Maruti eyeing premium customers with Suzuki branding

Suzuki has decided to roll out its new cars, aimed at younger buyers, with only the 'S' badge. The rear of the new cars will also sport the model's name and a logo denoting the vehicle's engine size, apart from a sticker of the Nexa dealership.

Currently, the badge 'Maruti Suzuki' is there on the boot of all the cars the company sells, including Alto, Swift and WagonR compacts and the Dzire and Ciaz sedans. "All the cars sold through Nexa outlets will have the 'S' logo. We wanted to de-clutter the rear of the car and so removed the Maruti Suzuki badging," R S Kalsi, Maruti Suzuki executive director (sales & marketing), told TOI at Nashik. "The Suzuki badging will be there as it has a good reputation and is associated with Maruti Suzuki."

The first car that rolls out of the upmarket Nexa network, which will have 100 outlets by the end of this fiscal, will be the S-Cross crossover. New cars that will be added include an all-new SUV (by the end of this fiscal), premium sedans and even expensive compacts, Kalsi said.

Maruti dominates the Indian car market and currently has a market share of nearly 47%. But this has been achieved by the sale of mainly value-for-money vehicles and compact cars such as the Alto and the Swift. With Nexa, through which the company aims to "pamper new-age buyers", Suzuki is looking to rope in upmarket customers who usually "upgrade to other brands" when they buy their second or third vehicle.

Maruti has been trying hard to gain a foothold in the premium end of the market, but with little success. Models such as the Kizashi sedan and Grand Vitara SUV, which were being imported here, failed miserably after being retailed through the company's current dealerships. Thus originated the idea of Nexa which will help it match up to competition from companies such as Honda, Toyota and Volkswagen in the premium end.

So the Nexa will carry a premium touch to its dealerships with sales executives—picked from industries such as hospitality, aviation, banking and premium auto dealerships— trained at five-star hotels. Carrying Apple's iPads, they will show aspects related to a vehicle on specialized electronic panels. "These outlets will be totally different from a conventional Maruti dealership. We want to create a different atmosphere, and every customer will be provided with a relationship manager to assist him throughout the age of the car," Kalsi said, adding that 700 executives have already been recruited and have received training with Dale Carnegie.

The company intends to launch vehicles priced near the Rs 10 lakh mark and upwards from Nexa showrooms. Meanwhile, the 'Maruti Suzuki' branding will be maintained on lower-priced cars that will be sold through the existing dealerships.