Are car manufacturers really concerned about semi urban and rural markets

satish_appasani · 23rd March 2006, 11:44

Seeing the car advertisements and marketing campaign of the car manufacturers, it looks like always they focus on the urban market. They show very little concern to even medium size towns and district headquarters. Can understand that starting dealership is not viable in these towns, but atleast there should be an authorized service center for every brand of car in every district and big town. Are people in towns not meant to use better cars that we in cities enjoy.

My native place Rajahmundry is one of the biggest towns in AP. It is an hub for many trades and located in the center of two wealthiest districts of AP. The number of cars in my town alone would be in few thousands. At present we have dealerships of only Maruti and TATA. Hyundai recently closed their shop. All other manufacturers doesn't have even a decent service center. Whatever service centers we have are hopeless. They don't even stock basic spareparts.

People who own other brand cars, they have to drive 200 KMS for the nearest dealership. Many people like my Dad who is a doctor can't afford to loose a day at work just to get their car serviced. My Dad owns a Fiat Siena and wants to upgrade to a newer car and the only options he has are Indigo or Swift. We bought Fiat because, Fiat promised a full fledged service center in our town. They did start, but those guys even don't know how to adjust head light beam. My Dad's friends who own a Corsa are also in the same situation. We don't want to risk again by buying a city, Aveo or Fiesta.

When I asked Honda, Ford & GM dealers in Hyderabad why are they not concerned about service in districts, they simply answer that their cars will never require any attention. And they can't afford to start a service center to attend to few calls. :WTF:

I remember when Maruti started operations in 80s, we had two Maruti authorized service centers in our town. Also they started the dealership more than a decade ago. Maruti can teach a lesson or two to others in that department.

Hope other mfrs learn their lessons real quick....

Ajay · 23rd March 2006, 12:01

One reason could be the economies vs the scale. Last I heard that on an average about 100-150 cars (in total for all RTO's) get registered in B'lore per day!This might not be the case with smaller / medium sized towns , cities. But the contrary happens as well?
[SIZE=2]MBIL, i heard opened up a showroom in Gonikoppa before they had one in Bangalore coz the numbers of people buying their cars in this town were more than B'lore at that time.[/SIZE]
[SIZE=2][/SIZE]

devarshi84 · 24th March 2006, 12:11

Quote:

Originally Posted by satish_appasani

Seeing the car advertisements and marketing campaign of the car manufacturers, it looks like always they focus on the urban market. They show very little concern to even medium size towns and district headquarters. Can understand that starting dealership is not viable in these towns, but atleast there should be an authorized service center for every brand of car in every district and big town. Are people in towns not meant to use better cars that we in cities enjoy.

My native place Rajahmundry is one of the biggest towns in AP. It is an hub for many trades and located in the center of two wealthiest districts of AP. The number of cars in my town alone would be in few thousands. At present we have dealerships of only Maruti and TATA. Hyundai recently closed their shop. All other manufacturers doesn't have even a decent service center. Whatever service centers we have are hopeless. They don't even stock basic spareparts.

People who own other brand cars, they have to drive 200 KMS for the nearest dealership. Many people like my Dad who is a doctor can't afford to loose a day at work just to get their car serviced. My Dad owns a Fiat Siena and wants to upgrade to a newer car and the only options he has are Indigo or Swift. We bought Fiat because, Fiat promised a full fledged service center in our town. They did start, but those guys even don't know how to adjust head light beam. My Dad's friends who own a Corsa are also in the same situation. We don't want to risk again by buying a city, Aveo or Fiesta.

When I asked Honda, Ford & GM dealers in Hyderabad why are they not concerned about service in districts, they simply answer that their cars will never require any attention. And they can't afford to start a service center to attend to few calls. :WTF:

I remember when Maruti started operations in 80s, we had two Maruti authorized service centers in our town. Also they started the dealership more than a decade ago. Maruti can teach a lesson or two to others in that department.

Hope other mfrs learn their lessons real quick....

First:- Not many luxury cars are sold so its not viable for dealers to open shop to cater to a small segment. They would not make any profits

Second:- Rural people dont need Honda city's and toyota corolla's and even cant afford to own one.

third:- Few manufacturers actually specifically look after rural market. like

Maruti-suzuki
tata
mahindra
Force motors
Sonalika etc.

satish_appasani · 24th March 2006, 12:22

Quote:

Originally Posted by devarshi84

First:- Not many luxury cars are sold so its not viable for dealers to open shop to cater to a small segment. They would not make any profits

Second:- Rural people dont need Honda city's and toyota corolla's and even cant afford to own one.

third:- Few manufacturers actually specifically look after rural market. like

Maruti-suzuki
tata
mahindra
Force motors
Sonalika etc.

