Rural economy fueling pick-up automobile segment

The category has grown by 10%

Rural economy has been fueling the growth of pick-ups even in the face of slowdown in the domestic automobile space.

Even as other automotive segments, comprising cars, SUVs, heavy vehicles etc, have struggled to stay firm, the pick-up category has grown by 10%.

Typically, pick-up is a small truck with an open cargo space in the rear.

“Since, pick-ups are extensively used in agriculture and ferrying of agri produce, it has not been affected by the general slowdown witnessed in other segments, including automobile,” Mahindra & Mahindra senior general manager (marketing) Mahesh Kulkarni told Business Standard .

Thanks to good monsoons last year, the growth in domestic agri sector had been encouraging, which was equally feeding the growth of farm tractor space, he added.

Last year, the domestic pick-up segment was pegged at 1,90,000 units per annum compared to 12,000 units in 2000-01. This translates in Compounded Annual Growth Rate (CAGR) of about 26%.

Mahindra commands a share of 61% in the composite pick-up segment in India.

Meanwhile, the company today launched a refurbished ‘Bolero Pick-up Flat Bed’ in the Uttar Pradesh market. In phases, the company would launch the new product in other markets.

“We chose UP as the first stop of launch, as we have a dominating presence in the region. The size of the market is also big here,” he added.

The new pick-up comes with a price tag of Rs 5.59 lakh (ex-showroom) in Lucknow and offers a mileage of 13.86 km/litre. Pan-India, Mahindra has 800 service points, including 50 in UP.