Goes hi-speed into rural India

What does a well-established company do when it experiences sales drop in its biggest market after years? It woos its consumers with health and medical facilities or at least, that’s what Hero MotoCorp, India’s biggest motorcycle maker is doing after competition with Honda prompted a sales drop in a decade.

Nearly 45% of Hero’s sales come from rural parts of the country, as it is the world’s second largest market for two wheelers. Now, Hero is organizing free vehicle servicing and medical camps in over a lakh of villages for attracting new customers. Last year end, Honda’s sales jumped up by 37% while Hero faced a 2% decline.

 Due to the rising incomes in rural areas as the farm output picks up. India’s rural spending was $67.57 billion 2010 and 2012 to urban consumption of $53.95 billion.  And, well, with Hero’s initiative the spending limit is just going to increase.