HYUNDAI MOTOR INDIA LTD. stated it has been witnessing a strong surge in rural demand, with the segment’s contribution rising to 22.6 per cent in the first quarter of FY25 from 19.9 per cent a year ago and 20.9 per cent for the full FY24. The momentum in rural sales is attributed to improved road infrastructure, favourable monsoon patterns, higher minimum support prices (MSP) and rising aspirations. “There is a visible shift in demand towards rural markets,” said Tarun Garg, Chief Operating Officer, and continued, “unlike urban areas, which are influenced by global sentiment and economic uncertainties, rural markets are driven by factors such as the monsoon and MSP, which have remained positive for the past three to four years.”
Rural SUV penetration stands at 68.8 per cent, which shows the evolving buying behaviour. Customers who once hesitated to buy premium vehicles due to poor road conditions and limited service options are now more confident, thanks to significant infrastructure upgrades and a robust after-sales network. Hyundai currently operates 586 service centres in rural areas and deploys 110 exclusive mobile service vans to reach remote customers. To tap this growing demand, the company is expanding its footprint aggressively. While 47 per cent of Hyundai’s existing network is rural, seven out of every ten new outlets being set up are in these markets.
On the alternative fuel front, Hyundai posted its highest-ever CNG contribution in Q1. Aura led the charge with 89 per cent sales, followed by Exter at 30 per cent and Nios at 18 per cent. Together, these three models accounted for 46 per cent of Hyundai’s total CNG sales in the quarter, up from 33 per cent in the same period last year. Overall, CNG penetration climbed from 11.4 per cent to 15.6 per cent, helping the company comfortably meet its Corporate Average Fuel Economy targets. However, Garg stated that the overall passenger vehicle market has been soft, with June recording the lowest total industry volume in the last 30 months, excluding December. Hyundai is optimistic about a rebound in the coming months as the festive season kicks in earlier.