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Hyundai Aims Rural India Market: Hyundai's major expansion into the rural market; Target 30% share in sales

Samira Vishwas | September 7, 2026 12:24 AM CST

Hyundai expects the rural market to account for 30% of its total sales in the next 3-4 years.
Hyundai's sales in rural areas increased by 23%, while sales growth in urban markets remained at only 2.8%.
The upcoming mid-size SUV and compact electric SUV could strengthen the company's grip among rural consumers.

Hyundai Motor India sees rural India as a key focus for its future growth. The company expects to get about 30% of its total sales from the rural market in the next 3-4 years. The share currently stands at 25.9%, a good increase from 22.6% in the first quarter of the previous financial year.

Speed up sales in rural areas

According to Tarun Garg, Managing Director and CEO, Hyundai Motor India, the rural market is likely to see even greater growth. Rural sales grew by 23% in the first quarter of the current financial year, while growth in the urban market stood at just 2.8%. Hence, the importance of rural customers in the overall expansion of the company is increasing rapidly.

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Demand for SUVs remains strong

SUVs account for about 68% of Hyundai's total sales. Interestingly, the demand for SUVs is almost the same in rural areas as well, where their share is 69%. With improved roads, increasing connectivity and cheap internet, rural consumers are getting information about car features, prices and available options easily.

The network will increase in rural areas

Hyundai is expanding its rural network to increase customer reach. Out of every 10 new outlets of the company, 6 outlets are being opened in rural areas. Apart from this, more than 100 mobile service vans are operational for rural customers. The company has more than 1,510 sales outlets and more than 1,670 service centers across the country.

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Growth fueled by new models

Hyundai is gearing up to launch a mid-size SUV and a compact electric SUV in the near future. These new models may give the company an opportunity to add more customers to the rural market. Between April and August, the company sold 2,47,980 cars domestically, a growth of 12.6% compared to 2,20,233 units last year. Hence, rural India is likely to be an important base for Hyundai's growth in the coming years.