Maruti Suzuki will launch multiple versions of their upcoming vehicles to cater to different sets of customers.
Maruti Suzuki is the largest automaker in India with the highest market share, yet the company is facing a downward growth due to rapidly changing preferences of customers. Now, the company is said to be working on a new strategy which will see them launch multiple versions of the same vehicle.
Maruti Suzuki’s upcoming new products will get both Arena and NEXA versions. With this strategy, the automaker will be able to launch new products more frequently and it will also lead to cost savings. While developing an all-new 4-wheeler costs anywhere between Rs. 900-1100 crores, developing a new variant even with drastic changes costs Rs. 200-250 crores.
It is expected that Maruti Suzuki will launch 1 such product with 2 versions every year. Selling different versions of the same car will cost the company an incremental 20% cost which is still way lesser than what it would cost to develop an all-new model, exclusively for Arena or NEXA.
Maruti launched the second generation Ertiga last year, and just a couple of months back the automaker launched the XL6 which is based on the Ertiga and sold through the NEXA chain. The XL6 comes with cosmetic changes and some tweaks to the interior.
Maruti Suzuki will also follow this strategy with the next generation Vitara Brezza which will be launched in 2021. The upcoming Brezza will get Arena and NEXA versions, while a rebadged version for Toyota is also on the cards. Maruti is also expected to be working on a NEXA version of the current Wagon R.
This strategy will allow the company to increase profitability and launch new products easily, thus keeping rival automakers at bay. The company will also be able to cater to an increased customer base with these versions and they’re optimistic of maintaining their stronghold in the market for a long time to come.
Upcoming Maruti Arena Cars
– Maruti Suzuki will launch Arena and NEXA versions of the same cars
– This strategy will allow them to launch more cars frequently
– Developing a new version of the same car cost relatively lesser
Source – LiveMint.com