New Delhi, Mar 26 (KNN) Indian automaker Tata Motors is witnessing surging vehicle sales in rural markets, driven by rising demand for electric vehicles (EVs) and CNG models.

The company's sales contribution from rural areas has increased from 32 per cent before the Covid-19 pandemic to 40 per cent currently.

CNG vehicle penetration in rural regions is now at 17 per cent, while EV penetration has reached an impressive 30 per cent.

"In the last four to five years, we have expanded our network in the rural market from 500 touchpoints to 830 touchpoints very near villages," said Amit Kamat, Chief Commercial Officer at Tata Motors Passenger Vehicles Ltd.

Tata has also ramped up services for rural customers, now operating 270 workshops catering specifically to this market segment.

The product lineup, including EVs, is resonating well with rural buyers, Kamat told BusinessLine.

Demand for higher-end variants with automatic transmissions is also on the rise at 13-14 per cent penetration.

Notably, around 70 per cent of buyers for Tata's entry-level cars in rural areas are first-time vehicle owners – around 10 percentage points higher than in urban markets.

"In the rural market, first-time buying is higher than the urban market. We see the market growing this year with a forecast of better rains," Kamat stated.

To deepen its rural reach, Tata has introduced 'Anubhav' vans – mobile vans that travel across villages showcasing vehicle features digitally. The company now operates 135 such vans.

"These vans travel to villages and explain our product capabilities and features. This and our digital footprint have helped us expand our presence," Kamat added.

(KNN Bureau)