The Road to the Self-Reliance New Product Development of Hyundai Motor Company

Abstract

This paper traces the new product development of Hyundai Motor Company, Korea, which, since its foundation in 1967, has maintained the self reliance strategy, particularly in new product development. Business strategy of Hyundai contrasts sharply with other auto makers in developing countries as well as to other Korean makers. In spite of a late entrance to the auto business, this unique strategy has led Hyundai to becoming a market leader in Korea and to becoming the thirteenth producer in the world -- recording an output of over one million in 1994. Hyundai Motor has a aggressive plan with a goal to be within the 10 top auto makers by 2000 (Global Top-10 plan) but the process of accumulating the technological resources the company needs is not yet well established. The intent of this paper is to provide readers with a basic understanding of Hyundai's approach in new product development under internationally oligopolistic markets and how it has accumulated technological resource capability in relation with foreign alliances. The research method consists of literature reviews of published sources on firm's activities--including company history and interviews with development and management personnel. The work will first overview the history and development of Hyundai, then will produce case studies on Sonata (1988), New Grandeur (1992), Accent (1994) and the Alpha engine (1991).