RURAL COMPREHENSIVE

DOCUMENT
On Rural Automobile Industry
Presented By:-
Group 7
Gaurav Ogrey 19PGP174
Shah Jainam Nitinkumar 19PGP211
Vijay Kumar Gond 19PGP225
Abhishek Pratap 19PGP276
Anuvrat Dutta 19PGP280
 Maruti Suzuki India Limited
Maruti’s rural drive

To boost sales in the current challenging market conditions, Maruti Suzuki has
increased its focus on the relatively untapped rural market across the country.
The company first launched and then strengthened its ‘Ghar ghar mein Maruti’
campaign.
The strategy seems to be paying off. Two years after the rural drive was
initiated, sales from these areas comprise 12 per cent of Maruti’s total sales.
“In the past six to eight months, we have created new initiatives for the rural
markets,” says Mayank Pareek, executive officer (marketing and sales) Maruti
Suzuki. There are around 660,000 villages in India, a sizeable number of which
Maruti has already penetrated.
The company has appointed 3,000 local villagers as resident dealer sales
executives, who promote sales in their villages. They are supported by over
186 extension counters. Maruti plans to double the number of its outlets in
rural India from 231 to 450 by 2011. It also plans to sell 250,000 cars annually
in rural India by that time.
https://www.thehindu.com/features/metroplus/Motoring/Marutirsquos-rural-
drive/article16875729.ece
 Rural markets faring better than urban
centres amid coronavirus pandemic: Maruti
Suzuki
New Delhi: The country's largest carmaker Maruti Suzuki India (MSI) is seeing
better demand in rural areas due to less number of COVID-19 cases as
compared with urban regions which continue to reel under the high number of
cases of the infectious disease, as per a senior company official.
Buying sentiment in rural areas is also better due to good initial spell of rains in
June which has led to a better sowing of the kharif crop.
"Rural demand is little better than urban right now. In Maruti, the rural share
has gone up to 40 per cent in June which is 1 per cent increase over the last
fiscal," MSI Executive Director Marketing and Sales Shashank Srivastava told .
He listed three main reasons for the phenomenon which is based on the recent
data.
"One is that COVID-19 has impacted the sentiment little less in rural areas. In
fact cluster of Covid and containment zones are largely in urban areas.
Secondly, rabi crop has been good, and initial monsoon in June has been good
so the sowing for kharif crop is much better, so rural sentiment as compared to
urban sentiment is little better," Srivastava noted.
Both rural and urban sales were down as compared to last year, but rural sales
were relatively better than urban areas, he added.
"There is decline in rural areas also as compared to last year, but it is less as
compared to urban regions," Srivastava said.
In June, MSI reported a 53.7 per cent dip in domestic sales at 53,139 units as
against 1,14,861 units in June 2019.
The company's sales were, however, better than May, when it had posted
domestic sales of 13,888 units.
When asked if the company would be able to sustain sales momentum going
ahead, Srivastava said, "It is difficult to predict. A lot will depend (on) how the
Covid situation pans out so it is difficult to make prediction about the future."
Replying to a question on if the company would be able to cover the loss in
sales in first quarter over the remaining part of the current fiscal, he said,
"Really don't know how the Covid thing will pan out."
"Lot of this long term demand will depend (on) how the Covid thing unravels,
how the fundamentals of economy are, and how is the financing available, so
these things will decide. There are so many uncertainties involved that it is
difficult to predict," Srivastava added.
However, he said, with demand picking up, the industry has started to ramp up
production.
Srivastava said retail sales were far better than wholesales across the industry.
Ramping up of production is happening in phases and retail sales are a
reflection of production. Retail figures are much better, he noted.
"If you see wholesales for the entire industry, it would be roughly less than 50
per cent than last year. Retail sales on the other hand is around 80-85 per cent.
Of course both are less as compared to last year," he added.
With complete lockdown in April and limited sales in May, MSI reported 81 per
cent dip in total first quarter sales at 76,599 units as compared with 4,02,594
units in same period of 2019-20.

https://auto.economictimes.indiatimes.com/news/passenger-
vehicle/cars/rural-markets-faring-better-than-urban-centres-amid-coronavirus-
pandemic-maruti-suzuki/76795875

Maruti Suzuki bullish on hinterland, to

expand rural sales network

Top carmaker Maruti Suzuki is bullish on the hinterland and plans to expand its
sales and service network in the country’s rural and emerging markets.
Currently, the company has a sales network of more than 3,100 outlets
covering 2,000 locations, up from about 1,600 outlets in 2014, a growth of
almost 100 per cent over the last five years.

“We plan to expand our sales network in the same ratio going forward,
especially in the smaller towns and cities,” Maruti Suzuki Executive Director
(Marketing & Sales) Shashank Srivastava told the media in Lucknow today.
Apart from the physical stores, the company operates 2,700 digital touch
points in the form of web pages, which is gaining good traction from tier-II and
III centres.
“The rural market growth has been good for Maruti Suzuki in comparison to
the urban areas, especially in the current challenging auto market scenario.
The rural market contributes 40 per cent to our sales, which was 7-8 per cent
10 years back,” he informed.
Commenting on the domestic automobile sector, Srivastava said Maruti Suzuki
was ‘cautiously optimistic’ in its outlook, since several of the factors pulling
down the market were still alive.

“Some of the key elements, such as the higher cost of acquisition and difficult
credit norms, both for inventory and retail segments, continue to pose
challenges for the automobile sector,” he observed.
He said the company, which commands a market share of over 50 per cent,
had taken several steps to revive demand and cushion the impact of negative
external factors by bringing the cost of acquisition down with discounts, asking
the finance institutions to provide credit on the basis of on-road price rather
than ex-showroom tag, and passing on the recent corporate tax cut benefit to
the consumers.
He further attributed the sluggish growth in the automobile sector to some
other factors too, including 2019 general elections, uncertainty over monsoon
and goods and services tax (GST) rates, apart from the transition from BS IV to
BS VI from April 2020.

Nonetheless, the domestic auto sector shown signs of a revival in October

2019 owing to festive season demand, with total passenger vehicle sales
growing to 285,027 units from 284,223 units in October 2018. The utility
vehicle (UV) space grew to 100,725 units in October 2019 from 82,413 units in
October 2018.
“Maruti Suzuki has already launched eight models in BS VI variants and clocked
total sales of 300,000 BS VI vehicles so far,” he added.
The company is phasing out some diesel models due to the BS VI mandate,
since the price differential would be substantive and unviable.
Meanwhile, Maruti Suzuki is testing an electric prototype of its Wagon R model
in different climatic zones and terrains before making suitable changes and
commercial launch.

https://www.business-standard.com/article/companies/maruti-suzuki-bullish-
on-hinterland-to-expand-rural-sales-network-119113000531_1.html
 Maruti Suzuki-Mahindra Finance team up to
provide car financing solutions to rural
customers

With a good monsoon on cards and fewer coronavirus cases, they expect
demand to revive faster in rural areas.
Maruti Suzuki India (MSI) has teamed up with Mahindra Finance to “ease the
finance availability for customers looking at personal mobility solutions during
ongoing COVID-19 pandemic”, the company said in a BSE filing.

The coronavirus outbreak added to the woes of the auto sector that was
passing through one of its worst slumps. The tie-up is aimed at pushing sales in
rural areas, which have, so far, been spared by the virus.
Shashank Srivastava, Executive Director (M&S), MSI said, “Mahindra Finance is
a very well networked non-banking finance company (NBFC) across India and
has the expertise in lending across all profiles including semi-rural, rural and
no-income proof customers.”
 Maruti’s localisation will not exceed 95
percent; focus on rural growth

Maruti Suzuki has always had a highly localised content, but the company will
continue to have some parts that are imported.
At the unveiling of a new dealership, Maruti Suzuki’s Executive Director R S
Kalsi mentioned at a press conference that any product that Maruti Suzuki has
launched has had 95 percent localisation. He mentioned that there are some
parts that have to be imported and even at the moment there is no scope of
localisation.
He further added that it isn’t possible to set a base of such vendors considering
the economies of production. The companies that make these products will be
needing a captive market, which isn’t possible at the moment. When someone
asked Mr Kalsi about the Make In India campaign, he mentioned that Maruti
Szuuki has been making in India for the longest while and the company already
has a strong supplier base in the country. He added, “ We have 11 models and
over 100 variants with a market share of about 45 percent.”
Despite the unseasonal monsoons and the weather forecast for the year to
uninform rains, the rural economy will be hampered. But it seems that Maruti
Suzuki is confident of increasing its rural market share. The company will
continue adding more dealerships and expanding its rural networks as per the
plan. The company already has a reach to 1.25 lakh villages and it is bound to
grow this year. The company will launch new products in the third and fourth
quarter of this financial year to continue with its growth.

https://motoroctane.com/news/12680-marutis-localisation-will-not-exceed-
95-percent-focus-on-rural-growth
Rural, semi-urban India driving home Maruti
Suzuki S-Presso in big numbers

NEW DELHI: Every second Maruti Suzuki S-Presso is sold in regions other than
Tier-1 cities, a top company official said on Friday.
"Increasingly the aspiration to purchase cars with SUV-ish design has been
surging in both urban and rural areas alike. These aspirations could stem from
the desire to have a car with the design similar to higher segment cars, or to
project personality and status through their car. When segregated, 48% of the
demand has been recorded from regions other than Tier 1," Shashank
Srivastava, executive director, marketing & sales, MSIL said.
Maruti Suzuki S-Presso is priced at Rs 3.80 lakh - 4.91 lakh (ex-showroom,
Delhi). The hatchback is equipped with 1.0-litre, BSVI petrol head, churning out
67PS and 90Nm. "Tier 2 and 3 markets are taking unconventional routes and
buying feature loaded cars: Maruti Suzuki has seen an encouraging trend for
unconventional colors in bookings," Srivastava said.
The entry-level hatchback with SUV-ish stance was launched in September
2019 and has registered sales over 31,000 units. S-Presso takes on the likes
of Renault Kwid and Datsun Go. India's largest carmakers commenced exports
of S-Presso to overseas markets on Friday.

http://www.newsoncards.com/business/rural-semi-urban-india-driving-home-
maruti-suzuki-s-presso-in-big-numbers-times-of-india/
 Maruti targets rural, small towns to drive
Alto sales

There are over 500 extension outlets out of a total 11,000 sale points.

Alto has been the company's bestseller and top model in the world in terms of
single design. This year Swift overtook it to some extent, he said.

When pointed out that demand for luxury cars is rising, he said 25,000 Alto
cars were sold in a month last year. "There is good demand for it even now. It
is the best entry level car and is fuel efficient. There is definite demand for it."
He said there is a definite increase in demand for diesel model. In the last
three years, demand for diesel cars in the Indian market was 36 per cent,
which went up to 47 percent in 2011-12, touching 58 per cent this year.
Maruti sold 1.2 million units (all inclusive) in 2010-11. In diesel, Maruti's
capacity is 400,000 cars per annum.
Maruti is adding capacity to diesel. Last fiscal, it made 300,000 units of diesel
engines. Now, the car marker is in the process of setting up a diesel engine
plant in Gurgaon at an investment of Rs 1700 crore.
Phase I would have a capacity of 150,000 units which would be ready by next
year and by 2014, another 150,000 units capacity would be added by when the
capacity of diesel engines would touch 700,000, he said.
In Kerala, Maruti sells 8000 cars a month of which Alto accounts for 30-35
percent of total sales. In Kerala, Maruti enjoys 58 percent market share, the
highest across any other state.
Maruti plans to export the new Alto to Latin America and African countries by
December-January.

https://www.firstpost.com/business/maruti-targets-rural-small-towns-to-
drive-alto-sales-494236.html

Demonetisation blues over: Maruti Suzuki

says sales rise 7% in December

It seems that demonetisation blues for the automobile sector may be

shortlived. India's largest carmarker Maruti Suzuki on Friday said that sales
rose 7% in December after bookings fell by 20% in November after Prime
Minister Narendra Modi announced demonetisation move on November 8,
2016.
It seems that demonetisation blues for the automobile sector may be
shortlived.
India's largest carmarker Maruti Suzuki on Friday said that sales rose 7% in
December after bookings fell by 20% in November after Prime Minister
Narendra Modi announced demonetisation move on November 8, 2016.
RC Bhargava, Chairman, Maruti Suzuki, in New Delhi, said that demonetisation
did lead to a dip in car bookings but even after that sales in November were
better than the same month last year. He said that bookings in December rose
7% as against the same period of last year. Rural market, he said, rose 18% in
December.
He said that the company will see the trend in January before giving any
forecast.
The company is set to introduce Ignis in January and a new variant of Baleno in
2017.
Bhargava says that the production in the Gujarat plant on schedule and is
expected to make 10,000 cars this financial year.
Maruti Suzuki's engineering head C V Raman says the company will invest
additional Rs 20 billion in the Rohtak R&D facility. The total investment in the
facility to be Rs 38 billion.
Maruti Suzuki sold 1,35,550 units of vehicles in November 2016, a rise of 12.2%
from 1,20,824 units sold in the similar month of the previous year.
For the month of November, domestic sales witnessed growth of 14.2% by
selling 1,26,325 units, compared to 1,10,599 units of November 2015.

https://www.zeebiz.com/companies/news-maruti-suzukis-sales-rises-7-in-
december-post-demonitisation-slump-in-november-9567

Maruti Suzuki India reports 11% rise in

production in August
Utility vehicles contribute lion’s share of 44% in increase.
The country’s largest carmaker Maruti Suzuki India on Monday said its total
production in August increased by 11% to 1,23,769 units.
The company had produced a total of 1,11,370 units in the same month last
year, Maruti Suzuki India (MSI) said in a statement.
Passenger vehicles production stood at 1,21,381 units last month as compared
to 1,10,214 units in August 2019, a growth of 10%.
Production of mini cars comprising Alto and S-Presso models were at 22,208
units as against 13,814 units in the year-ago month, up 61%.
Compact cars, comprising WagonR, Celerio, Ignis, Swift, Baleno, Dzire, were
produced at a marginally higher rate at 67,348 units as against 67,095 units in
August 2019, MSI said.Production of utility vehicles — Gypsy, Ertiga, S-Cross,
Vitara Brezza and XL6 — was up 44% at 21,737 units as compared to 15,099
units in the same month last year.
MSI said production of its light commercial vehicle Super Carry stood at 2,388
units as against 1,156 units in the year-ago month.

https://www.thehindu.com/business/Industry/maruti-suzuki-india-reports-
rise-in-production-in-august/article32543405.ece
 Rural demand, new launches push
November auto sales

Robust rural demand along with new offerings led automobile manufacturers
to report healthy sales figures for November 2017. The news agency, IANS
reported, passenger car major Maruti Suzuki India's total sales rose 14.1 per
cent to 154,600 units, from 135,550 units sold during the corresponding month
of 2016.
"This (total sales) includes 145,300 units in the domestic market and 9,300
units of exports. The company had sold a total of 135,550 units in November
2016," the auto major said in a statement.
Maruti Suzuki's November domestic sales edged higher by 15 per cent to
145,300 units from 126,325 units. Exports inched-up by 0.8 per cent, with
9,300 units that were shipped out during last month, up from 9,225 units sold
abroad in November 2016.
Similarly, Hyundai Motor India too reported a healthy growth in its domestic
sales. The company's November domestic sales rose by 10 per cent to 44,008
units from an off-take of 40,016 reported in the corresponding month of 2016.
Commenting on the November performance, Hyundai Motor India Ltd (HMIL)
Director for Sales and Marketing Rakesh Srivastava said, "Hyundai volume of
44,008 units is a growth of 10 per cent with strong performance of the newly
launched bestseller Next Gen Verna along with Grand i10, Elite i20 and Creta.
"Due to strong pull of festive demand on the strength of buoyant rural
markets, we hope to build on this positive momentum with a cumulative retail
sales of 200,000 units for the period September to December 2017," Srivastava
added.
Other major manufacturer, Tata Motors' domestic sales for November rose
exponentially on the back of new product offerings. The company's November
domestic passenger and commercial vehicle sales rose by 58 per cent to
52,464 units.
However, the company's exports during the month under review declined by
12 per cent to 4,927 units shipped out due to a drop in volume in key
commercial vehicles' international markets such as Nepal and Sri Lanka.
On the same page, Mahindra & Mahindra’s (M&M) total sales rose by 18 per
cent to 38,570 units last month up from 32,564 units sold during November
2016. The company's domestic sales increased by 21 per cent to 36,039
vehicles during November 2017, as against 29,869 vehicles sold during
November 2016.
Conversely, exports for November 2017 stood at 2,531 vehicles, a de-growth of
six per cent. M&M also logged a growth of 13 per cent in the three wheeler
segment last month selling 4,455 units as against 3,953 units sold during
corresponding period in 2016.
"We expect our growth momentum to continue on the back of some recent
refresh launches as well as the positivity of our product portfolio," Rajan
Wadhera, President, Automotive Sector was quoted as saying in the
statement.
Two and three-wheeler manufacturer Bajaj Auto registered a rise of 21 per
cent in total sales, including exports, for November 2017 to 326,458 units from
269,948 units sold during the corresponding month of 2016. Bajaj Auto's total
domestic sales last month stood at 179,835 units -- up 16 per cent, while the
overall exports edged higher by 27 per cent to 146,623 units.
Honda Motorcycle & Scooter India (HMSI) closed the month of November with
stellar domestic sale which was up 44 per cent to 432,350 units. Honda's
motorcycle sales grew by 56 per cent to 150,606 units, while scooter sales
grew by 39 per cent to 281,744 units.
TVS Motor Company registered a sales growth of 12 per cent from 224,971
units sold in November 2016 to 251,965 units in the like month of 2017.

