Maruti setting up new retail outlets to sell premium products

In its bid to crack the big vehicle segment, Maruti Suzuki India (MSI), known for its small cars, is establishing a new set-up of retail outlets under the Nexa brand to sell premium products, starting with the upcoming S-Cross model.

The company, which has set a target of selling two million units annually by 2020 with around 25 models, expects the Nexa network to contribute a significant amount to sales and will open 100 dealerships under it in 30 cities by the end of this financial year. Its dealerships have hired 700 people from other sectors like hospitality, aviation and financial services, to offer a differentiated luxury car buying experience for its “discerning customers”.

"We have created a customer base of 1.5 crore in the three decades of our operations. Our customer profile is changing and we not only need to offer new premium products so that they stay with us when they look to upgrade to bigger cars but also a different buying experience," executive director (marketing and sales) R S Kalsi said.

Many of them are third-generation customers, young achievers who are experienced car users, he added.

"That's why we need to offer a differentiated buying experience to these customers. So, we have hired people from other sectors like hospitality, aviation and financial services and will even provide personal relationship managers," he added.

On the significance of Nexa and the S-Cross, Kalsi said: "To extend our leadership, we have to continuously find new segments and have to raise the bar. We have set a target of selling two million units annually by 2020 and these two new initiatives in 2015-16 are the first few steps in that direction."

MSI has struggled in the past to be as successful in big cars as it is in small cars. It only has the Ciaz sedan in the big car portfolio.

Kalsi said: "After Ciaz we have to go more into the premium segment. We have a number of models in our research and development pipeline. We will be bringing in more models."

Maruti Suzuki India Limited