Maruti Suzuki is one of the prominent car manufacturers in India acquiring a good market share. In past few years, the focus of the company was on meeting customer requirements whether residing in urban areas or rural areas and this focus has yielded exceptionally good results for the company. Today, focus of many automobile companies has shifted towards rural areas where there is a lot of hidden potential waiting to be tapped.
Promising FY 14
Shift towards rural areas has made it possible for the company to gain desired results. Though, Maruti has experienced challenging times in retail sales but rural sales have savd the day for them by ensuring bumper sales. In months lying between April to November, the company registered 18% growth that cushioned the negative effect of flat sales in urban areas to a considerable extent.
Suzuki planning increased stake in Maruti
Though nothing is official yet, rumors are rife stating that Suzuki may decide to increase their stake in Maruti. According to the company, buying and selling of shares is the prerogative of shareholders and company has no say in this decision making. The company also stated that earlier the focus was on increasing urban sales but now potential of hinterlands have been realized. As a result, the company is also shifting its attention towards rural areas. All those facilities that were earlier available for urban customers will now will be available for rural customers as well. Within a short span of 5 years, the sales have shooted from 3% to impressive 30% due to burgeoning rural sales. This is quite a promising scenario for the company. To meet growing demands, the company does not require extra capacity as of now. Their plants at Gurgaon and Manesar are sufficient to meet this increased rural demand.