Maruti on a Nexa overdrive; monsoon, pay hikes to add momentum

Maruti Suzuki’s upmarket Nexa showrooms have completed a year. The Nexa chain was built for up to oblige Maruti’s premium clients. Speaking to BTVI , Maruti Suzuki Executive Director for Marketing and Sales Randhir Singh Kalsi says the company plans to open 100 new Nexa showrooms in FY17. The company is also poised to cash in on the robust demand after a good monsoon and the 7th Pay Commission, he said. Excerpts:

How has the Nexa experience been?

It is quite an exciting moment for us as we are celebrating the first anniversary of Nexa. When we started, people expressed various apprehensions and doubts. Some people said it is a big risk Maruti is taking. But we were confident at that point of time because that confidence was backed by a lot of research we had done before getting into this segment. And we had worked to the last details — the processes, the designs of the showrooms and products that are going to be there in this channel. Looking back, it was a delightful moment. Our success story is very strong — we have been able to set up 150 Nexa showrooms across the country, including 94 cities.

What are the plans for Nexa?

Within this fiscal, we will add another 100 showrooms. Apart from this, we are taking the Nexa experience to the next level for those customers who have purchased cars from Nexa; because experience should start at the point of purchase, and it will go to the next orbit.

We have taken various initiatives such as launching a Nexa Lounge at the Delhi Airport. Customers who are flying out of Delhi can visit the lounge, relax there and enjoy all the hospitality that we offer at a typical Nexa showroom. Free Wi-Fi is available for them.

We are also creating other experiences for customers. Nexa customers can access music using MyNexa app. We are also going to soon start Nexa workshops for customers. So it is an ongoing process and at every touch point, we would like to create a delight for our customers through Nexa and what we call a Nexa experience.

Considering that we have had a good monsoon this year, what is in store for the customers? What’s in the pipeline and what all products are you planning to launch in this year?

Two products will come in the Nexa channel by the end of this year. One of them is Ignis and the other is Baleno RS. As far as the monsoon is concerned, we are quite optimistic of market movement, going forward. Though the actual benefit of the monsoon would be accrue six months down the line, sentiments are very positive. Market will be looking up.

How has the pay hike of government staff following the 7th Pay Commission mandate panned out on the demand for cars? Also, how has the demand been for the newly launched light commercial vehicle, following a robust monsoon?

As far as the 7th Pay Commission is concerned, we are certainly very optimistic about it because government officials form a big part of our customers. With regard to the LCV, we are starting only a pilot project.

Unlike passenger cars, where we are providing mobility and luxury; through the LCVsegment, where we are providing livelihood to customers. We will be going a little slow in this segment. We will like to factor in what we learn from the pilot project and then scale it up.

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