Thursday, July 25, 2024

Hyundai expects 20% of SUV sales from rural markets

Hyundai Motor India, a wholly owned subsidiary of Hyundai Motor Company of South Korea, said rural markets are expected to contribute 20% of its sport utility vehicle (SUV) sales in the 2024-25 fiscal.

‘‘Our SUV contribution from rural markets will be in the 20% range this year,” Tarun Garg, Chief Operating Officer, Hyundai Motor India told The Hindu. “More interestingly, rural SUV penetration and urban SUV penetration are equal now, this never happened in the past,” he added.

Hyundai’s SUV penetration in India is one of the highest at 65% as against the industry‘s 51%. The company witnessed a spike in SUV sales in the month of April and the trend is likely to continue throughout the fiscal, he hinted.

According to Mr. Garg, Indian customers want to have more SUVs, and to cater to the diverse requirements, Hyundai has a full range of SUVs including Venue, Exter, Creta, and Alcazar in multiple variants. During FY23-24, the auto major sold 6 lakh cars, the highest ever in the country.

On the overall industry scenario, Mr. Garg said, post pandemic, the auto industry had two successive years of high growth and two successive years of highest volume growth between FY22-23 and FY23-24 with a growth of 20% and 8%, respectively.

“Most OEMs, after attending a recent conclave organised by the Society of Indian Automobile Manufacturers (SIAM), felt that because of the high base of growth in the last two years, the growth in FY24-25 could be in low single-digit. April growth was only 1.7%,” he commented.

He further said, because of the high interest rate, geopolitical risk, high base (created during FY22 and FY23) and absence of any pent up demand currently would mean the growth of the industry this year would be limited and in low single digit.

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