India's largest automaker Maruti Suzuki's big bet on creating separate 'premium' channel of dealerships seems to be working well for the company as just alone from its NEXA dealerships the company has sold a total of 2,70,651 units in this ongoing financial year. This is more than India's currently third-ranked carmaker Mahindra which sold 1,99,968 units and Tata Motors that sold a total of 1,67,208 in the Indian domestic market between the period April 2017 - January 2018 as per SIAM data. This means that if Nexa chain was a separate OEM and not a part of Maruti Suzuki then it would have been the third largest automaker in India.
Overall Maruti Suzuki’s wholesale sales (including NEXA and Arena dealerships) in domestic market stands at 13,59,649 units much ahead of Hyundai Motor India who sold 4,43,727 units. Maruti Suzuki launched its Nexa dealerships in July 2015 with an aim to attain two million sales in India by 2020. Maruti Suzuki S-Cross was the first car to be sold through these premium dealerships but it was really the Maruti Suzuki Baleno that changed the fortunes for Nexa and helped to boost these high numbers.
|Automaker||Number of cars sold (April-Jan FY18)|
|Maruti Suzuki (Arena + Nexa)||1359649|
|Hyundai Motor India||443727|
|Maruti Suzuki (NEXA ONLY)||270651|
|Mahindra & Mahindra||199968|
In 2017, Maruti Suzuki Ignis and very recently Maruti Suzuki Ciaz too were added to be sold through Nexa chain and the company also upgraded its regular dealerships and called them Maruti Suzuki Arena dealerships. The company then also ventured into separate Nexa service workshops that offers convenient and quick car servicing solutions for all Maruti Suzuki cars.
Maruti Suzuki has been successful in creating a whole separate parallel chain of dealerships that has resulted in higher sales, better growth and profitability. In three years, Nexa channel has expanded to over 171 cities across India with 299 showrooms. Maruti Suzuki Baleno has played a major role in driving growth for Nexa as both S-Cross and Ignis were considered expensive in their respective segments and Maruti Suzuki Ciaz was added to line-up very recently. In the first year of operations (FY 2015-16) Nexa dealerships contributed to 6.9 percent by selling 68,774 units in India and three years that number has increased to 2,70,651 units and Nexa’s contribution to Maruti’s sales currently stands at 19.8%.
NEXA channel contribution to total MSIL sales has gone up from 6.9% in FY15-16 to nearly 20% in FY17-18 (till January 2018)
|Fiscal Year||Sales||% of total sales|
|Maruti Suzuki Nexa sales|
|Maruti Suzuki Nexa sales 2016-17||157775||10.9%|
|Maruti Suzuki Nexa Sales 2017-18 (Till January)||270651||19.8%|
Maruti Suzuki is on track to close the financial year 2017-18 with about 15% growth and has already set the platform to sustain this growth by launching the all-new Maruti Suzuki Swift at the Auto Expo 2018. The company will all launch an array of new products including 2018 Maruti Suzuki Wagon R, New Maruti Suzuki Ertiga and the facelift of Maruti Suzuki Ciaz that is expected around August 2018. Apart from the new Ciaz, Maruti Suzuki might not add any all-new product to the Nexa channel.
Maruti Suzuki ended the calendar year 2017 with a massive market share of 49.6% by selling over 1.60 million vehicles in India.