Introduction
In the automotive landscape of 2023, Maruti Suzuki's premium brand, Nexa, emerged as the fastest-growing car retail brand, showcasing a remarkable growth rate of over 50 percent. Considering the modest 8 percent market growth rate overall, this remarkable accomplishment is even more astounding. The excellent portfolio of SUVs from Nexa which includes the Fronx, Jimny, and Grand Vitara was the driving force for this increase.
Sales Milestones
Breaking barriers and setting records, Nexa achieved a milestone by surpassing half a million unit sales in 2023, a historic feat for the first time in its existence. The new SUV launches, contributing around 25,000 units per month, played a pivotal role in this accomplishment. This success not only elevated Nexa's status but also propelled Maruti Suzuki into SUV leadership for the first half of the financial year 2023-'24, nearly doubling its SUV market share to an impressive 22 percent.
Outperforming Competitors
Nexa's sales outpaced major competitors, notably outshining Mahindra in 2023. The Nexa network, which has expanded to 478 showrooms in just eight years, has become a dominant force in 293 cities nationwide. Shashank Srivastava, the senior executive officer of sales and marketing at Maruti Suzuki, attributes this triumph to Nexa's enriched portfolio of UVs, including the Grand Vitara, Fronx, Jimny, and the highly sought-after Invicto.
Nexa's Role in Maruti's SUV Dominance
Srivastava emphasizes how Nexa played a crucial role in not only attracting a new customer profile but also doubling Maruti Suzuki's market share in SUVs. In the first half of the current financial year, Maruti proudly claimed the title of the No. 1 SUV manufacturer underscoring the impact of Nexa's strategic contributions.
Nexa's Evolution Over Eight Years
In a mere eight years, Nexa has established an impressive presence with 478 showrooms spread across 293 cities in India. Providing an improvement without sacrificing the brand's essential principle of affordability Nexa was designed to meet the needs of the Indian populace. Maruti Suzuki strategically positioned Nexa as a value luxury brand, a move that resonated strongly with the market.
Sales Growth Over the Years
The journey of Nexa's sales over the years is a testament to its evolving success. Starting in 2015 with 40,829 units, Nexa's sales witnessed steady growth, reaching a significant milestone of 5,09,290 units in 2023.
Year Sales
2015: 40,829
2016: 1,29,203
2017: 2,94,731
2018: 3,46,137
2019: 2,69,131
2020: 2,31,535
2021: 2,80,209
2022: 3,32,261
2023: 5,09,290
Expanding Portfolio and Leadership in Upgrader Space
Nexa's success is not only attributed to its expanding network but also to the diversification of its portfolio. The models available at Nexa outlets nearly doubled in recent years, with a focus on SUVs priced over Rs 10 lakh. This strategy has allowed Maruti Suzuki to secure leadership in the Rs 10 lakh to Rs 20 lakh segment, boasting a share of over 22 percent.
Innovation and Market Response
In a notable move, Maruti Suzuki introduced its most expensive vehicle, the Invicto MPV, priced over Rs 25 lakh (on-road). Sourced from its global alliance partner Toyota and featuring a strong hybrid powertrain, the Invicto garnered substantial attention, resulting in a waiting period of over six months.
Future Outlook and Ambitious Targets
Despite challenges related to semiconductor supplies, Nexa's sales consistently outperformed competitors, including Hyundai Motor India, for several months. Nexa is positioned for future expansion having set an ambitious aim of becoming the nation's second-largest automobile brand. In 2023, Nexa secured the fourth position among car retailers, trailing only behind Arena (Maruti's mainstream channel), Hyundai, and Tata. Notably, it surpassed Mahindra in terms of volumes during the year.
Conclusion
Maruti Suzuki's strategic vision and responsiveness to the market are demonstrated by Nexa's growth from its founding to its current position as a major player in the automobile industry. As Nexa continues to evolve and with the promise of new models including a three-row SUV slated for 2025 Maruti Suzuki anticipates further growth solidifying Nexa's position as a key player in India's automotive landscape.