https://ruralmarketing.in/industry/advertising-marketing/rural-demand-new-
launches-push-november-auto-sales
Maruti Suzuki Bullish On Sales In Rural Areas
In Future
Maruti Suzuki, India's largest car manufacturer is bullish on increasing sales
from rural areas of India. As an example, the company had a share of 9-10 per
cent of its total sales from rural India while the figure has now gone up to 38.5
per cent at the end of FY20. The company believes there is ample potential
waiting to be tapped into from rural India. The company also predicts an uptick
in used car sales post COVID-19 where the 'new normal' norms suggest social
distancing and hygiene will be of paramount importance once until the
coronavirus scare is completely addressed.
In a conversation with Siddharth Vinayak Patankar, Editor-in-Chief, carandbike,
Shashank Srivastava, Executive Director, Marketing & Sales, Maruti Suzuki
India, said, "I think the point about rural car sales is pretty valid. I think the
rural income levels are going up over the last 10 years, so also has been the
rapid spread of our touchpoints and also the consumers themselves. So, I think
10 years back, our rural percentage sale was about 9-10 per cent. But as of
today, the year, we ended up with 38 and a half per cent rural sales. So, I think,
yes, the trend seems to be there.

https://www.carandbike.com/news/maruti-suzuki-bullish-on-sales-in-rural-
areas-in-future-2229541

Maruti Suzuki to expand Nexa footprint by

opening new but smaller showroom

It will help Maruti provide Nexa experience to the buyers concentrated in low
density rural areas as well. Will introduce Nexa cars like Ignis, Baleno , Ciaz and
S-Cross to buyers in remote locations.Current count of Nexa showrooms across
India stands at more than 350; should be 400 by 2020.
Most affordable Nexa offering is the Ignis with prices starting at Rs 4.80 lakh
(ex-showroom Delhi).
Maruti Suzuki’s Nexa range of premium dealerships with a strength of more
than 350 has so far seen major inroads only in developed cities and places with
higher footfalls. But the brand is soon expected to expand to rural areas and
small towns where its missing presence but with dealerships much smaller
than its current setup. These dealerships will offer the same premium Nexa
experience but will have a 2-car display facility instead of the multiple cars
found on the regular showrooms.
These new, smaller dealerships will reduce the setting up costs and provide the
customers in remote locations a closer look at what the premium Nexa
dealerships have to offer not only in terms of the products but also the
purchase experience.
Maruti Suzuki’s Nexa range of premium dealerships have been cropping up by
large numbers as the brand has managed to open more than 350 dealerships
since the first one was inaugurated in 2015. The number’s still climbing and
Maruti had earlier revealed its plans to have Nexa presence at 400 locations by
2020. What needs to be seen is whether Maruti will also introduce Nexa
service facilities in these remote locations.
Nexa cars like the Ignis, Ciaz, Baleno command a higher price tag and the S-
Cross Alpha with its 11.48 lakh (ex-showroom Delhi) price tag is the most
expensive Maruti you can buy in India. The most affordable product in the
Nexa lineup currently is the Ignis with prices starting at Rs 4.80 lakh (ex-
showroom Delhi) for the base variant. This amount increases by more than 10
per cent of the car when you factor in the cost of registration, insurance,
accessories and other miscellaneous expenses attached with buying a car. In
contrast, the entry level Maruti offering in the Arena dealerships, the Alto
starts from Rs 2.93 lakh to Rs 3.72 lakh (ex-showroom Delhi).

https://www.deccanchronicle.com/business/autos/030619/maruti-suzuki-to-
expand-nexa-footprint-by-opening-new-but-smaller-show.html

Is Maruti Planning A 660cc Car For Rural

India?
Maruti Suzuki, India's largest car manufacturer, has recently concluded a
survey with its dealers to assess the likely demand for a 660 cc car in the Indian
market.

The survey which spoke to a cross section of more than 200 of Maruti dealers
concluded that the vehicle will be in demand only in rural India. Urban
buyers/dealers were not enthused by the prospect of a 660cc petrol vehicle.
Maruti conducted the survey 6 months ago, but dealers say it is yet to provide
feedback on whether or not it has any plans to launch the car in India.
Widely known as Kei or the ‘K’ cars in Japan, the 660cc engine petrol cars
attract a lower tax of just 3 per cent — against 5 per cent for higher capacity
cars — in the Japanese market to encourage use of smaller cars in the country.
Cars such as Daihatsu Motor Co.'s Sonica, Suzuki's new Cervo and Mitsubishi's
stylish i minicar come fitted with the 660cc engine in Japan.

“The 660cc engine even if it is brought to India, will be modified in a vehicle in

accordance with the Indian market,” says a dealer.

For long, Maruti Suzuki has denied it plans to launch the 660cc cars in India,
saying that such a project would be unviable in the country. Maruti's smallest
car in India is the 800cc petrol Alto. “Even if the 660cc engine were brought to
India, the price differential with the 800cc Alto possibly will not justify buyer
interest in such a vehicle,” says a company official.

Maruti incidentally has been struggling with a slowdown in the market, besides
increasing competition from even fringe players like Renault and Honda, who
have eaten into the market share of Maruti’s most successful models like the
Swift Dzire and the Ertiga.

http://www.businessworld.in/article/Is-Maruti-Planning-A-660cc-Car-For-
Rural-India-/08-11-2014-73772/

HERO HONDA INDIA

Hero Honda steps up rural touch-points
Over 500 rural sales executives of Hero Honda dealers are now busy meeting
the sarpanch, the headmaster and the anganwadi workers in villages all over
the country. They are also visiting potential customers at their homes, inviting
them to drop in at the company’s dealerships which might be located a few
kms away.

The frequency of these visits has increased these days, with Dussehra and
Diwali celebrations round the corner. These festivals account for almost a fifth
of the total annual sales of the country’s largest two-wheeler maker.
The poor monsoon this year doesn’t worry Anil Dua, senior vice president
(marketing and sales), Hero Honda. “We are confident of surpassing last year’s
sales of 600,000 two-wheelers during Dussehra and Diwali by a long shot,” Dua
says. The company is ready to roll out its on-ground activation for the rural
customers and has doubled its touch-points in rural areas from 2,000 in 2006
to nearly 4,000.

The on-ground activation is actually the last leg of Hero Honda’s rural
marketing efforts. The first leg is its Usage & Attitude studies, which are
conducted by the company’s in-house research team once in every two years.
“The study captures every aspect of the potential customers’ lives. It tracks
aspects like the level of awareness of brand Hero Honda, the current modes of
transportation, what is the expectation of the customer from motorcycles etc,”
says Dua.

The company is also doing Rural Footprint studies on a quarterly basis. “Under
this, we chart the events that will take place in villages. The core idea is to take
the brand to the customer when he is in a happy mood. And these happy times
are linked to good harvests, festivals and marriages when there is cash in
hand,” Dua says.

Thirdly, to ensure that the village customer doesn’t postpone buying a two
wheeler just because there’s no cash in hand, Hero Honda has entered into
numerous vehicle finance tieups with NBFCs, cooperative banks and regional
rural banks. “We have 30 such tie ups,” says Dua.

The other cornerstone of Hero Honda’s success with its Har Gaon, Har Angan
campaign is the choice of media vehicles. The company banks on good old
Doordarshan for this. “DD’s reach in the rural areas is a good enough bet to
reach the target customer. We invest heavily in cricket on DD,” Dua says.

Har Gaon Har Angan seeks to build an ongoing relationship with millions of
households in rural India, given that penetration of two-wheelers in rural India
is only 8 per cent. And the company had decided to seize the latent potential
of this market by launching some of its entry-level products which are tailored
to suit the needs of the rural consumer like adjustable suspension, strong
headlights and good ground clearance.

Reasons that are good enough for rural sales contributing 40 per cent to the
company’s overall annual sales.
https://www.business-standard.com/article/management/hero-honda-steps-
up-rural-touch-points-109090300069_1.html

Hitching a ride on rural markets

As two-wheeler sales have slowed, focus on villages has kept Hero Honda in
top gear, reports Samar Srivastava. At his Hero Honda Motors Ltd dealership in
the agricultural town of Bonli, Girirad Prasad Gupta has kept the most
important job in the family. Son Manoj Kumar is his rural sales executive.

At 28, Manoj has a weatherbeaten face. Setting off at 7 each morning, he

keeps a gruelling schedule. Riding his Hero Honda bike across small towns and
villages around Bonli, in Sawai Madhopur district, he meets community
leaders, including the local sarpanch, school teachers, lawyers, doctors and
insurance agents — anyone who plays a role in shaping buying decisions.

But unlike a regular salesman, Manoj doesn’t make an aggressive sales pitch.
He is mostly content sitting and chatting. “Making a sale is great, but we aim to
form a long-term relationship,” he says.
“If they don’t buy from me today, that’s fine. I need to make sure they think of
me next year when they’re planning on buying a bike,” he says.

The 521 rural sales executives on the rolls of Hero Honda dealers across the
country have been instrumental in making its marketing campaign, Har Gaaon
Har Aangan (every village, every home), a success.
Safely ensconced in the number one spot among motorcycle makers for the
past eight years, it was only in 2007 that Hero Honda decided to focus on rural
areas.

Hero Honda’s rural division was formed with the aim of penetrating deeper
into small towns and villages. For Hero Honda, the share of rural sales has been
growing by two to three percentage points every year; rural areas make up
over 40% the company’s sales.
Increased procurement prices for agricultural commodities offered by the
government and the National Rural Employment Guarantee Act have put more
money in the hands of rural consumers.
And Hero Honda is in place to take advantage of the disposable incomes. “They
have positioned themselves as a rural India story,” says Ramnath S, vice-
president at IDFC-SSKI Securities Pvt. Ltd. “At just the right time.”
As two-wheeler sales across the country have slowed, the focus on rural areas
has kept Hero Honda in good stead. The company has grown 12 per cent this
fiscal, rival Bajaj has seen sales fall by 23 per cent
In the past two years, the company has increased the number of touchpoints,
or outlets selling and servicing its bikes, from 2,000 to 3,000. This year’s target:
3,500 touchpoints.
Hero Honda’s dealerships in districts such as Sawai Madhopur are based on the
so-called hub-and-spoke model. Within a district the company’s main liaison is
the dealer located in the district headquarters. Under him are authorised
representatives —smaller dealerships where locals can make purchases and
also get their bikes serviced.

“We realized that while someone might be willing to travel 50 km to buy a

bike, they don’t like to do that every time they need to get it serviced,” says
Sandeep Mukherjee, sales manager at Hero Honda’s all India rural division.

Vijay Motors in Sawai Madhopur has 10 authorised representatives in the

district. Sandeep Aggarwal, its owner, is constantly in touch with them, running
promotional activities in villages, holding service camps and helping them tie
up with banks. “Dealers understand their area the best and so we leave local
activities to them,” says Akhilesh Sharma, Hero Honda’s sales manager in
Rajasthan.

Aggarwal, for instance, noticed that prospective buyers would scout around in
the belief that they may be able to get a better price at another dealership. To
counter it, he’s put up more than 500 price lists across his district at places like
tea stalls, the village tailor and the panchayat office. “It’s very important to
convince village buyers that there’s no better deal available,” he says.

In adapting its model for rural India, Hero Honda has also cut costs wherever
possible. At Kirni village, Aggarwal is holding a promotional event.

A few bikes have been trucked in for the day and are on display at the
panchayat office. Villagers take them for test-drives. Rajendra Prasad Mangal,
29, owns a medical shop and is on a tight budget and asks which bike would be
best for his needs.
Activities such as the one in Kirni have contributed to building goodwill
between village folk and the company.

After waiting for almost a year, insurance agent Vishnu Kumar bought a Hero
Honda Splendor Plus last month. He says the frequent service camps the
company organizes at Kirni played a major role in making up his mind.

Kumar has seen his business double after he bought his Splendor. “I can now
take my clients to Sawai Madhopur and back when they need to purchase their
insurance policies,” he says.

More competition could give Hero Honda a run for its money. For some like
Hajji Suleman Khan, working on his farmland an hour north of Sawai
Madhopur, Hero Honda is now the preferred choice. Asked what attracts him
to the company he says, “Sir, it’s the only name I’ve ever heard of.”

https://www.hindustantimes.com/business/hitching-a-ride-on-rural-
markets/story-eoIRwfG0QZo0RuwJ72RSAM.html

Hero Honda to focus on rural India

NEW DELHI: Hero Honda has worked out a major expansion strategy for the
rural markets and is planning to strengthen retail financing to support the
initiative, that could lead to setting up of its own finance arm.

Pawan Munjal, MD of Hero Honda, told TOI that rural market would be a
special focus area for the company as it is looking We have created a special
rural vertical to push growth and this would spearhead our expansion in the
rural market, Munjal said.at new growth areas to maintain sales momentum in
a shrinking market . Two-wheeler penetration in rural belts is still very low with
data shows that less than 10% of households own a two-wheeler . So there is a
large market to be tapped. The objective is to reach out to as many potential
customers as possible ,he said. As part of its strategy, Hero Honda is mapping
the demographic landscape to formulate region-specific modules to tap
customers at a very local level. For example , distinct strategies are being
evolved to leverage regional festivals such as Pongal and Onam in the south,
Gudi Padwa in Maharashtra, Durga Puja in the eastern region , Dhanteras and
Diwali in the north, Munjal said.
The company is also reaching out to opinion leaders. Village haats and mandis
are also being targeted to reach customers. We already have a strong presence
in the rural markets. We have had several initiatives and now we have created
a dedicated rural vertical , with which we are consolidating all these initiatives
and looking ahead Anil Dua, senior V-P said.

Munjal added that the company is tying up with new partners, including local
cooperative banks and financing units to have a robust financial model. Setting
up of an independent retail financing arm is an option, though Munjal said, no
final decision has been taken. If necessary, we can do it. It is something we
have to look at closely. Hero Honda already has a company Hero Honda
Finlease This is currently not in consumer finance and we might even look at
this if the need be,he said.

The company is also expanding its distribution network to support the rural
initiative. It has grown its network by over 50% over the last two years from
2,000-3,000 touch points, that include authorised dealerships, service and
spare parts outlets, and dealer-appointed outlets across the country. This
would be further expanded to 3,500 this year.

Bajaj Auto also has an aggressive strategy for rural markets and has set up a
separate dealer structure rural dealerships for this purpose.

https://economictimes.indiatimes.com/hero-honda-to-focus-on-rural-
india/articleshow/2989382.cms

Honda's New 100cc Bike For Rural India

Honda, the Japanese two wheeler manufacturer and the world's largest
motorcycle manufacturer is aiming to boost its market share in India by
launching new 100cc motorcycles. This strategy is clearly focused at increasing
Honda's sales in the rural market where 100cc motorcycles sell the most. After
Honda walked out of its joint venture with Hero Honda, the Japanese firm did
not have a motorcycle that sold well in the rural market.
The Hero Honda CD Deluxe and the Splendour are India's best selling 100cc
motorcycles. Other models in the same segment are the TVS Star City, Bajaj
Platina and the Discover.
Honda has now upped its plans to tap the rural motorcycle market. It has
already appointed five management teams headed by Japanese executives
who will create a decentralised marketing structure to push sales. Honda has
always concentrated on the urban market and this is the first time it is looking
closely at the rural market.

Reports say Honda is now working on a new model on the platform of the CD
100cc motorcycle. Hero Honda has become India's highest selling motorcycle
manufacturer as more than half its sales are derived from the rural market.
Honda owns the CD motorcycle brand name globally. It is expected to bring in
a new improved engine along with better designs. While Hero can use the CD
brand only till 2014, Honda can continue using it.

Honda is keen to tap this market as it believes it is not highly affected to global
economic sentiments. The success in the rural bike market is dependent
mostly on good monsoons. While Honda has not made an official statement
regarding its new models for the rural markets, it has only stated that it wants
to become a major player in the India two wheeler segment. It is an
understood fact that to achieve this goal, Honda has to make an impact in the
rural markets.

https://www.drivespark.com/two-wheelers/2011/16-honda-plans-100cc-
bike-rural-market.html

Honda To Expand In Rural Areas To Snatch

Market Share From Hero
Honda Motorcycles and Scooters India (HMSI) is setting up a new ‘rural
vertical’ to penetrate further in the rural markets to dethrone the current
leader Hero MotoCorp. Honda is working to improve its 100cc motorcycles and
also create a new entry level point for the company as it builds its distribution
network by adding 1000 new sales points within a year across the country, 70
percent of which will come in rural markets. Hero MotoCorp on the other hand
has its roots planted and boasts of a large rural distribution network. The
market is one of the key volume pullers for the world’s largest motorcycle
manufacturer by volumes.

The new rural vertical will comprise of 15 people who will oversee the strategy,
communication and implementation. The vertical will not only see the
communication in rural markets, but will also develop an all-new approach,
very different compared to the urban areas; while giving feedback to the R&D
department. Honda’s headquarters in Japan too feel the importance of rural
markets and the potential they offer. For Honda, rural markets contribute
about 30-33 percent of its overall sales today; and with the rural vertical in
place, the aim will be to take the market share to 45 percent over a period of
time.

Compared to other manufacturers like Hero which boast of 5500-6000 sales

touch points, Honda has only managed to reach half way with 2850 touch
points. The company is working on improving its presence and plans to have
4000 touch points by the end of 2015. Honda is also working to improve its
entry level offering the Dream series (Neo and Yuga) for the rural market. In
spite of an optimistic response, the sales from the motorcycles haven’t
matched the company’s high expectations. In the span of 18-24 months,
Honda managed to sell a total of 7.5-8 lakh units of Dream Series motorcycles
in the country.

