Maruti Suzuki India Limited (MSIL), the largest car maker in the Indian market, has indicated a change in its car distribution strategy in the country. The company has recently bought properties in the posh areas of metros such as Delhi and Mumbai to tap the footfall of luxury segment buyers. The move has been taken in the view of the launch of its first ever luxury range sedan – Maruti Kizashi –in the country, next month.
As per the industry reports, the company has spent up to Rs 50-60 crore each to buy properties in posh locations like Indraprastha in central Delhi and Lokhandwala in Mumbai's Andheri. Moreover, it plans to set a network of as many as 12 plush outlets across the metros in the Indian market.
Until recently, the company’s presence was limited to the highly populated city areas with high footfall of the buyers of mass-segment cars such as Alto, Swift and Dzire, mostly through private franchisees.
Mayank Pareek, Marketing Executive Officer, MSI, had recently stated, “There was a need to start a retail format that would help us to cushion-in our dealers on the high-retail prices. We spent around Rs 50-60 crore on real estate in Mumbai. This is much beyond the means of local dealers. Hence, we managed to get places in the right locations, while micro issues of sales and service are left to dealers."
