Maruti Suzuki continues to be India's largest automaker and currently offers its car models in multiple segments; from hatchbacks to SUVs. In fact, the company is about to launch two new products in the coming weeks. It includes the names of Fronx and Jimny 4x4. Both vehicles will be launched under Maruti's premium retail brand, Nexa. Since Nexa’s first launch in 2015, it has achieved a 2 million sales milestone. Seeing that amazing growth, Maruti Suzuki aims to make Nexa the second-largest brand in the country by next year.
In a recent media interview, Shashank Srivastava, the Senior Executive Officer of the company, shared some insights into Maruti Suzuki's future plans. Let us find out what all strategies Maruti Suzuki is following to make its future bright.
Nexa to be Country’s Second-largest Dealership Network by 2024
The reason why Maruti Suzuki is confident to make Nexa the second largest dealership network is because of its sales numbers in 2022. Last year, Nexa models registered 23 percent of sales from Maruti Suzuki’s overall sales numbers. The company secured 3.7 lakh sales units in 2022 which grew by 48 percent when compared to the 2.55 lakh sales units in 2021. In addition, the company clocked a 10 percent market share of the overall car market in India.
Maruti Suzuki's Growth Strategy with the Fronx and Jimny
The automaker is targeting two of its upcoming products in order to make Nexa the second-largest dealership network in India. According to Srivastava, the Baleno hatchback, the upcoming Jimny SUV, and the Fronx compact SUV would play the main role to achieve the target. At present, the large sales volume is coming from Baleno which is now considered the second best-selling car in the Indian automobile market. The compact SUV, Fronx is also expected to see large sales numbers. Its sales are likely to start in April and for the Jimny SUV a little later.
Furthermore, Maruti Suzuki Nexa has already received 23,500 pre-bookings for the Jimny and 15,500 pre-bookings for the Fronx. As stated by Shashank, the company could become a top SUV maker as soon as next year. Although their market share in the SUV segments was low at 11 percent last year while for the non-SUV segment, the market share stood at 65 percent. Taking this into account, the manufacturer now aims to increase the market share in the SUV segment, by at least 50 percent of the overall market share. Therefore, they are planning to strengthen their product portfolio with the introduction of the Fronx and Jimny.
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Price Challenges in the Future
Apart from boosting the SUV segment, Maruti Suzuki also intends to hike the prices of its current product portfolio from the month of April. The increase in prices is mainly attributed to RDE (Real Driving Emission) norms that will be implemented from the 1st of April 2023. Despite the price challenges in the future, Srivastava is quite optimistic about Nexa's growth.
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