Maruti has set its eyes on domestic rural market; the company is planning on intensifying its presence in over 1 lakh villages of India. This sudden shift to rural market signifies company’s aim of achieving 10 per cent growth in fiscal year 2015 contrary to the meager growth numbers that the industry is eyeing to accomplish. MSI has chalked out a plan to penetrate into the rural market through its newly adopted strategy which involves offering exchange programmes.
Even if the company manages to get handful of numbers from every village, the collate sales figure will be huge that will help MSI to post strong growth. Following the same approach, the company got benefited in fiscal 2014 as Maruti cars found 65,000 homes in rural segment. This also implies that there is a huge scope in rural market, but it did not get as much attention by the car makers as it required.
India’s second largest car maker, Hyundai is also believed to skew its focus on the rural market. Yet another auto maker from Japan, Honda is also finalizing plans to reap profit from rural market. The slump in domestic market has led to change in strategies of the auto makers in India.
