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Maruti Suzuki bets on rural market to drive sales
Posted on 16 Jul 201215,050 Views2 Comments
One of three Maruti's sold is in rural India. The company expects the rural market to account for half its sales by 2015-16
Maruti Suzuki, India's largest carmaker, is on an overdrive in the rural hinterland where it sells one of every three cars sold. It expects the rural market to contribute about half of its sales by 2015-16.
To beat market blues during a slowdown in sales, Maruti has opened 23 new retail outlets in towns and hamlets in the last three months.
Maruti's share of rural sales has witnessed a continuous jump and last month it got a big boost with 55% growth in sales, taking its overall share to an all-time high of 33% from just 3% in 2007-08. In a slowing Indian market where sales have hit bumps led by higher fuel prices and expensive finance, rural market has become a key for Maruti Suzuki's success.
"Now, we have a reasonable base of rural sales and the 55% jump epitomises the strength of the Indian hinterland markets and villages. We are developing new markets and generating customers who have never used cars in these smaller towns (and expecting them) to generate long-term competitive advantage," says Maruti managing executive office (marketing & sales) Mayank Pareek.
Maruti identifies human settlement of around 10,000 as rural markets and has sold more than 23,000 cars in such markets in June this year. Maruti rural marketing initiative started in 2007, when it identified many small clusters to sell cars and roped in panchayat functionaries to generate potential customers.
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amt
In 10,000 population what's the UIO?10,000 would also contain old
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ssm
In 10,000 population what's the UIO ?10,000 would also contain old
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