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Hindustan Times
20 hours ago
- Automotive
- Hindustan Times
Nexa turns 10: How Maruti Suzuki built a premium segment to retain customers
When Maruti Suzuki launched Nexa in July 2015, the reaction from industry watchers was mixed. The country's largest carmaker — long associated with small, value-for-money hatchbacks — was venturing into a space it had rarely played in: premium retail. It was a calculated gamble, but also a tacit admission that the Indian car buyer had changed. Maruti Suzuki's Nexa turned 10 years old in July 2025. The Nexa retail channel allowed the carmaker to retain its customers, providing buyers an opportunity to transition from entry models into upgrading their vehicles within the company with a sophisticated with a differentiated retail experience. R.C. Bhargava, the chairman who has seen Maruti through liberalisation, localisation, and competition, has often said that the company's job is to read the market before it shifts. A decade ago, the writing was on the wall: customers were willing to spend more, and their expectations were changing. Incomes were rising, finance was easier, and first-time buyers were no longer content with bare-bones mobility. Yet, the move was not without risk. Maruti's great strength was its ubiquity — 'India comes home to Maruti" was more than an ad line. By creating a separate premium channel, there was always the danger of confusing that core identity. Also Read : Maruti Suzuki sees compact car uptick in July amid structural stress in entry segment From ₹ 4 lakh to ₹ 16 lakh — riding India's affluence wave In the last decade, the average price of a new car in India has risen sharply. It is not just inflation — it is a shift in what customers want: larger vehicles, better features, and higher perceived value. The once-dominant sub- ₹5 lakh hatchback segment has steadily shrunk, replaced by compact SUVs and feature-packed sedans. Maruti has moved in step with this trend. Partho Banerjee, Senior Executive Officer- Marketing and Sales, Maruti Suzuki, put it plainly in a recent roundtable, 'When we started, the average price point was around ₹4 lakh. We moved to ₹8 lakh, and now it's ₹15–16 lakh. As our customers move up, we move up." The Maruti Suzuki Grand Vitara is claimed to have the most affluent customer base in the mid size SUV segment This is the space Nexa was designed to capture. The Grand Vitara, for instance, is attracting some of the most affluent customers Maruti has ever served — buyers who, as Banerjee says, 'do not have the 'look at me' character" but value understated sophistication. The company has always believed that a customer who starts with an Alto or similar entry model will, over time, want to upgrade — and if Maruti cannot offer that next car, they will find it elsewhere. Nexa is Maruti's way of keeping those customers within its fold. The Nexa philosophy — premium, but on Maruti's terms From day one, Nexa's positioning was clear: exclusive, premium, sophisticated — but not luxury. Maruti Suzuki has been careful not to drift into a niche where volumes would be sacrificed for image. The company believes that its job is not to make products for a few thousand customers. The challenge is to give a premium without losing scale. The Baleno, launched through Nexa, was pitched not as just another hatchback, but as a 'premium hatchback," creating a new mental category. The Ciaz offered near-D-segment space at a C-segment price. The Grand Vitara and Invicto now push the brand into ₹20 lakh territory, but with localisation and shared development keeping costs competitive. Banerjee's view is straightforward: 'It's not the product's fault when it doesn't sell, it's about positioning." Also Read : Farewell Ciaz? Maruti Suzuki hints at a possible revival in a new form Arena vs Nexa — coexisting without cannibalisation Managing two distinct retail networks is no small feat. Arena, with its vibrant colours and approachable atmosphere, caters to first-time and budget-conscious buyers. Nexa, with its subdued tones and concierge-style service, appeals to those upgrading. The results suggest that the strategy works. When Baleno launched, many expected it to eat into Swift sales. It didn't. The same fears were voiced when the Fronx arrived — would it hurt Brezza? It didn't. Maruti Suzuki says that while Arena cars such as the Brezza offer a playful vibe, models like the Fronx that is retailed through the Nexa channel, offer a more sophisticated image Bhargava has often emphasised that segmentation is not just about price points, but about understanding the buyer's mindset. Still, as the top-end Arena models creep into entry-level Nexa territory in pricing, keeping the two channels distinct will require constant vigilance. Innovation with intent, safety with urgency Maruti has long been accused of lagging in safety. Bhargava himself has been forthright in saying that regulations must reflect what the mass buyer can afford. But even he acknowledges that the market has shifted. 