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Hyundai targets to sell over 1 lakh units in rural parts of India

Hyundai is planning to increase its sales in rural India to 100,000 units from 70,000 units a year. It said it was expecting a double digit growth in 2015, while the sector expected to grow in single digit.

On the sidelines of the new Verna launch at Chennai on Thursday, the senior vice-president for  sales and marketing, Rakesh Srivastava, said Hyundai had 320 outlets in rural parts of the country and this would be increased to 350 in 2015.

Hyundai sold 70,000 cars in rural parts of India last year. “Even one per cent growth is a big number when it comes to rural areas,” said Srivastava, adding that the aspiration value in the rural segment was as high as in the urban areas; only affordability was on the lower side. To address this, the company has partnered 30 financial institutions. In 2014, while passenger vehicle industry grew by 3.2 per cent, Hyundai reported a 8.3 per cent growth. HMIL sold 4.11 lakh cars in the domestic market and exported 2.01 lakh units in 2015.

HMIL is the largest car exporter in the country, with 40 per cent market share and second largest company in the domestic market.

“We have headroom for another 90,000 units and if we want to set up a facility, we can do it in 18-24 months,” said Srivastava.

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  “Our ambition is to reach 500,000 units in the domestic market in the near term.” He refused to share time frame. Company's Sriperumbudur facility, near Chennai, got a total capacity of 6.80 lakh units.

In 2014, HMIL managed to capture 21.8 per cent, of passenger cars market  which is highest in its 16 years existence in India, as compared to 20.7 per cent in 2013.

HMIL currently offers eight products in India and said opportunity available in the SUV and MPV space, which will be looked at in later period.