Mahindra sees growth in view of expected growth in rural

Mahindra and Mahindra, which has registered five per cent growth in last fiscal is expected to sustain the growth this fiscal also and as part of two-pronged market strategy, it will focus more in rural market, which contributed 40 per cent of the firm's sales, a top company official said today.
The real propulsion of growth still comes from rural area, where nearly 30 per cent of vehicles are sold, Senior Vice-president, Sales and Customer Care, Automotive Division, Veejay Ram Nakra told reporters here.
As part of increasing rural penetration, the company has identified 3,000 tehsils, where it would open new dealership or workshop or service centres, so that the rural customers need not come to urban area for their needs, Nakra said.

There was also plan to open more quick service outlets on Highways, in association with Indian Oil Corporation, he said.
Despite slump in sales for a few days after demonetisation, which came back now, he said the company expected the rural economy to pick up in a few months, which will propel the demand for personal and commercial vehicles by next financial year.
Stating that the company at present has 300 dealers across the country, Nakra, here to inaugurate a new dealership Rajshree Autos Pvt Ltd, said it has also plans to increase its Compact Quick Service Centres from 130 to 300 in another 18 months.

Compared to Pan India growth of five per cent, Tamil Nadu, with 19 dealers, is witnessing the fastest 34 per cent growth, which also contribute about six and half per cent of national sales, Nakra said.