'If customers are willing to pay for more safety, we will provide it," he told this writer in 2019. Maruti Suzuki has decisively raised the bar on vehicle safety, marking a significant milestone with the launch of the NEXA Safety Shield and Arena Safety Shield, unveiled to coincide with the 10th anniversary of its premium retail network. Banerjee describes safety not merely as a principle but rather a strategic pillar of the more significant overall company framework, which, in FY 2024-25, started its initiatives sooner than legally mandated. A significant milestone is the standardisation of Electronic Stability Program (ESP) across models, and the rollout of six airbags as standard fitment for 14 variants. This supports Maruti Suzuki's aim of safely making advanced safety technologies accessible to people in the whole vehicle passenger space, right from lower-end hatchbacks and up through higher-end SUVs. This effort is supported by heavy investment in R&D, including the ₹3,800 crore state-of-the-art facility in Rohtak, where more than 50 crash tests per model authenticate the company's stringent safety procedures. The all-new Dzire's status as India's first sedan to receive a 5-star BNCAP rating, along with the Baleno's 4-star rating are a part of this drive. Apart from car design, the company's holistic strategy covers road safety learning and emergency treatment, demonstrating a wide-ranging perspective combining technology, customer confidence, and social stewardship in a changing automotive environment. The road ahead In many ways, Nexa reflects the company's core philosophy: adapt without losing your base. The carmaker has argued that it must be present in every relevant segment of the market, but never at the cost of becoming a boutique player. For Maruti Suzuki, Nexa is not about chasing German luxury brands. It is about making sure that a customer who enters the Maruti family at the entry level can stay within the brand at the premium scale as well. A decade in, Nexa accounts for nearly one-third of Maruti's sales. It has reshaped perceptions of the brand, brought in more affluent buyers, and given Maruti a credible presence in segments once left to rivals. The bigger achievement, however, may be that Maruti has managed to go premium without alienating its mass base. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
The Wire
16-07-2025
- Automotive
- The Wire
Domestic Automobile, Overall Passenger Vehicle Sales Decline Compared to Last Year
New Delhi: Data from the Society of Indian Automobile Manufacturers (SIAM) have revealed that India's domestic automobile sales have reduced by 3.6% to 18,97,445 units in June 2025, as compared to the figures against the same month last year. Moreover, the overall passenger vehicle sales declined 6.3% to 2.76 lakh units in the reporting month. While production of all automobiles also grew at a sluggish 1.2% in the reporting month, to 23,64,868 units, reported The Hindu. As compared to June 2024, manufacturers sold only 85,091 which amounts to 15.3% lower than the figure last year. Similarly, two wheeler sales too declined by 3.4% to 15.6 lakh units in the month. The SIAM data also revealed that automobile sales slumped 5.1% to 60,74,874 in the quarter ended June 2025 as against the same month last year. 'The performance of the auto industry was relatively flat, though the retail registration for passenger vehicles, two-wheelers and three-wheelers were marginally higher than the previous Q1. Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges. With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve, ' Shailesh Chandra President, SIAM told the newspaper. In May this year, Maruti Suzuki Chairman R.C. Bhargava had said that most Indians simply cannot afford to buy even the most basic car anymore. This is not a matter of shifting aspirations or changing tastes, he insisted; it is a crisis of affordability, driven by stagnant incomes and relentless cost escalation. Entry-level models, once the pride of India's mass market, have seen sales tumble. Maruti Suzuki's own small car segment, the traditional backbone of its business, recorded a 9% sales decline in 2024. Since 2020, regulatory changes have pushed up the cost of a small car by nearly Rs 90,000, putting even the humble Alto or WagonR out of reach for families with budgets of Rs 5-7 lakhs.
