The new product development capabilities of the Korean auto industry: Hyundai Motor Company

This paper traces the new product development (NPD) of Hyundai Motor Company, Korea, which, since its foundation in 1967, has maintained the strategy of self reliance, particularly in new product development. The strategy of Hyundai contrasts sharply with other auto makers in developing countries as well as with other Korean makers. In spite of a late entry into the auto business, this strategy has led to Hyundai becoming a domestic market leader and to becoming the thirteenth producer in the world - recording an output of over 1.3 million in 1996. The purpose of this paper is to provide readers with a basic understanding of Hyundai's approach in new product development and how it has accumulated technological resource capability in association with foreign alliances.