Its a known fact that the rural market has been the major contributor for the two-wheeler industry growth. 46 percent of the sales of Hero MotoCorp are credited to the rural segment. This segment has the potential for growth and can be relied upon for a sustainable growth. Not just the two-wheeler but also the four-wheeler segment can turn to this segment for its growth. On the same lines has the Indian Automajor, Maruti Suzuki, taken its new course of action. Currently, one out of the every three cars that the carmaker sells is sold in the rural segment.
The company has set expectations of 50 percent sales from the rural segment by 2015-16. Perhaps, its always been the success factor for the company. Even during the slump in the sales in the entire segment, Maruti managed to cross the line without facing any problem. Reason, by no doubt, was the continuous sales in the rural market. Maruti already has a tight hold on this segment. Last month itself there was a jump in the sales and the company witnessed a growth of 55 percent.
“Now, we have a reasonable base of rural sales and the 55% jump epitomises the strength of the Indian hinterland markets and villages.” Mr. Mayank Pareek, Maruti Managing Executive Office (marketing and sales), said.
Maruti’s rural market focus initiative started way back in 2007. The company segmented the class into small clusters. It approached its potential customers through the Panchayats. Interestingly the rural market is not just looking for the small and cheap cars. There has been growing interest in the high end cars too. The media has played its part in carrying the communication of these automobile companies to the potential customers. Maruti Suzuki, in a bid to make its presence stronger, has opened up 23 new retail outlets in the small towns.
Source – Economic Times