Deficient monsoon can hit sales in rural market: Maruti Suzuki
The Met dept's prediction of monsoon from 93% to 88% is expected to drop sales in rural India. Maruti Suzuki plans to launch new offers and products targetted at the rural market.business Updated: Jun 03, 2015 19:58 IST
Deficient monsoon is a cause of worry and could affect sales in some parts of the country, especially in rural market, according to car market leader Maruti Suzuki India.
"Yes, the deficient monsoon prediction is a cause of worry. Sales could be affected in some parts, specially in the rural market," Maruti Suzuki India Managing Director and CEO Kenichi Ayukawa told reporters in New Delhi.
The company's rural sales had increased by 23 per cent to 4,15,380 units in last fiscal year, when it posted a total of 12,92,415 units - the highest ever total sales in a financial year.
On Tuesday, the Met Department had revised monsoon forecast from 93% to 88% for this year, with north-west region of the country expected to be hit the most. In April, the Indian Meteorological Department (IMD) had forecast that monsoon rains would be 93% of the average, which is categorised as 'below normal'. Now, with the revised projection of 88%, the monsoon is categorised as 'deficient'.
Ayukawa, however, said Maruti Suzuki would try to overcome the impact of the deficient monsoon with new product launches and other market activation activities.
Last fiscal, the company had established presence in 1.25 lakh villages and is targetting to enhance presence in 1.5 lakh villages going forward. In 2013-14, it had established its presence in 93,400 villages.