Honda currently is flying high on the success of the Activa scooter, which was
the second best selling two-wheeler for FY2014 after the Splendor. While the
company did not confirm, a rural specific entry-level motorcycle could well be
on the cards from Honda to capture a larger market share. Honda managed to
sell around 36 lakh units of its two-wheelers in the last fiscal, but is still a
distant second when compared to 61 lakh units sold by Hero MotoCorp.
However, the rural vertical will help Honda close in on the gap faster.

https://www.motorbeam.com/honda-to-expand-in-rural-areas-to-snatch-
market-share-from-hero/
HERO MOTOCORP
Hero MotoCorp and Mahindra sales figures reveal how "Bharat may carry
India"

Hero MotoCorp recorded a 300 per cent sales growth last month as compared to May 2020
on the account of a strong demand in the rural market while Mahindra tractors sales grew
by 12 per cent last month.
Automobile sales figures for June 2020 have not given much to rejoice about. But every
cloud has a silver lining and so does this one -- the Indian automobile industry showed
significant growth in June 2020 as compared to May 2020. Several carmakers, including
Maruti Suzuki, Toyota, and Hyundai sold 3x vehicles last month as compared to May this
year. However, one of the most substantial growths registered last month by an automaker
belonged to Hero MotoCorp, which sold four times as many two-wheelers in June 2020 as it
did in May 2020. The company sold 450,744 units last month as compared to 112,682 units
in May 2020, noting a massive 300 per cent sales growth 
But it must be noted that Hero MotoCorp registered 27 per cent YOY sales degrowth last
month; it had sold 616,526 units of bikes and scooters in June 2019. Nonetheless, a month
on month spike of four times is a significant jump in vehicles sales, especially during the
existing scenario where coronavirus pandemic and its economic impacts have lowered the
buying sentiment. Industry experts were already hoping for two-wheeler sales to grow as
fear psychosis is pushing many people away from using public transportation. Another
reason for Hero's sales picking pace in June is an increasing demand in the rural market. The
company noted that a major part of the market demand for its two-wheelers is emerging
from the rural and semi-urban markets. This is on the account of economic stimulus and
other benefits announced out by the government, bumper Rabi crop, and forecast of a
normal monsoon. 
So, does this mean that India's rural market will have a significant role to play in reviving the
automobile industry? Well, many auto players seem to share this opinion, including Pawan
Goenka, Managing Director, Mahindra and Mahindra. Goenka, in a tweet, mentioned that
automobile demand in rural India is improving at a faster rate than in the urban markets.
As a matter of fact, Mahindra tractor sales in June 2020 were 12 per cent higher than the
same in June 2019. Tractor sales have largely remained robust even during the lockdown
period as the government had allowed their sales even before passenger vehicle
manufacturers could resume operations. Pawan Goenka had also mentioned in a tweet last
month that "Bharat may carry India", hinting that the rural markets will play a key role in
rolling the ball for the automobile industry as well as the Indian economy. 
https://www.timesnownews.com/auto/features/article/hero-motocorp-and-mahindra-
sales-figures-reveal-how-bharat-may-carry-india/614880
Hero Honda goes door-to-door in hinterland
Hero Honda Motors is accelerating efforts to tap rural markets as it gears up to sell a
whopping five million units in 2010-11. Already, four out of 10 Hero Honda bikes sell in rural
markets and in the next three years, one out of every two (50%) will be selling in the
hinterland.

No wonder then that the country’s largest two-wheeler maker has decided to begin a door-
to-door service facility for rural customers.

Called ‘Service Har Jagah’, this network will be based on specially customised bikes which
are fitted with necessary equipment to provide service on wheels in the interiors. Hero
Honda managing director Pawan Munjal said 600 fresh rural support executives are being
recruited for this purpose and this programme will support the company’s successful ‘Har
Gaon Har Aangan’ drive where village elders, sarpanchs, headmasters and aanganwadi
workers were contacted to enhance bike sales.

More than 7,500 villages will be covered every month under the rural service initiative on a
regular basis and will attend to over 70,000 customers. So far, 1,100 customised bikes for
servicing remote areas have been introduced.Munjal said that though the two-wheeler
market has shown good volume growth even during the recent months of global slowdown,
penetration levels leave a lot of scope for further growth.

“Even today rural penetration for motorcycles is just 7% and in the urban areas between
21% and 25%. This gives us immense opportunity for growth.”The number of touch points
(dealerships plus sales and service outlets) are already up by 50% to 3,000 and another 500
would be added by March.

A majority among the new touch points would be coming up in the hinterland, tier-II and
tier-III towns and suburbs of larger towns, indicating a subtle yet extensive shift in the
company’s strategy towards addressing newer two-wheeler consumer.   
Munjal said that some years back, Hero Honda had customised some CD 100 bikes to suit
rural road conditions but now that the road infrastructure is improving there is no longer
any need to deliver any specialised products for the rural markets.

To a question on capacity expansion, Munjal said that Hero Honda’s three manufacturing
facilities (two in Haryana and one in Uttaranchal) are being used almost fully now so there
was the need for setting up another manufacturing plant.

“Our teams have begun assessment forsetting up the fourth greenfield facility…at present,
we look at optimum capacity addition of 2,000 units per day…we did show interest in setting
up a facility in Rajasthan even before the Uttaranchal plant was set up, but possession of
land posed a challenge. We still don’t have the land,” Munjal said.

https://www.dnaindia.com/business/report-hero-honda-goes-door-to-door-in-hinterland-
1332166
Hero Honda steps up rural touch-points

Over 500 rural sales executives of Hero Honda dealers are now busy meeting the sarpanch,
the headmaster and the anganwadi workers in villages all over the country. They are also
visiting potential customers at their homes, inviting them to drop in at the company’s
dealerships which might be located a few kms away.

The frequency of these visits has increased these days, with Dussehra and Diwali
celebrations round the corner. These festivals account for almost a fifth of the total annual
sales of the country’s largest two-wheeler maker.

The poor monsoon this year doesn’t worry Anil Dua, senior vice president (marketing and
sales), Hero Honda. “We are confident of surpassing last year’s sales of 600,000 two-
wheelers during Dussehra and Diwali by a long shot,” Dua says. The company is ready to roll
out its on-ground activation for the rural customers and has doubled its touch-points in rural
areas from 2,000 in 2006 to nearly 4,000.

The on-ground activation is actually the last leg of Hero Honda’s rural marketing efforts. The
first leg is its Usage & Attitude studies, which are conducted by the company’s in-house
research team once in every two years. “The study captures every aspect of the potential
customers’ lives. It tracks aspects like the level of awareness of brand Hero Honda, the
current modes of transportation, what is the expectation of the customer from motorcycles
etc,” says Dua.

The company is also doing Rural Footprint studies on a quarterly basis. “Under this, we chart
the events that will take place in villages. The core idea is to take the brand to the customer
when he is in a happy mood. And these happy times are linked to good harvests, festivals
and marriages when there is cash in hand,” Dua says.

Thirdly, to ensure that the village customer doesn’t postpone buying a two wheeler just
because there’s no cash in hand, Hero Honda has entered into numerous vehicle finance
tieups with NBFCs, cooperative banks and regional rural banks. “We have 30 such tie ups,”
says Dua.

The other cornerstone of Hero Honda’s success with its Har Gaon, Har Angan campaign is
the choice of media vehicles. The company banks on good old Doordarshan for this. “DD’s
reach in the rural areas is a good enough bet to reach the target customer. We invest
heavily in cricket on DD,” Dua says.

Har Gaon Har Angan seeks to build an ongoing relationship with millions of households in
rural India, given that penetration of two-wheelers in rural India is only 8 per cent. And the
company had decided to seize the latent potential of this market by launching some of its
entry-level products which are tailored to suit the needs of the rural consumer like
adjustable suspension, strong headlights and good ground clearance.
Reasons that are good enough for rural sales contributing 40 per cent to the company’s
overall annual sales.

https://www.business-standard.com/article/management/hero-honda-steps-up-rural-
touch-points-109090300069_1.html

Long-term story of India, 2-wheeler industry remains intact: Hero MotoCorp

Two-wheeler industry faces short-term challenges due to the COVID-19 situation but the
overall India growth story remained intact, Hero MotoCorp said in its Annual Report for
2019-20.
Sharing information with company shareholders, Hero MotoCorp Chairman Pawan Munjal
noted that there remain ample growth opportunities for the company in domestic as well
international markets.
"The short-term business outlook remains uncertain due to the COVID-19 pandemic.
However, the long-term story of India and that of the two-wheeler industry remains intact,
strong and positive," Munjal said.
There are ample growth opportunities in India, as well as in the global markets to grow
company''s business to new heights, he added.
"The continuous expansion of our geographic footprint over the past five years to more than
40 countries now creates a platform to build scale beyond India," Munjal said.
The company''s investments in R&D over the past five years have been twice of that of other
players in the industry, Munjal noted.
"We are on the cusp of creating yet another world record, a historic milestone of 100 million
motorcycles and scooters in cumulative sales in FY21," he added.
Munjal said the company continues to remain debt-free and maintains a strong balance
sheet.
The company''s cash reserves have now reached Rs 14,096 crore, he added.
"The financial strength of the company augurs well and will help it to successfully navigate
itself into the future despite these trying times," Munjal said.
The two-wheeler major said it expects demand to be robust this fiscal with people expected
to opt for personal mobility amid coronavirus pandemic.
The company expects the domestic two-wheeler segment to stabilise in the next two three
months, it added.
"For FY21, we expect that the industry will witness greater two-wheeler demand due to the
customer''s need for personal mobility to maintain safety standards," Hero MotoCorp said.
The industry would stabilise by the festive season and the pent-up demand will provide the
much-anticipated boost to the industry, it added.
"Being a market leader, we should be well placed to capitalise on market shift. Whenever
business picks up, we will be ready and have the right products to meet demand," the
company said.
The company said it is of the view that in the short term, the economic cost of the lockdown
could prolong economic recovery in India even as the country unlocks and reopens for
business.
The company said that government initiatives like corporate tax rate cuts, cash transfers to
farmers, rural developmental spends along with RBI measures should facilitate growth.
India may be less integrated with the global value chain than the Association of Southeast
Asian Nations (ASEAN) countries, but it is not immune to the impact of global trade
uncertainties, the company noted.
The country''s exports have slowed down, even as imports of Indian goods have also faced a
moderate slump, it added.
"Irrespective of the current challenges, including the pandemic, the long-term growth story
of India remains intact. The demographic factor in the shape of a younger population,
increasing urbanisation, the rising aspiration of the youth, women''s increasing access to
education and employment, and potential of consumer credit remain the drivers of growth,"
Hero MotoCorp said.
It is important for India to navigate the next few quarters carefully before embarking again
on the road to stronger growth, it noted.
Despite the sluggish economic activity around the world during the year (2019-20), the
company said it continued to collaborate with partners to keep growing its global footprint.
"With the appointment of a new distributor in Peru, we have now expanded our global
footprint to more than 40 countries in FY20, up from just four countries in FY12," the
company said.
The company said has been following a market-specific strategy to further enhance its
presence in markets in specific geographies.
"For example, we plan to build on the momentum we have already gained in the Asian and
Latin American markets by launching new models in the 150-160cc category. Having grown
in double digit in Africa during FY20, we are sharpening our focus among the ''Boda-Boda''
(local two-wheeler taxi) riders," it noted.
In Bangladesh and Nepal, the company is deepening its financing network across markets
and strengthening the momentum, it said.
https://www.outlookindia.com/newsscroll/longterm-story-of-india-2wheeler-industry-
remains-intact-hero-motocorp/1897875

Hero MotoCorp sees robust recovery in July sales as rural demand picks up
Hero MotoCorp Ltd – the country’s largest two-wheeler manufacturer – on Saturday
reported a modest 3.9 % year-on-year (y-o-y) decline in domestic wholesale to 5,14,509
units in July, due to robust recovery in sales of entry level motorcycles in the rural markets
after the easing of the lockdown measures. On a sequential basis though, the company
continues to witness a sustained jump in dispatches from 4.5 lakh units in June and just 1.2
lakh units in May.

The New Delhi-based manufacturer restarted manufacturing operations at its factories in

Haryana and Uttarakhand from May 5. During the month, dispatches of motorcycles
decreased by just 2.32% to 4,78,666 units while the same for scooters also declined by
21.65% to 35,843 units, as sales in the urban markets is still subdued due to increase in
Covid 19 cases.
Hero’s exports also decreased significantly by 69% to 7,563 units in the month of May.

“The robust volumes have been driven by strong retail sales due to the positive market
demand. While there is cautious optimism on the demand trajectory going forward, sales
continue to be impacted by the micro-lockdowns in several parts of the country. For the
growth momentum to continue, it would be pertinent for state and local authorities to
provide a stable and consistent business environment as the situation evolves," the
company said in a statement.
Mint reported on June 9 that Hero expects recovery in rural markets to be faster than
anticipated in the coming months and plans to increase production to more than 4 lakh
units in June.
Investors have been bullish about the prospects of the Pawan Munjal-led company in the
near term since it is likely to benefit from a shift in demand towards entry and executive
segment motorcycles because of a quicker recovery in demand in the rural areas and
increasing preference for personal mobility on fears of contracting infection.
Despite witnessing decent recovery in retail sales, auto makers like Hero MotoCorp are
struggling to ramp up manufacturing due to disruption in supply chain networks. Sporadic
lockdowns in different states, rising Covid-19 cases and increased scrutiny of imported auto
parts from China have also caused major problems for automakers and their suppliers.
https://www.livemint.com/companies/company-results/hero-motocorp-s-july-wholesale-
reports-robust-recovery-as-rural-demand-picks-up-11596281731076.html
Hero forecasts rural revival, boosts output
An increase in rural demand will help Hero MotoCorp, the leader in entry-level motorcycles,
as it garners almost 60% of domestic sales from rural markets.
Hero MotoCorp Ltd will likely produce over three times more vehicles in June compared
with May, said three people aware of the plans, as India’s largest two-wheeler maker
sharply ramps up production on expectations of a rebound in rural demand this year.
The New Delhi-based company plans to manufacture more than 400,000 motorcycles and
scooters this month, up from the 112,000 vehicles it made in May, the people said,
requesting anonymity. This month’s production would still lag the 600,000-650,000 two-
wheelers Hero MotoCorp produced each month before the company was forced to shut its
factories in late March. The plants reopened on May 4. The increased output in June would
help the automaker achieve around 70% of its pre-Covid-19 levels of capacity utilisation by
the end of June or start of July.
The company led by Pawan Munjal expects rural demand to bounce back on a healthy
monsoon forecast, good summer crop and preference for personal mobility in the wake of
the coronavirus pandemic, which has increased the need for social distancing, said the first
person cited above. An increase in rural demand will help Hero MotoCorp, the leader in
entry-level motorcycles, as it garners almost 60% of domestic sales from rural markets. The
management urged its component suppliers last week to be ready as it is witnessing robust
recovery in retail sales after lockdown restrictions were relaxed, the people cited above
said. The company has been selling 17,000-18,000 vehicles each day across states.
“As per our policy, we do not give out forward guidance on volumes, nor do we comment on
speculative market information,” a Hero MotoCorp spokesperson said in response to a Mint
query. Competitors Bajaj Auto Ltd and Honda Motorcycles and Scooters India Pvt. Ltd are,
however, yet to decide on a significant increase in manufacturing in the coming months.
“Tractors and two-wheelers are likely to see relatively faster recovery in the second half of
this fiscal. Both segments benefit from a bumper rabi production and a normal monsoon,
which augur well for rural incomes. Within two-wheelers, which have a lower replacement
share of 50% and lower finance penetration of 35-40%, motorcycles are expected to fare
better, riding on rural demand,” a Crisil report said on 28 May.
The second person mentioned above said Hero has been aggressive with production
forecasts since it expects rural demand to rebound, but it remains to be seen whether it
actually manages to achieve the projections.
https://www.hindustantimes.com/business-news/hero-forecasts-rural-revival-boosts-
output/story-ODiAwsabEQyLvUwcd5sYgM.html

Hero MotoCorp to invest ₹10,000 crore in research and development, other

activities
Announcing that the company’s Vision 2020 will “be the future of mobility”, Hero MotoCorp
Chairman and Managing Director Pawan Munjal said the company also aims to be carbon
neutral by 2030.
The country’s largest two-wheeler maker Hero MotoCorp on Tuesday announced
investment of ₹10,000 crore over the next 5-7 years on various activities, including research
and development and setting up new manufacturing facilities.
Announcing that the company’s Vision 2020 will “be the future of mobility”, Hero MotoCorp
Chairman and Managing Director Pawan Munjal said the company also aims to be carbon
neutral by 2030.
“Today even as we continue to rationalise our costs, we will not leave any stone unturned to
realise our Vision of ‘The Future of Mobility’.
“Over the next five to seven years, we would be investing around ₹10,000 crore in research
and development of alternative mobility solutions, modern, state-of-the-art, sustainable
manufacturing facilities, network expansion, and brand building across the globe,” Mr.
Munjal said.
He said ever since the company started its solo journey in 2011 after parting ways with
Japan’s Honda, Hero MotoCorp has invested USD 1 billion on new plants, machineries and
product development while another USD 600 million was pumped into R&D.
Munjal said, later this year the company expects to cross 100 million cumulative sales since
the company started its journey way back in 1985.

Hero MotoCorp on Tuesday launched BS-VI compliant versions of its Glamour motorcycle
model priced at ₹68,900 and ₹72,000 and Passion Pro bike priced at ₹64,990 and ₹67,190.
The company also unveiled premium bike Xtreme 160R which will hit the markets in March.
Sharing the company’s sustainability targets, he said Hero MotoCorp aims to be carbon
neutral by 2030; waste neutral by 2025 and 500 per cent water positive by the same year.
Munjal also stressed on the company’s ambition to become a force to reckon with in global
landscape and said the company is now exporting to over 40 countries as compared to just
four when it started the solo journey in 2011.
There has been a lot of innovation by the company’s global partners and more will come, he
said adding “sooner than later we will find our rightful place in global automotive business”.
He further said, “Changing times call for a change in structure. So, to address the new,
emerging trends, we have created a separate vertical — the Emerging Mobility Business
Unit (EMBU) that is working on a range of mobility solutions for the future.”
https://www.thehindu.com/business/Industry/hero-motocorp-to-invest-rs-10000-crore-in-
rd-other-activities/article30857957.ece#:~:text=The%20country's%20largest%20two
%2Dwheeler,setting%20up%20new%20manufacturing%20facilities.

