Hyundai Expects Record Rural Sales in FY24: Report

New Delhi, Apr 21 (PTI) Hyundai Motor India expects sales contribution from rural areas to remain at record levels in the current fiscal as well on account of various factors including anticipation of a favourable monsoon, according to a senior company executive.

The country's second-largest automaker, which sells models like Creta and Venue, reported 11 per cent growth in rural areas last fiscal as compared to 4 per cent in urban centres.

"We are confident that the contribution from rural markets to our total sales will grow further to around 20 per cent 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 per cent 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 per cent 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 per cent as against 11 per cent growth in outlets located in urban centres.

"Now, 40 per cent 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.