Rural slowdown dampens automobile growth – Report

Karthik

Karthik H, A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to IndianAutosBlog.com for quick and unassuming updates from across the world.

Maruti Suzuki’s growth from its rural market fell from 25 percent to 10 percent.

While the automobile market is showing spurts of growth in most urban centres in India, a report on Business Standard suggests that rural markets are easing up on demand. The slowing demand is affecting tractor and two-wheeler manufacturers more than it affects car manufacturers.

2015 Maruti Suzuki Alto K10 VXi front three quarter at the 2015 Nepal Auto Show
While Maruti Suzuki’s growth from its rural market fell from 25 percent to 10 percent, Hyundai India saw a 14 percent rise in growth between April and October this year compared to the 8 percent last year.

The rural market so far, the report states, has contributed around 15 percent of all sales in this fiscal year compared to the 18 percent that it had contributed for the same period last year. The country’s largest two-wheeler manufacturer, Hero Motocorp, saw its sales fall by 8 percent YoY. Several reasons like the delayed sowing of winter crop following a deficit monsoon, drop in rural income have contributed to this slowdown.

Hero Splendor iSMART rear left quarter
Hero Motocorp’s drop in sales shows a very clear sign in the slacking demand from India’s rural centres.

However, these numbers have to be taken with a pinch of salt. With a surge in demand in recent years, the absolute numbers that these percentages represent suggest that while OEMs are still managing to sell significant numbers, the numbers are calculated with high figures as their base.

While utility vehicles have shown a meagre 0.94 percent growth, tractor sales has dropped by a substantial 24.8 percent. Motorcycles sales has fallen by 2.57 percent. All numbers are for the period between April and October 2015.

Hero Splendor iSmart – Image Gallery (Unrelated)

[Source – BusinessStandard]

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Maruti Alto News & Updates

Modified Maruti Alto green and yellow

Modified Maruti Altos ‘Eva’ and ‘Mr. Yellow’ from Kerala – In Images

2017 Hero Passion Pro BSIV reaches dealership front

Hero MotoCorp clocks over 3 lakh unit sales during Dhanteras – Report

2017 Hero Maestro Edge Red at Nepal Auto Show front right quarter

Hero MotoCorp first company in the world to sell 2 million two-wheelers in a quarter

2016 Suzuki Alto front JDM Japan

JDM-spec Suzuki Alto to receive a facelift in November – Report

Hero Splendor iSmart 110 side launch

Hero MotoCorp sells a record 7,20,739 two-wheelers in September

Hero Splendor iSmart 110 launch front quarter live pic

Hero MotoCorp clocks 75 million unit cumulative sales – Report