Ruraldom rules!

ET reports that demand in rural and semi-urban areas has managed to delink itself from the financial crisis. As a result, products that have a rural focus—like bottom-end two-wheelers, entry-level cars and utility vehicles as well as lower-end gizmos—are all doing well.

Consider the stats. Demand for cars is down to just over 5% in the first half of the current fiscal. But utility vehicles and motorcycles, which have a strong rural/semi-urban spread, are up 12.53% and 12.58%, respectively. That’s the highest growth in the entire automotive spectrum, except for three-wheeler passenger carriers, another bottom-of-the-pyramid product. Ditto for consumer durables. Marketers say that while the usual festival fervour is missing in larger metro markets, rural demand has been the big face-saver this season.

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