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Tata Motors witnesses growing demand from rural markets

The idea that rural markets are inevitably more for cheaper and entry-level products and so on is disproved by the fact that rural markets are imitating the national behaviour
Tata Motors witnesses growing demand from rural markets
Tata Motors witnesses growing demand from rural markets

Tata Motors’ top-selling models in the hinterland are the Nexon and Punch, with 72 per cent of customers being first-time customers, indicating what can be called a perceptible shift in consumer preferences for automobiles in rural India.

“There is a long-held belief that marketplaces in rural areas favour the sale of lower-end vehicles. For us, this is absolutely not the case. Our distribution between urban and rural areas is comparable,” Rajan Amba, Vice President, Marketing and Customer Service, Tata Motors Passenger Vehicles said to a daily.

“Rural areas have witnessed a 70 per cent increase in the company’s growth (year to date), driven by the Western region. The idea that rural markets are inevitably more for cheaper and entry-level products and so on is disproved by the fact that rural markets are imitating the national behaviour,” Rajan further said.

Tata Motors, which holds the largest market share for electric vehicles (EVs) in India, is also seeing demand from rural areas. “EVs (electric cars) are expanding quickly in rural areas, albeit at a slower rate than ICE (internal combustion engine) vehicles. Charging stations in rural markets are one factor that will contribute to the success of EVs,” Rajan said.

“The demands of consumers in rural markets have just caught up to those in urban markets, creating a level playing field,” Rajan added.

Read more: Toyota Kirloskar Motor ties-up with UCO Bank to offer car loans in rural markets

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The Changing Face of Rural India