How Hyundai is Killing Maruti Suzuki in India? : Hyundai Business case study
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- เผยแพร่เมื่อ 4 ก.ค. 2024
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VIDEO INTRODUCTION:
Hi everybody,
Hyundai is one of the most iconic companies to enter the Indian markets!! And it is so hard to believe that, a south korean brand which was once a difficult name to even pronounce, the same brand today is about to launch the biggest IPO in the History of India!!!
In 1996, when Hyundai entered the Indian market, Maruti was the most dominating player with a 60% market share! And amongst the middle class, maruti was almost a monopoly. But even then Hyundai came in with Santro, i10, i20 and creta and put a dent in the Indian automobile sector to an extent where today it is the second largest automarket in country with a profit of 4653 crores!!
And, if you look at the profitability, Hyundai is wayyy ahead of maruti, in Fy23, while Hyundai made a profit of 65,355 Rs per vehicle, Maruti made Rs. 40,939Rs per vehicle!! So after 28 years of getting a very strong hold of the Indian market, Hyundai plans to raise 25,000 crores with its IPO!! Sounds fantastic right?? But you know what?? There are some hidden risks that Hyundai faces which may ruin all the progress that they have made in the Indian market!! All of this is mentioned in detail in this 436 page DRHP paper that Hyundai filed with SEBI!!! So we went through all this data so that you can sit back and consume the most important bits of this 400 page document as easily as watching a movie!!!
So in this episode today, let's dive in to understand
How did a South Korean company break into the Indian automobile market leaving the tatas and mahindra's behind?
In Spite of being a foreign company, How did Hyundai achieve such high profitability and outpace a mammoth like Maruti in India?
And most importantly, What are the hidden risks that Hyundai faces in India that can topple its growth??
Also guys quick disclaimer : I am not a sebi registered investment advisor and this video is not meant to give you investment advice but only to educate you about the rise of Hyundai!
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✅Study Materials:
www.sebi.gov.in/filings/publi...
economictimes.indiatimes.com/...
the-ken.com/story/hyundai-ind...
themorningcontext.com/busines...
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#thinkschool #businesscasestudy #geopolitics #hyundai #ipo #investing #business #marketing
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You need to work on your voice.
I think there is new trend, many youtubers re-uploard videos within 2 days.😅
What could be the reason?
@@shubham-oh4kimuthi
@@shubham-oh4ki de-monetize ho gaya hoga...
@@shubham-oh4ki could be due to IPO mentioned and no disclaimer in the video about not being a registered SEBI advisor.
@@ritheshnayak6466 he had already mentioned that in earlier video
They are just trying to dump their shares at high valuation with very less growing opportunity
•It's an OFS
•The factories are working at full capacity
•Taking a royalty of 3.5 percent of revenue while the PAT is 7.66%.
Its almost like taking half the profit home (korea)
It feels like a disinvestment from India.There's no room for the share to grow and make wealth for the investors ... It just feels like a dumping of shares at a very high valuation
They should have done an IPO quite a while ago at a good valuation, I don't think people can make exponential profit from this share
Exactly echoed my viewpoint. This IPO is primarily a buyout of the promoter. Better not to invest
Isn't every IPO like this. Be it PayTM, Zomato or LIC. IPOs are dumping of shares at a very high valuation so that the investors get their profts and company gets new line of finance.
@@asitkhanda well that's why I don't invest in those money grabbing companies .... Duhh
There's no point in investing in a tree rather you should invest in a seed or a plant
@@harshu346 true. TAMO and M&M are trustworthy.
Reliance Jio is planning for ₹55,500 crores IPO.
Only Indian can be the King of Indian market.
@@whysoserious2921 yes.. well said
@@whysoserious2921 Only Indian SHOULD be the King of Indian market.
@@whysoserious2921 ??
Indian or not; if the purpose of the IPO is not to expand the capex in India or put a new plant or for increasing share holder's value (and dividends to them) but to take away the profits they invested for 30 years, it might not be that profitable for Indian investors. Afterall if you see a few videos how Koreans as a nation don't like India and Indians. We need to be very cautious while investing.
