Maruti Suzuki, aims to enhance sales outputs in rural segments. Already receiving a strong foothold in small towns and villages across India, the company, now targets double digit growth in the coming fiscal.
Despite an overall and prolonged slowdown in the auto sector, sale of cars in rural areas contributes to 28% of Maruti Suzuki sales which has seen a notable increase in the past few years. Boosted by increased demand, the company will intensify their focus on rural markets aiming to see growth of 4-5% to approximately 9-10% in FY15.
Maruti Suzuki will be strengthening their exchange program in the rural areas expecting to reap rich rewards. The company also wishes to enhance their distribution networks two fold in the next three years, which currently numbers 1331 outlets across the country. Considering that Maruti took about thirty years in reaching the 1331 outlets, it will be remarkable if they manage to double the number in just three years.
As part of Maruti Suzuki’s rural strategy, the company has further segregated rural markets into distinctive groups to include Ratnagiri Mango Association, Temple Association, Turmeric Growers Association, etc., reaching out to 200 such segments which in turn resulted in 65,000 new buyers. This figure is slated to increase in the coming fiscal as part of the Maruti Suzuki rural endeavor.
via Economic Times