Maruti’s partner brand Suzuki is getting few new brands to India under the Nexa wing.
New Maruti brands will be coming to India as Suzuki looks to explore its options. The Japanese brand will be getting 2 more brands in the country like Honda, Toyota and Nissan have in the global markets. Currently, all the cars manufactured by Maruti sport the Suzuki badge on them.
Suzuki is planning to make Nexa into a brand of its own. The vehicles coming under the Nexa wing, will sport a new badge in the future. The Japanese manufacturer is also devising a plan to launch a third brand, that will focus on the demand of the 25-35 year old customers. Both Maruti and Suzuki are contemplating a strategy to withhold their dominance in the Indian market through 2030.
Maruti Suzuki needs to sell 4-5 million vehicles by 2030 to achieve their goal and to stay ahead of the competition. Suzuki might also get some of the Toyota cars into the Nexa brand as a part of their collaboration. Maruti Suzuki might face difficulty to sell 4 million vehicles by 2030 and therefore it needs to have a separate brand.
The Nexa wing has helped garner sales of almost 1.9 million cars annually. If Maruti Suzuki wants to sustain its market share above 50 percent in India as a sales group, it must imply on this strategy. Nexa has given Maruti Suzuki’s products a premium and niche appeal to the customers. The separate Nexa brand and the other new brand will share the same platform but have substantial changes in the rest of the structure. The new brand for younger customers is due to the fact that Maruti never caught up with Hyundai in the race to appeal to the younger generations.
New Maruti Brands
– Suzuki is planning to get 2 new brands to India apart from its partnership with Maruti
– Suzuki will source Toyota Corolla and sell it through the Nexa dealership network of Maruti
– Maruti garnered nearly 20 percent of its total sales volume in FY19 from Nexa dealerships
Source – LiveMint.com