Mahindra and Mahindra adopt aggressive marketing in the semi-urban and rural segments

Indian Auto companies are facing the heat with sales decline over the past two months with hike in interest rates and fuel prices. The situation is such that even Auto giants in India like Maruti Suzuki and Tata Motors have been hit and are considering a cut down in their productions until the situation eases.

Reports according to Business Line say that M&M (Mahindra and Mahindra), another well-known name in the auto market have been sailing steady and exceptionally well in the initial four months of the year, which is a surprise. The report also says that there are several factors aiding Mahindra and Mahindra’s growth as they have been focussing how to counter the current trend in the industry. They are planning to push in the semi-urban and rural markets and positioning their products in a better way. Another factor suiting the M&M would be the rise in petrol by Rs. 20 necessitating the demand for diesel vehicles, which is M&M’s strength.

Mahindra and Mahindra’s Senior VP (Marketing), Arun Malhotra said that they have done well in selling their diesel vehicles. He says sales in rural segment are also on the high, and they are focussing on network expansion, finance availability, manpower and also tightened their sales network everywhere in the country including all the districts.

Mahindra and Mahindra

The report also mentions that Mahindra & Mahindra have upped their UV (utility vehicles) market share to 62% in June 2011-July 2011, from 55% the previous year. While they are increasing the manufacturing capacity of their engines further, they have also increased productions of Scorpio SUV, Xylo MUV and Bolero, which is their top seller so far. Arun Malhotra said that the overall growth can be attributed by not just selling one product, but they have done well in all their products. He said even though they did launch many models in the Utility Vehicle (UV) segment like the double and single-cab Genio, they indeed have contributed to the volume sales. The revival of the Mahindra Logan in the form of Verito after minor changes in the design and a further push in marketing has all been very favourable for them. Verito diesel sales have doubled up in June 2011 to 1510 and in July 2011 to 1630 units.

He further said that strategies involving the communications and marketing have worked really well for them. He says that there is value to the new look that Mahindra carries and that there is confidence in brand Mahindra now. He further emphasized that people thought Logan was a risky buy when there was news concerning Renault’s pull off.

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