Devashri...How can you justify people in rural india can't afford to buy City and Carolla? Many of them can afford and they very much desrve attention of international car mfrs.

I am not talking about rural areas where there are no proper roads and people travel by Tempo Trax and Mahindra Commander.

My point is about medium to big size towns like district head quarters. They are either big muncipalities or small corporations with population more than 4 lakhs.

devarshi84 · 24th March 2006, 12:25

Quote:

Originally Posted by satish_appasani

Devashri...How can you justify people in rural india can't afford to buy City and Carolla? Many of them can afford and they very much desrve attention of international car mfrs.

I am not talking about rural areas where there are no proper roads and people travel by Tempo Trax and Mahindra Commander.

My point is about medium to big size towns like district head quarters. They are either big muncipalities or small corporations...

My mistake. I thought you talking about the villages.

And still I dont justify that they cant buy. The numbers will be still low for a dealrship to survive.

khanak · 24th March 2006, 14:24

wht about mahindras's RTV made especially for the rural market. though i think the postal vans in mumbai are rtvs now.

i guess manufacturers dont think that they can operate in these markets profitably and so they dont have too many dealerships or service centres there.

mithun · 25th March 2006, 13:00

Most of the car manufacturers do not do any proper market research in the rural areas when they are launching cars. That's one of the reason for the poor performance of many cars through the rural tarmacs.

And also they under-estmate the purchasing power parity of rural areas. The scene is entirely different now in the case of 2-wheeelers. Let's all hope that this situation will change in the case of cars also.

23rd March 2006, 11:44	#1
satish_appasani Senior - BHPian Join Date: Jun 2004 Location: Hyderabad Posts: 1,112 Thanked: 104 Times View My Garage	Are car manufacturers really concerned about semi urban and rural markets Seeing the car advertisements and marketing campaign of the car manufacturers, it looks like always they focus on the urban market. They show very little concern to even medium size towns and district headquarters. Can understand that starting dealership is not viable in these towns, but atleast there should be an authorized service center for every brand of car in every district and big town. Are people in towns not meant to use better cars that we in cities enjoy. My native place Rajahmundry is one of the biggest towns in AP. It is an hub for many trades and located in the center of two wealthiest districts of AP. The number of cars in my town alone would be in few thousands. At present we have dealerships of only Maruti and TATA. Hyundai recently closed their shop. All other manufacturers doesn't have even a decent service center. Whatever service centers we have are hopeless. They don't even stock basic spareparts. People who own other brand cars, they have to drive 200 KMS for the nearest dealership. Many people like my Dad who is a doctor can't afford to loose a day at work just to get their car serviced. My Dad owns a Fiat Siena and wants to upgrade to a newer car and the only options he has are Indigo or Swift. We bought Fiat because, Fiat promised a full fledged service center in our town. They did start, but those guys even don't know how to adjust head light beam. My Dad's friends who own a Corsa are also in the same situation. We don't want to risk again by buying a city, Aveo or Fiesta. When I asked Honda, Ford & GM dealers in Hyderabad why are they not concerned about service in districts, they simply answer that their cars will never require any attention. And they can't afford to start a service center to attend to few calls. :WTF: I remember when Maruti started operations in 80s, we had two Maruti authorized service centers in our town. Also they started the dealership more than a decade ago. Maruti can teach a lesson or two to others in that department. Hope other mfrs learn their lessons real quick.... Last edited by satish_appasani : 23rd March 2006 at 11:46.
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23rd March 2006, 12:01	#2
Ajay BHPian Join Date: Jun 2005 Location: B'lore Posts: 147 Thanked: 5 Times	One reason could be the economies vs the scale. Last I heard that on an average about 100-150 cars (in total for all RTO's) get registered in B'lore per day!This might not be the case with smaller / medium sized towns , cities. But the contrary happens as well? [SIZE=2]MBIL, i heard opened up a showroom in Gonikoppa before they had one in Bangalore coz the numbers of people buying their cars in this town were more than B'lore at that time.[/SIZE] [SIZE=2][/SIZE]
	() Thanks

24th March 2006, 14:24	#6
khanak Senior - BHPian Join Date: Mar 2005 Location: Mumbai/Toronto Posts: 2,799 Thanked: 268 Times View My Garage	wht about mahindras's RTV made especially for the rural market. though i think the postal vans in mumbai are rtvs now. i guess manufacturers dont think that they can operate in these markets profitably and so they dont have too many dealerships or service centres there.
	() Thanks

25th March 2006, 13:00	#7
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	Most of the car manufacturers do not do any proper market research in the rural areas when they are launching cars. That's one of the reason for the poor performance of many cars through the rural tarmacs. And also they under-estmate the purchasing power parity of rural areas. The scene is entirely different now in the case of 2-wheeelers. Let's all hope that this situation will change in the case of cars also.
	() Thanks