Mahindra & Mahindra

What makes M&M's Scorpio as highest selling SUV brand

In the auto sector, SUVs always has a special image. Macho, tough, for all roads and seasons
is what one usually associates with these set of wheels. SUVs in India have a tough terrain to
navigate given that competition means a traffic jam of car brands on the road. Its in this
context that a SUV brand like Scorpio deserves mention. 7 years since its launch, Scorpio still
continues to fire on all cylinders riding on a classy product, different to advertising and
competitive pricing.
In the premium SUV market, Scorpio is today the highest selling brand, clocking sales of
3,300 plus month-on-month with a market share of 31% last fiscal. The figures, says Vivek
Nayer, Sr VP - marketing (automotive sector), Mahindra is because of the strong guerrilla
marketing and consumer engagement strategy.
The Scorpio launch in 2002 redefined the SUV category. We pitted the brand against cars
popular in the country back then. We consciously created print ads for the brand which put
down cars, he says. The brands website, mahindrascorpio.com receives an average of 1.2
lakh visitors every month of which 60,000 are unique and every new launch triggers an
increase in the figure
It is not by chance that the brand has managed to transcend boundaries, digital or physical.
From celebrity associations to auto show to adventure events; Scorpio has its finger in every
marketing pie possible. If that was not enough, Scorpio probably did the first conscious
Bollywood movie association with Mission Istanbul unlike the ubiquitous Mahindra Jeep
which was omnipresent in all yesteryear Bollywood flicks.
Another innovation is the S Collection an accessory collection comprising tshirts , caps, bags
and such targeted at Scorpio customers, on sale at Scorpio dealer showrooms. The
accessories are aimed at the Scorpio fan who currently cannot buy/ride one. Through the
accessories he can own a part of the brand, says Nayer.
The Scorpio brand played a vital role in breaking the conventional imagery associated with
the company. With its jeeps, tractors and then Bolero, Mahindra was seen as a strong player
with a variety of offerings in the small towns and rural India. It was a deliberate move to
position Scorpio as an urban brand, says Nayer. Targeted at the urban, upwardly mobile,
successful individuals, the brand imagery was to be seen as a cut above the rest and
passionate about driving.
Riding tandem with aggressive marketing is the R&D team, who are being pushed to come
up with something new all the time and make the product better. One of the success
mantras for the brand has been the introduction of product features, Nayer says. So be it
the title of the first talking car in the country or first BS4 compliant vehicle in the country,
the brand has accumulated all the credits.

https://economictimes.indiatimes.com/what-makes-mms-scorpio-as-highest-selling-suv-
brand/articleshow/4908859.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Mahindra & Mahindra's ‘Live Young Live Free’ ad campaign makes a
comeback

Mahindra & Mahindra Ltd. (M&M), India’s SUV manufacturer, recently launched a sequel to
its popular television commercial, ‘Live Young, Live Free’ to showcase its complete portfolio
of SUVs, including all the recently launched SUVs. Targeted at those who seek varied
experiences, the new umbrella communication embodies the emotions of freedom and
adventure, and propagates the core value proposition of Mahindra SUVs to enable lifestyle
enhancing experiences.

Inspired by the original ‘Live Young Live Free’ score from the first campaign, the sequel uses
a melange of tunes such as Hard-rock, Dub-step, Carnatic, Hindustani & Folk, elevating it
from a song to an anthem running across the nation. As the leader in the SUV segment in
India, over the years Mahindra has built a strong portfolio of vehicle brands with
differentiated positioning and brand values.

The Live Young Live Free 2.0 film brings alive the unique proposition that Mahindra’s sports
utility vehicles offer and the film underlines the common Mahindra DNA, a thread that binds
the entire portfolio of SUVs. This film showcases different people, from different walks of
life enjoying their own adventures in a Mahindra vehicle across the breath-taking
landscapes of Ladakh, the serene lakes of Shillong, the dense forests of Assam and enigmatic
dunes of Jaisalmer. With its stunning visuals, the film aptly showcases the go anywhere
capability of Mahindra vehicles.
https://brandequity.economictimes.indiatimes.com/news/advertising/mahindra-
mahindras-live-young-live-free-campaign-makes-a-comeback/56689004
Mahindra launches digital campaign
‘Dhaakad’ for Scorpio
Mahindra has unveiled a new digital campaign ‘Dhaakad’ for its flagship SUV brand, the
Scorpio.

"Scorpio has been an iconic part of the Indian landscape. From movies to songs, its
silhouette has been emblazoned in the minds of the Indian audience. Our task was to create
engaging content that pays homage to this legend's fearless attitude and we thought music
was the way to take this forward. So we captured a slice of life from the Dhaakad lives of the
Scorpio owners and brought it alive on screen," Shormistha Mukherjee, co-founder and
director, Flying Cursor Interactive, said.
Independent digital agency, Flying Cursor Interactive, has conceptualised and executed the
film.
https://brandequity.economictimes.indiatimes.com/news/marketing/mahindra-launches-
digital-campaign-dhaakad-for-scorpio/70908036

Mahindra launches ‘Own-Online’ platform for purchasing vehicles

Mahindra & Mahindra Ltd. (M&M) has launched ‘Own-Online’, an end to end, online vehicle
ownership solution for its customers.
Own-Online has been designed to offer a transparent, seamless and contactless experience
from vehicle selection to delivery, the company said.
Through this service customers can finance, insure, exchange, accessorise and own a
Mahindra vehicle in four simple steps, from
their homes.

Veejay Nakra, CEO, Automotive Division,

M&M said, “The Own-Online platform,
allows the customer to own a Mahindra
vehicle in less time than it takes to get a
pizza delivered!”
“With our pre and post purchase online
solutions already in place, reimagining the
car purchase experience was a logical next
step for us,” he said.
In the recent times, online has been a
preferred purchase channel across categories and going forward, the online purchase of
vehicles is set to gain more traction, he added.
“We are ready to lead this change in automotive retail by providing many industry-first
experiences to our customers,” Mr. Nakra said.
Own-Online is a seamless solution where the customer can personalise their vehicles,
instantly generate an exchange, finance and insurance quotations in a few clicks and make
booking payment, making the car ownership journey end-to-end and online.
Mahindra’s pan-India network of over 270 dealers and 900 touchpoints is integrated with
the Own-Online platform through back-end technology and process cohesion.
This will enable a seamless and personalised end-to-end customer experience, offering
convenience of online purchasing and comfort of local assistance, the company said.
Dealerships have upgraded their procedures and processes and are trained to minimise
physical contact.
Additional precautions are being taken across the customer interaction processes such as
test drives, document collection and vehicle delivery to ensure high hygiene standards are
maintained.
For customers looking at exchanging their old cars, it offers an instant, real-time online
quotation for their old car in an easy and transparent manner.
Further, those opting for financing can check their finance eligibility & generate sanction
letter online.
https://www.thehindu.com/business/Industry/mahindra-launches-own-online-platform-for-
purchasing-vehicles/article31532067.ece

Mahindra XUV300 becomes Safest Indian Car

Who has given the rating?
This verdict has been given by Global NCAP. Global NCAP is an independent safety governing
body of cars in India.  Global NCAP is not owned by any car manufacturing company.  They
have yet not tested all cars available in the Indian car market. Find everything in detail about
Mahindra XUV300 as the safest Indian car below. Global NCAP has tested some popular cars
as of now. For the full list of vehicles visit here: http://www.globalncap.org/results/.  
Highlights
Mahindra XUV300 safest car, the Indian made car scored a 5-star rating in safety tests
conducted by Global NCAP.  This car scored a 5-star rating in adult occupant safety and 4-
star in child safety, making it the top safest car.  Tata Nexon too, another Made in India
product is just behind the XUV300 with similar results. 
Mahindra XUV 300 exteriors
The Mahindra XUV300 uses high-strength steel in its construction which has propelled
towards a higher safety rating.  Seven airbags, disc brakes on all the wheels, front and rear
parking sensors, ESP, roll-over mitigation and hill start assist. Many of these features are
provided right from the base variant and across the range. 
Global NCAP successfully tested 38 India-made passenger vehicles for safety between 2014
and 2020. We have already published an article on top unsafest cars in India based on
Global NCAP results. Tata Tiago, Tigor, Altroz and Nexon have also done quite well in the
crash tests. Many cars have got a 0-star and 1-star rating in safety too. 
Conclusion
Airbags and ABS have become compulsory now, thanks to the Indian Government.
Accidents happen randomly so you should give proper importance to the safety aspect of
the car. We at MotorOctane advice you to steer clear of the above-mentioned cars and
make a much more aware choice.  Insurance can take care of the car but an investment
towards a safe car can act as an investment of your own life.
https://motoroctane.com/news/206682-mahindra-xuv300-safest-car
Mahindra's automotive
division making shift from
showrooms to small outlets
Mahindra & Mahindra's automotive division, known for its sports utility vehicles, plans to
deepen service network in rural geographies by as much as 50 per cent in 18 months,
instead of focussing on dealerships with integrated service centres. The company will
expand its Mahindra Mitra Technician (MMT) network, started three-and-a-half years
ago.

The asset-light model, which has small two-bay service centres owned by local
entrepreneurs, will expand from 3,000 touch-points to 5,000. The rural push comes on
the back of a three-pronged strategy of increasing presence in rural Markets.

https://www.business-standard.com/article/companies/mahindra-s-automotive-division-
making-shift-from-showrooms-to-small-outlets-118020400788_1.html

Mahindra and Mahindra vehicle sales dip 79% in May to 9,560 units, exports
fall 80%
 Auto major Mahindra & Mahindra (M&M) on Monday reported a steep 79 percent decline
in total sales at 9,560 units in May.The company had sold 45,521 units in the same month
last year, M&M said in a statement.
In the domestic market, sales were down 79 percent to 9,076 units last month compared to
43,056 units in May 2019.
Exports during the period under consideration dropped by 80 percent to 484 units as
against 2,365 units in the year-ago month.
In the passenger vehicles segment -- which includes UVs, cars and vans -- it sold 3,867
vehicles in May, against 20,608 vehicles in the same month last year, down 81 percent.
In the commercial vehicles segment, the company sold 5,170 vehicles as against 17,879
units earlier, a dip of 71 percent.
"Our performance during May has been muted, due to the challenges the industry is facing,"
Veejay Ram Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said.
The company has opened 70 percent of its dealerships and retail sales have begun, he
added.
"We are seeing initial traction for our small commercial vehicles and SUV brands such as the
Bolero and Scorpio.
As new lockdown norms are being announced we are hopeful of demand gaining traction in
the coming months," Nakra said.
https://www.firstpost.com/business/mahindra-and-mahindra-vehicle-sales-dip-79-in-may-
to-9560-units-exports-fall-80-8434381.html

Tata Motors starts Q2 on strong note, riding

on passenger vehicles sales
During the month, the Tata group flagship sold 18,580 units as compared to
7,316 units a year ago
Passenger vehicle (PV) sales at Tata Motors are picking up pace after touching
a historical low in FY20. The maker of Tiago and Nexon saw dispatches race to
a two-year high in August.

During the month, the Tata group flagship sold 18,583 units against 7,316 a
year ago, a year-on-year jump of 154 per cent. Its previous high was in March
2018, when it sold 20,266 units. During the month, it has also seen its market
share jump 4.2 per cent to 8 per cent YoY.

The company’s innings in the competitive PV market has been nothing short of
a roller-coaster ride. That’s set to change, said Shailesh Chandra, president (PV
business), Tata Motors.

Chandra is confident the sales momentum that has kicked in since a few
months will be sustainable this time, as unlike the yesteryears, this growth is
being led not by one but all models. It also helps that four out of five models
are in segments (SUV and hatchback) that have remained relatively resilient to
the current market condition.

“All models launched in January have been accepted really well,” he said,
alluding to the new calendar year models of Nexon, Tiago, Harrier, and Tigor
and the addition of Altroz to the line-up.
Sales of the Harrier and Nexon have increased by 40 and 43 per cent,
respectively, compared to the monthly average sales of last year, he said.
Meanwhile, urban buyers, who were not willing to consider Tata-branded cars
and SUVs till a few years ago, have changed their course. The firm has seen
their contribution in its overall sales mix go up. “While sales in both rural and
urban markets are growing, the ratio of urban-to-rural has shifted by an
additional 3 per cent in favour of urban markets on account of an even higher
acceptance of our ‘New Forever’ range in the top 50 cities,” he said. Urban
sales accounted for 60-65 per cent in the pre-Covid months.

The trend for Tata Motors is a sharp contrast to others that have seen rural
sales rake in higher volumes. Top safety ratings, coupled with a contemporary
design, have really clicked with urban buyers, he added.

Puneet Gupta, associate director at I H S Markit, says what has worked in

favour of Tata Motors is a strong portfolio in the sub-Rs 10 lakh segment. “All
models are attractively priced and offer great value proposition,” said Gupta.
Relatively lower competition in the hatchback segment has been a blessing.

Chandra expects the launch of two new additional models — the Gravitas (a 7-
seater) and Hornbill (sub-compact SUV) over the next few months, to boost
sales.

https://www.business-standard.com/article/companies/tata-motors-starts-q2-
on-strong-note-riding-on-passenger-vehicles-sales-120090301659_1.html
Tata Motors pips Mahindra in August PV
sales, ranks 3rd

Auto major Tata Motors NSE 1.08 % (TaMo) is back in the reckoning with its
passenger vehicle portfolio and is now in the third position in the pecking order
over the last two months. Behind market leaders Maruti Suzuki NSE 0.26 % and
Hyundai Motors, Tata Motors has run up a healthy gap of 4,900-plus units over
Mahindra. Tata Motors sold 18,583 units of its passenger vehicles in August.
Mahindra sold 13,651 units. Experts maintain that TaMo’s Altroz and Nexon
are seeing strong demand with its style and contemporary design with the
southern and western markets recording the bulk of the sales. “Our ‘New
Forever’ range of cars and SUVs launched earlier this year have been seeing
consistent strong demand from both urban and rural areas across the country.
We are also witnessing growing preference among consumers in top 50 cities
for our cars. In August, we witnessed a record 154% growth in passenger
vehicle sales over August ’19. With the festive season approaching and our
portfolio made richer with new variants, we intend to sustain the momentum
gained,” said Shailesh Chandra, president, passenger vehicles business unit,
Tata Motors. However, UV major Mahindra has a strategy in place.
“We are confident we will come back with our strong presence in the UV
space. The current market share loss is a temporary phenomenon largely
because of the impact of Covid on our supply chain and new product
introduction”, says Veejay Nakra, CEO of Mahindra’s automotive business,
mentioning that profitable growth was our priority and not just market share.”
What is interesting is that Korean car maker, Kia Motors, which launched its
first product Seltos last August, could now challenge Mahindra over the next
couple of months. With sales of 10,845 units in August and its upcoming sub
compact SUV, Sonet, raking impressive booking numbers which could translate
into sales, Kia could be the surprise element in the PV segment. Experts said
that the BS-VI transition took longer for Mahindra as its portfolio was largely
diesel and the supply chain constraints disrupted its schedules. This was
contrary to other auto majors who had sufficient stock of BS-VI starting April.
So while there is demand, Mahindra was unable to meet supply, impacting
volume growth.

“As we improve our supply chain, production ramp up and new launches,
Mahindra is sure to see volume growth. Our new launches like the Thar and
the other upcoming launches like the W601 and the Z101 and our range of
best in class gasoline engines across our range of SUV’s will help gain volumes
in the urban markets too,” adds Nakra. Kia’s customer-centric approach and its
feature rich and future-proof attributes have paid off.

https://economictimes.indiatimes.com/industry/auto/auto-news/tamo-pips-
mahindra-in-aug-pv-sales-ranks-3rd/articleshow/77965829.cms

Rural, semi-urban demand propels vehicle

sales in July: Tata Motors
Retail sales of passenger vehicles and two-wheelers saw steady sequential
growth in July, as demand for entry-level cars and motorcycles continued to
rise in the rural economy. A good summer crop, healthy monsoon and fewer
covid-19 infections in rural and semi-urban areas contributed to the sharp
turnaround in sales.
However, year-on-year (y-o-y), showroom sales of passenger vehicles in India
declined by 25.19% to 157,373 units during the month due to covid-19-induced
disruptions, showed data released by Federation of Automobile Dealers
Associations (FADA) on Monday.
Retail sales improved sequentially from 126,417 units in June following
increased demand in rural and semi-urban markets, and a shift in customer
preference for personal transport to avoid infection. A similar trend was
witnessed in the two-wheeler and tractor segments as well.
Sales in the domestic market had plunged in the March-May period due to the
stringent lockdown measures imposed to contain the spread of the covid-19
pandemic.
As retail sales picked up following the easing of the nationwide lockdown in
May, most manufacturers are trying to ramp up production to meet demand.
However, a surge in covid-19 cases and lack of availability of manpower have
limited the ability of automakers to increase production.
Intermittent lockdowns announced in certain states have also affected
production and retail sales. Overall, vehicle sales during July declined by
36.27% y-o-y to 1,142,633 units.
Maruti Suzuki India Ltd’s retails during the months fell 20% y-o-y to 79,315
units, while Hyundai’s declined by 23.71% to 29,413 units, according to FADA.
Maruti witnessed a market share gain of 316 basis points (bps) to 50.42%,
while Hyundai reported a marginal gain of 36bps to 18.69%, it showed.
Interestingly, Tata Motors increased market share by 203bps to 8.10% with the
sale of 12,753 vehicles, while Mahindra & Mahindra (M&M) slipped to fourth
position with its market share contracting 451bps to 4.96% with sales of just
7,811 units. This is the first time the lobby group has released company-wise
retail data.
Ashish Harsharaj Kale, president, FADA, said assuming that there will not be
any further lockdown and reopening measures will continue, vehicle
registrations are mostly expected to improve from the numbers reported in
July.
“Demand continues to be a challenge coupled with supply-side constraints as
well constraints in retail lending from NBFCs. Normalcy in demand still seems
quite distant and not expected before the festive season. Despite the positive
trends in the rural markets, the annual outlook currently continues to be grim
with projected sales to witness a decline in the range of 15-35% across various
segments in FY21," added Kale.
As a result of the sudden halt in economic activity due to the pandemic, retails
of commercial vehicles also declined by a massive 72.18% to just 19,293 units.
Showroom sales of motorcycles and scooters also dropped by 37.47% to
8,74,638 units during the month. Retail sales though improved sequentially
from 790,118 units in June due to quicker recovery in demand for entry and
executive segment motorcycles in rural and semi-urban areas.
https://www.livemint.com/companies/news/rural-semi-urban-demand-
propels-vehicle-sales-in-july-11597110417564.html

