With anticipated growth in the agrarian economy across India, Mahindra and Mahindra is expecting rise in the sale of its vehicles, both personal and commercial, in another one year, a top company official said today.

The company which has registered a five per cent growth in the last fiscal is expected to sustain the growth this fiscal also and as part of two-pronged market strategy, it will focus more in rural market, which contributed 40 per cent of the company’s sales, Senior Vice-president, Sales and Customer Care, Automotive Division, Veejay Ram Nakra told reporters here.

“The real propulsion of growth still comes from rural area, where nearly 30 per cent of vehicles are sold,” he said.

As part of increasing rural penetration, the company has identified 3,000 tehsils, where it would open new dealership or workshop or service centres, so that the rural customers need not come to urban for their requirements, Nakra said.

There was also plan to open more quick service outlets on Highways, in association with Indian Oil Corporation, he said.

Despite a slump in the sales of a few days after demonetisation of high value currencies, which came back now, the company expected the rural economy to pick up in a few months, which will propel the demand for personal
and commercial vehicles by next financial year.

Stating that the company at present has 300 dealers across the country, Nakra, who was here to inaugurate a new dealership Rajshree Autos Pvt Ltd, said that the company has also plans to increase its Compact Quick Service Centres from the present 130 to 300 in another 18 months.

Compared to Pan India growth of five per cent, Tamil Nadu, with 19 dealers, is witnessing the fastest 34 per cent growth, which also contribute about six and half per cent of National sales, Nakra said.