Hyundai Charts 'Fewer, Bigger, Better' Strategy for Network Expansion

Hyundai Motor India, the country's second-largest carmaker, has unveiled an ambitious dealer network development strategy as part of its FY'30 Vision, targeting significant expansion in both urban and rural markets while maintaining its competitive position in the rapidly evolving Indian automotive landscape.

According to details shared at the company's investor day presentation held today, Hyundai's network expansion blueprint rests on three strategic pillars: strengthening relationships with existing dealer partners, accelerating rural market penetration, and driving strategic renovations to elevate brand experience and customer engagement.

The FBB Strategy: Fewer, Bigger, Better

At the heart of Hyundai's approach lies the "FBB - Fewer, Bigger, Better" philosophy, focusing on expansion with existing dealer partners rather than proliferating the network indiscriminately.

The company plans to foster dealer groups with sales of over 3,000 units, creating stronger, more sustainable partnerships. This consolidation strategy aims to improve operational efficiency while ensuring dealers have the scale to invest in enhanced customer experiences and modern facilities.

By FY'30, Hyundai targets achieving 85% district coverage across India, a substantial increase that will significantly enhance the brand's accessibility to customers nationwide. This comprehensive coverage strategy is designed to capture demand across diverse market segments and geographical locations.

Rural India: The New Growth Frontier

Perhaps the most striking element of Hyundai's strategy is its aggressive push into rural markets. The automaker plans to establish seven out of every ten new dealerships in rural areas, reflecting the untapped potential of India's hinterlands.

This rapid rural expansion is aimed at enhancing network coverage across previously underserved districts, positioning Hyundai to capitalize on rising aspirations and purchasing power in semi-urban and rural India.

The company expects rural sales to contribute 30% to its overall volumes by 2030, up from current levels, representing a significant shift in India's automotive consumption patterns.

This rural focus aligns with broader industry trends, as improving infrastructure and rising incomes in smaller towns create new automotive demand centers beyond traditional metropolitan markets.

Maintaining Competitive Edge

Hyundai's third strategic priority involves maintaining its network share at 15% through what it calls a "healthy balance" between network expansion and market share growth.

The company is driving strategic acceleration of GDSI 2.0 renovations to elevate brand perception and customer experience. These renovations are designed to create modern, premium touchpoints that reflect Hyundai's positioning as a technology-forward, customer-centric brand.

The timing of this network expansion is particularly significant given Hyundai's product pipeline. The company recently announced plans to launch eight hybrid models by FY30, which will constitute 16% of its product mix, alongside the introduction of its luxury Genesis brand in India by 2027—which will notably be manufactured locally.

Differentiated Aftersales: The Service Revolution

Complementing its network expansion, Hyundai is simultaneously revolutionizing its aftersales and service ecosystem. The company has demonstrated impressive improvements in customer retention, which rose from 71% in FY22 to 77% in FY25. Extended warranty penetration has similarly jumped from 37% to 54% over the same period.

Central to this transformation is the Remote Diagnostic Service Platform (RDSP), which provides data-driven, pre-emptive service assistance. The platform enables remote counselling, proactive customer care, data-driven repair recommendations, and quality improvements.

Supporting this ecosystem are four key digital initiatives: Remote Care, which redefines customer experience with AI-connected car data; H-Smart for smart pick-up and drop services; Digital Service for end-to-end digital integration; and a 24x7 Service Support Bot providing AI/ML-based assistance.

As India's automotive market continues its upward trajectory, Hyundai's comprehensive strategy—balancing network expansion with service excellence and product innovation—positions the company to strengthen its market position while adapting to evolving consumer expectations across urban and rural markets alike.