Tata, Maruti, Honda expect sales to pick up

during the festive season
Leading automakers Maruti Suzuki India (MSI), Honda and Tata Motors expect
sales to pick up during the festive season, although there is uncertainty about
their performance this year on account of Covid-19 pandemic.
The country's largest carmaker MSI has seen sales improve month-on-month
from May till July, and expects offtake to remain robust during August as well.
The auto major, however, feels that the festive season demand would depend
on the Covid-19 situation.
"We are relieved that sales bounce back has happened but we will have to wait
and watch because a lot of this demand will be pent-up demand and we will
have to see how steady the demand would turn out to be," MSI Executive
Director Sales and Marketing Shashank Srivastava told PTI in an interview.
"I think it will depend on the economy and Covid scenario because car buying
is a discretionary purchase and requires positive sentiment," Srivastava added.
If Covid-19 situation improves, it would lead to improved sales and if somehow
the scenario deteriorates then the sales would also be impacted, he noted.
Srivastava said the festive season generally brings good sales as people are
more inclined towards spending during the period.
"That is why demand is more in festive season. So in any year festive season is
one of the better month for sales, but however this year we would expect
festive season to be good but then we are very careful in making this
conclusion as you can also have negative sentiment coming from Covid-19,"
Srivastava said.
So coronavirus situation will predominate as far as sentiment is concerned this
festive season, and therefore it is little bit uncertain what will happen during
the period, he noted.
In any case, the company is ramping up the production to cater to demand
while at the same time also strengthening finance options and digital medium
to help customers in buying process, Srivastava said.
The carmaker has seen steady demand emanating from rural areas in the last
few months and expects the trend to continue even in the rest of the fiscal.
"Rural sales now account for 40 per cent of the total sales. In fact we are now
also witnessing revival in urban centres as well," Srivastava said.
Similarly, Honda Cars India Ltd (HCIL) Senior Vice President and Director-
Marketing & Sales Rajesh Goel said the company is optimistic about the
upcoming festive period and expects demand to improve, further supporting
retail sales.
"Ever since lockdown opened up, we have been focusing on new launches and
refreshments in existing models including all new City, WR-V and Jazz to be
ready for the festive season.
"All these new models have helped us create fresh excitement in the market
and evoke customer interest. The response to our launches has been very
encouraging and we hope this trend will grow in the coming months," he said.
Goel said though the restrictions have been eased, Covid-19 cases are
constantly on a rise and there are mini-lockdowns and weekend restrictions
being imposed in many parts of the country.
"We have to continue with our efforts to overcome this challenge and adapt to
the start-stop method of operations. Currently, about 95 per cent of our
dealerships are open," he noted.
August 2020 Sales Analysis: Sequential
growth continues; Domestic sales improve
(Tata Motors)
Despite the historic zero sales in the first month of this fiscal year, the Indian
auto industry has witnessed a faster than expected month-on-month rebound
in the May to August 2020 period.

Now, five months down the road, major industry players in the passenger
vehicle and two-wheeler segment have finally reported their year-on-year
domestic sales in green, thanks to the low-base last year. And while the tractor
segment is treading its regular path of growth, the commercial vehicle
category is still being seen as the hardest to fight back.

Going forward, with subsequent easing down of supply chains, the industry is
pinning their hopes on the festive season but the recent resurgence in the
Coronavirus cases across the country is clouding the outlook for the fiscal year
FY 2020-21 on the whole.

Meanwhile, it must be noted that auto companies in India report their dispatch
to dealers as their monthly wholesale figures.

Passenger Vehicles

Market leader Maruti Suzuki India Limited (MSIL) saw an uptick of 17 percent
in its total (domestic + exports) sales, majorly riding on the entry-level mini
segment models where the carmaker reported the highest growth of 95
percent in the month of August 2020 over the same period last year.

Country’s second largest carmaker Hyundai Motor India Limited (HMIL)

highlighted that its latest models have contributed to its growth for August
2020. Tarun Garg, Director (Sales, Marketing & Service), HMIL said, “Good
response to the all new Creta, Verna, Tucson, Nios, Aura and recently launched
Venue has resulted in this performance.”

Tata Motors reported an exceptional growth of 154 percent at 18,583 units

sold in the domestic market last month as against the low-base of August
2019.
https://auto.economictimes.indiatimes.com/news/industry/august-2020-sales-
analysis-sequential-growth-continues-domestic-sales-improve/77877026

Tata Motors share rose 140% in five months,

here's why
Shares of homegrown auto maker Tata Motors have risen 139.50% in over five
months. Tata Motors share, which fell to a 52-week low of Rs 63.60 on March
24, touched Rs 152 intra-day today doubling investor wealth during the period.
In comparison, benchmark Sensex gained 44% since March 24.
However, Tata Motors share gradually slipped from nearly Rs 600 level in
September 2016 to Rs 63.60 on March 24 hit by lower growth in sales
compared to competitors amid the global slowdown and coronavirus
pandemic.
A fall in net profit from Rs 13,986 crore in fiscal ended March 2015 to a loss of
Rs 12,070 crore has taken a toll on the Tata Motors share. Earnings per
share (EPS) too has deteriorated  from Rs 42.99 for March 2015 fiscal to a
negative Rs 33.55 in last fiscal.

Why Tata Motors share has gained 13% in

two days
With economic slowdown affecting global economy, sales of its subsidiary
Jaguar Land  Rover too have fallen in ley markets such as China, US  and UK.
The deteriorating financial state of the home-grown auto firm is also an
aftereffect of rising debt. On November 12, 2019, Moody's Investors
Service said country's largest automobile manufacturer faces acute challenges
in sluggish economic growth, weak liquidity, and tight financing norms.
Tata Motor's passenger vehicle (PV) sales volumes fell 41 per cent in the first
half of 2019-20, while volumes of commercial vehicles declined 29.5 per cent
over the same period.
In Q1 of the current fiscal, the Tata Group firm widened consolidated net loss
to Rs 8,443.98 crore against a net loss of Rs 3,679.66 crore in the year-ago
quarter hit hard by the coronavirus pandemic.
However, Motilal Oswal was optimistic about the recovery of the firm from the
fourth quarter and said, "We expect losses to gradually reduce in coming
quarters and turn profitable only from 4QFY21. We have lowered our FY21E
loss estimates by 8% to factor in faster JLR volume recovery and cost cutting
initiatives."
Post Q1 results, the company management highlighted that Q2FY21 will be
significantly better than Q1FY21 in terms of volumes and profitability.
The optimism around financial performance of the stock has helped it recover
partially.
In August-end, the top management of Tata Motors announced to reduce its
total automotive debt of around Rs 48,000 crore as of FY2020 to the levels of
zero in the next three years. The announcement also helped the stock rally in
last one week.
Rise in sales during the last few months due to availability of different models
in the firm's line up has also led the stock higher since  March.
BusinessToday.In spoke to analysts about the reasons as the stock has doubled
in the last few months and here's what they said.
Vinod Nair from Geojit Financial said, "There are three levers that we have
identified for growth. Firstly, passenger vehicles are rising after touching a
historical low in FY20. All face lift models launched in January 2020 have been
accepted well by the market. Nexon, Tiago and Tigor and the addition of Altroz
are highly appreciated by the end consumers. Sales of the Harrier and Nexon
have increased significantly compared to the monthly average sales of last
year.
Meanwhile, urban buyers are now willing to consider Tata-branded cars and
SUVs. In August, passenger vehicles registered a volume growth of 154% YoY.
From April to July, the company has improved its domestic car market share
from 3% to 6%, respectively.

Secondly, the auto firm said it would reduce group automotive debt of Rs
48,000 crore ($6.4 billion) to zero in the next three years. This has further
boosted confidence in the stock.
The third lever is defence. Tata is one of the largest providers of logistic
vehicles to the armed forces, and will continue to position mobility products
and solutions in an accelerated manner. We believe any structural change
would re-rate the valuation. The stock has corrected from its 3 year high of Rs
432, due to lower sales from JLR. On a standalone basis, the stock is currently
trading at 16 times, which is 13% discount to its 3-year historical average.
Currently, we have a hold rating on the stock."
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak
Securities said, "August monthly PV sales of Tata Motors rose to 18,583 units
against 7,316 a year ago (YoY rise of 154%). Unlike past, the firm now has a
diversified product portfolio in the personal vehicles space with brands such as
Nexon, Tiago, Harrier and Altroz.
JLR has introduced project Charge Plus with a focus to save additional GBP 3.1
bn (from GBP2.1 bn earlier) till FY21E. On the EV space, the company continues
to move ahead with the launch of series of plug-in hybrid vehicles by the end
of FY21."
Abhijeet Ramachandran from Tips2trade said, "Tata Motors stock price has
done well as overall risk appetite towards high risk sectors including auto has
clearly returned. Even though the stock price has moved up based on the
management's commitment of reducing the debt burden considerably over the
next few years, we advise that investors should book some profits at current
levels as the stock is technically in overbought zone. A correction till Rs 120-
130 levels can be looked at for re-entry at higher targets of  Rs 160-180 in the
coming months."

https://www.businesstoday.in/markets/company-stock/tata-motors-share-
price-rises-jlr-sales-debt-coronavirus-slowdown/story/415409.html

Bajaj Auto posts 9 pc fall in total sales in

August

Bajaj Auto NSE 0.52 % on Wednesday reported a 9 per cent fall in its total
vehicle sales at 3,56,199 units in August.

The Pune-based automaker had sold a total of 390,206 vehicles in August

2019.

Total domestic sales in August stood at 1,85,879 units as compared to 2,08,109

units in the same month of 2019, a drop of 11 per cent, Bajaj Auto said in a
regulatory filing.

Total two-wheeler sales declined 1 per cent to 3,21,058 units as against

3,25,300 units in Aug ..

https://economictimes.indiatimes.com/industry/auto/auto-news/centre-
states-must-lower-car-ownership-cost-rc-bhargava/articleshow/77969929.cms
Two-wheeler sales decline narrows in July,
considerable improvement over June
Wholesale of two-wheelers from factories to dealerships by five of the
country’s leading manufacturers recovered to almost 90% of last years’ levels
during July as pent-up demand and the need for personal mobility gained
traction with movement restrictions easing across the country.

Five leading two-wheeler makers, namely Hero MotorCorp, Honda 2Wheelers,

TVS Motor NSE 1.50 %, Bajaj Auto NSE 0.52 % and Royal Enfield cumulatively
despatched over 1.2 million vehicles to their dealerships a ..

Rival Honda Motorcycle and Scooter India’s (HMSI) executive stressed the
same point. While the company’s sales continued to grow sequentially since
May, “Intermittent regional lockdowns across India slowed down the retail
momentum gained in June as the percentage of operational network dropped
to 80% in July,” said Yadvinder Singh Guleria, Director – Sales & Marketing,
HMSI. “With India moving to Unlock 3.0, we are cautiously optimistic of the
demand.

https://economictimes.indiatimes.com/industry/auto/two-wheelers-three-
wheelers/two-wheeler-sales-decline-narrows-in-july-considerable-
improvement-over-june/articleshow/77331157.cms
Coronavirus impact: Bajaj Auto total sales
drop 33 per cent to 2,55,832 units in July
Bajaj Auto NSE 0.52 % on Monday reported 33 per cent fall in its total sales at
2,55,832 units in July 2020.

The company had sold 3,81,530 units in the same month a year ago.

Domestic sales in July this year were at 1,58,976 units as against 2,05,470
units, down 23 per cent, Bajaj Auto said in a regulatory filing.

Total motorcycle sales stood at 2,38,556 units, a decline of 26 per cent, as

compared to 3,22,210 sold in July last year.

Total commercial vehicle sales were at 17,276 units as against 59,320 units in
the same month last year, down 71 per cent, the company said.

Exports in July declined 45 per cent to 96,856 units as against 1,76,060 units in
the corresponding month last year, it added.

https://economictimes.indiatimes.com/industry/auto/two-wheelers-three-
wheelers/coronavirus-impact-bajaj-auto-total-sales-drop-33-per-cent-to-
255832-units-in-july/articleshow/77327170.cms

Two-wheeler sales on recovery path across domestic, export markets: Bajaj

Auto

Bajaj Auto NSE 0.52 % is witnessing a strong revival in demand for two-
wheelers in the domestic as well as international markets, even as it continues
to face headwinds in the three-wheeler segment, a senior company official has
said.

The company, however, expects to have a much clearer trend at its disposal by
the next month-end to see whether the current demand for two-wheelers is
just a pent-up demand from previous months or the industry really is back on a
revival path.

"We are seeing month-on-month improvement in sales. There was no sale in

April while the decline was very large in May. June was significantly better than
May and July is much better than June," Bajaj Auto CFO Soumen Ray told PTI.

The demand scenario is coming back pretty sharply and it could be a pent-up
demand as well, so the clarity would emerge only in August, he added.

In April-June, the company sold 1,85,981 units in the domestic market, down
69.55 per cent from 6,10,936 units in the same period last year.

Ray, however, noted that the domestic three-wheeler segment will take some
time to revive.

"Such vehicles are mostly bought by taking loan. So why would someone like to
start an EMI when there is no business? Passenger three-wheeler recovery will
happen once this once these lockdowns end," Ray said.

The company' CV sales (three-wheelers) in the domestic market during the first
quarter of the current fiscal plunged by 93.87 per cent to 5,282 units as against
86,217 units in the April-June period of the last fiscal.

When asked if the company expects things to turn around by festive season, he
said: "Certainly, hope so, there is no reason why it should not happen.
However, we will have to see August. If we have reasonably strong August
then we are set for a good festive season."

He said that company's Waluj (Aurangabad) plant is operational and there

were only a very few workers who were in quarantine due to COVID-19.

The factory is currently running with capacity utilisation of around 65-70 per
cent, Ray said.

When asked if the company had earmarked any capex on capacity expansion
this fiscal, he said: "Our installed capacity is 63 lakh units per annum and right
now we are operating at sub 50 lakh. Last year, we did around 48 lakh units so
there is no question of putting up additional capacity."

On exports, Ray said that almost every market the company caters to has been
impacted due to the coronavirus pandemic.

"Fortunately, we have an order book and we continue to deliver. In retail

terms we are witnessing similar phenomenon as we are seeing in India. Two-
wheelers are coming back much faster than three-wheelers," Ray noted.

Bajaj sold over 2,13,000 units in the international markets in first quarter as
compared with 4,71,691 units in the same period last year.
KTM, in which Bajaj Auto has 48 per cent stake, is witnessing very strong
revival in countries like Germany, Australia and the US, he added.

During April-June, KTM reported sales of 33,220 units as compared with 38,267
units in the same period of the previous fiscal.

https://economictimes.indiatimes.com/industry/auto/two-wheelers-three-
wheelers/two-wheeler-sales-on-recovery-path-across-domestic-export-
markets-bajaj-auto/articleshow/77179528.cms

August auto sales: Hero Moto clocks in 7%

sales while TVS and Bajaj Auto show stronger
recovery compared to July
The Indian two-wheeler manufactures are seeing signs of a turnaround from
the lockdown woes, with sales picture improving amidst increased demand for
personal mobility.

India’s largest two-wheeler maker Hero MotoCorp sold nearly 7% more bikes
and scooters in August than it did last year during the same period.However,
even though TVS and Bajaj weren’t able to match last year’s August sales, they
sold more units than they did in July last month.

Hero said it is witnessing strong retail off-take and is currently operating in a

pull-market with rural and semi-urban centres driving demand.

“With August marking another step forward in the market's recovery, the
company cautiously anticipates sales to continue their upward trajectory with
favorable factors such as the upcoming festive season, increasing consumer
confidence and continued government policy support,” it added.

The company also added that its latest addition to the range of premium
motorcycles – the Xtreme 160R – received positive feedback from the
customers. It has also led to an increase in the company’s premium market
share.

The numbers from Bajaj also showed a similar trend. Although the overall sales
were down 9% with the three-wheeler segment being the major sales drag
(down 46%). But the recovery was stronger on a monthly basis. It registered a
growth of 28% MoM

https://www.businessinsider.in/business/auto/news/august-month-bikes-and-
scooters-sales-number-of-hero-motocorp-bajaj-and-
tvs/articleshow/77872298.cms

Motorcycles market still has room to grow |

Emerging players Caravela, Bajaj Auto,
Honda Motor
A latest survey on COVID-19 Outbreak-Global Motorcycles Market is conducted
to provide hidden gems performance analysis. The study is a perfect mix of
qualitative and quantitative information covering market size breakdown of
revenue and volume (if applicable) by important segments. The report bridges
the historical data from 2014 to 2019 and forecasted till 2025*. The outbreak
of covid-19 in global market haves made companies uncertain about their
future scenario as the prolonged lock-down finds serious economic slump.
Some are the key & emerging players that are part of coverage and have being
profiled are Caravela, Bajaj Auto, Honda Motor Co., Ltd., Vento, Italika &
Yamaha Motor Co Ltd.

Two Wheeler Sales Aug 2020 – Hero, Honda, Bajaj, TVS, Royal Enfield, Suzuki

After several months of negative growth, two-wheeler segment has registered

strong sales in August 2020 Speaking about the six two wheeler brands in
India, who have revealed sales as well as exports data for Aug 2020 – YoY
growth is 2.78%, up from 14,53,723 units sold in August last year to 14,94,176
units sold in August 2020. MoM sales are up 28%, as compared to 12,27,745
units sold in July 2020.

