Hyundai Motor India - Sales expectations - CEO Speaks

Hyundai Motor India expects 30% sales from rural markets in 3-4 yrs:

SEBI RA – Shubh Consultancy – Sunil Kotak – INH000015826 Hyundai Motor India Ltd is betting big on rural markets, which it expects to contribute around 30 per cent of its total sales in the next three to four years, according to its Managing Director & CEO Tarun Garg. The company, which has 68 per cent of its total sales coming from SUVs overall, is also witnessing SUV penetration of 69 per cent in the rural markets, he said in an interaction. Hyundai Motor India Ltd (HMIL) is also intensifying its rural focus on network expansion with six out of every ten new outlets being opened in such markets, he added. "I will not be surprised if in another three to four years we can reach about 30 per cent," Garg said when asked how the company is looking at rural penetration going up, especially with its two upcoming new products -- a midsize SUV and a compact electric SUV. In the April-August period of this fiscal, HMIL clocked domestic sales of 2,47,980 units as against 2,20,233 units in the year-ago period, up 12.6 per cent. In terms of growth, Garg said, "Rural (market) growth in quarter one was 23 per cent and urban growth was 2.8 per cent in quarter one of this fiscal." Elaborating the rationale for the bullishness on rural markets, he said, "There is still upside (for growth there) because if you see, the road infrastructure in India is continuously growing. There is hardly any difference now between the Tier 2 and Tier 3 road infrastructure and Tier 1 road infrastructure." Also, with data being very affordable in India, customers in the rural markets have access to information that helps in the traction of the company's products, including SUVS. All this is for information This is not a buy/sell recommendation. Thank you, Technofunda24