standards for financial statement reporting are more stringent for
publicly traded corporations. Public businesses are required to use accrual accounting in
accordance with GAAP. Private businesses can prepare their financial statements with more
freedom and can choose to employ accrual or cash accounting.

39
Financial Performance

 Revenue: The company's revenue grew from 195,079,937,786 in 2021 to

356,938,418,361 in 2022, an increase of 83%.

 Net income: The company's net income grew from 433,031,795,797 in 2021 to
1,762,969,858,075 in 2022, an increase of 309%.

 Earnings per share (EPS): The company's EPS grew from 362,830,303,955 in 2021 to
1,394,707,519,478 in 2022, an increase of 283%.

Financial Ratios

 Return on equity (ROE): The company's ROE increased from 21.9% in 2021 to
126.1% in 2022.

 Debt-to-equity ratio: The company's debt-to-equity ratio decreased from 0.44 in 2021
to 0.38 in 2022.

 Current ratio: The company's current ratio increased from 1.69 in 2021 to 2.18 in
2022.

The business is doing well financially overall. Strong revenue and profits growth, a high and
rising return on equity (ROE), a low and falling debt-to-equity ratio, and a strong and rising
current ratio are all present in the company. Nonetheless, the business must keep an eye on
its financial performance and make any necessary corrections.

40
CHAPTER-6

41
 Conceptual Analysis

India has one of the biggest car markets in the world. It was formerly among the fastest
growing countries in the world, but its growth rates are now negative or flat. India is home
to the sixth-largest passenger automobile and commercial vehicle manufacturing industry in
the world, producing about 3.9 million units annually in 2011. The main goal of human
resource management is to use the labor of those who work for the business to help it
achieve its goals. These goals should be accomplished voluntarily, with a high level of
employee morale and dedication.

Systems for managing human resources are proactive and are expected to affect the
organization's culture. In order to foster cooperation and trust, it aims to equalize power.
Within a company, there are numerous resources. One such resource that is absolutely
necessary for a company is its human resources. An organization develops its human
resources methodically in order to acquire the capabilities needed to carry out a variety of
tasks related to their current or anticipated future positions within the business. Enhances
their capacities and helps them see and utilize their own potential for personal and/or
organizational growth.

Establish a culture that fosters strong relationships between supervisors and subordinates,
teamwork, and collaboration within subunits, all of which enhance employees' motivation,
sense of pride, and professional well-being. This process is started, facilitated, and
continuously promoted by organization development interventions, counselling, and
training, among other human resource management processes and strategies. Since HRM
has no boundaries, it could be necessary to routinely assess the procedures to determine
whether they are helping or impeding the process. By making plans for it and dedicating
organizational resources to it, organizations can help this development process.

DUTIES OF HUMAN RESOURCE MANAGER IN AUTOMOBILES:

An organization's human resource manager, or HR manager for short, is responsible for a

number of tasks. A competent HR manager may greatly benefit the company by matching
the right person to the right position. The HR manager needs to be an expert at planning,
assessing, and matching the right candidate with the right job within the company. HR

42
managers could greatly benefit the company in a variety of ways. Let's examine the primary
responsibilities of an HR manager.

Top Five Responsibilities of an HR Manager

 The main responsibility of an HR manager is hiring. In order to choose a quality

resource for the business, the HR manager should test potential employees and
conduct the required interviews. The HR manager oversees every step of the
interview process, from A to Z.
 Following the candidate's selection for the position, the HR manager has another
crucial responsibility: negotiating the selected candidate's salary.
 One of HR's responsibilities is to organize and lead orientation and training sessions
for people who are just hired.
 It is your responsibility to find out from recently hired individuals whether they are
happy with their salary and other benefits.
 The responsibility of the HR manager is to ensure that staff members receive regular
performance reviews and are kept engaged.

HUMAN RESOURCES CHALLENGES IN THE AUTOMOBILES:

An automobile company is only as good as its workforce. Human resources departments are
responsible for locating, hiring, and training personnel in the automotive sector, which
includes managers, senior leaders, mechanics, cashiers, and others. Human resources
professionals and small business owners in the automotive industry can enhance and
expand their enterprises by staying aware of the obstacles they encounter and working to
overcome them.

Lack of a Human Resources Strategic Plan

One of the most human resources issues facing the car industry, according to business
advisory company Schneider Downs, is the lack of a "comprehensive, step-by-step action
plan to become a 'employer of choice'" for many automotive enterprises. Put another way,
the reason automotive companies struggle with key HR tasks is that they lack a well-
thought-out, strategic plan for recruiting, training, assigning, promoting, and terminating
staff members. Schneider Downs contends that the majority of automotive organizations

43
lack the processes necessary to optimize their impact as well as the strategies necessary to
identify the suitable personnel since they lack strategic plans.