Bajaj leads Exports Aug 2020 – 59.37% Market Share At number three is Bajaj
Auto with total sales (domestic + exports) of 321,058 units in August. YoY sales
are down 1%, as compared to 325,300 units sold in the corresponding period
last year. In the domestic market, a total of 178,220 units were sold in August,
which is YoY gain of 3%. MoM sales have also improved by 17%, as compared
to 152,474 units sold in July 2020. Bajaj exports in August dropped by 6%, from
152,276 units in August last year to 142,838 units in August 2020.
https://www.rushlane.com/two-wheeler-sales-aug-2020-exports-
12374372.html

Flurry of lockdowns interrupted recovery in

July 2nd half: Bajaj Auto

The flurry of lockdowns across the country in many major cities and states
interrupted the recovery in the second half of July, according to Rakesh
Sharma, Executive Director, Bajaj Auto. "As a result the outcome in July was a
bit lower than June retails," he added. In an interview with IANS, Sharma said
the demand for motorcycles saw smart recovery to previous year's levels by
end June.

On the target for sales, he said "At the start of the quarter, our plan was to
achieve cumulative sales of 1 million vehicles between domestic and export,
including motorcycles and 3 wheelers. So far, we have achieved sales of just
over 2,50,000 vehicles, including three-wheelers in July. Hence, barring
unforeseen issues caused by Covid, we should be in line to achieve our Q2
objective of 1 million vehicles," Sharma added. Pent up demand is playing a
major role in the recovery. "Certainly there is a strong element of pent up
demand as there was a blank out of retails for almost 60 days. This has been a
major factor in driving the rapid recovery to normalcy witnessed in June and
early July," he said.

He added that the experience of June and July suggests that demand can stage
a recovery quite rapidly and is strongly as well as singularly dependent on the
progression of COVID and the administration's response to it. "Hence it is
difficult to make forecasts. Our approach is to manage our business in shorter
time horizons and recover faster than the industry," Sharma said. The three-
wheeler segment is yet to pick up across domestic markets, he said. "With
people working from home or avoiding the public transport, the demand for
three wheeler transportation has taken a hit. This has severely impaired the
earning power of 3 wheeler drivers and owners which weakens their ability to
take loans or service them. Hence the recovery in 3 wheelers is very poor at
only 40% levels," he said. Sharma said there is no evidence of downtrading.
Bajaj Auto offers a range of motorcycles, starting from the affordable CT 100
and Platina to the KTM 390 series, priced above Rs 3 lakh. "We have not seen
preference shifting towards CT100 kick-start, which is the most affordable
motorcycle in the industry. On the contrary our new introduction ?? the Pulsar
125 has outperformed all brands despite being the most expensive 125 cc
motorcycle in the market," he added.

August Auto sales: Improvement on festive

demand optimism; tractors, two-wheelers
lead
The automobile companies seem to be coming back on track. At least the
August auto sales data seems to suggest. The sector witnessed increased
demand for two-wheelers and tractors during the month driven by signs of
early festive kick-off with Onam and Ganesh Chaturthi and increasing
preference for personal mobility and better rural growth on decent
monsoon.
The country’s largest two-wheeler manufacturer Hero MotoCorp saw its
sales rising over 7 percent YoY and said that it is witnessing strong retail
off-take and is currently operating in a bull market with rural and semi-
urban centers driving demand.
“With August marking another step forward in the market's recovery, the
Company cautiously anticipates sales to continue their upward trajectory
with favorable factors such as the upcoming festive season, increasing
consumer confidence, and continued government policy support,” Hero
MotoCorp said.
Domestic sales for Bajaj Auto and Honda Motors also saw an uptick in
August.
Among passenger vehicles, Maruti Suzuki registered a 17 percent year on
year jump in total sales led by mini cars comprising such as Alto and
WagonR whose sales rose 94.7 percent.
Tata Motors and Hyundai Motors also witnessed robust growth in the
domestic market in August 2020.
The management of auto companies remained optimistic about the
demand to improve going ahead due to the second phase of the festive
season, restarting economic activities, and the subsequent easing of supply
chains.
“At Mahindra, we continue to see good recovery in demand both for SUVs
and Pick-ups in the Small Commercial Vehicles segment. For the month of
August, we have registered growth in both SUVs and Pick-ups. We have
been able to meet the uplift in demand by managing the supply chain
challenges and going forward will continue to keep our focus on it,"
said Veejay Nakra, Chief Executive Officer, Automotive Division,M&M Ltd.
The commercial vehicle segment continued to reel under pressure and
witnessed a fall in sales in August. Meanwhile, tractor sales showed a
sharp uptick led by an increase in the Kharif sowing area, thereby
indicating a bumper harvest, bountiful monsoon, good rural cash flows,
and base effect.
Total tractor sales were up 70-80 percent YoY in August and were set for a
positive Q1.
“We expect the domestic two wheeler segment will continue to do well
driven by pent up demand and inventory push while exports are also
expected to improve from current levels. In the commercial vehicles space
we expect exports to normalize very soon while domestic sales will
improve only gradually as restrictions are eased in India,” said Jyoti Roy,
DVP- Equity Strategist, Angel Broking Ltd.
Jefferies said that the Indian auto industry saw a significant pick-up in
wholesale volumes in August.
“Recovery has set the stage for a turnaround in financial performance in
Q2,” the brokerage said.
Brokerage CLSA said that it continues to prefer tractor and 2-wheeler
stocks. It believes that export incentive reduction is a temporary headwind
for Bajaj Auto and TVS Motor Company.
Meanwhile, Macquarie picks Bajaj Auto, Escorts and M&M within Indian
auto companies

Bharat leads the way

Six months after Covid-19 hit India, there is a sliver of good news from the
rural hinterland. Some economic indicators suggest a bounceback may be in
progress. Fertiliser sales jumped 83 per cent in April-June to a record 111.61
lakh tonnes despite the nationwide lockdown. This time around, the all-India
planting area of paddy, at 22.02 million hectares, was higher by 17.3 per cent
on year, as on July 24. Most of the farmers in West Bengal, Uttar Pradesh,
Punjab, Haryana, Chhattisgarh, Odisha, Andhra Pradesh and Telangana are
dependent on rice for their income. Sowing is up nearly 39 per cent. Tractor
and two-wheeler sales are approaching levels of the previous year. Daily
tractor registrations are close to 90 per cent of FY20’s daily average. Total
tractor sales (domestic plus exports) during July 2020 were at 25,402 units, up
27 per cent from 19,992 units for the same period last year. Two-wheeler sales
also suggest a rebound, Bajaj Auto sold 146,695 motorcycles this June, 73.5 per
cent of the 199,340 units sold in the same month in 2019. However, Hero
MotoCorp, the world’s largest two-wheeler manufacturer, sold 514,509 units
of motorcycles and scooters in July 2020, a decline of 3.97 per cent as
compared to July 2019, suggesting that the growth in June was a combination
of pent-up demand and the need for personal mobility solutions.
Ashish Kale, president of the Federation of Automobile Dealers Association,
says there has been a genuine improvement in sentiment because a number of
positive factors have come together in rural India. “The rains have been good,
the central government is investing, sowing has been excellent and migrant
labour has returned to work in the fields,” he says. While some of the sales can
be ascribed to pent-up demand, they are also being driven by a combination of
available cash and existing need, he adds. Yet, the Society of Indian
Automobile Manufacturers predicts a 26-45 per cent slide in sales this year.
According to Kale, automotive dealers in rural areas are facing a supply crunch,
some models of two-wheelers are in short supply. A potentially positive note is
that the increasing sales in this category are despite a lack of available
financing, with the spread of the coronavirus, more people are investing in
their own means of transport.
https://www.indiatoday.in/magazine/the-big-story/story/20200831-bharat-
leads-the-way-1713628-2020-08-22

In spite of Covid 19, TVS Motor looks to gain

Speed in Performance bike market

TVS Motors began their journey of premium two wheelers on the road in 1982.
But, it became popular in 2005 with 150 cc bike TVS Apache.

And since then, it is primarily gaining pace and with the recently acquired
British legacy band Norton, and a high end 200 cc brand called Zeppelin on the
launch pad, it has created a boom in the market.

Company says, this down time provoked by Corona pandemic will not change
their strategy. Bikes costing more than 80,000 usually referred as Premium
bikes now consider for more than 25 percent that is 14 percent more than that
of seven years ago.

Not to mention, but incomes are punished due to this pandemic, but most
marketers consider this to be temporary. In fact, demand of automobiles,
mobiles is already increased.

For TVS, the premium push picked up speed in April this year when it acquired
Norton for 16 million i.e., Rs. 153.12 Crore. This British sporting motorbike
brand is expected to give TVS the classic racing buyer segment. 102 years old
brand Norton is especially dedicated to customer base in many countries, and
with the target segment of 850-1200 cc, that is much powerful and presently
not comparable to anything that exists in Indian market today.

Joint Managing Director of TVS, Sudarshan Venu said, “The Norton acquisition
is in line with our effort to cater to the aspirations of discerning motorcycle
customers. The immediate focus will be on the 21 developed markets in which
Norton is already present, after which TVS will look to expand to some key
developing markets such as India.”

Talking about TVS Apache series, TVS’s most reliable model has the market
share of around 23 percent in the premium motorcycle category, with around
3.5 million customers, mentioned company’s spokesperson. Company claims
TVS Apache RR310 (Rs. 2,44,799) is based on the BMW platform and it is one of
the most reliable and successful products in both domestic and export
markets.

https://krishijagran.com/industry-news/in-spite-of-covid-19-tvs-motor-looks-
to-gain-speed-in-performance-bike-market/

TVS Motor Aug 2020 Sales Report – Apache,

Jupiter, XL Super, Ntorq
Analysts say, TVS is the only player, other than Royal Enfield, that launched
products in the premium segment.

TVS Motor total sales of 287,398 units in Aug 2020 is down 1.05 percent, from
2,90,455 units reported in August 2019. TVS Motor Company reports 14
percent MoM sales growth in August 2020 up from 2,52,744 units in July 2020.
MoM sales growth is a pattern that’s endorsed by most manufacturers.

This is on account of the fact that when business restarted in May 2020 in a
phased manner, there were limitations galore. With every consequent review
of ease of business, lockdown limitations have further lifted with
manufacturers and dealerships depending on well-structured SoPs to ensure
staff and consumer safety.

Two Wheeler Sales

Total two-wheelers sales is reported at 2,77,226 units in August 2020, up 0.49

precent from 2,75,851 units in August 2019. Domestic two-wheeler sales fell
0.54 percent to 2,18,338 units from 2,19,528 units in August 2019. Motorcycle
sales grew 9.58 percent to 1,19,878 units in August 2020, up from 1,09,393
units in August 2019.
Scooter sales fell to 87,044 units at sales decline of 20.34 percent from
1,09,272 units in August 2019. Total exports fell marginally at 1.94 percent at
68,347 units, down from 69,702 units in August 2019. Two-wheeler exports
grew at 4.55 percent at 58,888 units, over 56,323 units exported in August
2019.

New Launches

In recent weeks, TVS Motor has carried out a few launches, as well as revised
vehicle price. TVS Jupiter ZX with disk brake and i-Touchstart, and Ntorq Race
Edition are new variant choices. The current price hike could be attributed
changing market conditions, input cost increase, and current economic factors.
The Indian two wheeler market is of mammoth proportions in terms of
demand and sales volume. Despite a pandemic slowdown, current sales trends
denote heightened activity. In the current scenario, sales is backed by multiple
factors. Deliveries that were deferred owing to lockdown are being dispatched.
To ensure financial freedom, a wider range of loan/financing options are now
on offer. However, it should be kept in mind that the two-wheeler market isn’t
completely dependent on vehicle financing. A good monsoon has improved
disposable income, and agriculture has faired well. Buying trends also put to
focus on markets outside of metros and big cities. In ensuring adequate
physical distancing, personal mobility options are now a consideration. And
then there’s the ever dependant festive season, a period that usually witnesses
improved sales.
https://www.rushlane.com/2020-ford-endeavour-sport-edition-
12374148.html

TVS Group enters composite space with

minority stake in Italian firm
According to SFHL, the strategic investment in MIND would enable the
company to facilitate the sharing of manufacturing excellence, systems and
automation, together with MIND's composite manufacturing expertise, and
support its expansion in the rapidly growing composite materials space.
Chennai, Sundaram Finance Holdings Ltd (SFHL), part of the $7 billion TVS
Group, on Monday said it has taken a minority stake in Italian company MIND
S.r.l, an automotive component maker in composite materials.

According to SFHL, the strategic investment in MIND would enable the

company to facilitate the sharing of manufacturing excellence, systems and
automation, together with MIND's composite manufacturing expertise, and
support its expansion in the rapidly growing composite materials space.

"The partnership with MIND is the first step for our group to enter the
composite domain where weight reduction is becoming more and more
important in the whole automotive and industrial domains," Director Srivats
Ram said.

The transaction would be completed, subject to regulatory approvals.

Globally, as auto-makers look for solutions to lightweight their vehicles, they

are increasingly turning to high-strength materials such as composites.

Composites are used extensively in motorsport and luxury vehicles, and there
is an increasing trend to leverage these materials in mass production and
electric vehicles due to the benefits in energy efficiency.

https://auto.economictimes.indiatimes.com/news/auto-components/tvs-
group-enters-composite-space-with-minority-stake-in-italian-firm/77593350

Business environment may remain

challenging this fiscal due to Covid-19: TVS
Motor

A very sharp decline in the first quarter of 2020-21 is expected, which may
partially alleviate in the following quarter, with any upside possibilities only
playing out in the later part of the year, TVS said.
NEW DELHI: TVS Motor Company expects business environment to remain
challenging for most part of the current financial year due to the coronavirus
pandemic with chances of some revival only in the later part of the year,
according to the company's annual report for 2019-20.

Sharing information with the company's shareholders, the two-wheeler major

said that good monsoon this year could lead to growth in the agriculture
sector, which may help in reviving the two-wheeler industry.

"In 2020-21, the economy will see significant challenges owing to the impact of
the COVID-19 pandemic and the resultant interruption to economic activity
which is beginning to reopen," TVS Motor Company said.

Restriction on public mobility and impact on many sectors of the economy will
affect gross domestic product (GDP), disposable incomes, consumer sentiment
and also the auto industry, it added.

"Consequently, a very sharp decline in the first quarter of 2020-21 is expected,

which may partially alleviate in the following quarter, with any upside
possibilities only playing out in the later part of the year," it noted.

Highlighting the likely impact of economic slowdown on its domestic business,

TVS Motor said consumers may like to conserve cash, in view of unforeseen
events like potential job loss and salary cuts.

This will lead to delay in purchase of all non-essential durables, and may pose a
risk to many industries in the manufacturing sector, including automobiles, it
added.

"This may result in delayed recovery of the two-wheeler industry. This could
lead to challenges in working capital management in the supply chain. The
company is cognisant and is advising dealers and suppliers to make prudent
choices in cost reduction and enhance working capital management," the
company said.

From the supply side, availability of manpower in tier-2 and tier-3 suppliers
affecting the supply of parts and daily operations are likely risks, it added.

The company, however, noted that economic activity and lifestyles will have to
be rebuilt factoring in coexistence with COVID-19 with social distancing and
work from home practices witnessing greater prevalence.

These new long-term practices of social distancing could see consumer

preferences change towards personal mobility, which could prove to provide
some opportunity, especially to the two-wheeler industry, TVS Motor
Company said.

"The company is cognizant of this opportunity, and well poised to leverage this
opportunity with its BS-VI offerings across the widest range of personal
mobility needs," it added.

TVS Motor plans Rs 300-crore capital expenditure amid Covid-19 pandemic

The company said it was planning to commercialise some of the intellectual
properties (IPs) to be built by start-ups through the company's Singapore
subsidiary.

TVS Motor said it had lined up a capital expenditure of Rs 300 crore and was
looking to invest Rs 75 crore in TVS Credit Services in 2020-21.

The company said it was planning to commercialise some of the intellectual

properties (IPs) to be built by start-ups through the company’s Singapore
subsidiary.

TVS Motor Chairman and Managing Director Venu Srinivasan expected the

second quarter to be much better, but he cautioned on how the rest of the
year would pan out as more cities were closing due to growing number of
Covid-19 cases.
TVS Motor said it had lined up a capital expenditure of Rs 300 crore and was
looking to invest Rs 75 crore in TVS Credit Services in 2020-21.
The company said it was planning to commercialise some of the intellectual
properties (IPs) to be built by start-ups through the company’s Singapore
subsidiary.

TVS Motor Chairman and Managing Director Venu Srinivasan expected the

second quarter to be much better, but he cautioned on how the rest of the
year would pan out as more cities were closing due to growing number of
Covid-19 cases.

“It will be very difficult to make an assessment about the coming year even
beyond a quarter,” he said. Gross domestic product (GDP) is expected to
decelerate to around (-) 5 per cent for the year and the impact of Covid will
continue for some time to come, he said.

“We are looking at a year where sales drop will be one of the biggest in the
Indian industry, be it automotive or engineering manufacturing industry,” said
Srinivasan.

He said the market was opening up gradually after the lockdown and the firm
looked to overcome supply chain problem in Q2.

https://www.business-standard.com/article/automobile/tvs-motor-plans-rs-
300-crore-capital-expenditure-amid-covid-19-pandemic-120080100047_1.html
Hyundai targets 30% growth in rural India
service volumes in 2020
In an attempt to strengthen its footprint in India and gain market share as it
launches a gaggle of new cars in 2020, Korean carmaker Hyundai Motor India
is applying a holistic strategy and plans to better its aftersales network to
complement its sales operations.

The Chennai-based vehicle manufacturer, which saw an increase in its overall

passenger vehicle market share from 16.27 percent to 17.60 percent between
April 2019 and January 2020 and from 13.59 percent to 18.86 percent in the
UV segment, is now looking to grab an even bigger pie of the market in the
months to come.

After the launch of the Aura compact sedan in January, and the second-

generation Creta midsized SUV to be launched on March 17, it expects good
sales numbers coming from the Tier 3 and Tier 4 towns for these new products
and its existing models.

According to S Punnaivanam, national service head, Hyundai Motor India, "The

rural service load for our network increased by 22 percent year-on-year in
2019 and we plan to increase it by 30 percent this year."

As a result, Hyundai Motor India is bringing a sharp focus on its aftersales

operations in these areas and is planning to increase the number of service
centres from the existing 384 outlets to 424 by the end of the calendar year
2020.

