This fiscal year, expect unprecedented levels of contribution from rural sales: Hyundai

This fiscal year, expect unprecedented levels of contribution from rural sales: Hyundai

The second-biggest carmaker in the nation, which offers the Venue and Creta models, recorded an increase in rural regions of 11% previous fiscal year, compared to 4% in metropolitan areas.

Anticipate record levels of sales contribution from rural areas this fiscal year: A senior company executive at Hyundai Motor India stated that the company anticipates record levels of sales contribution from rural areas this fiscal year due to a number of factors, including the expectation of a favorable monsoon.

The second-biggest carmaker in the nation, which offers the Venue and Creta models, recorded an increase in rural regions of 11% previous fiscal year, compared to 4% in metropolitan areas.

Tarun Garg, the COO of Hyundai Motor India, told PTI, "We are convinced that the contribution through rural markets to our total sales will grow considerably to around 20 per cent this financial year."

He said, "The automaker intends to further increase its presence in smaller towns because it firmly believes that rural and urban regions must progress in tandem for the nation to prosper."

In FY23, rural sales reached a record high of 19% of the company's overall revenues, according to Garg.

In 2023–24, Hyundai Motor India had its highest-ever overall sales of 7,77 876 vehicles, up 8% from the previous fiscal year. Additionally, the business said that its FY24 domestic sales of 6,14,721 units were the greatest since its founding.

"Leveraging increased data accessibility and internet penetration, we are witnessing a transformation in rural shopping habits, where aspirations are on the rise," Garg said.

He went on to say that this also demonstrates the changing goals and increasing buying power of rural customers.

"This growth trajectory is further fueled thanks to the Government's preference for infrastructure development, rising income levels in rural areas, as well as favourable monsoon conditions," said Garg.

He pointed out that over the previous five years, the company's rural network had increased by 33%, while its urban center outlets had risen by 11%.

"Rural areas already account for 40% of our total sales outlets, and we anticipate further strong growth in the years to come. We want to improve our rural network much more in the next fiscal year," Garg said, withholding specific numbers.

He said that the carmaker has launched a number of programs, such as Grameen Mahotsav, enhanced relationships with lenders, showroom-on-wheels, hyperlocal marketing, mobile service vans, and rural sports alliances, to capitalize on the momentum of rural expansion.

"These efforts are aimed at not only enhancing brand recall in addition driving sales in rural markets," Garg said.