With a presence in every nook and corner of the country, Maruti Suzuki is in a happy place. Yet, the market leader refuses to be lulled into a sense of complacency and is now preparing for its next phase of growth. This is an integral part of its plan to reach production of two million units annually.
From Maruti’s point of view, the top priority now is to meet the needs of the third generation of car buyers. In the process, this would involve enhancing the premium selling experience to a new set of customers who are quite different from their predecessors. They want the best in class, which makes them look good in their cars even while the value-for-money quotient stays intact.
It is in this context that Maruti’s Nexa chain of retail outlets, created 18 months ago, will play an important role. The tally recently touched the 200 mark, a clear indication that it is on track with its goal to serve upmarket and millennial customers. The 200-showroom milestone was achieved in Hyderabad some weeks ago and plans are on to increase the number to 250 by March and to over 400 over the next two to three years.
The Nexa chain is present in 121 cities and accounted for sales of over 1.85 lakh vehicles thus far. Within its fold are the S-Cross, Baleno and the recently launched Ignis with the Baleno RS joining the family soon. On the face of it, the Nexa drive seems to be working given that it is drawing many first time car buyers to the Maruti fold.
“We plan to cater to the aspirations and changing requirements for third generation car buyers and well informed/travelled youngsters. Nexa will meet this need by offering a unique car buying and ownership experience, built on pampering, innovation and technology,” said R S Kalsi, Executive Director (Marketing & Sales).
From Maruti’s point of view, Nexa will go beyond selling cars to forging relationships with customers. Buying patterns of cars and market expectations have changed over the years. In the not-so-distant past, people used a car for 10-15 years or even longer. This is not the case with the current generation who seek a change every five years as they can spend more on a new car. As a result, said Kalsi, carmakers need to be constantly on overdrive and launch new models a lot faster. “We have a strong portfolio of cars and expect new models to help us sustain our leadership position,” he said. The changed stance from Maruti is evident in some of its recent launches like the Vitara Brezza, Baleno and Ignis, which are targeted at young buyers. “We will follow these with the launch of other models like the new Swift Dzire and WagonR,” added Kalsi.
Clearly, this is a different Maruti, which is ready to throw down the gauntlet in an all-new arena. Sure, it is still the manufacturer of the Alto people’s car but knows only too well that it is time to move on with the times. After all, India is the youngest country in the world with two-thirds of its population under 30. They would like to be associated with a manufacturer who also presents a youthful image rather than be stuck in the past with stodgy products.
At one level, the Renault Kwid set a new benchmark in compact cars by going the extra mile in offering a host of modern features. Maruti, likewise, is keen on an image makeover, which explains why Nexa is an important part of the journey. Urbanisation has changed market dynamics in a big way with more and more customers keen on buying a car. The company believes it is ideally placed to offer a mix starting from the humble Alto to the more modern Ignis.