Hyundai extends rural India reach

The company has also announced the launch of its Hyundai Happiness Camp -
a one-week activity between February 20 and 26 - to offer a wide range of
benefits including discounts on spare parts, labour and complementary top-
wash to its customers in rural areas across the country.

"The Camp is an exclusive activity for Hyundai’s Rural Service Outlets (RSOs),"
added Punnaivanam. During the Hyundai Happiness Camp, customers will be
able to avail the following offers:
- Free 50-point car check-up
- Free top dry-wash
- 5% discount on mechanical parts for over 5-year customers
- Upto 30% discount on mechanical labour
- 20% discount on premium interior cleaning

"The Hyundai Happiness Camp is a customer-centric initiative to reinforce

Hyundai’s continued commitment towards providing the best of service
facilities to its valued customers. It is also an opportunity for us to connect
with our rural customers through innovative service offerings," concluded
Punnaivanam. 

Hyundai to hit rural roads in search of higher growth in 2017

The Indian unit of Hyundai Motor is working on a multi-pronged strategy to

power future growth: deeper penetration into rural markets, introduction of
more utility vehicles and a sharper focus on premium products and new
technologies.

In the Indian market where price and fuel efficiency often determine the
success of passenger vehicles, Hyundai has delivered strong performance
consistently with the Santro, Eon, i10 and i20 staying among the preferred
choices of buyers for years. It has also found success with more premium
models such as the Creta SUV, and refreshed its portfolio of products regularly
to keep customer interest alive.
For us, the biggest challenge is to continuously bring newer, unique products in
various segments to widen our appeal to the customer,” said Rakesh
Srivastava, senior vice president of sales and marketing at Hyundai Motor
India. The company plans to launch products in segments where it isn’t present
and then widen the offerings in areas where it already has a presence, he said.

People closely associated with the company said Hyundai is working on

stabilising its leadership in the premium `10-20 lakh segment, which it expects
to grow faster than the overall market. Hyundai claims a more than 20%
market share in the `10-20 lakh price range in India, with products such as the
Creta, Verna, Eleantra and Tucson.

With new emission rules coming into effect, the car maker is also considering
bringing the mild hybrid technology in the next two years. The cars which are
expected to initially get this technology are the Verna sedan and the Creta.

“Our immediate future is also to focus on the SUV segment where we will bring
a new product” to add to the existing line up of the Creta, Tucson and Santa
Fe, Srivastava said. The QXi, the project name for the next sub-four-metre SUV,
is scheduled to be launched in early 2019, powered by a one-litre turbo engine.

The company is also planning to strengthen its compact hatchback segment,

where it has the i10 and i20. “We see an opportunity in this space and we can
bring a product in this segment too,” he said. The UV segment has seen a
major change as Mahindra & Mahindra lost its leadership position to Maruti
Suzuki, and it makes sense for Hyundai, as country’s second largest seller of
passenger vehicles, to be ready to take the No 2 spot in UVs as well.

Another key focus area for Hyundai is rural India, where it sees significant
opportunities with the growing purchasing power of rural folks. To tap into it,
Hyundai is increasing its presence in the rural market.

The strategy is to penetrate deeper into these markets and create products
with customised offers to entice customers, people in the know of the plans
said. Already, the share of rural markets in its total sales has increased to
23.2% from 14.5% in 2011. The Eon, Grand i10 and i20 are its top selling
models in the rural market. Hyundai is soon going to launch a refreshed
version of the Grand i10.

Talking about the possible return of the Santro, the company said it is taking
note of the demand from customers. According to sources in the know of the
company’s plans, Hyundai is expected to bring back the Santro brand, but the
car will not be in the same shape as it was earlier.

Meanwhile, it is prepared to take on the changing dynamics in terms of cleaner

vehicles. Hyundai is planning to showcase the IONIQ, a hybrid car, in India’s
Auto Expo 2018.

While that would be primarily to display future technologies from Hyundai, the
company will introduce a mild hybrid system in its popular vehicles Creta and
Verna in 2018. “We expect these kind of products becoming very big in coming
future,” Srivastava said.
Source:
https://economictimes.indiatimes.com/industry/auto/hyundai-to-hit-rural-
roads-in-search-of-higher-growth-in-2017/articleshow/56227756.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Maruti, Hyundai skip rural slump, manage to

increase sales in FY19
The country’s largest two carmakers, Maruti and Hyundai, managed to
increase their rural sales in 2018-19. This took place despite the rural economy
being under pressure.

Both companies are optimistic about 2019-20, too, with the raising of rural

allocations in the Union Budget and higher Minimum Support Prices. That
means more of rural disposable income.

Maruti Suzuki’s (the country’s largest car maker) rural sales in 2018-19 rose to
667,000 units. A year before, it was around 604,000 units. This year’s outcome
will depend on the monsoon, farm output and how rural sales pick up.

Hyundai’s rural sales were 17.3 per cent of its FY19 total, as against 15.6 per
cent a year before. In FY20, the contribution is expected to be around 20 per
cent.

Both companies — they address most of the spectrum — have said they are
optimistic on the future, despite the overall industry having slowed. According
to the Federation of Automobile Dealers Associations, passenger vehicle sales
dropped by 4.6 per cent in FY19, to 224,755 units.
Shashank Srivastava, executive director for marketing and sales at Maruti,
estimates growth of 4-8 per cent for the current financial year. However, he
adds, a good monsoon and a satisfactory (for sales) festival season would be
important, he adds.

With car penetration of around 22 per 1,000 population, India continues to be

a big opportunity to sell cars, especially in rural areas. Srivastava says the rate
of growth in the rural market has invariably been higher in recent years.

“Today, with booming internet users and a strong millennial population, rural
markets are emerging as growth engines for sales,” he says.

Further, rural infrastructure has improved significantly. Motorability has seen

sharp improvement there, resulting in exponential increase of two-wheeler
sales and offering similar potential for cars.

Vikas Jain, national sales head at Hyundai Motor India, says customers of urban
and rural markets might have differing needs but similar aspirations. In the
latter, owning a car is a big aspiration.

Urban markets are experimenting with mobility solutions such as subscription

and leasing. Hyundai has a partnership with self-drive car rental firm Revv and
another with mobility solutions firm ALD Automotive India.

The company believes there is huge aspiration among youth in tier-1 and tier-II
cities to own a vehicle. Rising disposable income and the expanding presence
of financial institutions in rural markets, to offer credit at attractive rates, will
enable ownership of cars.
Source:

https://www.business-standard.com/article/companies/maruti-hyundai-skip-
rural-slump-manage-to-increase-sales-in-fy19-119072201345_1.html

Hyundai taps rural markets with ‘Experience

Hyundai’ campaign
Hyundai Motor India Ltd has initiated ‘Experience Hyundai’ campaign across
418 rural locations in India. The campaign aims to generate high engagement
with customers during the festive season through a pan-India road show. 

The ‘Experience Hyundai’ campaign is organised to enhance customer connect

in the rural markets with a caravan of Hyundai cars in the smaller towns and
villages. The objective of the campaign is to reach out to the customers in
these markets directly to create an interface with products and offer them the
best benefits. The teams will visit residential colonies, markets, banks, schools
and colleges, post offices and other commercial complexes over the next three
months and showcase the range of world-class Hyundai cars. 

Commenting on the campaign, Rakesh Srivastava, Director - Sales and

Marketing, Hyundai Motor India Ltd, said, “Rural market is a key driver in
Hyundai’s growth strategy in India as these markets are growing fast with the
economy. Our continued focus through initiatives such as ‘Experience Hyundai’
campaign has made Hyundai a preferred brand in the growing rural market.
We are confident of establishing a strong brand presence for Hyundai offering
unparalleled value through global technology and feature-rich cars to the
customers in the rural market.” 

During the ‘Experience Hyundai’ campaign, the customers will be offered with
test drives, festive schemes, attractive finance and exchange offers along-side
various interactive games, quiz, assured gifts and lucky draws.

Hyundai Rolls Out ‘Experience Hyundai’

Campaign, Aimed at Rural Markets
Hyundai Motor India Ltd, the country’s second-largest passenger car
manufacturer and the number one exporter since inception initiated
‘Experience Hyundai’ campaign across 418 rural locations in India. The
campaign aims to generate high engagement with customers during the festive
season through a Pan-India road show.

‘Experience Hyundai’ campaign is organized to enhance customer connect in

the rural markets with a Caravan of Hyundai cars in the smaller towns and
villages. The objective of the campaign is to reach out to the customers in
these markets directly to create an interface with products and offer them the
best benefits. The teams will visit residential colonies, markets, banks, schools
and colleges, post offices and other commercial complexes over the next three
months and showcase the range of Hyundai cars.

Commenting on the campaign Rakesh Srivastava, Director, Sales and

Marketing, Hyundai Motor India Ltd. said, “Rural market is a key driver in
Hyundai’s growth strategy in India as these markets are growing fast with the
economy. Our continued focus through initiatives such as ‘Experience Hyundai’
campaign has made Hyundai a preferred brand in the growing rural market.
We are confident of establishing a strong brand presence for Hyundai offering
unparalleled value through global technology and feature-rich cars to the
customers in the rural market.”

During the Experience Hyundai campaign, the customers will be offered with
test drives, festive schemes, attractive finance and exchange offer along-side
various interactive games, quiz, assured gifts and lucky draws.

Hyundai Rural Markets Expansion Underway

To Gain Market Share
Hyundai has been showing a lot of aggressiveness in the Indian auto market by
expanding into various segments along with introducing a whole lot of new
products every now and then. The company has now stated its plans to expand
in rural markets to gain market share. Apart from this, the company is also
looking to introduce some more premium products, along with some UVs.

With the growing purchasing power of people residing in rural areas, Hyundai
looks to tap into those markets by expanding their network and reaching closer
to the people. The company also aims to deliver some customised and
attractive schemes to lure buyers. As of now, 23.2% of the company’s total
sales come from rural markets and the Eon, Grand i10 and i20 are the top
selling models in those markets.

Talking about the Rs. 10-20 lakhs segment, Hyundai has a 20% share and the
company wants to hold onto its leadership because this segment is seeing a lot
of growth. The company is also readying a new compact SUV that will be
slotted below the Creta. With emission norms getting stricter, expect Hyundai
to start offering mild hybrid tech on its cars in the near future.

Mahindra had been leading the UV segment for a really long time but the
company lost its leadership to Maruti Suzuki. Hyundai is the 2nd largest
passenger car seller in the country and hence it makes sense for them to enter
the UV market on full throttle too. Hyundai will also be launching the Grand i10
facelift very soon, while the Santro brand will be brought back in 2018.

Hyundai Rural Markets

– Hyundai will offer unique schemes for rural markets
– 23.5% of the company’s sales come from rural areas
– Hyundai will also venture in the UV space

Note: The Eon, Grand i10 and i20 are the highest selling cars in rural
marketSource: https://www.motorbeam.com/hyundai-rural-markets-
expansion-underway-market-share/

Car sales grow 17% in August on rural

demand, stock building for festive season

Driven by continued recovery in demand in small towns and rural markets and
inventory building for the festive season, passenger car wholesales recorded
double-digit growth in August.
Wholesale volumes reported by the leading carmakers such as Maruti Suzuki
India Ltd, Hyundai Motor India Ltd, Mahindra & Mahindra (M&M), Kia Motors
India Pvt Ltd, Toyota Kirloskar Motor Pvt Ltd, MG Motor India Pvt Ltd point at a
17% YoY growth in August. Wholesales represent billing of cars by the vehicle
manufacturers to their dealers.
To be sure, the year-on-year growth comes on the low base of the year-ago
period when customers delayed their purchases anticipating a GST cut amid
increased insurance costs and the liquidity crisis last year.
The demand recovery continues to be led by rural markets and small towns,
said experts.
“While the market demand is stronger in the rural areas, the same in urban
pockets have been relatively slower. But it is there as businesses have opened
up. That said, rural demand is well supported by the flourishing agriculture
sector, good monsoons, increased government support via crop prices,
MNREGA funding. The OEMs are also more focused on catering to the demand
in the smaller towns across India," said Puneet Gupta, associate director, IHS
Markit.
Total domestic passenger vehicle sales at Maruti Suzuki, India’s largest
carmaker, stood at 113,033 units, up 21.3% YoY over 93,173 units sold in the
year-ago period.
The company’s wholesale dispatches also improved from July, when the
company had sold 100,000 units while sales in June numbered 51,274 units.
Maruti resumed production at its Manesar plant from May 12, with dispatches
at 13,865 units for that month.
Maruti’s wholesales in August were driven by 27% YoY growth in its compact
car portfolio, where volumes were at 81,665 units in August, growing from
64,397 units. The company’s total utility vehicle sales stood at 21,030 units, up
13.5% over 18,522 units from the year-ago period.
Hyundai Motor, country’s second largest carmaker, saw it’s domestic sales at
45,809 units in August, up 20% YoY from 38,205 units from the year-ago
period.
Tarun Garg, director, sales, marketing and service at Hyundai Motor India
attributed the YoY growth to customer response to its popular sports utility
vehicles Creta, Venue and other recently launched models.
Garg, however, warned that uncertainty still surrounds the pandemic.
IHS Markit’s Gupta attributes the growth in passenger car wholesales in August
to a few key factors including pent up demand, inventory building for the
festive season and several new car launches.
“This year we are witnessing an extended festive period, which augurs well for
the auto industry. While typically there is market demand for vehicles during
festivities like Ganesh Chaturthi, Onam and others, Diwali is in November.
OEMs will remain very aggressive during these four months," Gupta said,
adding that reduced cost of ownership and attractive financing schemes are
drawing customers to the showrooms.
He also sees stock building by the vehicle manufacturers as current stock levels
are lower than the average of 45-60 days in the run up to the festive season.
Gupta, however, remains uncertain about the duration of the current growth
cycle.
“There is no doubt that people have lost their jobs, many sectors have
contracted, businesses are under stress and the revenues have come down. All
these factors may play out after the festive season," he added.
While M&M’s passenger vehicle wholesales grew marginally at 13,651 units in
August, Korean carmaker Kia Motors’ dispatches were at 10,845 units, up 74%
YoY. Kia, which plans to launch its compact SUV Sonet soon, has already
amassed more than 6,500 bookings for the model.
Toyota Kirloskar reported wholesales of 5,555 units, down 48% YoY. Naveen
Soni, senior vice president, sales and service at Toyota said the rising number
of covid-19 cases in Bangalore posed severe challenges for the company in
supplying vehicles from its factory to the dealerships. Sharp surge in covid-19
cases led the company to ramp down its production to single shift.
“The company, however, has recorded steady rise in retails during August,"
Soni said, adding that retails were 25% higher than the wholesales during the
last month.
Meanwhile, MG Motor India on Tuesday reported sales of 2,851 units during
August, up 41% YoY from 2,018 units. August sales were also sequentially
higher, with 2,105 units sold in July.
https://www.livemint.com/auto-news/car-sales-grow-17-in-august-on-rural-demand-stock-
building-for-festive-season-11598969834748.html

Rural India Continues To Drive Up Economy,

Experts Advocate Against 'Over-Optimism
The rural economy continues to reap the benefits of a good rabi harvest earlier
in April and is also benefitting from the Centre injecting funds in rural areas.

The oncoming kharif harvest is also expected to be good.

Rural India continued to propel the country’s economy for the third
consecutive month in August with key indicators of sales of automobiles and
tractors, digital transactions and fertiliser offtake showing good growth.

Economic experts, however, have advocated caution especially in view of the

rising numbers of novel coronavirus (Covid-19) positive cases in the country
and the pandemic now spreading to hinterlands.

According to filings by various automobile manufacturers in the country with

the stock exchanges, automobile sales vroomed in August compared with July,
though they were a tad lower compared with the same period a year ago.

The rural economy is performing better on two counts. One, it continues to

reap the benefits of the good rabi harvest earlier in April this year coupled with
the Centre injecting funds in the rural areas.
Two, the oncoming kharif harvest beginning later this month or early next
month is also expected to be good despite heavy rains affecting some areas
last month.

Improving supplies and pick up in industrial production, especially that of

automobiles, have also contributed to the positive trend.

Tractors continue to lead uptrend

Higher tractor sales in August have been led by Mahindra and Mahindra Ltd
reporting its best-ever sales for the month. The company said its August sales
increased 69 per cent to 23,503 tractors against 13,871 in the same month last
year. It was a tad lower than 25,402 sold in July, another high for the company.

Another tractor maker to register record sales in August was Escorts, which
sold 80 per cent more than the same period a year ago. It sold 7,268 tractors
against 4,035 sold a year ago.

Sonalika Tractor, also known as International Tractors Ltd, registered an 80 per

cent jump in sales at 8,205 compared with July last year.

Other manufacturers such as TAFE and Eicher could also report higher
numbers. Demand for customised tractors are likely to be higher in view of
increasing mechanisation of farming, which is currently around 45 per cent.

Automobile sales rev up but commercial vehicles struggle

Sales of two- and four-wheelers gathered momentum in August, though it was

not an industry-wide trend. India’s leading car and two-wheeler
manufacturers, however, led the uptrend.

India’s number 1 carmaker, Maruti Suzuki registered a 17.1 per cent rise in
sales last month. At nearly 1.25 lakh units, it was also 15.3 per cent higher than
July sales this year.
New automobile players Kia Motors and MG Motors clocked 74 per cent and
41 per cent higher sales last month. August 2019 was the first month of its
operations for the South Korean-based Kia.

Hyundai Motors, India’s number two manufacturer, reported a six per cent
drop in sales in August 2020 at 52,609 but compared with July’s 41,300 it was
10 per cent higher. Toyota sales nearly halved last month compared with
August last year, though they were better a tad than July.

Among two-wheelers, Hero MotoCorp registered 7.55 per cent year-on-year

rise in sales, while Bajaj Auto sale dropped nine per cent during the same
period. TVS Motors, too, reported a one per cent fall, though all their sales
were higher than July.

