[CoolFire]

There is one huge differentiation possible for Nexa models that market is craving for - a different, better power window switch set

Jokes apart, the strategy is excellent and if Maruti can master the current rage of sun roof and gizmos like in Seltos and Hector, they can mint some serious money.

[ramzsys]

TL;DR: minimal engineering, maximum marketing.

[romeomidhun]

While Arena can sell current versions, models with features like 6 airbags, sun roof, 360 degree surround camera, cruise control, power adjustable seats etc and with AWD, and more powerful engines can be sold through Nexa.

[nikhilthegunner]

Originally Posted by NFS2024

Swift: What will be the differentiation? Rear A/C Vents, Arms rests etc? 4 Air bags with body cladding compared to the Arena model? Different engine options? A 1.2 and a Boosterjet?

Not sure how this strategy will work out.

Actually, it wouldn’t make sense to do that with the Swift. Technically, Baleno could be looked at as the premium version of Swift while Swift could be looked at as the mass market version of the Baleno. If they had to have another model done for both these cars, the pricing would get messed up. My opinion here.

Originally Posted by SoumenD

Now what? A premium S-Presso/wagon-R with 4seats(captain seats at the rear) and some more cladding along with the DRL made standard & alloy wheels. Sell it from Nexa and call it maybe X-Presso & charge 1L premium over standard arena models?

I honestly hope they call it the Suzuki Cappuccino instead.
(Terrible joke I know but anyway)

[ZenMaster]

Suzuki's parternship with Toyota (or rather the other way round) seems to be working well especially in the case of the Toyota Glanza. I came to kerala 5 days ago and have seen 3 Glanzas already near my place itself.
No doubt the Toyota "Brezza" is gonna sell well too.

[searacer932]

Originally Posted by volkman10

-The new strategy would be implemented on the Vitara Brezza. The next-generation of the compact SUV will arrive around 2021 and it will be sold through Nexa and Arena showrooms. Presumably, the Nexa-bound model could have upmarket amenities

This is not good news. Brezza is one car which has 4* safety rating. The next generation could be on 'heartect' platform which is very poor from a safety point of view. All Nexa bound cars are based on 'heartect' platform and not a good news at all.

[Aditya]

Maruti Suzuki to make changes to its 'Nexa' strategy - posts moved to a new thread.

[GTO]

This is really taking it to the next level. I don't mind it as long as the execution is good. The XL6 has enough differentiators over the Ertiga (although I'd pick the Ertiga if I were to buy).

When Maruti announced Nexa, we all thought it's just a premium outlet. But the shrewd company was clearly thinking 5 - 10 years down the line. How to add more dealerships to the same zipcode (there is a limit with a single brand), more profitable dressed up versions of the same car (XL6)...who knows what's coming next?

Hyundai had Kia to expand its reach. Maruti didn't, hence came Nexa. These guys executed it well, unlike the confused Renault-Nissan-Datsun approach.

[ani_meher]

Originally Posted by ramzsys

TL;DR: minimal engineering, maximum marketing.

Honda: Man-maximum, machine-minimum
Maruti: Marketing-maximum, machine-minimum

[FIAT3031]

https://auto.economictimes.indiatime...ahead/72182245

Here's the reason for having a two model strategy...
With NEXA dealers failing to make profits with low selling models, MSIL has strategized its way into making customers (not BHPians) thinking that its a different car

Ertiga & XL-6
Brezza FL with 1.2L for Arena & Brezza 1.5L with Mild Hybrid for Nexa

Likewise for other models

However, the point to be noted here is that Maruti is able to premiumize its brand....i.e. from being a 10-11L car maker to a higher price bracket lets say 14-15L & surprisingly customers are willing to shell that much for the same model

So killing two birds with one arrow & not to forget as the Maruti saying goes "Way of Life"

[CrAzY dRiVeR]

Originally Posted by FIAT3031

With NEXA dealers failing to make profits with low selling models

Well, this isn't really happening. Baleno is selling an average of around 13k units, Ciaz an average of 2500 units & XL6 around 3500 units for the past few months. Even the ones considered flop - Ignis & SCross - sell more than a 1000 units on most months. That's overall more than most car manufacturers in the country - in fact only behind Arena & Hyundai.

