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Tata Motors passenger vehicle sales in rural market grows 4 times in 5 years

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Jaipur, June  2024.

Tata Motors, India’s leading automobile manufacturer, sustained impressive sales performance in rural areas in FY24, which contributed to 40% of its overall passenger vehicle sales. The popularity of Tata Motors’ New Forever range of cars and SUVs has risen among rural consumers, with 70% customer being first-time car buyers. With growing infrastructure, digital accessibility and purchasing power, the aspirations gap of rural and urban customers is reducing.

Segmental shifts:

  • Strong New Forever range of Tata cars and SUV offerings available in multi powertrain options (petrol, diesel, CNG and EVs) gives the customer the freedom of choice to choose from what best suits their needs.
  • Tata SUV sales have grown from 35% to 70% in rural market
  • Alternate fuels (CNG + EVs) sales have grown from 5% in FY22 to 23% in FY24.
  • Innovative twin-cylinder CNG technology witnessing growth, 16% CNG penetration in rural markets
  • Rural customers demand shifting from MT to AMT/ AT. Witnessing 14% higher penetration in automatic transmission compared to last FY

Growth Drivers:

  • Tata Motors has expanded its network nationally, boasting over 850 rural outlets (as compared to 517 in FY21) dispersed across towns, 260 workshops to cater to customers in rural belts
  • Network actions are complemented by 135 Anubhav vans (as compared to 35 vans in FY21) serving as mobile showrooms. These vans are equipped with audio and video which efficiently work as an information disbursing mechanism to our current and prospective customers, helping reach pockets where Tata Motors does not have an outlet.
  • In addition, the company provides a door-to-door service available in the form of EzServe that helps in faster grievance redressal.
  • The Company is tactfully supporting customers with innovative finance schemes. Has tie ups with banks which have deeper networks in villages than nationalized banks and they come up with schemes that are more friendly towards the local population. Example 6 monthly EMI scheme as per harvest seasons for farmers.
  • Market activations – roadshows, sales melas, service camps, and community-centric workshops, all aimed at connecting with existing and potential customers in rural areas.
  • Additionally, the Company works closely with local influencers like the Sarpanch, VLEs – Network of village level entrepreneurs and CSCs – Common service centres (these are government run institutions that sell products on their owned digital platforms) to penetrate at a deeper level and understand the pulse of the customer.

Tata Motors’ New Forever range of cars and SUVs has particularly captured the interest of rural consumers, offering futuristic design, exhilarating performance, and an array of advanced tech and safety features. Tata Motors’ success in rural India is driven by its innovative vehicles and its deep understanding of rural consumers’ evolving needs. By harnessing the vast potential of rural markets and the opportunities they provide, Tata Motors aims to further solidify its position and expand its market presence.

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