Maruti gains acceptance in premium segment, thanks to Nexa

Maruti gains acceptance in premium segment, thanks to NexaBookings for S-Cross witnessed increase of 30% post the price cut. Maruti Suzuki, a company which is widely acclaimed as a small car specialist, had quite a few forgettable encounters in the premium end of the market such as the Grand Vitara and Kizashi. Not bogged down by the failures, the automaker came up with the Maruti Nexa outlets that will exclusively retail the brand’s premium offerings. In the long term, the Nexa upmarket retail network would play a crucial role in Maruti gaining acceptance in the premium segment.

So far, the response for the Nexa strategy has been bitter sweet. The Baleno is a huge sales success but the S-Cross had to be subjected to a huge price slash (in the tune of INR 2 lakhs for the top-end model) to stay afloat. Nevertheless, Nexa has sold a over 60,000 cars so far, thereby contributing to 8% of Maruti’s sales. The company is expecting the figure to increase to 15% eventually.

Talking to CNBC TV18, RS Kalsi, Executive Director, Maruti Suzuki India Ltd., said that bookings for the S-Cross have increased by 30% after the price cut. As a goodwill gesture, the company also started offering its pre-price cut S-Cross customers with compensations in the form of cash refund, free maintenance pack, etc.

Maruti Nexa dealerships currently sell only the Baleno and S-Cross but would be retailing more premium models in the coming years.

This article has first appeared in Rushlane.com