Slowing sales, structural shifts and rural demand is bringing small cars back into focus
7 Dec 2018 6:30 PM GMT
Indias Rs 4.5 lakh crore automobile industry just saw its worst festival season in recent times.
- For many young upwardly mobile consumers like Mishra, buying a car is no longer aspirational, says Deepesh Rathore, cofounder, Emerging Markets Automotive Advisors.
- Companies like Hyundai Motors and M&M are taking positions in car subscription and shared mobility companies like Revv and Zoomcar that offer customers flexible car mobility experience without the baggage of ownership.
- New mobility products like Bajaj Auto’s quadricycle Qute are being keenly watched with serious intent by carmakers like M&M and Piaggio.
- First-time buyers, like Mishra, would rather buy a high-end bike with a brag value than an entry-level car.
- In contrast, smaller towns and cities — with low car penetration, poor public transport and beyond the reach of shared mobility apps — are virgin territories waiting to be explored.
- Car finance companies like ICICI Bank, too, are figuring out how best to target rural car buyers.
Next Story