Time of India
13-06-2025
- Automotive
- Time of India
India engages China to stabilise rare earth supply amid EV sector disruptions
New Delhi: India is actively engaging with China to restore stability and predictability in trade-related supply chains following Beijing's recent restrictions on rare earth exports, which have disrupted electric vehicle (EV) production globally, ToI business desk reports. 'We are in touch with the Chinese side, both here in Delhi as also in Beijing, to bring predictability in supply chains for trade, consistent with international practices,' said Randhir Jaiswal, spokesperson for the Ministry of External Affairs, during a press briefing on Thursday. The diplomatic outreach comes in response to China's move in April to tighten export controls on seven rare earth elements, including samarium, gadolinium, terbium, dysprosium, and lutetium. These elements are vital in the production of high-performance magnets used in EV motors, as well as in advanced technologies like missile systems and defense electronics. Automaker's take on it The restrictions, which now require special licences for exports, have sent ripples across the global automotive supply chain. India's largest carmaker, Maruti Suzuki, has reportedly scaled back its near-term EV production targets due to concerns over raw material shortages. According to Reuters , the company now plans to manufacture just 8,000 units of its debut electric vehicle by September—down sharply from an earlier target of over 26,000 units. While Maruti Suzuki Chairman R.C. Bhargava stated earlier this week that 'as of now, there is no impact on production,' the supply-side risks remain significant. China currently controls over 90per cent of the world's processing capacity for rare earth materials, leaving EV and hybrid vehicle manufacturers heavily reliant on its exports. Several Indian automakers have sought urgent government intervention to fast-track approvals from Chinese authorities via local vendors. However, delays in licence issuance have deepened the uncertainty, particularly for manufacturers dependent on rare earth magnets for EV propulsion systems. These magnets are essential components in permanent magnet synchronous motors (PMSMs), which deliver high torque and efficiency in compact EV designs. While internal combustion engine vehicles use such magnets in subsystems like electric power steering, their role in EV drivetrains is far more critical. As India pushes toward its clean mobility and net-zero goals, securing a reliable supply of critical materials is becoming a top strategic priority. The government is simultaneously exploring alternative sources and chemistries to reduce dependence on Chinese imports. However, in the short term, manufacturers continue to navigate an increasingly volatile global supply landscape.
Time of India
10-06-2025
- Automotive
- Time of India
Rare earth shortage forces Maruti Suzuki to slash e-Vitara production targets by two-thirds
Maruti Suzuki, India's largest carmaker, has sharply cut its near-term production targets for its first electric vehicle, the e-Vitara, amid a global rare earth supply crunch triggered by China's export restrictions, a company document seen by Reuters has revealed. The automaker now plans to produce just 8,221 e-Vitaras between April and September 2025, down from its initial target of 26,512 units—a reduction of nearly two-thirds. The document cites "supply constraints" in rare earth materials, which are crucial for EV components like magnets used in electric motors. China's Curbs Ripple Across Auto Industry China's tightening of rare earth exports—vital for high-tech industries—has rattled automakers globally. While firms in the US, Europe, and Japan are beginning to secure export licenses from Beijing, Indian manufacturers are still awaiting approvals, raising concerns of further production delays. The setback comes despite Maruti's public stance that production has not yet been impacted. Company chairman R.C. Bhargava recently told local media there was 'no impact at the moment' on manufacturing timelines. Maruti also said last week that the rare earths issue had no 'material impact' on the e-Vitara's launch. EV push faces roadblocks amid rising competition Launched with much fanfare at India's Auto Expo in January 2025, the e-Vitara is a flagship product in Maruti's long-awaited electric mobility push. It is expected