NEXA dealers aren't exactly failing to make profits with low selling models.

BUT - Maruti is certainly the most aggressive company in marketing and always coming up with one initiative or the other to improve sales. Only wish they did so to continually improve their products too.

[Storm2.0]

Originally Posted by SmartCat

For consumers, this strategy makes sense only if the Nexa variant meets European safety standards (EuroNCAP rating, 4 to 6 airbags, ESP etc)

I would like to add one more thing to your list ie better and stable body shell. Ertiga's shell was unstable(borderline) according to recent NCAP tests and I'm sure if they charge little more premium for improving the safety the premium cars of Maruti can easily touch the 4 star benchmark.

[Mojoholic]

I feel that creating different versions of the same car is should be about refining the customer experience. So, it may mean that the Nexa editions of the Arena cars would use better quality materials, classy visual differences like alloy wheels, colors, better safety and providing premium after sales experience to the customers.

This is exactly what Ford is doing with the Vignale experience in UK.

I think the differences between the Ertiga and XL6 are pure cosmetic but do not provide a better experience in terms of quality being offered. It is about how the car is perceived by the buyer rather than how it looks different. Cosmetic upgrades like LED highlights, leather seats, alloy wheels, etc. can be obtained as aftermarket accessories but things like soft touch materials, sound deadening, plusher suspension settings, advanced safety features, etc. would be harder to get in the aftermarket.

Once the market matures further, the customers wouldn't mind paying a little premium for a better experience rather than cosmetic changes.

[bmw_lover]

Originally Posted by CrAzY dRiVeR

Maruti is certainly the most aggressive company in marketing and always coming up with one initiative or the other to improve sales. Only wish they did so to continually improve their products too.

Why should Maruti try to improve their products alongside sales? Won't it be a complete waste of effort? As it is Maruti is:

• One of the most valuable auto company in India
• Has customer's confidence
• Has 50% market share

I mean why fix what's not broken? In fact Maruti should save this oppurtunity (to improve product quality) for a rainy day when all other sales initiatives fail.

[swaroopsankar]

It was a nice move by Maruti to launch S-Cross initially through a premium dealership experience. We all know S-Cross (and CIAZ to some extent) is a better car in every aspect than every other car in Maruti's portfolio. But I am sceptical about Maruti's current thoughts about NEXA after the launch of Baleno and IGNIS (and now XL6 as well) through NEXA, which is diluting the purpose of the NEXA dealerships.

I was initially surprised of seeing a number of S-Cross, Ignis and Baleno in the UK roads, but later came to know that except S-Cross, Baleno and Ignis sold here in the UK are miles ahead in quality when compared to its Indian variants (still no match for the European cars). But they are still VFM products here as well and most of the customer satisfaction survey shows that Suzuki is one of the top 5 reliable car brands in the UK (even above Honda and Toyota - as per JD Power Europe 2019 survey).

Most of the car manufacturers here in the UK provide better sales and after-sales experience here for wanting customers, though the security features won't be compromised at any cost. The higher/plusher variants will come with advanced features like premium interiors, better alloy wheels, Lane Assist, Adaptive Cruise Control, Better ICE etc.

In my opinion, manufacturers who are operating in India should give basic security features such as 6 airbags, ABS, ESC as standard. As they(Maruti) have almost half of the market share in India if they show courage to take the initiative and impress the customers (they can do for sure, as they did for the AMT gearboxes to popularise Automatics in India). and they (Maruti) can even sell the premium variants of all their cars through NEXA and standard variants through ARENA dealerships.