Hyundai pioneered the concept of false SUV in India. The genuine term is Cross-over which are basically front wheel driven vehicles with greater Ground Clearance and suspension.
SUVs should have 4-wheel drive, preferably with differential locking facilities along with good ground clearance. In India there are/were only three genuine affordable SUVs - Gypsy/Jimny, Thar and the Gurkha. 4WD Duster, Bolero are also SUVs.
Other brands like Jeep (Rubicon/Wrangler), Mercedes (G-Wagen), Toyota (Hilux) are out of the reach of upper middle class.
Hilux😂😂 its Tata Xenon in Middleeast😂😂
Nope it's ford ecosport and Renault duster
Hilux is not an SUV. It is a force of nature.
It plays in its own league just like an AK47.
Yeh video hat kyu gayi apne phle upload ki thi
this is business bhai , kuch edit krke waps upload kr diya for more money
Why re-uploading this vid?
TH-cam Glitch
Superb case study! Please make a similar case study on why American carmakers have largely been unable to survive in India (Chevrolet, Ford, Tesla pulling back its plans, etc.)
Why does this video give me the Deja-vu feeling?
😂
SAME FEEL DUDE 😵💫
Same here😅
AI voice😢😢
Open Letter
20 minutes for concepts &
Rest is AD, INTRO ❤😮😊
At 6:09 , it was ford escort and not ecosport, ecosport wasnt even in the existence till a decade later
90s kid😅👌👍
Please upload starbucks,Bajaj finance,zerodha vs upstox videos
One of your top videos.... great work !
You forgot first generation Sonata - It was high middle class' Mercedes. And Verna - Competitor for Ford Ikon and other mid range sedan
@ThinkSchool, a small correction, Ford Ecosport was launched much later by Ford India, Escort was it's first vehicle followed by the Mondeo. Ecosport was developed in India for Indian and other developing markets.
Is it a re upload????
Excellent video and a lot of takeaways
10:00 DID HE JUST PUT HONDA CITY AND AUDI A6 IN THE SAME CATEGORY , THE PRICE DIFFERENCE IS 3X-4X
😮
😮
Premium | Luxury
Funny fact: Modernisation of police forces scheme existed since 1969 and the Bureau of Police Research and Development existed since 1970, but the Indian police forces are still primitive.
I am working in Maruti and I can assure that Maruti is working with complete determination and the title of this video is misleading.
Title is absolutely mis leading and if purpose of IPO does not stand for investment in India but to pay more royalty payment to Hyundai KOREA, investment is at risk.
sanjay Pune
Yes, I find his most of video titles are misleading.
Thank you, bro... The case study was insightful. Even our first car is a Santro xing such a beautiful car still my father remembers that car...
Why did you re-upload?
The most informative video ❤
There is one correction in your podcast. There is nothing called Credit Period for Dealers of Hyundai. All the dealers have to pay upfront before the vehicles are dispatched
Why re-upload ?
Is it re-upload of earlier video with different title as Hyundai IPO ??
But Indian Brands 🇮🇳cars like MAHINDRA and TATA instead of Hyundai , Suzuki , Toyota etc
Also buy Hero , Bajaj , Royal Enfield , TVS like 2 wheeler instead of Honda , Suzuki
Also buy Indian AC , Refrigerator , Washing machine brands like Godrej , Voltas Beko , IBM , Lloyd , Blue Star instead of LG , Samsung , Whirlpool , Haier like Foreign Brands
Maruti Suzuki is an Indian brands with only a minority of it's shares owned by the Japanese carmaker Suzuki, the vast majority of it's shares are owned by retail and institutional Indian investors.
@@aritrabhattacharyya3379 Maruti Suzuki ke 60% shareholding Suzuki Japan ki hai . Jiss cheez mei Knowledge nahi hota waha Gyan nahi pelna cahiyee
It's Ford Escort not Ecosport that was initial offering from Ford in India
It's interesting that India considers Honda City a "Premium" car. This tells you why C-segment sedans like Corolla, Civic or Elantra never worked in India as they're probably considered too expensive. Even in crossovers, the hotter segment is the B-segment. This is why big companies like Toyota, Honda or Suzuki do not have any C-segment crossovers in their lineups.
