Maruti eyes rural growth: Will expand coverage to 1 lakh villages
Indian auto industry is experiencing one of the worst periods in it’s existence. Car sales are declining, and the situation is expected to continue forward to the New Year, 2014 as well.
Car makers are trying everything they can, from offering discounts, to exciting buy-back schemes, their marketing team has done it all. Still, they are not able to get buyers in showrooms.
But the situation is not the same for India’s rural market, where car sales has reported a positive growth. In the urban market, car demand has declined by 5-6%, whereas, in the rural segment, which accounts for 30% of Maruti’s total sales, demand has increased by 18%, for the April to November 2013 period. This demand is set to further increase, whereas that of urban Indian market, is expected to register decline.
“We have been giving emphasis on rural markets. Last year, we had covered 44,000 villages and till November this year, we have presence in 60,000 villages and by March next year, we will have a presence in one lakh out of a total of 6.51 lakh villages in India,” R C Bhargava said in an interview with ET.