Thursday, July 28, 2011

Hyundai beefing up rural network for low-cost car

Hyundai Motor India plans to add 300 rural sales outlets within the next two months as it gears up to launch its cheapest car in India by November this year.

Hyundai announced in May that it would launch a small car costing below Rs 3 lakh in November. Hyundai is gearing up to launch the small car, codenamed HA, to directly compete with market leader Maruti Suzuki’s Alto.

The new rural outlets will take its rural sales network to 1,000, apart from the standard 325 dealerships located in cities.

The country’s second largest carmaker will employ a total of about 2,000 sales executives in these rural outlets. Rural areas, according to Hyundai, are the markets that lie outside the top 40 cities.

According to Maruti Suzuki's chief general manager, marketing, Shashank Srivastava, the company has 960 standard dealerships and 3,400 ‘taluka’ outlets through which it sells the Alto, the largest selling car in the country. Maruti plans to raise the number of its taluka outlets to 3,600 by the end of 2011. Maruti gets 33 per cent of its total sales from outside the 40 main cities.

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