High Turnover

Because it is frequent and expensive, turnover—the amount of workers who leave or are
fired and need to be replaced—is a major human resources issue in the automotive sector.
The overall cost of replacing a lower-level employee, like a cashier in a car dealership, is
approximately $3,000, according to car Dealer Monthly. The expense of replacing senior and
skilled workers, such managers, mechanics, and sales representatives, is significantly higher.
Auto Dealer Monthly advises automotive companies to extensively examine turnover figures
in order to spot trends and root reasons in order to overcome this obstacle. Patterns and
causes can be strategically reversed once they are detected.

Developing Leaders

Although "developing the next generation of corporate leaders" is a major human resources
challenge that all businesses must face, the automotive sector faces unique difficulties in
developing and educating leaders. This is noted by the Society for Human Resources
Management. This difficulty may be partially explained by high turnover. Senior staff cannot
develop new hires into leaders when they frequently depart the company within months or
years of their hiring. The tendency of the automotive industry to be operationally focused is
another reason why organizations in this sector struggle to develop leaders. Automotive
organizations frequently struggle to implement management and leadership development
programs because they have few employees, a lot of work to do, and a need to constantly
revamp marketing and advertising campaigns.

Lack of Collaboration and Communication

Effective human resources management in the automotive sector entails assembling and
retaining powerful teams. Employees in the automobile sector, like those in most project-
based sectors, frequently struggle with teamwork and communication. Rather, their
attention is directed towards accomplishing the current goal, which could be fixing the
broken car, hitting a personal sales target, or finishing the detailing job. Building employees'

44
communication and teamwork abilities is one of the best methods to create leaders and
address HR issues, according to Forbes.

Competence Awareness and Training

Regarding human resources (HR), ISO 9001 and ISO/TS 16949 have the same criteria. The
following steps must be taken:

a) Ascertain the level of competence required of employees performing work that affects
the quality of the product;

b) Address these needs through training or other means;

c) Assess the efficacy of the responses;

d) Guarantee that employees understand the significance of their work and how it advances
the attainment of quality objectives; and

e) Keep appropriate records of education, training, experience, and skills.

By mandating that the company create and uphold written procedures for determining
training needs and ensuring competence of all workers conducting activities influencing
product quality, ISO/TS 16949 places even more emphasis on HR management. Employees
carrying out certain given activities must meet the necessary qualifications, paying close
attention to meeting client expectations.

EFFECTIVE MANAGEMENT OF HUMAN RESOURCE:

Company processes are typically separated into three categories: supporting, value-
creating, and management (also known as principal or customer-oriented processes, or
COPs). Among the essential supporting processes are the HR procedures. Every process
should be continuously improved—not merely when flaws appear or in reaction to failures
that are found, but also as a consequence of ongoing evaluations. Measuring performance is
a critical tool for process improvement.

45
PROCESS ORIENTED STRUCTURE

4 Main clauses ISO 9001/9004

 Management Responsibility
 Resource Management
 Product Realization
 Measurement, Analysis and Improvement.

MEASUREMENT OF THE PROCESS HUMAN RESOURCES

We must specify appropriate procedures and their measurement (performance indicators) in

order to maintain and enhance HR operations. The management reviews these performance
indicators on a regular basis (usually once a month) in order to determine the best course of
action. The creation of the allocated HR budget, the quantity of training sessions completed,
and the number of training days annually for each employee are obvious metrics that spring
to mind. Next, we wish to assess how successful the actual training sessions were.

The effectiveness of the training instructors, the information in the training materials, and the
accomplishment of the training goals are all evaluated by the participants. The application of
newly acquired knowledge in the participant's performance at work is the most crucial way to
assess the training's impact on improving workplace procedures. This cannot be evaluated
immediately following the training; instead, the employee and supervisor will jointly evaluate
it two to four months following the training.

This makes sure that the training's effectiveness is evaluated based on how well the newly
learned material is used in the workplace. Many more significant performance metrics can be
defined with the help of the employee satisfaction survey. These could relate to informing
staff members of critical information (by info boards, closed-circuit television, etc.),
managing the team, offering rewards for proposals for development, emphasizing quality and
the environment, workplace safety, etc.

Having clearly defined metrics and categories that represent the causes for staff turnover
(leaving the organization) is also crucial. It is imperative to address employee demands and
eliminate or mitigate the reasons for employee turnover in order to halt staff exodus and
stabilize business performance. The firm's goals can only be achieved and the prerequisites

46
for the company culture created in an atmosphere of transparency and continuous
development of the working and living conditions for employees.

HUMAN RESOURCE ISSUES IN THE AUTOMOTIVE INDUSTRY:

China's car sector is rising quickly, and it currently accounts for little under 20% of the
worldwide market. Human resource management, on the other hand, continues to be one of
the most prevalent problems in the sector and is still the root of many of the worst problems.
Some of the most important points are shown in the upcoming sections.

