WHILE the auto industry has been concentrating on the urban elite, Hindustan Motors (HM) is gearing up to cater to the rural markets. It is launching not one, but two diesel-operated vehicles for this forgotten segment.
Mahindra's utility vehicle (previously called Jeep) and TataSumo—both diesel-run cars that take to rugged roads with ease—have already found favour in the hinterland. But HM is the first company to focus on this market and clearly position its products so. "There's a distinct rise in the aspirational level of the rural consumer because of higher income levels and exposure via television," says C.K. Rao, chief general manager, marketing, HM automobile division.
HM did its market research in the Hindi heartland, which still primarily uses bullock carts, tractor-trailers and jugads (an engine, four wheels and a steering wheel connected together to form a contraption that moves). Of the two cars planned, the one to hit the dirt tracks first in about four months will be VFMT (a project code, to be replaced by a name). The second is being developed in collaboration with the Australian OKA Motor Company and is expected to be launched next year.
The indigenous 12-seater VFMT is a rough terrain vehicle, which will carry both passengers and cargo; has a higher underside to prevent any damage from the characteristic mound between tractor tracks; will reportedly give 12-13 km/litre of diesel; and will be priced "in the vicinity of Rs 2 lakh". It even has provision for separate doors and seating for men and women. The VFMT is expected to be bought to be hired out. "The buyers will primarily be the few people who maintain a fleet of eight-nine automobiles on an average to rent out. We are not catering to a new transportation requirement but our vehicles will be more cost-effective," says Rao.
VFMT may also be used in urban areas for high-volume, light-weight cargo such as wafers, cigarettes and bread. In the first year, HM intends to make only 3,000 vehicles. "Increasing production will not be a problem, if the concept catches on," according to Rao.
For the other vehicle, OKA is developing a chassis around HM's own diesel engine and gear-box. Known as a maker of autos for the roughest kind of use, OKA caters to the Australian mining community and army. For HM's model, it'll only provide the design, based on inputs from Indian engineers. "When the first vehicle rolls out in 1997, it will be indigenous," says Rao. The other key factor that should work for the vehicle: it has Ambassador parts, easily available across the country. If it gets its marketing right, HM could just open up a huge new market with these two vehicles.
