Maruti Eyes Rural India For Sales

By By: Vicky.in

Published: Thursday, January 27, 2011, 17:18 [IST]

The Indian car makers are steering down to the rural regions in order to increase their sale volume. For them such regions are real India since the urban areas and metros are becoming exhaustive and jam packed, in addition to be competitive. The major players like M&M, GM and Mahindra have already entered into these lands for playing a safe role. They have identified the desires and wishes of these market since they are found to be less penetrative and less dependent on finance constraints like loans. Maruti"s share in these regions constitute 20%(one out of every five cars manufactured) in the last year making a rise by 3.5 % since 2007while For GM it is 60% contribution from these potential market. The managing executive of the company said that these areas have become substantive and crucial for the company.

Maruti is keen on entering even the remotest part in the country by setting up necessary facilities like dealer network and service centres. He explained that the company is on gathering data for a database to trace the non-represented territories like villages. The aim is to provide those customers with Maruti range of cars at the same time making the people know that Maruti vehicles are available everywhere in India. Same is the condition in the camps of Hyundai as revealed by its Director for sales and marketing. He cited the reasons for the growth in these regions as better roads, more aspirations in rural customers to choose cars. Hyundai gets 30%sale volume from these regions which was 18-19% during five years ago. Based on these growth, the company has increased the dealer network in such regions, he added. Other reasons cited for entering into these regions are sufficient monsoon reaping, financial ease where there is no talk of loans from banking.

Maruti said 63.5% of the rural sales procure cash sale out of 2.3 % owners in these regions ( it is 10% in urban areas). Moreover, the market status of such areas is consistent irrespective of economic downfall. General Motors is already having a tie-up with State Bank of India for reaching these regions. In addition it has a scheme to involve in local functions and events to expose its identity, byway of sponsor and display of its cars. The VP of GM India said the company is helping those customers to avail easy finance from the institutions. Similarly the company is promoting panchayat programs by appointing 5000 local resident dealer sales executives in such rural and semi-urban areas. By this it covers nearly 3500 tehsils to reach the equally potential mass. Such executives are well versed in conversing with local people in their slang and convert the deal into business.

Article Published On: Thursday, January 27, 2011, 17:13 [IST]

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