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Hyundai Motor India
India as a Global OEM Power train Manufacturing Centre
J . Sathian
Head of the Department – Kappa Engine Plant
Hyundai Motor India Ltd
10.12.2013
Hyundai Motor India
Overview – Hyundai Motor India
OEM Power Train Manufacturers in India
Why India?
Innovations at HMI
Key Points
Hyundai Motor India
Overview - Hyundai Motor India
CompactSegment Eon, Santro, I10, Grand I10, I20
Mid Segment Accent, Verna
Premium & SUV Elantra, Sonata, Santafe
Description Details
Company Hyundai Motor India Ltd .,
Foundation 6th May 1996
Investment $ 2 Billion
Capacity [Yr] 630,000
Plant Plant #1 [300,000]Plant #2 [330,000]
Domestic M/S - 19%
Export M/S - 48%[114 Countries]
Hyundai Motor India
Indian Automotive Sector
The automotives market is split intofour segments
Automobiles
Two-wheelers
Mopeds
Scooters
Motorcycles
Electrictwo- wheelers
Passenger vehicles
Passenger cars
Utility vehicles
Multi-purposevehicles
Commercial vehicles
Light commercial
vehicles
Mediumand heavycommercial
vehicles
Three-wheelers
Passengercarriers
Goodscarriers
Hyundai Motor India
Passenger car sales in India
Increasing Demand
Domestic sales increased from 1.2 2.2 Lakh
Hyundai Motor India
Reasons for Growing Demand
Rising incomes; growing middle class
• Personal (nominal) disposable income is expected to riseannually by 8.2 per cent over FY11-17
• Rising middle class-size of the middle class expectedto touch 550 million by 2025 from 50 million in 2010
• Favourable demographics - a young population isalso driving up the demand for cars
• Demand for commercial vehicles have got a boost dueto development of roadways and greater marketaccess
Rising incomes and a growing middleclass driving domestic demand growth
Hyundai Motor India
Reasons for Growing Demand
Indian auto finance market size (USD billions)
Source: Kotak Mahindra Prime, Aranca Research
Notes: Greater distributional efficiencies, increasing demand (especiallyfrom rural areas) due to rising disposable incomes have created newmarkets for products within the country
10.611.9 11.9
15.1
20.5
8.0 8.5 7.7
10.6
14.8
0.0
5.0
10.0
15.0
20.0
25.0
FY07 FY08
Car Industry sales volume
FY09 FY10 FY11
Vehicle Finance Penetration
Easier access to credit has also been a key determinant of growth in automotives
Easy availability of credit
• Greater access to credit makes purchases of bothpassenger and commercial vehicles easier
• The auto finance industry has grown at an averageannualrate of 13 per cent during FY08-12
• The private sector banks like ICICI, HDFC are alsoshowing increasing interest in the segment which waspreviously dominated by public players
Hyundai Motor India
India has a huge competit ive advantageover peers
Source: ACMA, Aranca ResearchLess competitive than India In competition with India
Design &Engg skills
Manufacturing skills
Manpower costs
Supplier base
Raw material
East Asia
Korea
China
Thailand
Indonesia
Vietnam
Central & EasternEurope
Czech Republic
Romania
Poland
Slovakia
Russia
Hungary
Turkey
Latin AmericaBrazil
Mexico
Why India?
Hyundai Motor India
Ernst & Young (EY) survey revealed that India has knocked China off as the world's most attractive investment destination. Following India is Brazil while China was relegated to the third spot.
"With sharp currency depreciation and opening up of FDI in various sectors, India has become an attractive destination for foreign investors”
The US, France and Japan have emerged as "top three investors likely to invest in India"
Why India?
Hyundai Motor India
Reason for FDI
Sector Has been benefitting from strong demand and product innovation
Growing Demand
• Rising incomes, Young population
• Greater availability of credit & financing option
InvitingPolicy Support
• Goal of establishing India as auto-manufacturing hub
• R&D focus; GOI has set up technology modernization fund
Resulting inIncreasing Investment
• Rising investments from domestic & foreign players
• Strong projected demand making returns attractive
Hyundai Motor India
Opportunities in India
Opportunities
India is fast emerging as Global R&D hub
Opportunities for creating sizeable market segments through innovations
Small car manufacturing hub
Strong education base, large skilled English speaking manpower
Comparative advantage in terms of cost as well
The world’s cheapest car (Tata Nano) has directed focus towards the low-income market
Electric cars are likely to be a sizeable market segment in the coming decade
General Motors, Nissan, Toyota have announced plans to make India their global small car platforms
Strong export potential in ultra low cars segment.
Hyundai Motor India
Why do we need Innovation?
Increasing Competitiveness
Increase in Competitiveness forces Manufacturers to reduce cost & improve Quality
Hyundai Motor India
Why do we need Innovation?
Unresolved Problems = Financial Losses and Lost Opportunities
“Innovation is the most vital factor in shaping a corporation’s success throughout the
coming years. For several decades, corporations have optimized products, processes
and services for efficiency and quality; without losing control of quality, it is now time
to innovate. Global-economic forces and financial constraints have made innovation-
driven growth more essential than at any other time in history
Hyundai Motor India
Innovations at HMI
No Details Remarks
1Meeting the Additional Requirement of Diesel T/M without any Additional Investment
2 Reducing the Tool cost by eliminating Tool breakage
3Reusing the Existing part after modification to avoid additional investment
4Flexible manufacturing system – Cast iron & Aluminum cylinder block produced in same machine
Hyundai Motor India
Innovations at HMI
2nd Gear 3rd O/P 4th O/PO/P Shaft I/P Shaft
Problem : Diesel TM volume increased but Gear Grinding m/c capacity less
Hyundai Motor India
Innovations at HMI
Problem : Diesel TM volume increased but Gear Grinding m/c capacity less
Tail Stock
Fixture
Fixture
Base Plate
Gear
Shaft
Base Plate
Hyundai Motor India
Innovations at HMI
Problem : Inner sleeve got worn out leading to quality issues
Piston RingInner sleeve
Activity Result
Purchasing new sleeve Lead time high, High investment
Machine parameter change Casting Quality NG
Molten Metal temp change Casting Quality NG
Hyundai Motor India
Innovations at HMI
Problem : Inner sleeve got worn out leading to quality issues
Activity Result
Worn out area welding Sleeve crack due to thermal stress
Reusing the Inner Sleeve Diameter increased from 150 152 & Piston ring modified
Hard Turning Stress Relieving Grinding Nitriding
Hyundai Motor India
Flexible Manufacturing System
Block Machining Transfer Line
CNC Machining Centre
Machines With APC
FMS Model Line
Hyundai Motor India
Flexible Manufacturing System
Machining Line - FMS
Cylinder Block Line
• APC [Automatic Pallet Changer] to avoid model changing time
• Tool changing time elimination [More no of Tool Sprocket]
Cylinder Head Line
• Adaptor plate system to avoid model changing time
• Tool changing time elimination [More no of Tool Sprocket]
Hyundai Motor India
Maker Top View Photo
NTC –Automatic Pallet Changer
Kisabu
Flexible Manufacturing SystemBlock Line Concept
Diesel Fixture
Petrol Fixture
Back Side Front Side
Back Side Front Side
Diesel Fixture
Petrol Fixture
Hyundai Motor India
Flexible Manufacturing System
Benefits
High Efficiency
Multi Modeling
Zero Model Change time
Easy to meet market demands