Hyundai Motor India Expects Rural Sales to Reach 20% in FY24

Hyundai India eyes record rural sales, aims for 20% contribution in FY23 through network expansion and targeted initiatives to tap into the growing rural market potential.

Rafia Tasleem
Updated On
New Update
Hyundai Motor India Expects Rural Sales to Reach 20% in FY24

Hyundai Motor India Expects Rural Sales to Reach 20% in FY24

Hyundai Motor India anticipates that rural sales will contribute around 20% to its total sales in the current fiscal year, a significant increase from the 11% growth in rural sales last year. The company plans to expand its rural network and implement targeted initiatives to capitalize on the growth momentum in rural markets, driven by factors such as favorable monsoon, rising rural incomes, and the government's focus on infrastructure development.

According to Tarun Garg, Director of Sales, Marketing & Service at Hyundai Motor India, "Increased access to information and internet penetration are transforming rural consumer behavior, with aspirations on the rise." The company reported an 11% growth in rural areas last fiscal, compared to 4% in urban centers.

Hyundai plans to further expand its rural network, which currently accounts for 40% of its total outlets. The company will implement targeted initiatives like the 'Grameen Mahotsav' program, enhanced financier partnerships, showroom-on-wheels, hyper-local marketing, mobile service vans, and rural sports partnerships to tap into the growth potential in rural markets.

Why this matters: Hyundai's focus on rural markets reflects the growing importance of these areas for the Indian automotive industry. The company's targeted initiatives and network expansion plans are aimed at capturing a larger share of the rural market, which is expected to drive significant growth in the coming years.

Hyundai Motor India achieved its highest-ever total sales of 7,77,876 units in FY23, with a year-on-year growth of 8%. The company also recorded its highest-ever domestic sales since inception, reaching 6,14,721 units in FY24. With the expected contribution of rural sales reaching 20% in the current fiscal year, Hyundai is well-positioned to capitalize on the growth momentum in rural markets and further strengthen its market position in India.

Key Takeaways

  • Hyundai India aims for 20% rural sales contribution, up from 11% last year.
  • Rural market growth driven by favorable monsoon, rising incomes, and infrastructure.
  • Hyundai plans to expand rural network, implement targeted initiatives to tap growth.
  • Hyundai achieved highest-ever total sales of 777,876 units in FY23, 8% growth.
  • Hyundai recorded highest-ever domestic sales of 614,721 units in FY24.