A few years ago, Maruti Suzuki India Ltd (MSIL) became the first mainstream car manufacturer to have a chain of upmarket outlets for selling its premium products. Today, Maruti Suzuki sells the Baleno, S-Cross, Ignis, and Ciaz through its NEXA premium outlets. All other Maruti Suzuki products are sold through the relatively less special Arena dealerships. This strategy has worked quite well for Maruti Suzuki. Now, it has come to light that Mahindra and Mahindra, the UV giant, plans to adopt a somewhat similar approach. Soon, the company will set up ‘Prime Zones’ to sell its high-end models. A major difference, however, will be that these zones will be established inside the current dealerships.
In most likelihood, Mahindra and Mahindra will sell models like the upcoming Marazzo MPV, Ssangyong Rexton G4-based SUV, and even the S201 compact SUV at its Prime Zone sections. Speaking to select media at the name reveal of its upcoming MPV, Veejay Ram Nakra, Chief of Marketing & Sales (Automotive Division), Mahindra & Mahindra, revealed the reason for his company’s decision to establish Nexa-style upmarket sections in its current showrooms for selling the upcoming premium models.
He said,”I think every brand will have its own approach (to selling premium products). The idea is to always give a differentiated experience to customers who are buying a more expensive product. Hence, our approach has been that instead of going out and setting up a very heavy-asset, high-capex and high-revenue-expense model for dealers, we want to keep it light. And, hence, we thought we’ll carve out space in the existing showrooms.”
The upcoming Prime Zone sections from Mahindra will have a different colour theme and lounge-like seating. These dealerships will even offer a virtual reality zone, where potential customers can check out how the cars of their choice would look in a certain colour or with certain official accessories. While this will lead to high-end products like the Rexton and utilitarian models like Bolero being sold under the same roof, it will also mean that the upcoming premium models will be available across the country right from the day of their launch. It may be noted here that the Maruti S-Cross was initially available only in select cities due to the low number of Nexa outlets in the beginning.
Source – Autocar India