Maruti Suzuki India is gearing up to be the top choice for India’s urban and prosperous population. The company plans to open 57 new Nexa showrooms – their premium outlets – by March 2025. This move comes as the demand for their high-end vehicles keeps rising.
Shashank Srivastava, the Senior Executive Officer for marketing and sales, shared this update on Thursday. Presently, the country has 468 Nexa showrooms, with the first one opened in Dwarka, New Delhi, in July 2015.
Nexa has accounted for about 31.9% of Maruti Suzuki India’s total sales until this July, an increase from 22.4% for the whole FY23 (2022-23), as Srivastava told. Maruti Suzuki’s top eight out of seventeen passenger vehicle models – Baleno, Ignis, Grand Vitara, Jimny, Fronx, Ciaz, Invicto, and XL6 – are sold through Nexa showrooms. The rest of the models are available in the company’s 2,842 Arena outlets. Apart from this, the company also sells its commercial vehicle, Super Carry, through separate commercial outlets.
Over the last few years, Maruti Suzuki has focused on strengthening its presence in the utility vehicle (UV) segment, the fastest-growing sector. They’ve launched models like the Grand Vitara, Jimny, Fronx, and Invicto (their first vehicle above Rs 20 lakh) in this category.
This strategic shift has helped Maruti Suzuki gain a 23.12% market share in the UV segment in the first quarter of FY24, up from 17.4% in the same period the previous year, according to data from the Society of Indian Automobile Manufacturers.
Nexa was designed to introduce a new kind of consumer to Maruti Suzuki. Maruti Suzuki was known for reliability, quality, a wide network, low maintenance costs, and great value for money. As the economy grew, we recognized a group of consumers who had different criteria for their purchases said Srivastava.
This group values design, features, and technology more than just price or fuel efficiency. On average, Nexa customers are a bit younger and more urban compared to Arena customers. They also have a slightly higher average monthly household income – around Rs. 90,000 for Nexa customers compared to Rs. 65,000 for Arena customers.
In July, Nexa secured the second position among all sales channels in India’s auto industry. The top four sales channels in FY22 were Arena, Hyundai, Tata Motors, and Nexa. Srivastava, who has spent over three decades with the company, is optimistic about Nexa’s ongoing success.
Maruti Suzuki envisions a lineup of about 28 models, including six electric vehicles (EVs), by FY31, as Chairman R C Bhargava mentioned in the company’s recent annual report. Currently, the company offers 18 different models. Bhargava predicts a six percent annual growth rate for the Indian car industry until FY31.
He explains that the company is entering its third phase of growth, aptly named Maruti 3.0. Bhargava acknowledges unprecedented challenges ahead. It took four decades to reach a capacity of 2 million units, and Suzuki Motor Corporation played a role by establishing the Gujarat facility. Bhargava succinctly presents the new challenge: adding the next 2 million units in just nine years.