Since its launch in 1967, Hyundai Motor Company(HMC) has led the automobile industry in Korea. In 1976 HMC produced its first original model, the Pony (with over 90 percent of parts sources locally), using a low-lost approach(around US$2,000). The successful development of this model resulted in HMC becoming the top car maker in Korea its market share rose sharply from 19 percent in 1970, to 58 percent in 1977. With the rapid expansion of its mass production capacity, HMC developed a variety of models ranging for the Excel(1985), Stellar(1982), sonata(1985), and Elantra(1990). Canada, in which HMC opened a plant in 1983, was HMC’s first overseas market. The success of the Pony in Canada enabled HMC to make a significant market entry into the United States in 1986 with its competitively priced Excel. This model sold 168,882 cars.
In 1993 HMC outlined a long-term business strategy, the so-called ‘Global Top-10,’ whereby it aimed to be one of the world’s ten largest car makers by 2000. HMC aggressively expanded its production capacity in attempt to match that of other top ten global car makers. This expansion was coupled with HMC’s globalization strategy. To enhance its cost competition and expand into new markets, HMC aggressively globalized its production systems, particularly in developing countries such as Turkey, India, China and Malaysia. HMC moved away from its dependence on the US market and sought to increase exports to other countries. As a result, its exporting market diversified from 65 countries in 1986 to 141 in 1994. HMC took over Kia Motors in 1998. As a result, it became the world’s tenth largest car manufacturer in terms of production capacity in 1999. With the establishment of its overseas manufacturing plants of HAOS(Turkey) in 1997, HMI(India) in 1998, and BHMC(China) in 2002 HMC has diversified operations with the establishment of a global production network. With the...