Good Contnet, My Question when this IPO not helping India's growth why SEBI Accepted the IPO.. Not Sure
You forget about taxes and that's also not how economies work ,bar a company .they are already selling cars in India if ipo comes or not .
Legends know this re-upload
So is it ok to buy Hyundai in US or Korean markets ??
since when is ford ecosport a high end car??? what?????
Maruthi and Hundai Making less than 50k profit per car
FKing Government Oollects 3 lakhs as tax
Maruthi and hyundai don't allocate their profits for people but Govt distributes all of it tax to people
@@achu10mech41 still % is too muvh
@@achu10mech41 yeah When Uttarpradesh will get all my taxes when I'm not associated with UP
@@alphahalogaming3123 that's what it's required for 140cr people
@@alphahalogaming3123 Learn about tax distribution before commenting
Excellent Ganesh❤
summary of lecture
free cash flow 1 dollar
PAT 1 rupee
negative working capital days 365.
immediate knowledge level 100%
gap 0%
XIRR = 500%
splendid man!
Excellent content
Prolific rebranding their existing cars with minor tweaks and good creatives especially their first car,Santro with Shahrukh Khan helps them in their consistent market share
Their manufacturing is very pragmatic and progressive worth emulating
I remembered the terms & lessons while doing my PG in Finance
Thank you
Wide case study, one of the rare TH-cam channel that does this. Great work! Hope to see more video in future
It's a re-upload. If you already watched you don't need to watch it again.
I appreciate your TH-cam videos ...Make video short because now a days people are so busy to watch any video they need short and clean
Great case study
Excellent Video
I request you to make a video on maruti and hyundai standpoint in india including their financials, the question I am looking for in the video is the customer approach of suzuki and hyundai by their products. The product rivalry between both the companies. And what is the reason that suzuki still stands to be the market leader and very informed company in terms of customer needs. I request you throw some light in this particular market and these companies next move in the market. Also just wanted to share that the CNG market in the automobile sector is increasing rapidly which is not tapped by hyundai but suzuki. I request you again if you could segment the market for us and show us the rivalry and a market point of view for the investors which would help us know about the company's vision and approach for the next 10 years.
Wonderful
Ganesh this is very helpful, very very helpful
@ThinkSchool do case study about tianrui cement company shares crash 99% in 15 minutes(margin call)
Hello Ganesh sir
I see all your videos
I want to learn how to collect data and analyse businesses, companies and economics the way you do
Can you please release a video or course regarding it
this is called design turn around strategy which worked very well with hyundai...now since 3 to 4 years same strategy adopted by tata and Mahindra
Summary of the video.
1. **Successful Market Performance**: Hyundai is performing exceptionally well in the Indian market, generating significant profits.
2. **Leveraging Good Image**: The company aims to capitalize on its strong reputation.
3. **Largest IPO**: Hyundai plans to launch the largest Initial Public Offering (IPO).
4. **Profit Allocation**: A significant portion of the IPO earnings will be sent to its parent company in South Korea.
5. **Minimal Investment in India**: Only a small fraction of the IPO proceeds will be reinvested in India.
6. **Greedy Strategy**: This IPO is seen as a strategy to extract more money from the Indian market by leveraging Hyundai's positive image.
Ganesh...Auto industry sales works on Cash-n-Carry basis...no credits to dealers....may like to check again pls
your voice seems different today.. is your health ok Ganesh Bhaiyya?
Re-upload?
Yes
sorry but this is a misleading video . In fact the market share of hyundai fell from 17.5% in 2019 to 14.7% in 2023. You can see the latest Autocar india post cast on hyundai .
Brilliant, as always
Bro Please Do a Business Case Study Series about
1. Airtel
2. Jio
3. Vodafone Idea & (Vodafone-Idea)
4. BSNL
5. Aircel
6. Tata Docomo
Pls... do bro ❤❤
how? indians may not make new products but want new products so when hyundai came indians got something else than suzuki
hyundai accent is a missing link you forgot to cover
Extraordinary learning👏
We love our own brand Tata and Mahindra.
