Will NEXA XL5’s premium features eat into sales of other Maruti models?
The introduction of this new premium variant, NEXA XL5, has raised a question in the minds of many that whether this new model will affect the sale of other models. Others say that the XL5 could lure buyers who would otherwise choose a larger, more expensive Maruti model by offering high end features in a compact package. In this case, it could bring a change in sales dynamics in the brand's portfolio. Moreover, the debate exists as to whether this strategy will help Maruti attract more customers, or whether they would be losing the basic fervor of their other products. This can be evaluated by taking things like price positioning, target demographics and also how the XL5 compares to features in higher segments. These discussions have led to the automotive industry to consider product differentiation and market segmentation strategies.
I don't think it'll cannibalize much sales. The XL5 is aimed at a certain niche - people who like the Wagon R practicality with a touch of premium. It’s not competing with larger Maruti models which offer more space and power.
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