Nexa Looks Ahead To Expansion, New Model Introduction
Siddharth Vinayak Patankar
1 min read
Aug 03, 2016, 06:51 PM
Key Highlights
- Nexa dealerships raking in success for Maruti Suzuki
- Company plans to expand to 250 outlets by 2017
- Two new models to join the current line-up sold at Nexa dealerships
It was called an experiment gone awry, but as it completes one year of operations, Maruti Suzuki's Nexa network is now looking like quite the success. The first model to come from Nexa (S-Cross) was a bit of slow starter, but a price correction, and the subsequent addition of the Baleno has seen Nexa clocking healthy sales now.
The network was ramped up to 150 outlets across 94 cities in the first year. Maruti says that by the end of March 2017, there will be 250 outlets - meaning that the products retailed by Nexa will then reach all potential buyers (currently Nexa reaches approximately 85-90 per cent of the market says Maruti) across India. Maruti Suzuki believes it has also been able to engage new buyers for the first time.
Suzuki S-Cross
"51 per cent of customers who came for these cars never had a Maruti in their consideration (set). In a way we reach these customers. 70 per cent of them are replacement buyers who are upgrading from their current vehicles. It has fulfilled our expectations." Says R S Kalsi, Executive Director Marketing & Sales at Maruti Suzuki India.
The network was ramped up to 150 outlets across 94 cities in the first year. Maruti says that by the end of March 2017, there will be 250 outlets - meaning that the products retailed by Nexa will then reach all potential buyers (currently Nexa reaches approximately 85-90 per cent of the market says Maruti) across India. Maruti Suzuki believes it has also been able to engage new buyers for the first time.
"51 per cent of customers who came for these cars never had a Maruti in their consideration (set). In a way we reach these customers. 70 per cent of them are replacement buyers who are upgrading from their current vehicles. It has fulfilled our expectations." Says R S Kalsi, Executive Director Marketing & Sales at Maruti Suzuki India.
Of course the positioning at Nexa shall remain premium says the company, and it already promised us two new models would join the S-Cross and Baleno soon. Those are the Ignis and Baleno RS that were showcased at the 2016 Auto Expo in Delhi this past February. While there may be a few weeks delay the models are on track for launch this year.
The delay is mainly on account of capacity constraints as Maruti's plants are currently firing on all cylinders - and yet failing to stay abreast of demand. Kalsi says, "We are optimistic about the market, considering the macro economic factors. Yet we have to monitor the market, the products in the pipeline and when to put them on the road. So we are very clear on when to start what."
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