Toyota Kirloskar Motor plans to sell 40% of its cars in the rural market in 2010 and has taken steps to increase its dealership in the rural markets .jpg) After making its mark as one of the leading car manufacturers and sellers in the Indian urban market, Toyota Kirloskar Motor (TKM) is eyeing to venture the Indian rural market. It has plans to sell 40% of its cars in the rural market this year. In this regard, TKM is taking steps to increase dealership in the rural markets as it expects the Indian car market to grow by leaps and bounds as compared to the global market in the near future.Potential of rural market
According to Jaspal Reddy, manager of Reddy Automobiles, a Toyota dealer in Chennai, “The market size of rural India is much larger as compared to urban India, with significant potential lying untapped. With the National Rural Employment Guarantee Scheme (NREGS) undertaken by the Government of India (GoI), the earnings of rural population have increased. Moreover, with globalisation, rural consumers are becoming more brand conscious and therefore it is an opportune time for the company to venture into the rural market.”
Analysts also believe that stiff competition in the urban market has prompted TKM to foray into the rural market. In the past, several biggies such as Maruti Suzuki and Hyundai have aggressively promoted their brands in rural India by conducting events such as ‘Gramin Mahotsava’ and ‘Hyundai Utsav’, respectively, thereby reaping huge benefits.
According to Pranab Das, sales manager of Singh Automobiles, a Toyota dealer in Dibrugarh, “In the last couple of years, there has been an increase in bookings from rural consumers. The global meltdown has taught a key lesson and that is to diversify market reach. Moreover, with establishment of rural regional banks, availability of credit is no longer a constraint for rural consumers.”
Meanwhile, the company also has plans to set up an R&D unit and engine manufacturing plant in India and is studying the market dynamics in this regard. TKM is also banking upon its compact car Etios to spur its sales volume in the country.
Arup Choudhury |
