Following more prosperity and growth in income levels in rural areas, MSIL predicts that car sales in these areas will quickly increase in the coming months. It is for this reason that the company is targeting rural areas with renewed vigor. In FY14-15, the company penetration in rural areas stood at 34.5%, up from 32% in FY 13-14.
MSIL had rural penetration of just 93,400 villages in 2013-14 with sales to the tune of 3,36,463 units. In the past fiscal, 2014-15, the company established presence in 1.25 lakh villages and rural sales increased 23% with 4,15,380 units sold. This fiscal however, the company is targeting increased presence in 1.5 lakh villages and expects sales to increase by 20%.
Sales in rural areas have been adversely affected due to delayed monsoons and recent unseasonal rains but it is despite these factors that the company looks ahead at long term growth in rural areas. With notable increase in infrastructural jobs and dip in dependence on agriculture, income levels have considerably increased. It is for these reasons that MSIL hopes to sell more in rural areas with sales growing to match up with urban sales in the not too distant future.