Struggling with falling car sales for a third year in a row, Tata Motors is planning to put a impel on rural market among other revival measures. The car manufacturer’s newly-appointed president for passenger vehicle business Mayank Pareek said, "The potential in the rural market is huge. Some of the best players do around 30 per cent sales in rural segment and cover 85-90 per cent of the market. Our rural sales account for only 16 per cent of total sales, and our coverage is only 30 per cent. So, there is a big upside in this segment."
Pareek further said expanding into newer markets and a deeper penetration in the existing ones was on cards. "We have already said we will be launching two new products every year and they will not be variants or facelifts but all new. But we also need to do a lot on distribution and provide high quality of service," he added.
He further adds that the recently launched Zest sedan with Revotron petrol engine will also help the company revive its fortunes.
The company claims to have delivered 10,000 units since October. While the automatic variant of the car has a 6-months booking period, the petrol variant has 3-4 months, besides an order book of 6,000 cars.
However, the manufacturer, he states, does not expect much variation in the diesel-petrol ratio with the narrowing of the price difference between the two fuels, and the ratio should be more or less equal going forward.
The company is also looking at new formats of selling which may include using the company’s wide distribution network of commercial vehicles sales.
Forecasting up to 5 per cent growth for the industry in the current fiscal, Pareek said that though the past couple of months have seen some improvement it has not been very noticeable.
"The growth in this fiscal is likely to be around 5 per cent which will be better than the last year’s almost flat growth," he further stressed.