Hyundai Motor India anticipates that sales from rural areas will continue to reach record levels in the current fiscal year, driven by various factors including expectations of a favourable monsoon, a senior company executive said.
Hyundai, the country’s second-largest automaker known for models like Creta and Venue, reported an 11% growth in rural sales last fiscal year, surpassing the 4% growth seen in urban centres.
“We are confident that the contribution from rural markets to our total sales will grow further to around 20% this financial year,” said Tarun Garg, COO of Hyundai Motor India, in an interview with PTI.
Garg highlighted that rural sales accounted for an all-time high of 19% of the company’s total sales in the fiscal year 2022-23. Hyundai Motor India achieved its highest-ever total sales of 777,876 units in 2023-24, marking an 8% year-on-year growth over the previous fiscal year. Additionally, the company reported its highest-ever domestic sales of 614,721 units in FY24.
The automaker plans to expand its footprint in smaller towns, emphasizing that both rural and urban regions must progress together for the nation’s prosperity.
Garg attributed the growth in rural sales to increased access to information, internet penetration, and rising aspirations among rural consumers. He also pointed to the government’s focus on infrastructure development, rising income levels in rural areas, and favourable monsoon conditions as contributing factors.
Over the past five years, Hyundai’s rural network has grown by 33%, outpacing the 11% growth in urban outlets. Currently, 40% of Hyundai’s total sales outlets are located in rural markets, and the company plans to further enhance its rural network this fiscal year.
To capitalize on the momentum of rural growth, Hyundai has implemented various initiatives such as Grameen Mahotsav, improved collaborations with financiers, showroom-on-wheels, hyperlocal marketing, mobile service vans, and rural sports partnerships.
“These efforts are aimed at not only enhancing brand recall but also driving sales in rural markets,” Garg said.
With Hyundai’s strategic focus on rural expansion and consumer engagement, the automaker is well-positioned to tap into the growing potential of rural India, contributing significantly to its overall sales and market presence.