Hyundai targets 30% rural sales share within 3-4 years

Hyundai Motor India Ltd is placing significant emphasis on rural market penetration as part of its growth strategy, according to Managing Director and CEO Tarun Garg. The company aims to increase its rural contribution from the current 25.9% recorded in the first quarter of fiscal 2026-27 to approximately 30% by fiscal 2029-30.

The rural push represents a notable acceleration for the automaker, which saw rural sales contribute 22.6% in the same quarter of the previous fiscal year. To support this expansion, Hyundai is directing substantial resources toward network expansion in these markets, with six out of every ten new dealership outlets being opened in rural areas.

SUVs are driving the company's rural growth strategy, with the segment accounting for 69% of rural sales—nearly matching the 68% SUV share across Hyundai's overall sales mix. The automaker is banking on two new product launches, including a midsize SUV and a compact electric SUV, to further strengthen its rural footprint and capitalise on growing demand for vehicles in smaller towns and villages across India.

The rural market expansion reflects broader industry trends as automakers increasingly look to non-metropolitan regions to drive growth amid intensifying competition in urban centres. Hyundai's renewed focus on rural India positions the company to tap into emerging consumer segments with growing purchasing power.