Maruti drives car retailing to next level, launches Nexa

S-Cross, a crossover vehicle, due for launch in first week of Aug, will be exclusively sold through Nexa dealerships

With its eye on the growing premium car market, the country’s largest car maker, Maruti Suzuki, on Thursday launched a new dealership network, Nexa. The S-Cross, a crossover vehicle due for launch in first week of August, will be exclusively sold through Nexa dealerships. The company will be ready with nearly 40 such dealerships before the S-Cross is launched. By the end of this year, the number of such dealerships is projected to touch a hundred.

“Based on the vision to sell two million vehicles annually by 2020, we are starting various initiatives. Nexa outlets are one such step lined up in that direction,” said Kenichi Ayukawa, managing director and chief executive. The company, which recently overtook its parent company Suzuki in market value (market capitalisation), saw its stock price touch a new high of Rs 4,243.90 on Thursday.

“We had a market share of 45 per cent last year in the passenger car segment. Still, over 50 per cent customers are not with us... that is why Nexa outlets have been created, to provide a different experience to customers,” Ayukawa said. The company is still widely perceived as a manufacturer of small and compact cars, though it has made strong inroads into the premium car segment with its sedan, Ciaz.  

While Nexa dealerships may initially not be financially viable due to only one-model availability, the company is confident of expanding the premium product range.  The existing 1,650 dealerships will function as a spoke and Nexa will operate like a hub, said R S Kalsi, executive director, sales and marketing.

Nexa is the first such experiment in the Indian automobile industry, where a company is creating a new sales network. Nexa customers will rely on the existing network for servicing the car.

The 1,650 dealerships, who will not get to stock and sell the S-Cross and the future premium products of Maruti, will earn a referral commission by passing on a lead to a Nexa dealership.

Only existing dealers are being given an option to launch a Nexa outlet. Kalsi said the company is hopeful that more dealers will come forward to set up Nexa in the future.

Apart from the metros, dealerships will come up in state capitals and cities like Indore and Mohali. Spread over an area of 2,500-3,000 sq feet, Nexa aims to offer buyers a premium experience through a luxury lounge, wall mounted digital displays, loyalty programme and a force of 2,500 trained relationship managers, most of who have been hired from the hospitality sectors.