Tata Motors sees 40% sales surge in rural markets, driven by CNG and electric vehicles

Indian automaker Tata Motors has seen an uptick in sales of its vehicles in the rural market. The company’s sales contribution from the hinterland is now at 40 per cent as compared to 32 per cent pre-coronavirus with an uptick in sales of CNG and electric vehicles. The CNG vehicle penetration is up to 17 per cent, and electric vehicle penetration is up to 30 per cent in the rural market.

“In the last four to five years we have expanded our network in the rural market. From 500 touchpoints we are now at 830 touchpoints which are very near to villages where the consumers can visit and check our cars. If you look from a manpower perspective, we now have 270 workshops that cater especially to the consumers in the rural market. Our vehicle portfolio, including electric vehicles is going well in the market,” said Amit Kamat, Chief Commercial Officer, Tata Motors Passenger Vehicles Ltd to businessline.

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The carmaker has also witnessed an uptick in demand for alternate fuel vehicles and electric vehicles in the rural market. “We have seen the penetration of CNG and EV improve in the market. The CNG penetration is between 16 to 17 per cent, while the electric vehicle penetration is 25 to 30 per cent in the upcountry for us. The shift in terms of the latest technology is also what we have seen, with our products that have automatics we have seen 13 to 14 per cent penetration. Higher variants are also being preferred in the hinterland,” he said.

Further, the company has witnessed up to 70 per cent first-time car buyers for its entry-level cars.

“In the rural market, the first-time buying is higher. Around 10 per cent more first-time buyers than in the urban market. We see the market growing this year with a forecast of better rain,” he said.

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Anubhav vans

To penetrate deeper into the hinterland, the company has introduced vans that travel across villages and towns informing and showcasing the vehicles digitally.

“The company started with the initiative Anubhav vans two years back and created mobile vans. We have 135 mobile vans that are fundamentally designed to address the needs of the consumers. The vans travel to villages and explain our product capabilities and features. This and our digital footprints have helped us to expand our presence,” added Amit Kamat.

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