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No Maruti Branding For Premium Cars? Nexa To Carry S Tag

BW Online Bureau Jul 06, 2015

As Maruti struggles to be as successful in the big cars segment as it has been in its small car one, Suzuki may be planning to roll out its luxury cars without the Maruti brand name. In its bid to crack the big vehicle segment, Maruti Suzuki India is establishing a new setup of retail outlets under Nexa brand to sell premium products starting with its upcoming S-Cross model. According to a Times of India report, Suzuki’s new cars will carry only the ‘S’ badge. The cars will sport the model’s name and a logo denoting the vehicle’s engine size and a Nexa dealership sticker on the rear.   The premium products from Maruti Suzuki should include the Swift hatchback, Swift DZire, Ertiga and the Ciaz at the moment. The Kizashi, the Vitara Brezza and the YRA (or the iK-2) will be also come under the premium category. About 20 dealerships will be opened in the initial phase and later on this will be expanded. Globally, car makers, such as Nissan Motor Co., Toyota Motor Corp. and Honda Motor Co. have similar models where they sell luxury cars under Infiniti, Lexus and Acura brands. But these are aimed at countering the German marques such as the Mercedes-Benz, BMW AG and Audi. The company that 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 its sales and will open 100 dealerships under it in 30 cities by the end of ongoing fiscal. Its different 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". Maruti Suzuki India Executive Director (Marketing and Sales) RS Kalsi told PTI in Nashik, "We have created a customer base of 1.5 crore in the three decades of our operations. Our customer profile is changing today 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. 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 manager," he added. On the significance of Nexa and upcoming S-Cross, Kalsi said: "In order to extend our leadership we have to continuously find new segment 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 so far sold 3,41,329 units in the current fiscal till June, up 13.8 per cent from 2,99,894 units sold during the same period previous fiscal. For the 2014-15 financial year, the company had posted its highest ever sales at 12,92,415 units, up 11.9 per cent, from 11,55,041 units in 2013-14. The previous high was in 2010-11, when the company had sold 12,71,005 units. The company's domestic sales during the last fiscal stood at 11,70,702 units, up 11.1 per cent, from 10,53,689 units in 2013-14 fiscal.