Hyundai India aims for expansion in rural areas, electric vehicle promotion, and the introduction of 26 new models by the year 2030.
Hyundai Boosts Presence in Rural India with Focus on Alternative Fuels and SUVs
Hyundai Motor India Limited (HMIL) is making significant strides in the rural Indian market, with a strategic focus on alternative fuel vehicles and SUVs.
Key Statistics
Hyundai's rural market share has been on a steady rise. In FY 2023-24, the company held a 19.4% market share, which increased to 20.9% in FY 2024-25. The first quarter of FY26 saw an all-time high of 22.6%, marking a substantial increase from 19.9% in the previous year.
CNG vehicle sales in rural regions have also seen a 33% year-on-year growth, indicating a shift towards more economical and environmentally friendly options. SUVs currently account for 68.8% of Hyundai's rural sales, reflecting the growing aspirational demand for these vehicles due to improved road infrastructure.
Strategic Focus
To cater to the price-sensitive yet aspirational rural consumer base, Hyundai has adjusted its product portfolio to include more CNG variants in popular models. The upcoming Hyundai plant in Talegaon will support the production of 26 new models between FY 2025-26 and FY 2029-30, including six electric vehicles. This expansion is designed to meet rising demand and support the company's growth strategy.
Hyundai is also expanding its dealership network and customizing outreach programs to tap deeper into the semi-urban and rural growth potential.
Marketing Strategies
Hyundai is targeting rural consumers who are becoming increasingly aspirational, seeking premium but affordable vehicles. The improvement in rural road infrastructure has also boosted demand for SUVs, which are perceived as more durable and versatile for varied terrain conditions.
The company is implementing tailored strategies to enhance its presence in rural areas, including product offerings aligned with local preferences and expanded dealership networks.
Looking Ahead
Hyundai's focus on CNG vehicles and SUVs in the rural market is part of a broader strategy to capitalize on the growing demand for alternative fuel options and premium vehicles in these regions. As of March 2025, Hyundai's renewable energy mix stands at 88 per cent. The company's ambitious launch schedule, consisting of 26 new or refreshed models, will further bolster its position in the Indian market.
Sports Utility Vehicles (SUVs) continue to dominate Hyundai's rural sales, currently accounting for 68.8% of the company's total rural sales.
Hyundai promotes its products as premium yet affordable options, aligning its marketing strategies with the rising aspirations of rural consumers for sports vehicles, such as SUVs.
