Maruti Suzuki India has set a target to make its premium retail channel, Nexa, the second-largest car brand in India by FY24. The company aims to surpass the sales of popular car manufacturers like Hyundai Motors India, the maker of Creta, and Tata Motors, the maker of Nexon. Maruti Suzuki's premium retail channel has achieved a significant milestone by selling a total of 2,000,000 units since its launch in 2015.
Maruti Suzuki India has two types of dealerships, Nexa and Arena, for selling its passenger vehicles (PVs). The company sells models such as Ignis, Baleno, Ciaz, XL6, and Grand Vitara through Nexa outlets, whereas models like Alto, S-Presso, Celerio, WagonR, Swift, Dzire, and Brezza are sold through Arena outlets.
Maruti registered sales of 1,474,107 units of passenger vehicles in the Indian market between April and February of the financial year 2022-23. During this period, 23% of these sales were from Nexa models. The company has set a target of selling approximately 370,000 units of Nexa vehicles by the end of this fiscal year, which is an increase from the 255,000 units sold in FY22.
Shashank Srivastava, Senior Executive Officer of Marketing and Sales at Maruti Suzuki India, expressed optimism about making Nexa the second-largest car brand in the auto industry in the next fiscal year (FY24). Currently ranked fourth in the industry, Maruti Suzuki aims to achieve this by leveraging Nexa's cumulative sales volumes of 2 million units since its inception in 2015.
To increase the volumes of its Nexa channel, Maruti Suzuki India is relying on its sport utility vehicle (SUV) models, such as the Grand Vitara, Fronx, and five-door Jimny. The Grand Vitara was launched by the company in September of last year, while the Fronx and the Jimny were showcased at the Auto Expo 2023, further strengthening Maruti's SUV portfolio.
As per reports, the Fronx has already received more than 15,500 bookings while the Jimny has received over 23,500 bookings. Both SUVs are expected to be available for retail sales from Nexa outlets from April, with Fronx in the second week and Jimny a little later. Shashank, said that the Nexa market share in the industry on a standalone basis is now more than 10%. He added that sales are expected to be higher next year, perhaps close to 600,000 units.
The current network of Maruti includes 460 Nexa outlets, which cater to 280 cities. The company may consider expanding its network, given the anticipated increase in volumes in FY24.