Maruti Suzuki plans to start new range of dealerships across the country

Wednesday, Feb 25, 2015

Maruti Suzuki that sells every second car in the Indian mass market would start a new range of premium dealerships across India to focus on sale of new niche models as the company aims to double its volume to two million cars in the next five years.

Operating under the same Maruti Suzuki brand, these would have a different 'Touch & Feel', making them distinct from the current network of dealership across the country. These would cater to its high-end cars, where Maruti has negligible presence and its earlier attempts have proved to be failures.

The new network would help the company to prioritise its models range for the Indian market and would initially target big auto markets like Delhi and Mumbai. Around 30 to 35 such new dealerships are expected to come up in major cities in the next one year.

Maruti Suzuki executive director for sales and marketing, RS Kalsi confirmed this new sales strategy targeting premium customers and said it aims to add a new leaf to its small carmaker image.

"As we move ahead, our parent Suzuki would be introducing new models and we aim to increase focus to wider portfolio of cars.

There are some models like the Swift and DZire compact sedan that are generating high volumes, while the contribution of other cars is significantly low. With these new dealerships we aim to spread our volumes evenly along with rendering a totally different sales experience to Indian customers as we gradually evolve as a full-range carmaker."

Maruti's annual sales of a little over million cars is dominated by traditional portfolio of Alto, Swift, Wagon R and DZire models that contribute more than 70% of its combined sales. Its newly launched Celerio hatchback and Ciaz sedan have not been able to create much flutter in the market. While it was earlier forced to phase out its sub Rs 20-lakh premium sedan Kizashi on poor response from the market, where customers prefer to buy Toyota Corolla or a Volkswagen Jetta.

Maruti is keen to improve its image in India and has been continuously investing in improvising its marketing setup before it debuts new cars, including some premium models. While the premium SX4 SCross is hitting the market in April and a completely new hatchback, codenamed YRA, will be positioned above its blockbuster Swift.



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