Hyundai Motor India reduced FY21 ad spends by 37% to Rs 464 crore
The company's sales revenue for the fiscal under review declined 5.32% to Rs 40,972.2 crore from Rs 43,275.5 crore in the previous fiscal
Hyundai Motor India's advertising promotional expenses for the fiscal ended 31st March 2021 has dropped 37% to Rs 464 crore as against Rs 737 crore in the previous fiscal, according to the company's financial data accessed by business intelligence platform Tofler.
In a recent interview with exchange4media, Tarun Garg, Director — Sales, Marketing & Service, Hyundai Motor India, had said that the company's digital ad spends have jumped from 10% a few years back to 30% now.
“About three years ago, digital used to be about 10% of the media strength, whereas now it is probably close to 30%. We also believe in investing to create a better brand. Therefore, we are doing whatever is required. Also, we have launched some 10 models in the last two years. So I think we are doing fairly well in terms of spending,” he had said.
The company's sales revenue for the fiscal under review declined 5.32% to Rs 40,972.2 crore from Rs 43,275.5 crore in the previous fiscal. The company’s total expenses for the fiscal narrowed by 4.56% to Rs 38,864.4 crore compared to Rs 40,722.8 crore. Net profit was down 21.28% to Rs 1881.1 crore from Rs 2390.6 crore.
Hyundai has registered an overall de-growth of 12.10% in terms of sale units from 6.55 lakh in previous year to 5.76 lakh during the current year. To ensure long-term competitiveness, the company said it is taking several steps including launch of new products, quality improvement, cost competitive measures and enhancement of customer experience that will help in improving profitability in the long term.
The total production of the company for the year was 5.67 lakh units as against 6.47 lakh units in the previous year, with a decrease of 12.36% primarily due to nationwide lockdown for 45 days due to Covid-19 pandemic.
It is in the process of increasing the production capacity to 7.5 lakh units p.a. to meet the market demand by further automating certain processes, removing a few bottlenecks in the production process & supply chain and introduction of new models.
