Tata, Maruti Suzuki, Hyundai report highest-ever rural sales share in 2023

16 Jan 2024 , 12:40 PM

Maruti Suzuki, Hyundai Motor, Tata Motors, and Renault India reported their highest-ever share of sales from rural markets in calendar year 2023, owing to improved consumer mood and more liquidity among the rural rich.

However, inflationary pressures reduced rural demand for fast-moving consumer products and consumer durables.

While Maruti Suzuki, the country’s biggest manufacturer, increased its rural sales share to 45% in CY2023, Hyundai’s share was 19.1%, while Tata Motors and Renault India both had 40%.

Senior industry executives indicated that even in rural markets, the wealth disparity between different groups of customers has triggered demand at the top end of the market, which is projected to finally seep down and cause a broad-based rebound over the following several quarters.

Tata Motors, the world’s third-largest automaker, logged its highest-ever sales proportion from rural markets in 2023. The company’s rural sales increased by around 10% this year, accounting for 40% of overall volume. Overall, Tata Motors’ PV sales increased by 5% last year.

Over the last decade, sales of branded daily necessities in the country of 1.4 billion people have become more dependent on rural India, which is home to more than 800 million individuals whose purchasing habits are heavily influenced by farm production. Rural demand, which had been expanding twice as fast as urban demand, has now fallen for three quarters in a row.

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