Maruti Suzuki plans to invest Rs 30,000-crore to set up new dealerships in small towns and rural areas.
New media reports reveal that Maruti Suzuki is planning to set up smaller Nexa showrooms and mobile dealerships with a purpose to reach customers in small towns and rural areas. The reports also suggest that these new showrooms will only display 2-cars, but it will provide the same customer experience as any other Nexa showroom. Moreover, investments required to set up these new dealerships will be lower than a regular Nexa showroom. For now, Nexa dealership only operates in the top metro cities. Nexa has 360 dealerships in more than 200 cities and, it accounts for over 20% of Maruti Suzuki's total sales. After facing falling sales from the past few months, Maruti Suzuki decides to expand itself in smaller towns and cities.
The reports also suggest that these new showrooms will only display 2-cars, but it will provide the same customer experience as any other Nexa showroom.
The price of setting a dealership in tier-1 cities has increased due to higher real-estate cost. Even the operational cost has also increased. Moreover, Maruti is also setting new dealerships at its own expenses and renting them out to dealers to reduce the money expenses of its sellers. Moreover, the company will spend ₹30,000-crore to sponsor this plan.
A spokesperson of Maruti Suzuki said “We have been continuously getting requests from customers seeking the Nexa experience in the cities where we were not present. To serve these customers, we plan to establish smaller Nexa showrooms. These will have a 2-car display facility and will offer the same Nexa experience offered by our current Nexa outlets across the country. These showrooms will help us come closer to customers seeking the Nexa experience and enhance customer convenience,"
Maruti Suzuki treats its sellers as part of the firm and not a third-party.
“Nexa is the most successful premium retail network in the country. In less than four years, it has established itself as the country’s fastest-growing retail channel and contributes more than 20% of Maruti Suzuki’s total sales. Nexa is present in over 200 cities with more than 360 outlets. It has more than 9 lakh happy customers," he added. Maruti Suzuki treats its sellers as part of the firm and not a third-party. For more information stay tuned to the Indian Auto and do subscribe our YouTube channel.