Maruti Suzuki India Limited (MSIL) is going another gear higher for becoming a well-established name in the segment of mid-sized and premium vehicles. The company, which sells one in two cars in India, is revving up its management structure and a separate dedicated dealership network for the sales of bigger cars. These cars will be priced from Rs 9 lakhs and above. This is one of the most concerted efforts of the Indian manufacturer to enter the segment, which is dominated by Honda and Toyota.
The company had made a number of attempts in the past, most of which were not-so-successful. There was limited success in the segment with Maruti discontinuing Kizashi. Ciaz has seen quite a good success in the recent past. Only about 2 to 3 per cent of the vehicles of Maruti are placed above the Rs 10 lakhs price segment.
"Every year, our company reflects on the roadmap it intends to take. This new structure was decided last week by the company. Just like how Toyota has Lexus and Nissan has Infiniti as their luxury brands, Maruti Suzuki will have Nexa as its premium brand for vehicles priced above Rs 10 lakh," said an executive from the company.Another said, "The Company is likely to test the waters with the S Cross. There are other models in the pipeline, which could be sold through these outlets, but they will depend on how the premium outlet model evolves."
Gaurav Vangaal, senior HIS Automotive analyst said, "This is a bold move on part of Maruti Suzuki to transition to a higher level. The initial response to the Ciaz shows that there are takers for Maruti Suzuki in Rs 10 lakh range. Having said that it will be a challenging task for Maruti Suzuki to sustain this imagery over Rs 10 lakh."
