Slowing sales, structural shifts and rural demand is bringing small cars back into focus

Slowing sales, structural shifts and rural demand is bringing small cars back into focus
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  • 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.


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