Didn't mention that Hyundai has already bought a fully functional plant from GM near Pune
Hyundai is really one of the biggest car market in India. Hyundai researched, developed on their engines, body designs, performances, comfort, safety, and mileage, and learnt and implemented how to market these vehicles.
I miss some epic cars from Hyundai namely Hyundai Tiburon CT V6, Hyundai Terracan, Hyundai i30, Hyundai i40, Hyundai Veloster, and Hyundai Genesis.
It seems like Koreans, especially South Koreans know how to target their products very well, and India is one of the most potential target for Hyundai, and so is Samsung. I miss one thing about Samsung is that they made their own car franchise but it failed, later it was taken over by Renault. I expect Samsung to launch their Galaxy Car in association with Renault Group, and launch their Galaxy trucks and buses in association with Renault trucks and buses _(a subsidiary of Volvo trucks and buses)._
Great job with this video, one clarification or more of a question?! The parent company plans to sell its complete stake to Indian subsidary so while the OFS money will go to parent, will the yearly royalties not come down and help in running business? Was this mentioned in DHRP anywhere? Thanks again for detailed video
I am also a customer of Hyundai.... i20 and very happy with the performance
What a information video for non-commerce students 👏🏻
WHY DID YOU RE UPLOAD THE VIDEO BOSS ??
Very nice and informative video. Very good and to the point analysis
Is this video re-uploaded ?
Yez
23:54 bargraph showing false perseption make sure to baseline is 0
Bro talk about recharge price increase
The timing of the video praising Hyundai just before an IPO seems like an advertisement campaign for Hyundai.
You should watch the ending, actually he's hinting investors not to invest in this IPO as it has very less growth potential.
@@nitinsungroha6151exactly.. Many viewers gets out of the theatre without watching the climax😂
Bro Creata is the most aspirational car for every middle class people it is "THE CAR"!!
Just trying to interact with the video (even though i saw last one) to help with youtube algorithm.
Why was it reupload ?
Can we fill 100% of this IPO, which is 25,000 Crores?
Plz put video on KiA Kun
8:00
Seems like a re upload, I am sure I watched it before
Bro, a humble request if you can bring a case study on Koo...
I would be very helpful for use...❤
Most interesting as well as educative material I got so far in Finance. Thumbs up
Your voice sounded a lot heavy and harsh than usual. Hope you doing okay?
Would you make a video about
1. Why government not reducing the price of petrol.
2. It's advantages.
3. It's disadvantages.
cuz he is a andhbhakt
They are already trying to bring Petrol and Diesel under GST, but all states should agree to this, which probably won't happen because, state govts earn so much from tax on this.
However if they are succesful, we could see the petrol price go down around 80 rs
Did you use voice correction?
How is the govt allowing an IPO , where the money raised flows out of the country ?
Bro, Ford launched Ikon, Mondeo and not Ecosport when they entered India.
Royalty payments are being made by Maruti Suzuki and others also...rangjng from 2.5 to ~5.0%
Good to see prof manmohan singh speak soo good
Maruti is indian although Japanese have some stake but overall Maruti provide large number of employment. And middle class dream first 🚘
guy's if you want the money to stay in india, invest and buy indian products, they might be not yet of international standards but they will get there!
Jio coming with 50000 cr ipo very soon to break the record
Verna?
Hyundai's new manufacturing plant is coming in Pune. They already bought GM Talegaon plant. So, they won't face any capacity problem.
Great explanation 👍
Very informative
Please make a video on BSNL.
Why youtubers are forcing us to buy Hyundai IPO? 🤔🙄
Think school didn't ask to buy hyundai IPO.. actually they indirectly conveyed not to buy this IPO, as the money goes out of india.
Good video. But you forgot to mention that all profit margins are because of the free trade aggreement between India and South Korea. It that was not in picture the numbers would have been different.
I have a feeling i had watched this whole video 👀
Our telecom is going towards oligopoly. Is there any chance of foreign or domestic players to enter ?