'Rural households find India affordable'
It said this will especially hold true for Bihar, Bengal and Uttar Pradesh.
The report also says lack of good road connectivity adversely affects penetration levels of two-wheelers, cars and jeeps.
"While several factors, including availability of finance determine penetration of two-wheelers and cars in rural areas, an improvement in rural road network could enhance demand for these items," it stated.
Better connectivity through the Prime Minister's Rural Raods Scheme appears to have positive impact on auto sales, it added.
The report adds that apart from raising rural incomes, boosting rural infrastructure will help unlock higher demand.
"In times to come, in addition to higher incomes, improved access to electricity and roads will be key determinants of demand for consumer durables in rural areas across many states," the report says.
Rural households in richer states such as Kerala and Punjab are likely to move further up the ladder and purchase more high-end durables goods, such as refrigerators, Acs, four-wheelers and digital cameras in future, it added.
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