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Hyundai cuts prices under GST, focuses on rural markets

Hyundai cuts prices under GST, focuses on rural markets

Puneet Anand, Group Head - Marketing, Hyundai Motors India

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For last six years, Hyundai Motors India has registered considerable growth in the rural markets. It has encouraged the company to give more focus into India’s hinterlands. Thus, it has increased its Retail Sales Outlets (RSOs) to over 400 in rural India from 300 two months ago. Implementation of GST has further pushed the company to make reduction in the prices which has increased affordability of Hyundai’s cars for rural consumers. Puneet Anand, Group Head - Marketing, Hyundai Motors India spoke to Mohd Mustaquim on the company’s growth story in rural India   


Excerpts:

Rural India offers huge potential. Has Hyundai been able to capitalise this?
Rural India is very prime target for Hyundai Motors. We have consistently been focusing on improving our penetration in the rural areas. In last two months we have increased the number of sales outlets form 300 to more than 400 in rural India. These rural outlets are not only supported in terms of sales, but also in terms of services and in terms of small workshops. We are working very strongly in preserving the important things which our customers need. Our sales in rural markets increased to 117,410 cars in calendar year 2016 from 53,849 of CY 2011.

What marketing strategy do you apply for the rural markets?
We organise roadshows occasionally in the rural areas, our cars are being driven around. We provide chance for test drive to the rural consumers. The objective is that they can experience the fun and pleasure of our modern premium brands. Recently, we started the initiative of installing a lot of hoardings in the rural areas. There are close to 265 hoardings have been installed around rural outlets. Villages are the very important focus area for us. There is a always a Chaupal in the village, there we put our hoardings so that people are much aware about Hyundai.

Part of our rural marketing, we are also supporting rural finance. Our Retail Sales Outlets (RSO) are having support from local finance companies such as Mahindra & Mahindra Finance, SBI Rural Finance among various other NBFCs so that people can also take the advantage of financing in the rural areas too.

How has GST changed your business?
The Government of India has taken a noble initiative by launching GST. It would establish the term ‘ease-of-doing-business.’ In the long run, we see lot of developments happening. A number of taxes which had been incurred, in terms of rotation of cars, moving from one state to another, everything has come under one standard tax, so we have already announced 6 percent reduction on prices of Hyundai models. This is the win win situation for the customers and for the company too. GST will be a game changer for the industry in the times to come in India.

How would GST impact Hyundai’s rural sales?
The cost of accusation of the products will be down. The customer who wants to buy a Grand i10, now he will save money due to this price reduction, so probably he could buy an Elite i20. And therefore, his status will elevate. Buying a car would be more affordable for rural customers now. He can also upgrade from a small car to a big car.  

What new offerings are you going to bring in the recent future?
We will be launching a very big Sedan in August. Already we have started the teaser campaign for that. Shortly you will see full announcement from Hyundai. We will reveal the name and the price of the brand very shortly.

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