Now this is what you call novel thinking. Hero Cycle, one of the largest bicycle makers in the world is looking at boosting their volumes by targeting rural India. The company believes that there is great potential for growth in the rural market where the only thing deterring individuals from going in for a cheap means of transport like the bicycle is extremely low monthly income. The company plans to aid these individuals in buying a pedal propelled commuting tool with their new micro financing scheme.
The company has associated with Sonata Finance for providing loan to willing but financially weak customers. The finance firm will provide loans as low as Rs 100 per week (Rs 400-500 per month) to customers in the rural areas.
The scheme will be launched as a pilot in UP, and if it meets success will be expanded to other states and territories.
However, even while covering the rural market for growth, the company is not taking its eyes off the premium segment, which is showing great growth too.
via ET