Eight years since its launch, Maruti Suzuki’s premium car retail business, Nexa, achieved a significant milestone in July 2023 by surpassing the 50,000 monthly sales mark. As a result, Nexa has become the second best-selling car brand in India, trailing Maruti Suzuki Arena and overtaking Hyundai India. In July, Maruti Suzuki sold a total of 52,450 Nexa cars, while Hyundai India sold approximately 50,701 cars. This increase in Nexa car sales can be attributed to the introduction of new models such as the Fronx, Jimny, and Invicto. We spoke with Shashank Srivastava, Senior Executive Director (Marketing & Sales) of Maruti Suzuki India Limited, to gain insights into the progress of each Nexa model and the carmaker’s performance so far.
Regarding the overall passenger vehicle (PV) market share, Srivastava stated that Maruti Suzuki currently holds around 43% of the market, compared to 41.8% last year. In the SUV segment, Maruti Suzuki climbed from the fourth position in 2022 to become the market leader in July 2023, with the sales of 42,600 SUVs surpassing Mahindra’s approximately 32,400 SUVs. Maruti Suzuki’s market share in the SUV segment increased from 12.1% last year to 24.7% in July 2023.
In April 2023, shortly after the launch of the Fronx SUV, Srivastava revealed Maruti Suzuki’s aim to capture 50% of the PV market share in the domestic market by 2024. He also mentioned that if the market share in the SUV segment increased to 25%, Maruti Suzuki would become the leading SUV seller. With the introduction of the Fronx, Jimny, Invicto, and improved production availability of the Grand Vitara since April 2023, Maruti Suzuki achieved its SUV target in record time. Srivastava emphasized that dominating 65% to 70% of the SUV market share is not necessary to become market leaders, as they believe they can hold the position with a 25% market share due to the fragmented nature of the SUV segment.
Out of the new Nexa SUVs and the Invicto MPV, the entry-level Fronx SUV has garnered the highest demand and sales. Srivastava addressed concerns about potential cannibalization of the Baleno hatchback by the Fronx and stated that both cars cater to different sets of buyers. While there is some overlap between the two, the Fronx has attracted buyers from the Hyundai Venue and Kia Sonet, resulting in a decline in Baleno bookings from approximately 830 per day to around 670 per day. On the other hand, the Fronx receives around 580 bookings per day, indicating an overall increase in demand and the entry of new consumers. The Fronx has captured approximately 10-12% of Baleno customers, while the remaining demand comes from buyers seeking entry-level SUVs.
Maruti Suzuki’s recent offering in the premium segment, the Invicto strong hybrid MPV, has received over 10,000 bookings, with 87% of them for the top Alpha variant with seven seats. The lower trim accounts for approximately 8% of bookings, while the middle variant comprises around 6% of bookings. The company has already dispatched 640 units of the Invicto in July 2023, resulting in a waiting period of approximately 20 months. However, Maruti Suzuki is in discussions with Toyota to increase the supply of vehicles, which could potentially reduce the waiting period to five months if the monthly allocation reaches 1,000 units.
As Nexa becomes the second largest automaker in India, Srivastava shared plans for expansion. Currently, there are 468 Nexa touchpoints across the country, covering 280 cities. The company aims to activate 50 new Nexa dealerships by the end of the year to support the projected growth of 80% in Nexa car sales, targeting 6 lakh sales in 2023.