Hyundai sharpens rural focus for growth
South Korean automobile major Hyundai has sharpened its rural focus and plans to generate over one-fourth of its sales in villages and small towns this year.
Rural sales accounted for 23.5 per cent of sales in 2016 for the country’s second largest car maker.
“The focus will be on the rural market for future growth. We have set up a new department in our corporate office to focus on the rural market. We will create a different communication strategy suited for these markets. Every regional office and most dealerships now have a rural team,” said Rakesh Srivastava, director, sales and marketing.
Hyundai has increased the contribution of rural sales from 14 per cent in 2011 to 23.5 per cent in 2016 and believes there is potential for further growth. Market leader Maruti Suzuki sells one in three vehicles in rural areas, probably the highest among car makers in India. In 2016, their urban sales grew less than three per cent to 383,129 vehicles, while rural sales grew 14 per cent. The rate of growth in the rural market was also higher in 2015, though on a smaller base.
Srivastava said cars like the Eon, Grandi10 and Xcent were sought in rural markets. “But, the upwardly mobile in rural markets also seek the Creta and the Elite i20. The volume in the rural market is growing along with spending per vehicle. We see an increasing aspiration to own cars,” he said.
The biggest contribution of 26 per cent to rural sales comes from the Grand i10. The contribution of the Eon is similar to that of the premium hatchback Elite i20, both at 20 per cent each. The SUV Creta also brings about 16 per cent of rural sales.
The firm, which has 300 rural sales outlets, is using the concept of float vans to market its cars. Hyundai has 70 of these that keep moving in among rural markets.