Backed by aggressive channel expansion, mobile service reach, and strong SUV offerings, Hyundai’s rural contribution has steadily risen for five consecutive quarters.
30 Oct 2025 | 2043 Views | By Darshan Nakhwa and Prerna Lidhoo
Hyundai Motor India Ltd has achieved its highest-ever rural contribution, with rural markets accounting for 23.6% of total sales in Q2 FY26, continuing a steady climb driven by deeper network expansion, targeted marketing, and SUV-led demand.
“Our focused efforts in terms of channel expansion and deeper market penetration along ...
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Hyundai Motor India Ltd has achieved its highest-ever rural contribution, with rural markets accounting for 23.6% of total sales in Q2 FY26, continuing a steady climb driven by deeper network expansion, targeted marketing, and SUV-led demand.
“Our focused efforts in terms of channel expansion and deeper market penetration along with targeted marketing initiatives are yielding positive outcomes, with rural sales contributions further inching up during the quarter, reaching a record high of nearly 24%,” said Unsoo Kim, Managing Director, Hyundai Motor India Ltd.
The company’s rural contribution has risen steadily over the past five quarters, from 19.9% in Q1 FY25 to 23.6% in Q2 FY26. Tarun Garg, Whole-time Director and COO, said the growth reflects Hyundai’s long-term rural strategy.
“Almost 70% of our new network activations are in rural areas,” Garg said. “We’ve added 110 mobile service vans to strengthen aftersales reach. The rural contribution of SUVs has now reached 72%, even slightly higher than urban this quarter.”
SUVs such as Exter and Venue have been the key growth drivers. “Overall, Exter plus Venue grew 31%, while in rural areas the growth was 46%,” Garg noted. “The rural sales have been strong and are showing great traction, especially post-GST…Going forward, with a good monsoon, the GST cut and diesel options on offer, the momentum will continue.
According to Garg, rural customers are both price-sensitive and aspirational, and Hyundai’s product portfolio is well aligned with their preferences. The company’s diesel range continues to perform strongly in non-metro markets. “Diesel remains very popular in rural areas, and our new diesel automatic models will be a strong ace up our sleeve,” Garg said.
K.S. Hariharan, Head of Investor Relations at Hyundai Motor India, said the company continues to carry out product interventions across segments and models to stay competitive. “So far, in the first half of FY26, we have executed over 20 interventions. This strategy helps us maintain market competitiveness and align with evolving consumer preferences,” Hariharan said.
In the July-September quarter, Hyundai Motor India sold a total of 1,90,921 vehicles, marginally lower than 1,91,939 units in the same period last year. In the domestic market it sold 1,39,521 units, down 6.8% from 1,49,639 units in the year-ago period. However, its exports rose 21.54% YoY to 51,400 units, cushioning overall volumes.
Segment-wise in the domestic market, SUVs continued to dominate, forming 71% of sales, while hatchbacks and sedans accounted for the remaining 29%. Fuel-wise, petrol models made up about 60% of the domestic mix, followed by diesel at around 23%, and the rest coming from CNG and electric variants.
Even as rural sales grow, Hyundai aims to consolidate its position in urban centers, where it already commands a higher market share.
“We have been very strong in urban markets. Our portfolio is skewed towards SUVs… It is technology-driven and appeals to younger buyers, nearly 60% of our customers are under 40, which is an industry benchmark,” Garg said.
Hyundai is banking on new additions and facelifts to sustain momentum in metro markets. “Our product strategy includes derivatives, facelifts, new models and local interventions,” Garg said.
By 2030, Hyundai plans to launch 26 new vehicles in India, with more than 50% of its portfolio comprising eco-friendly vehicles, underlining its ambition to lead the country’s transition to sustainable mobility, as per the company’s Investor Day 2025 presentation. The automaker will roll out seven all-new nameplates designed specifically for India, six full-model changes, six derivative models, and seven product enhancements over the next five years. By the end of the decade, Hyundai’s Indian lineup will comprise 13 ICE models, five EVs, eight hybrids, and six CNG models
Garg added that Hyundai is also focusing on network expansion and customer experience aligned with its global strategy. “In the last three decades, we have set a benchmark and we will continue to improve our offerings further in the urban markets. While rural markets are slightly on a roll, urban markets, to be very honest, have been slightly under pressure, but factors like GST 2.0, and income tax rebates should help revive sentiment,” he said.