These are exciting times for Maruti Suzuki, in particular, the Nexa brand, as the new Baleno is all set to launch. Before we get to the Baleno, let’s talk a bit about Nexa. What are the core focus areas of Nexa and how has that helped Maruti Suzuki?
Two words — Create and Inspire —are the defining values of Nexa. This is also possible due to the other values that are attached to it like being global, innovative, exciting and tech-driven. These are the values that have made Nexa what it is today. It also gives an aspirational buying experience to the Indian auto consumers and this is the reason why it is so successful. If Nexa was an individual brand or an OEM (original equipment manufacturer), it would have been number three in the industry behind Maruti Suzuki and Hyundai.
Ever since the Baleno was launched in 2015, it has propelled Nexa to the next level and it has been the leader in the premium hatchback segment. How do you think the new Baleno will revolutionise its class?
Yes, the Baleno has been crucial to the success of Nexa and to Maruti Suzuki. Launched in October 2015, it crossed the one million mark in 2021, in just 6 years, and this feat is the fastest achieved by a vehicle in the Indian automobile sector. As the Indian consumer is evolving, the economy is developing, criteria for buying a car is changing as a result the new Baleno buyer is younger and has an inclination for tech-driven features. This is the reason why we have added a host of new features. In fact, our tagline which earlier used to state ‘Boldness’ now reads ‘Tech Goes Bold’ and this indicates what the new Baleno is all about.
The Baleno is more than a new product as it will also introduce a new design philosophy for Nexa. Could you tell us the thinking behind this?
The new design language, ‘Crafted Futurism’, incorporates next-generation thinking which is based on three pillars. First is ‘Nexpression’ that guides the design philosophy of the headlamps, new front grille, the DRLs and the alloy wheels. Then comes ‘Nextech’ which brings in the wow factor by offering advanced features catering to the new aspirational Indian consumer. The third pillar is ‘Nexperience’, which is all about the experience of driving and even buying a Nexa car. These are the basic ethos of the Nexa brand.
Sales figures have consistently shown that the premium hatchback segment is one of the most successful sectors. What is your expectation from this segment?Â
The premium hatchback segment is very strong as it continues to hold a market share of 23-23% for the last 5-6 years. Even though people talk about the rise of SUVs, this is essentially at the cost of the sedans. The premium hatchback has remained steady and in the last financial year, it was the largest segment in the industry. The Baleno holds a market share of around 27% of this segment and if we add the Swift, then both these cars give Maruti Suzuki a market share of 60%. So, this segment is very important for us and we do anticipate that with the new Baleno we will be able to further strengthen our position.
The pandemic has affected everyone globally. How did Nexa adapt to these challenging times when it comes to customer service and dealership experience for consumers?
In times of the first lockdown, we had to communicate with the consumers to keep that connection going and at the same time due to the circumstances we couldn’t really talk about our products or push for sales. Therefore, one very positive thing that happened was that we realised trust was the new currency for the brand. We focused on building trust for both Nexa and Maruti Suzuki and this has dramatically strengthened our position in the last two years thanks to our empathetic communication that the consumers really appreciated.
A lot has been said about the Baleno being fully loaded with features, but there’s a lot of thinking behind it to ensure that it’s practical. How’s Maruti Suzuki achieved this?
We do research on what features consumers are looking for and one of the things that we found out was the Head-Up Display (HUD) which adds additional safety for the vehicle. The Baleno is the only car to have a HUD. Apart from this the new hatchback comes equipped with a larger and more modern infotainment system including a voice command function, and a 360-degree camera that will help in parking in tight areas. There are a host of new features that we will reveal when we get closer to the date of the launch. All the new features in the Baleno and in all our other vehicles are all driven by practicality rather than just pure optics.
What can we expect from the Nexa brand in the near future?
Nexa as a brand has a great win-back ratio of about 43-44% which means we are taking consumers from the competition. As the customers become more aspirational, the Nexa brand is evolving and is taking it to the next level. We can call it Nexa 2.0. We are also seeking to increase the brands in the Nexa portfolio that should give a further push to the overall sales of the Nexa.
