"We are confident that the contribution from rural markets to our total sales will grow further to around 20% this financial year," Hyundai Motor India COO Tarun Garg told PTI.
The automaker plans to further expand its presence in smaller towns as it firmly believes that for the nation to prosper, both rural and urban regions must progress in tandem, he added.
Garg noted that rural sales accounted for an all-time high of 19% of the company's total sales in FY23.
Hyundai Motor India registered its highest ever total sales of 7,77 876 units in 2023-24 with a year-on-year growth of 8% over the 2022-23 fiscal. The company also reported the highest-ever domestic sales since inception of 6,14,721 units in FY24.
"Leveraging increased access to information and internet penetration, we are witnessing a transformation in rural consumer behaviour, where aspirations are on the rise," Garg said.
This is also a testament to the growing purchasing power and evolving aspirations of rural consumers, he added.
"This growth trajectory is further fueled by the Government's emphasis on infrastructure development, rising income levels in rural areas, and favourable monsoon conditions," Garg stated.
He noted that in the last five years, the company's rural network has grown 33% as against 11% growth in outlets located in urban centres.
"Now, 40% of our total sales outlets are located in rural markets and we are poised for even higher growth in the coming years. We plan to further enhance our rural network this fiscal," Garg noted without sharing the exact figures.
He noted that to capitalise on the momentum of rural growth, the automaker has implemented a range of initiatives, including 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.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
