It is being reported that Maruti Suzuki’s premium sales channel, NEXA might be transformed into a premium brand in the near future.
Indian car aficionados look all set to soon get introduced to two new brands from Maruti Suzuki as part of the company’s foray into selling 4-5 million vehicles a year by 2030. The new initiative will involve the NEXA channel, which would be turned into a premium car brand in the coming time. First introduced in 2015, Maruti Suzuki’s NEXA dealerships have been a masterstroke to keep the company a front runner in the nail-biting competition in India.
Maruti's premium NEXA outlets will be soon no longer a single sale channel of the company but a car brand instead.
The NEXA’s premium outlets have cleared the way for Maruti Suzuki to enter the high-budget segment in the market so that it has managed to sell a range of premium products in the domestic space. In fact, in FY2019, the NEXA dealerships have helped Maruti Suzuki to garner as many as 20% of its total sales figures in the country. Obviously, it is not too far when we see the vehicles badged NEXA here and there on the public roads in our country.
Maruti Suzuki will introduce new products under its distinctive brands in the foreseeable future.
In addition to the NEXA brand, Maruti Suzuki is also contemplating the idea of introducing a third auto brand in India which, as per the carmaker’s words, will hold big appeals for the set of customers at the age bracket of 25 to 35. All in all, with the multi-brand initiative, the Indo-Japanese auto major will mark its greatest attempt to maintain its dominance in India in the long run.
The expected timeline for the implementation of the distinctive NEXA brand will be set for some time in 2022-2023 since it coincides with the time when most NEXA’s current products reach the end of their life-cycle. Aside from that, it also makes good sense for the automotive company to bring in new distinctive brands in India if it is still cherishing the ambition of crossing milestone of 4-million sales vehicles. Note that it is incredibly tough to retail at least 4 million products through a single-channel platform as in the present days.
Globally, various companies following this footstep have achieved quite a success that they can attract a whole bunch of customers for products at higher price points. For example, Toyota has a premium brand named Lexus along with Daihatsu as a small car brand while Nissan sells its vehicles under Nissan, Infiniti and Datsun badges. Honda Motor also has Acura as the premium namesake.