to play a pivotal role as India targets 30 per cent EV penetration by 2030—up from just 2.5 per cent last year. However, production delays and a lack of booking announcements have raised eyebrows. Analysts warn that Maruti is already behind the curve, especially as rivals Tata Motors and Mahindra & Mahindra gain ground with feature-rich EVs. US electric vehicle giant Tesla is also gearing up to enter the Indian market this year. Maruti's share in India's passenger vehicle market has slipped to 41 per cent, down from 51 per cent in March 2020, as it struggles to regain ground in the booming SUV and EV segments. Revised Roadmap: Catch-Up in H2 FY26 While cutting near-term production, Maruti aims to ramp up output in the second half of FY26 to 58,728 units, compared to a previous target of 40,437. This would mean producing around 440 e-Vitaras per day at peak capacity. The company still intends to meet its full-year EV production target of 67,000 units by March 2026. Two supply chain sources confirmed that rare earth magnet shortages had forced Maruti to alter production plans, though they were not aware of the exact figures. Global stakes for Suzuki The e-Vitara is also a critical product for parent company Suzuki Motor Corp., which relies on India as its largest revenue market and a key manufacturing hub. A significant share of the e-Vitara output is earmarked for exports to Europe and Japan beginning mid-2025. As competition heats up in India, Suzuki has revised its broader strategy—trimming its India sales target from 3 million to 2.5 million vehicles by FY31, and scaling down its EV rollout from six to four models, reflecting the challenges ahead in an increasingly competitive EV landscape.
Mint
02-05-2025
- Automotive
- Mint
Maruti Suzuki share price rallies 4% to 9-week high after April sales rise 7%
Maruti Suzuki share price in focus today: Shares of Maruti Suzuki India, the country's largest automaker, surged 4% in intraday trade on Friday, May 2, touching a 9-week high of ₹ 12,727 apiece, as investors reacted positively to the company's April sales numbers released on Thursday. The company reported a 7% increase in total sales to 179,791 units in April, compared to 168,089 units during the same month last year. In contrast, sales of compact cars such as the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR rose to 61,591 units from 56,953 units. Sales of utility vehicles, including the Brezza, Ertiga, Grand Vitara, and XL6, also increased to 59,022 units from 56,553 units. The Eeco van recorded sales of 11,438 units in April, compared to 12,060 units a year earlier, while light commercial vehicle Super Carry sales rose to 3,349 units from 2,496 units. The company also reported that its exports stood at 27,911 units in April, up from 22,160 units in the same month last year. Additionally, Maruti Suzuki released its production figures for the month. Total production in April rose to 179,956 units from 169,751 units a year earlier. Within the passenger vehicle segment, production of mini cars like the Alto and S-Presso fell nearly 29% to 9,714 units from 13,702 units. On the other hand, utility vehicle production — including models like the Brezza, Ertiga, and Fronx — rose by 19% to 72,640 units, reflecting strong demand. However, the company is witnessing a significant decline in demand for entry-level cars. Maruti Suzuki Chairman R.C. Bhargava noted that affordability is a major concern for small car buyers. 'Unless something changes, the domestic market will remain muted. In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?' he said. 'To boost demand, small cars have to become more affordable,' Bhargava added. 'It is not the case that India has become affluent and everyone wants to buy more expensive cars.' The company reported a consolidated net profit of ₹ 3,911 crore for the January–March 2025 quarter, 1% lower than ₹ 3,952 crore in the same period last year. Revenue from operations rose 6.6% year-on-year to ₹ 40,920.1 crore, compared to ₹ 38,471.2 crore a year ago. Following the Q4FY25 results, the company's stock target price was revised downward to ₹ 12,886 from ₹ 13,290 by Japanese brokerage firm Nomura, while retaining its 'Neutral.' rating on the stock. Axis Securities also reduced its target price to ₹ 11,170 from ₹ 12,065 but maintained its 'Buy' rating. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 2 May 2025, 11:05 AM IST
