Rural markets faring better than urban centres amid Covid-19: Maruti Suzuki

The country's largest carmaker Maruti Suzuki India (MSI) is seeing better demand in rural areas due to less number of COVID-19 cases as compared with urban regions which continue to reel under the high number of cases of the infectious disease, as per a senior company official.

Photo of Maruti Suzuki Alto
Photo of Maruti Suzuki Alto

Buying sentiment in rural areas is also better due to good initial spell of rains in June which has led to a better sowing of the kharif crop.

"Rural demand is little better than urban right now. In Maruti, the rural share has gone up to 40 per cent in June which is 1 per cent increase over the last fiscal," MSI Executive Director Marketing and Sales Shashank Srivastava told PTI.

Also Read : Top 10 cars sold in India in June: Maruti Suzuki Alto retains top spot

He listed three main reasons for the phenomenon which is based on the recent data.

Also check these Vehicles

Find more Cars
Maruti Suzuki Baleno (HT Auto photo)
1197 cc | Petrol | Manual
₹6.5 - 10 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Ytb (HT Auto photo)
₹7 - 11 Lakhs* *Expected Price
View Details
Maruti Suzuki S-presso (HT Auto photo)
₹4.25 - 5.99 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Dzire (HT Auto photo)
₹5.89 - 9.09 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Wagon R (HT Auto photo)
₹5.39 - 7.1 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Xl6 (HT Auto photo)
₹11.29 - 14.55 Lakhs***Ex-showroom price
Add to compare
Check latest offers

"One is that COVID-19 has impacted the sentiment little less in rural areas. In fact cluster of Covid and containment zones are largely in urban areas. Secondly, rabi crop has been good, and initial monsoon in June has been good so the sowing for kharif crop is much better, so rural sentiment as compared to urban sentiment is little better," Srivastava noted.

Also Read : Maruti launches vehicle lease subscription service for individual customers)

Both rural and urban sales were down as compared to last year, but rural sales were relatively better than urban areas, he added.

"There is decline in rural areas also as compared to last year, but it is less as compared to urban regions," Srivastava said.

In June, MSI reported a 53.7 per cent dip in domestic sales at 53,139 units as against 1,14,861 units in June 2019.

The company's sales were, however, better than May, when it had posted domestic sales of 13,888 units.

When asked if the company would be able to sustain sales momentum going ahead, Srivastava said, "It is difficult to predict. A lot will depend (on) how the Covid situation pans out so it is difficult to make prediction about the future."

Replying to a question on if the company would be able to cover the loss in sales in first quarter over the remaining part of the current fiscal, he said, "Really don't know how the Covid thing will pan out."

"Lot of this long term demand will depend (on) how the Covid thing unravels, how the fundamentals of economy are, and how is the financing available, so these things will decide. There are so many uncertainties involved that it is difficult to predict," Srivastava added.

However, he said, with demand picking up, the industry has started to ramp up production.

Srivastava said retail sales were far better than wholesales across the industry.

Ramping up of production is happening in phases and retail sales are a reflection of production. Retail figures are much better, he noted.

"If you see wholesales for the entire industry, it would be roughly less than 50 per cent than last year. Retail sales on the other hand is around 80-85 per cent. Of course both are less as compared to last year," he added.

With complete lockdown in April and limited sales in May, MSI reported 81 per cent dip in total first quarter sales at 76,599 units as compared with 4,02,594 units in same period of 2019-20.

First Published Date: 05 Jul 2020, 19:13 PM IST
Recommended for you
View all
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
19% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 324 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
9% OFF
ShineXPro Microfiber Car Cleaning Cloth - OG Soft 500 GSM Extra Large (35x75 CM) Microfiber Cloth for Car and Bike - Suede Edging for Scratchless Drying and Detailing (Pack of 2)
Rs. 498 Rs. 549

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city