Marketing Strategies - HYUNDAIL case discusses the marketing strategies of Korea based Hyundai Motor Company (HMC) in India. HMC entered India by establishing its wholly owned subsidiary Hyundai Motors India Limited (HMIL) in 1996. Within a year of launching its first product, Santro, HMIL had emerged as the second largest automobile company in India. The case details HMIL's entry, products, pricing, distribution and promotional strategies. The case illustrates the challenges the company will face and its marketing plans for the future. It also includes a note on the Indian automotive industry, the major player, and its marketing strategy. I believe the main reason for HMIL's success is that we have never allowed ourselves to be complacent. We were continuously innovating in the market, beating the competition."1- YS Kim, former CEO of Hyundai Motors India Limited in 2002. "As long as Hyundai continues to offer Indian customers new products at competitive prices and build excitement around them as they have done with success, they can continue their good run till now." The South Korea-based subsidiary of Hyundai Motors Company (HMC) was expected to reduce the price of its flagship car, the Santro, by up to Rs 40,000. The Industry experts had expected a reduction in the price of the Santro in response to the ongoing price war by the market leader in India - Maruti Udyog Limited (MUL), which had reduced the price of its best-selling car in the B - Alto - segment by Rs 58,000 in two price cuts starting from September 2003. This move had led to the Alto replacing the Santro as the best-selling car in the B-segment during January-June 2004. Refuting the price cuts report prices, HMIL managing director BVR Subbu said, “We are not cutting prices on the Santro. We have given our competitors the prerogative to cut prices."5 Several HMIL dealers also believed that the company would not reduce the price of Santro as it had not adopted such a tactic previously. Santro had been HMIL's most successful product and it was also selling cars in the B-segment until fiscal 2003-2004. Introduced in late 1998, the Santro had emerged as the second best-selling car in India after MUL's M800. maintained its position till March 2004 (refer Exhibit II for total units and value sales of top eleven car models in India).