Eicher Motors said sales of its Royal Enfield motorcycles were lower by five per
cent year-on-year but up about 10 per cent month-on-month.

Sales of commercial vehicles were below par in August compared with last
year with Volvo Eicher and Ashok Leyland reporting almost a similar 30 per
cent fall. Compared with July, they were, however, better.

Digital transactions clock a new record

Digital transactions across the country clocked a new record in August with an
eight per cent increase month-on-month. The National Payments Corporation
of India said that 162 crore transactions took place through the United
Payments Interface last month.

This is a huge rise from the 91.8 crore transactions witnessed in August last
year. The transactions were worth Rs 298 crore, higher than Rs 290 crore in
July and Rs 154 crore in August last year.

One reason for digital transactions rising is the rising acceptance of such
payments, especially when person-to-person contact is being curbed in view of
Covid-19.
Urea sales at record

The above trends have also been helped higher fertiliser sales, particularly that
of urea.

Union Fertilisers Minister D V Sadananda Gowda last week told the media that
urea sales across the country surged to a new high during the ongoing kharif
(summer) season. "Demand for urea has been unprecedented," he said.

Industrialists and analysts are upbeat over the economy, particularly in rural
areas, doing well during the current festival season. One reason for the
optimistic outlook is that the sowing of kharif crops has been eight per cent
higher this year.

Monsoon has also been good with August witnessing 27 per cent excess
rainfall this year, though area under oilseeds and cotton have been affected to
some extent. This has also led to higher demand for specialised implements.

Word of caution from analyst

According to Sreejith Balasubramanian, Economist with IDFC Mutual Fund,

agriculture has been the brighter spot with government spending on
agriculture and rural areas being positive, through support to the Mahatama
Gandhi Rural Job Employment Guarantee Scheme.

However, he cautioned on over-optimism since agricultural contributes only 18

per cent to the GDP and rural India as a whole makes up 47 per cent of GDP.

Rural India could face the problem of reduced wages and there could be lack of
avenues for work there. The spread of coronavirus towards rural areas is
another cause for worry, he said.

However, it could pose lesser risk to agriculture. But the optimism is curtailed
by the fact that half the households in rural areas were not in agriculture.
Higher debt burden and small size of land ownership are the other disturbing
factors, Balasubramanian said.
https://swarajyamag.com/economy/rural-india-continues-to-drive-up-economy-experts-
advocate-against-over-optimism

Toyota Motors Shifts Towards Rural To Raise

Sales
The Japanese carmaker Toyota Motors will follow the successful strategy of
their rivals Maruti Suzuki and Hyundai Motor which sell a sizeable number of
their small cars in India’s rural. Toyota is present in the country through a joint-
venture with Bangalore-based Kirloskar Group. The carmaker is putting up a
rural sales division to strengthen its marketing plan for the Indian automotive
market.
 
Naomi Ishi, Managing Director of Toyota Kirloskar Motors, stated that India is a
vast market and to capitalise on the extensive model offerings, the company
has embarked on a new strategy to go rural. We have chosen our compact
model Liva that is an ideal product with a right price and packaging for the
Indian rural customers, looking for high-value preposition, Ishi added. At the
moment, a small percentage of the company’s sales volume comes from rural
markets, which it wants to take to double digits in the next few years.
 
Toyota has assigned its dealers to begin village roadshows, with emphasis on
the carmaker's vehicle quality and service. The company that has more than
250 dealerships across India has plans to start more rural outlets in coming
months. It would also employ mobile service vans in rural markets.
 
Toyota estimates the Indian passenger vehicle market to double to around five
million units by 2020, and it believes that a significant amount of the demand
will come from towns and rural markets.
 
It plans to sell around 40% of its cars in the rural markets.Companies like
Maruti and Hyundai were the first to cater to rural market and are drawing a
large chunk of their sales from the rural. Maruti has doubled its marketing
wings to over 93,500 villages this year from 44,374 villages last fiscal year.
South Korean Hyundai has around 15% of its India sales coming from rural
markets.
 
Toyota Kirloskar had display a marginal 2% gain in sales for the first five
months of this fiscal year. It has an installed capacity to manufacture about
3,10,000 units a year, but at least half of that is not utilized.
https://ruralmarketing.in/news/advertising-marketing/toyota-motors-shifts-towards-rural-
to-raise-sales

Toyota kicks off ‘Go Rural’ drive; plans more

dealerships in smaller cities
Toyota will have rural India on its radar as it expands the market for its Etios
hatchback and sedan this year.

The company launched an initiative called ‘Go Rural' in the last quarter of 2011
where a pilot study was carried out in the eastern region.

Cars were put on display in the Durgapur area in West Bengal and the response
was encouraging enough for Toyota to understand that smaller centres in India
were critical to its growth.

“This was the beginning of our ‘Go Rural' drive. We had our dealers try out
something similar in other parts of the country where cars were showcased on
select days in a month. We were amazed to see that brand Toyota had so
much goodwill despite our relatively negligible presence,” Mr Sandeep Singh,
Deputy Managing Director of Toyota Kirloskar Motor, told Business Line.

By February, the ‘Go Rural' momentum had intensified with a growing list of
interested customers.

There were 160 bookings last month and Toyota has targeted at least 500
more each month between now and end-July. It also hopes to have in place 25
dealerships in these smaller centres by the end of this year, going up to twice
as much in 2013.
More options
“This is top priority for us especially when we have been perceived as a city-
centric player. It was justified then considering that we largely had the Corolla
and Innova to offer. However, the Etios is a mass range product and we just
cannot afford to miss rural India,” Mr Singh said.

Interestingly, a section of buyers in this part of the country have also expressed
interest in more expensive options like the Fortuner and Innova. However,
Toyota is focusing largely on the Etios especially when it plans to roll out
80,000 cars this year.

This number will grow to over 1.5 lakh units in 2013 which means the
dealership network will have to extend to every nook and corner of India. The
rural drive is not unique to Toyota with Maruti and Hyundai having kicked this
off a lot earlier.
Small regions
Other carmakers are also following suit rapidly especially when customers here
are quite open to trying out new brands unlike the big cities where the loyalty
factor is more pronounced.

“People in smaller towns have enough and more money at their disposal to
buy a car. They also know precisely what they want in a vehicle,” Mr Singh
said. Companies such as Toyota are beginning to realise that it makes greater
sense to tap these regions when growth prospects for the automobile industry
are still uncertain this fiscal.

https://www.thehindubusinessline.com/companies/Toyota-kicks-off-%E2%80%98Go-Rural-

drive-plans-more-dealerships-in-smaller-cities/article20430429.ece
Current fiscal to remain challenging, sales
growth to return from next year: Yamaha

New Delhi: Japanese two-wheeler major Yamaha expects sales to remain in

slow lane in the current fiscal due to the COVID-19 pandemic and growth to
pick up in next fiscal, as per a senior company official.

The company, which has three manufacturing facilities at Surajpur (Uttar

Pradesh), Faridabad (Haryana) and Chennai (Tamil Nadu), expects production
to touch pre-Covid levels only in the next financial year with muted demand in
the current fiscal.

Yamaha had resumed manufacturing operations from May as per

government's standard operating procedures (SOPs), and currently its output is
around 50 to 60 per cent of the total capacity at the production facilities.

"We will be able to achieve pre-Covid level production targets in the next fiscal
only," Yamaha Motor India Sales Senior Vice President Ravinder Singh told PTI.

The current fiscal will continue with stifled sales volume owing to low demand
due to the prolonged lockdown, disruption in manufacturing operations and
supply chain as well as social distancing, he added.
"However, the demand is expected to gradually grow from the next fiscal,
although the total sales volume for the year 2020 will remain the lowest in a
decade," Singh noted.

There have been issues related to availability of skilled manpower for core
processes like welding, painting, casting and moulding, among others, but the
company has managed it quite well by continuous training and upskilling of
existing workforce to handle these critical functions, Singh said.

As a result, the company can now utilise the trained and skilled workforce on a
rotation basis as per the requirement in different functions, he added.

In July, the company sold around 26,373 motorcycles and 23,616 scooters,
Singh noted.

"So, we can say both the motorcycle and scooter models have contributed
equally to the overall company's sales," he added.

Right now, the company's focus is to rejoin the market while revitalising the
excitement that has effaced out owing to the lockdown, Singh said.

He added that the upcoming festive season would be the first stage effort to
revive the economy.

Like every business, the two-wheeler maker is also gearing up with regular
monitoring of dealers' stock and inventories, observing safety and hygiene in
showrooms as per government guidelines and planning promotions through
digital mediums, Singh said.

"The early signs of an upward trend have already been found in the June and
July sales volumes, and although the whole year has gone into being soft
regarding sales revenue, the festive seasons are expected to offer a partial
recovery of the market demand," he added.
The festive season has an appetite for a certain demand which is the outcome
of a favourable monsoon and profitable farm output or a planned purchase
and paid out bonuses, Singh said.

Yamaha has ventured out to create an optimum digital reach, he said.

"Although exceeding sale numbers of the last year with 2020 sales will be
among the very last to expect with record businesses faltering and human lives
lost due to the COVID 19 impact," he noted.

The company will continue to be forward looking with a focused approach

towards contactless business operations that curb physical contacts and
calibrating digital technologies in offering more comfort and convenience of
purchase, he added.
https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/current-
fiscal-to-remain-challenging-sales-growth-to-return-from-next-year-yamaha/77833632

Yamaha turns to rural areas to continue

growth
Two-wheeler maker Yamaha today said it aims to double sales in rural market
within the next five years and plans to add about 1,000 outlets in sub-urban
and remote areas of the country by 2014.

The wholly-owned Indian subsidiary of the Japanese giant Yamaha, which sold
2.2 lakh units in India in 2009, is also expecting its total sales to increase by up
to 30 per cent in this year.

"We have so far seen good sales in urban areas, mainly in big cities, due to our
image as  a premium bike maker. Now, to continue with the growth, and even
to further accelerate, we will focus to strengthen our presence in rural areas,"
India Yamaha Motor National Business Head Pankaj Dubey told PTI.

The rural two-wheeler market is not penetrated enough and hence offers huge
growth potential, he added.

"Currently, about 15 per cent of our total sales come from rural areas and we
are targeting to increase it to 30 per cent by 2014," Dubey said.
To meet its target, the company is also expanding its sales outlet and is
planning to open thousands of dealerships with smaller sizes, called 'sub-
dealer', in rural areas.

"Currently, we have about 500 sub-dealers and we will add another 1,000 such
outlets by 2014," Dubey said.

The company, at present, also has 430 standard dealerships across the country
and it will add about 20 more such outlets in the next five years, he added.

Dubey, however, said the firm will never enter into the production of low-cost
bikes, targeting the rural markets.

"We are not entering into the cheap bike (category). Yamaha is a niche and
premium bike maker and it will remain like that...Certain sections of the rural
areas are now fed up with cheap bikes and they now want some good quality
bikes like R15, Fazer and FZ," he added.

India Yamaha's four prominent motorcycles -- FZ16, FZS, Fazer and YZF-R15 --
are priced between Rs 65,000 and Rs 98,000.

When asked about the company's target for 2010, Dubey said it is expecting
25-30 per cent increase in sales.

He said the company sold 2.2 lakh units in 2009. The Indian motorcycle market
witnessed over 25 per cent growth during the last fiscal at 73,41,139 units.

Toyota Kirloskar determined to make its

presence felt in Indian rural markets
Toyota Kirloskar Motor (TKM) is planning to expand its marketing focus into
rural India with the aim of increasing sales of its sluggish compact models. The
new strategy is being followed after observing rivals Maruti Suzuki and
Hyundai Motor, which sell a sizeable number of their vehicles in the
hinterlands.
In order to devise focused strategies, TKM is setting up a rural sales division.
The company wishes to take advantage of the improvement in the Indian
automotive market by reinforcing its complete marketing plan.
Toyota Kirloskar Motors managing director Naomi Ishii said,"India is a vast
market and to capitalise on the extensive model offerings, we have embarked
on a new strategy to go rural. We have chosen our compact model Liva that is
an ideal product with a right price and packaging for the Indian rural
customers' looking for high-value preposition." According to Ishii, only a
"miniscule" percentage of its volume currently comes from rural markets,
which needs to be taken to double digits in the next few years. In lieu of this,
Toyota has enrolled its dealers to kick off village roadshows, with emphasis on
vehicle quality and  service.
With more than 250 dealerships across the Indian landscape, TKM  has plans to
start more rural outlets in the coming months. The company is aggressively
expanding dealership footprints in rural India. Here its dealers would be
tapping local opinion makers such as Panchayats, in order to expand the
brand's reach
https://www.indiatoday.in/auto/story/toyota-kirsloskar-rural-markets-292968-2014-09-17

Yamaha sees no improvement in rural sales

in 2016

Japanese automobile major Yamaha on Thursday said at the India launch of its
Roadster Motard Yamaha MT-09 that slow rural demand was affecting the
sales of its entry-level 100-150cc-plus motorcycles in India. The company
believes sales growth in this segment would remain slow this year.
“There is a problem in rural sales; a bad monsoon has affected the market and
the consumer sentiment is not bullish. It will take some time to bounce back. I
think 2016 will also be like last year, and sales will remain flat. There might be
growth of four-five per cent, but that is the most I foresee. I think 2017
onwards there will be some revival,” said Roy Kurian, vice-president (sales &
marketing).
Kurian added motorcycle customers in this segment, interestingly, were
shifting towards scooters or the semi-premium segment. “In the basic standard
segment, there has been a sharp decline, and that is where we are seeing
customers moving from motorcycles to scooters. A major hit is coming in the
standard segment which is going to continue for some time,” he said.
The company has taken a top-down approach of having semi-premium and
premium two-wheelers in India. It also plans to bolster this segment with new
launches of motorcycles and scooters.
“We already have a FZ-series of motorcycles in India. Now we are launching
this MT series. We will definitely be strengthening our top segments. The kind
of response from the customer will also decide our future course of action,”
Kurian added.
Yamaha launched the MT-09 street motorcycle, priced at Rs 10.20 lakh (ex-
showroom Delhi). The motorcycle will be available at select outlets across the
country.
The motorcycle comes with an 847cc liquid-cooled, four-stroke, in-line triple-
cylinder, fuel-injected engine, with anti-lock braking system (ABS). The model
will be imported as a completely built unit (CBU) by Yamaha Motor India.
According to Yamaha, the company saw five per cent growth in 2015, thanks to
the sluggish market. It plans to increase its production capacity and hopes to
grow at a steady pace this year.
“We will looking at 800,000-plus sales this year. We sold around 600,000
vehicles last year. We already have a new plant in Chennai with a capacity of
180,000 two-wheelers overall. Gradually, as sales increase, we will keep on
adding more lines,” Kurian added. The company does not plan to start
production of bigger-engine motorcycles in India anytime soon.
https://www.business-standard.com/article/companies/yamaha-sees-no-improvement-in-
rural-sales-in-2016-116020400554_1.html
Yamaha gears up to compete for the rural
market

Japanese automobile major Yamaha Motor plans to rev up its India play and is
pinning hopes on the growing demand for two-wheelers in rural areas to boost
sales. Last month, the company launched the Saluto, a motorcycle for the mass
market that has been pitched as cheaper and more fuel efficient. It has lined
up more such products in the category.
With its focus on the mass commuter segment, the company plans to double
sales to 1.2 million units by 2017 from 549,000 units now. A management
overhaul has also been undertaken and heads have been appointed for each
segment, including sales and manufacturing, to align the company to its new
goals

Both motorcycles and scooters will have equal importance for Yamaha. At
present, motorcycles account for 55 per cent of total sales but the company is
working to close the gap. “Sales ratio between scooters and motorcycles would
be equal in the years to come,” says Roy Kurian, vice-president (sales &
marketing), Yamaha India.
After witnessing a 23 per cent jump in sales in 2014-15, Yamaha is targeting a
30 per cent growth to reach 800,000 units this financial year. The additional
production capacity will come from the newly-built Chennai plant, which is set
to be commissioned next month. The plant’s production will be scaled up from
400,000 units annually to 1.8 million units by 2018.
India is the second biggest market for Yamaha after Indonesia but its market
share stands at just around 7 per cent. To make deeper inroads, the company
is single-mindedly focusing on mileage. “If you try to focus on everything, you
achieve nothing. India is a very big market, so many segments are
mushrooming every year. We have decided 'let's go mass market', but at the
same time, we are not ignoring big bikes. You will see action there as well,”
says Kurian. Yamaha’s target is to increase its share in deluxe bikes from 19 per
cent at present to 22-23 per cent.
The company has been adding new models to its fuel efficient range of two-
wheelers in the Alpha, New FZ and SZ-RR series. These new two-wheelers have
a mileage of 66 kmpl compared with 62 kmpl of its earlier models.
Although a late entrant in the rural market, Yamaha hopes its fuel-efficient
range will help it make quick inroads. The rural market currently constitutes
nearly 70 per cent of all two-wheeler sales in the country but for Yamaha it
stands at 30 per cent. So far Yamaha two-wheelers have been a popular choice
among urban commuters. The Saluto, a 125cc motorcycle launched last month,
is the first product aimed at the rural market.
The Saluto, with its mileage of 78 kmpl, will compete with Honda’s Shine,
Hero’s Glamour and Bajaj’s Discover. “The USP of the product will be style,
power, durability and reliability,” says Kurian. Yamaha has set a target to sell
around 60,000 units of the bike during the current year. Initially, the product
will be for domestic market and will be exported later on.
In addition to motorcycles, the company is relying on Scooters too to boost
sales. Yamaha scooters are known for their reliability and superior technology
and the company wants to build on that. Its scooters mainly target young
commuters with their unisex appeal.
Kurian says the top-down strategy of moving from urban to rural consumers is
working well for the company. Having lined up a range of products, expanding
the sales network is next on the agenda. About 150 new sales outlets will be
added in 2015 and 70 per cent of these outlets will come in Tier III towns and
rural areas. Currently the company has 400 sales outlets.
https://www.business-standard.com/article/companies/yamaha-gears-up-to-compete-for-
the-rural-market-115060301454_1.html