Wednesday 16 May 2012

Toyota India taps the hinterland with 'Go Rural' campaign to push sales of Etios twins

Toyota Kirloskar Motors had rural India on its radar when the company initiated a programme called ‘Go Rural’ in the last quarter of 2011. The company has recently completed its pilot initiative and has displayed its line up in the smaller towns and rural areas of India to gauge customer’s response. The results appears to be on the positive side as the company now plans to head into the rural, small towns of India to sell Etios sedan and Liva hatchback, the entry level offering for the Indian car market. The Japanese brand’s Etios twins- sedan and hatchback have fetched reasonable sales, however the rural market was like an untapped potential market for the Brand which the brand explored with its Go Rural campaign.

Toyota was an archetypal urban brand with stronghold bases, dealership and after sales reach mainly in the urban side. Toyota mulls to come out this typecasting with the establishment of dealerships in the hinterland. Etios twins were designed as low cost offering, which makes the car all the more rural friendly; the cars wont dent your pocket even as they are inexpensive to run and own. In 2012, Toyota plans to open 25 dealerships in rural India, with 2013 to see 50 more added to that figure. While the main focus of these dealerships will be to sell and service the Etios twins, Toyota will also sell the likes of the Innova MPV and the Fortuner SUV, wherever demand for these vehicles exist. In India, the big car sellers in the hinterland have been the likes of Maruti Suzuki and Mahindra &Mahindra, both brands which have well established sales and service networks. Maruti Suzuki has the biggest reach in the country, with its sales and service centers spanning the length and breadth of the nation.

Toyota plans to open 25 dealerships in rural India in 2012, the figure is going to amplified in 2013, the company plans to add another 50 to that figure. These dealerships main focal point will be to sell and service Etios twins, however other models of the brans like Innova MPV and Fortuner SUV will also be sold wherever there is a demand for these vehicles. Maruti India is the uncontested leaders in the hinterland, where Totota is trying to establish its foothold. Mahindra’s hold also is no less as the brand also sells tractors, which are mainly meant for rural areas only; Mahindra’s range of utility vehicles are the bestsellers in the country. Apart from Toyota other carmakers like Hyundai and Tata Motors are establishing standalone dealerships for their entry level offering Eon, Santro Zing and Tata Nano respectively.

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