Over the last several decades, China has been the destination for an increasing number of
steps in the European automobile suppliers' value chain. While the majority of
manufacturing-related procedures were outsourced in the early 1990s, marketing, sales, and
distribution activities also occurred in that decade. Furthermore, sourcing and servicing
operations were localized at the turn of the century, and R&D—including product
development—started to happen in China. The entire automotive value chain was transferred,
which resulted in a general absence of young professionals and mid-management staff.

Young professionals in China are finding it harder and harder to secure employment due to
job requirements, which highlights the skill deficit that has become apparent across the
automobile industry. The past three decades have seen tremendous economic expansion, and
waves of foreign direct investment (FDI) have poured into China. As a result, the country's
massive labor need has primarily been filled by local supply of skilled and qualified labor.
Supply problems were unavoidable from the beginning due to the nation's recent shift to a
market economy and generally low levels of education. Since 80% of Chinese employees do
not intend to stay at their current jobs for more than two years and 55% actually change jobs
within three years, it was then up to Human Resource Management to solve the labor and
employment issues caused by this significant change in the country's business landscape.

47
CHAPTER-7

48
 LEARNING EXPERIENCE

Learning Experience at Star Hyundai (Internship)

My internship at Star Hyundai was an invaluable experience that provided me with a

comprehensive understanding of the automotive industry, particularly in the areas of sales,
service, and customer relations. This report details the key learnings and takeaways from my
time at the dealership, highlighting the skills I developed and the challenges I encountered.

Sales and Customer Service:

Understanding the Sales Process: From initial customer interaction to closing the deal, I
witnessed the entire sales process firsthand. I learned how to identify customer needs, present
vehicle features and benefits, overcome objections, and negotiate effectively. This practical
exposure honed my communication and persuasion skills, allowing me to build rapport with
clients and address their concerns confidently.

Customer Relationship Management: Star Hyundai emphasized the importance of building

long-term relationships with customers. I observed how the service team proactively followed
up with clients, addressed their post-purchase concerns, and provided valuable after-sales
support. This experience instilled in me the importance of personalized customer service and
exceeding expectations to foster loyalty.

Market Research and Analysis: I gained valuable insights into market trends and
competitor analysis through dealership data analysis and customer interactions. This exposure
helped me understand the dynamics of the automotive market and the evolving preferences of
car buyers.

Service and Operations:

Service Department Operations: I gained firsthand knowledge of the service department's

workflow, from vehicle intake and diagnosis to repair and maintenance. This experience
provided me with a technical understanding of car maintenance procedures and the
importance of efficient service delivery.

Inventory Management and Logistics: I observed the dealership's inventory management

practices, including vehicle ordering, pricing, and delivery logistics. This exposure helped me

49
understand the importance of supply chain management and optimizing inventory levels to
meet customer demand.

Quality Control and Customer Satisfaction: Star Hyundai emphasized the importance of
maintaining high-quality standards in all aspects of its operations. I witnessed the rigorous
quality control procedures implemented in the service department and the focus on customer
satisfaction through feedback surveys and follow-up calls. This experience instilled in me the
importance of continuous improvement and customer-centricity.

Personal and Professional Development:

Communication and Teamwork: My internship provided ample opportunities to hone my

communication skills through interactions with customers, colleagues, and managers. I
learned the importance of active listening, clear communication, and teamwork in achieving
shared goals.

Problem-solving and Decision-making: I encountered various challenges and customer

inquiries during my internship, requiring me to develop critical thinking and problem-solving
skills. This experience helped me approach situations analytically, evaluate options, and
make informed decisions.

Time Management and Prioritization: Working in a fast-paced dealership environment

honed my time management and organizational skills. I learned to prioritize tasks effectively,
manage deadlines, and adapt to changing demands.

50
Conclusion

The intricacies of the automobile business present a significant HR issue for the sector. While
the market promises tremendous profitability and success, difficulties and failures are always
present. The automotive market in China is the biggest and most varied in the world; as usual,
the biggest distinctions are found between rural and urban areas. HR managers will typically
have a difficult time finding and keeping talented employees in those less developed and
lower-tiered cities in Central and Western China, where 84% of young professionals work
and live in Shanghai or Beijing, due to the general movement of qualified workers towards
the developed coastal cities in Eastern China. The overall responsibility of HR is to maintain
employee satisfaction, ensure that they receive performance bonuses and regular pay raises,
and maintain their enthusiasm in working for the organization. These actions help workers
work more productively and accomplish their set goals.

My internship at Star Hyundai was a transformative experience that equipped me with

practical knowledge, valuable skills, and a deeper understanding of the automotive industry.
It not only solidified my career aspirations in the automotive field but also instilled in me the
values of customer focus, continuous learning, and professional excellence. I am confident
that the learnings and skills gained during this internship will serve me well as I embark on
my future career path.

51