Press Esc to close
Sunday 23 April 2017
News updated at 9:03 PM IST

Car industry banks on polls, says Bhargava

New Delhi, December 24, 2013, DHNS: 4:10 IST
Urban demand has slowed and we have been giving emphasis on rural sales.  R C Bhargava Chairman   Maruti Suzuki India
Amid depressed urban car sales and a sluggish economy, India’s largest passenger vehicle firm Maruti Suzuki hopes to revive its fortunes through a spurt in rural sales and sees the 2014 general elections as the next trigger for the industry to generate esteem.

“Urban demand has slowed and we have been giving emphasis on rural sales. We plan to capture one lakh villages in India by the end of this fiscal,” Maruti Suzuki India (MSI) Chairman R C Bhargava said in an interaction with reporters.

To spur its small town demand and credit needs of rural poor, Maruti has tied up with as many as 38 banks including country’s largest lender State Bank of India, Canara Bank and a host of cooperatives and regional rural banks.

Bhargava said lack of demand in urban area due to high interest rates, high fuel costs and lack of job creation, especially in the IT industry has hurt car sales in urban areas where the industry as whole has seen a decline in sales by about 5 per cent in eight months (April-November) of this fiscal. Inflation is another big reason which has eroded people’s capacity to buy asset.

“Job creation, especially in IT industry today is half of what it used to be earlier, added to that the cost of maintaining a car has also risen very sharply whereas the under-penetrated rural areas have a lot of opportunities,” Bhargava, whose company devised a strategy to tap the rural market some five years ago, said.

Maruti’s rural sales -- which account for about 30 per cent of its total sales -- have grown by 18 per cent in the April-November period this fiscal. Rural sales were just 3 per cent of Maruti’s total sales about five years ago.

But, to revive its urban market and its future expansion plans, Maruti Suzuki is depending on the outcome of 2014 general elections.

"We don't expect anything to happen between now and the elections. We hope the elections will bring something positive for the industry," he said, adding the company will wait and watch for the outcome of the general elections next year and what steps the new government takes in order to boost economic growth and manufacturing.

MSI is, however, expecting December to break its monthly record in terms of retail sales with about 1.2 lakh units.

“In terms of retail sales, for the fiscal till November we are one per cent up from that of last year. We are hopeful that we will be able to match last fiscal's numbers," he said.

Go to Top

Photo Gallery
Runners make their way over Tower Bridge during the London Marathon

Runners make their way over Tower Bridge during the London Marathon

A boy enjoying a swim in Chembarambakkam lake to escape the scorching heat

A boy enjoying a swim in Chembarambakkam lake to escape the scorching heat

A group of flamingos at Sewri Jetty in Mumbai...

A group of flamingos at Sewri Jetty in Mumbai...

Union Minister for Water Resources and Ganga Rejuvenation Uma Bharati being welcomed ...

Union Minister for Water Resources and Ganga Rejuvenation Uma Bharati being welcomed ...

Lithium Urban Technologies has created an eco -friendly solutions for corporate transport...

Lithium Urban Technologies has created an eco -friendly solutions for corporate transport...

The French air force's Patrouille Acrobatique de France aerobatic team performs at Langley...

The French air force's Patrouille Acrobatique de France aerobatic team performs at Langley...

Smoke billows out after a major fire broke out in Railway Coach Factory at Nishatpura in Bhopal...

Smoke billows out after a major fire broke out in Railway Coach Factory at Nishatpura in Bhopal...

Girls with painted faces taking part in an awareness campaign on the occasion of World Earth Day...

Girls with painted faces taking part in an awareness campaign on the occasion of World Earth Day...

A Tamil Nadu farmer drinks urine during their ongoing protest over drought relief funds...

A Tamil Nadu farmer drinks urine during their ongoing protest over drought relief funds...

A two wheeler moves through a waterlogged street after heavy downpour in Agartala...

A two wheeler moves through a waterlogged street after heavy downpour in Agartala...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.