Hyundai Motor India Ltd is betting big on rural markets, which it expects to contribute around 30 per cent of its total sales in the next three to four years, according to its Managing Director & CEO Tarun Garg.

The company, which has 68 per cent of its total sales coming from SUVs overall, is also witnessing SUV penetration of 69 per cent in the rural markets, he said in an interaction.

Hyundai Motor India Ltd (HMIL) is also intensifying its rural focus on network expansion with six out of every ten new outlets being opened in such markets, he added.

“I will not be surprised if in another three to four years we can reach about 30 per cent,” Garg said when asked how the company is looking at rural penetration going up, especially with its two upcoming new products — a midsize SUV and a compact electric SUV.

 

In the first quarter of this fiscal year, rural contribution reached 25.9 per cent, up from 22.6 per cent in Q1FY26, he added.

In the April-August period of this fiscal, HMIL clocked domestic sales of 2,47,980 units as against 2,20,233 units in the year-ago period, up 12.6 per cent.

In terms of growth, Garg said, “Rural (market) growth in quarter one was 23 per cent and urban growth was 2.8 per cent in quarter one of this fiscal.” Elaborating the rationale for the bullishness on rural markets, he said, “There is still upside (for growth there) because if you see, the road infrastructure in India is continuously growing. There is hardly any difference now between the Tier 2 and Tier 3 road infrastructure and Tier 1 road infrastructure.” Also, with data being very affordable in India, customers in the rural markets have access to information that helps in the traction of the company’s products, including SUVS.

“Our (overall) SUV penetration is around 68 per cent, and the best part is SUV penetration is equally strong in the rural markets as well. In fact, in rural markets, SUV penetration is 69 per cent,” Garg noted.

In order to tap the potential of the rural market, HMIL is also intensifying its focus there with network expansion.

“In terms of new outlets also, six out of every ten new outlets which we make, we are making in the rural markets…60 per cent of our new network development is coming in rural…We have more than 100 mobile service vans, which are only catering to rural markets. All these things are really helping us,” he noted.

HMIL has over 1,510 sales outlets and more than 1,670 service centres in total across the country.