BackMaruti Suzuki targets sales via Nexa outlets to overtake Hyundai, Tata Motors
Maruti Suzuki started the Nexa retail chain in 2015 to sell Maruti Suzuki's premium vehicles. It sells models such as Baleno, Ignis, Ciaz, XL6 and Grand Vitara
PremiumMaruti Suzuki India Senior Executive Officer, Marketing and Sales, Shashank Srivastava said that the auto maker expects the sale of its premium vehicles sold through the Nexa retail outlets to exceed the overall sales of Hyundai and Tata Motors by 2023.
The company started its Nexa retail chain in 2015 to sell Maruti Suzuki's premium vehicles. It sells models such as Baleno, Ignis, Ciaz, XL6 and Grand Vitara and has recently crossed the cumulative sales milestone of 20 lakh units. The upcoming SUVs Fronx and Jimny - unveiled at Auto Expo 2023 will also be sold through the chain.
Maruti Suzuki India has decided to increase prices of its vehicles from April, conforming to the BS VI Phase 2 norms. The company feels that response of consumers to the increase in vehicle prices by auto manufacturers to meet regulatory requirements needs to be watched out for, although it expects passenger vehicle sales to grow between 5 per cent and 7.5 per cent in FY24.
"We have completed the two million mark for the Nexa. The first million came in four years, the next million has come in three years, despite the fact that we have had in the last three years, a little bit of a disturbance in the business environment because of the COVID-19," Srivastava told reporters in a virtual interaction.
He further said, "We are hopeful that next year, Nexa which is currently number four in the industry, we hope to make it the second largest brand in the auto industry next year."
Maruti Suzuki's Nexa chain accounts for about 23 per cent of the company's overall sales this year and has grown around 47 per cent. On a standalone basis Nexa has a market share in excess of 10 per cent overall in the domestic passenger vehicles industry, Srivastava added.
"We expect (Nexa) to close this (fiscal) year at around 3.7 lakh units against 2.55 lakh units that we did last year...We hope to sell larger numbers next year with the Fronx, the Jimny (coming in) and the full year effect of the Grand Vitara. Next year, thanks to these new models, we are expecting the sales to be even higher, maybe close to six lakh units," he said.
On the overall PV industry sales growth prospects, Srivastava said, “The industry growth is expected to be somewhere in the 5 per cent to 7.5 per cent range. This year, it is expected that the industry sales will close at around 3.89 million, that's a growth of almost 26 per cent over last year's 3.07 million. So on this base of 3.89 million, we expect actually the volumes next year in the industry to be between 4.05 million to 4.1 million units."
(With inputs from PTI)
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