Hyundai witnessed strong rural SUV demand, matching urban region: Tarun Garg

In recent years, the Indian automotive market has witnessed a remarkable shift in consumer preferences, with SUVs emerging as the dominant force, comprising approximately 52 per cent of total vehicle sales. This trend marks a significant departure from the traditional dominance of hatchback vehicles in the Indian auto industry. Amidst this landscape, Hyundai Motor India has established itself as a key player, with SUVs accounting for a substantial portion of its sales.

According to data shared by the company, Hyundai Motor India experienced a surge in SUV sales, with these vehicles contributing to 67 per cent of its domestic sales in April 2024. This trend persisted throughout the first four months of the year, with SUVs maintaining a consistent 66 per cent share of total sales. Interestingly, Hyundai Motor India has been able to tap into the burgeoning demand for SUVs in rural areas, mirroring the trend observed in urban markets.

Tarun Garg, Chief Operating Officer (COO), Hyundai Motor India, shed light on the parity between rural and urban SUV sales. In both regions, SUVs accounted for 67 per cent of total sales—a significant departure from previous years when rural demand trailed behind urban markets by 5-7 per cent. Garg attributed this transformation in the rural market to the evolving aspirations of rural consumers, who now seek vehicles that offer both style and substance.

Hyundai's penetration into rural markets has been accompanied by a steady increase in its sales contribution from these regions. Over the past few fiscal years, the company's rural sales share has witnessed a consistent upward trajectory, rising from 18 per cent in FY 2021-22 to 19.8 per cent in FY 23-24. Looking ahead, Hyundai anticipates this upward trend to continue, with rural sales projected to reach the 20 per cent mark by the end of the current fiscal year.

Interestingly, the best-selling SUVs in rural markets deviate from conventional expectations, with the Creta emerging as the top choice among rural consumers, followed closely by the Venue and Exter, respectively. This preference mirrors the overall market dynamics, indicating a uniform pattern of consumer behaviour across different regions.

Garg emphasised that Hyundai's success in the rural market can be attributed to its ability to meet the evolving needs and preferences of consumers, particularly their growing demand for advanced technological features. Notably, a significant portion of Hyundai's sales—30 per cent—comprise vehicles equipped with Advanced Driver Assistance Systems (ADAS). In April alone, 27 per cent of Verna sales and 41 per cent of Creta sales were attributed to variants featuring ADAS technology. Additionally, a staggering 75 per cent of Hyundai Exter customers opted for variants equipped with a sunroof, highlighting the increasing preference for premium features among consumers.

India’s love for SUVs captured by Hyundai

As indicated earlier, SUV sales have surged in India, constituting 52 per cent of total while for Hyundai the figures are ever higher at 67 per cent. Notably, in April 2024, Hyundai sold 15,447 units of the Creta, 9,122 units of the Venue, and 7,756 units of the Exter, making the Creta the company's top seller.

Garg highlighted the consistent success of the Creta, averaging 15,000 monthly sales since February 2024. The company aims to sell 1.8 lakh units of the Creta in this fiscal year, maintaining SUVs' contribution to overall sales at 65-67 percent.

Anticipating the SUV segment's rise, Hyundai heavily invested in this body type, currently offering six SUV models out of ten. Despite SUVs' growth, Garg emphasised the ongoing relevance of hatchbacks. Drawing from the example of Western countries, he noted that the hatchback segment's resurgence hinges not only on increased consumer disposable income but also on manufacturers' ability to equip these vehicles with advanced features.

Garg emphasised that India's rapid economic growth and rising aspirations present opportunities for manufacturers to cater to diverse customer needs across different body types. As the market evolves, manufacturers must adapt, ensuring that vehicles meet consumers' evolving preferences and aspirations, the Hyundai COO concluded.