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Old 23rd July 2020, 12:19   #1
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Default Nexa: 11 lakh customers up!

It has been 5 years since Maruti Suzuki launched its Nexa retail network. The company claims to have served over 11 lakh Nexa customers till date.

Nexa: 11 lakh customers up!-nexa-timeline.jpg

The Nexa retail channel was launched on July 23, 2015. In the same year, Maruti launched the S-Cross and Baleno, which were sold through the newly created retail network. In 2017, Maruti added two new models to its Nexa chain - the Ignis and Ciaz. In August 2019, Maruti launched the XL6. Today, Nexa customers can explore products in a digitalised format through Augmented Reality (AR).

Nexa is the third largest retail automobile brand in India in terms of volumes. It has over 370 showrooms spread across more than 200 cities. Maruti claims that nearly half of all Nexa customers are under 35 years of age.

Some of the other initiatives that were introduced under the brand in the last 5 years include Nexa Music, Nexa Lifestyle and Nexa Journeys.

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Old 23rd July 2020, 13:11   #2
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Default Re: Nexa: 11 lakh customers up!

Nice! If I average it out, it comes to around 18333 cars sold from Nexa per month. Maruti sold around 110000 cars per month in 2015, and around 130000 per month in 2020, in January and February (leaving out the Corona era disruption).

That comes to around 14-17% of the share.

Would they have sold the same numbers of these cars, without the Nexa branding?

Last edited by PearlJam : 23rd July 2020 at 13:12.
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Old 23rd July 2020, 13:48   #3
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Default Re: Nexa: 11 lakh customers up!

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Originally Posted by PearlJam View Post
Nice! If I average it out, it comes to around 18333 cars sold from Nexa per month. Maruti sold around 110000 cars per month in 2015, and around 130000 per month in 2020, in January and February (leaving out the Corona era disruption).

That comes to around 14-17% of the share.

Would they have sold the same numbers of these cars, without the Nexa branding?
Nice calculations. I don't think the numbers would have been the same without Nexa branding. Many of the purchase threads on the forum indicate that Nexa are well managed and the staff there are highly customer centric, sometimes, stating that it has been their best interaction among all the dealerships they went. Now backed by MS ASS reach and a good front dealership, no wonder that the branding had definitely helped them score a lot of customers who could have moved to competition in absence of Nexa.
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Old 23rd July 2020, 14:05   #4
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Default Re: Nexa: 11 lakh customers up!

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Originally Posted by petrolHead_1609 View Post
I don't think the numbers would have been the same without Nexa branding. Many of the purchase threads on the forum indicate that Nexa are well managed and the staff there are highly customer centric
Agreed. I was curious from a cost-benefit point of view. Only 14-17% of the sales come from Nexa. But remember that there will be a huge added cost for extra staff, rent, setting up the showroom, overheads, etc.

Would a large percentage of customers who bought the Nexa-specific cars, have bought them anyway, Nexa branding or not? We will never know, I'm just speculating

Ofcourse, we know that the whole point of Nexa is to attempt to move up the value chain, and cater to the "premium" side of aspirations of the masses. Not sure if they've recovered the added expenses for this though, in the last 5 years.
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Old 23rd July 2020, 14:24   #5
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Default Re: Nexa: 11 lakh customers up!

I bought an S-Cross from Nexa in Oct 2015. The showroom experience was pretty good, although the sales experience could definitely have been better (delay in RC etc).

The best part about Nexa is the Nexa exclusive service station. Not as crowded as a regular service station, and much better lounges.

Well done Maruti!
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Old 23rd July 2020, 14:33   #6
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Default Re: Nexa: 11 lakh customers up!

My experience with Nexa has been always positive be it at Tamilnadu, Kerala, Uttarakhand or Maharashtra. The service level, attitude of service personnel (though except once at Popular Nexa, Chennai who ripped off).

The standards of ASC is pretty high & top notch compared to any regular common, non exotic ASC in the country. Had Maruti not launched Nexa, we would've been customers of Ford or Hyundai by now.
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Old 23rd July 2020, 16:35   #7
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Default Re: Nexa: 11 lakh customers up!

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Originally Posted by PearlJam View Post
Ofcourse, we know that the whole point of Nexa is to attempt to move up the value chain, and cater to the "premium" side of aspirations of the masses. Not sure if they've recovered the added expenses for this though, in the last 5 years.
I completely agree with the point, I'll try to reason with two points here, I'm not pretty sure if I am right, would like to see your perspective on these.

1. Looking from expenses POV, Nexa has opened doors for MS to venture in 10L+ segment. MS when comes up with a Creta/Seltos competitor or a Civic/Elantra competitor, those will be well received under Nexa dealerships (I don't think I'll buy a 15L+ car from Arena dealer) Nexa has paved a way for a premium face of MS badged vehicle. Giving you all the premium stuff the arena dealers lack and the reliability, cost effectiveness of MS ASS.

2. Even though the number seem to be minor in MS sales, it's quite a big number overall. If Nexa were to be a separate brand, it could still reserve a third or fourth spot in terms in sales. (So expenses wise it's in a better shape than any manufacturer who is not in top 3).
One more thing we should consider, higher the cost, higher the profit. Even if Nexa only commands 15% of MS sales, it's contribution to profit would be anywhere north of 30%
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Old 23rd July 2020, 19:16   #8
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Default Re: Nexa: 11 lakh customers up!

It's a nice Marketing move by Maruti Suzuki to have 2 sets of dealerships for different price ranges. The Nexa has paved the way for the entry of MS into >15L range, which seems a possibility with the help of Toyota Partnership. The NEXA dealerships are much better than Arena, the service as well as the way the RM's deal with the customer.

But one thing that makes me wonder is that of the almost 11 Vehicles sold through the network almost 7.5L are Baleno's, which is more than two third's of the total sale. Their premium vehicles such as the S-Cross and the XL6 haven't been such a success compared to Brezza and Ertiga respectively.
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Old 24th July 2020, 10:02   #9
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Default Re: Nexa: 11 lakh customers up!

Coming up, next in NEXA:

Highlight: Jimny (Gypsy) in 2021

Suzuki- Toyota alliance:

Quote:
The first is likely to be a Creta rival based on the Toyota Raize platform and this mid-size SUV is expected to see the light of day in early 2022
Quote:
a premium, C-segment MPV based on Toyota’s C-MPV (code: B560) that’s under development. This all-new, seven-seat MPV is likely to positioned in the wide gap between the Ertiga and Innova and will come with sliding doors.
Nexa: 11 lakh customers up!-j.png

Link

Last edited by volkman10 : 24th July 2020 at 10:11.
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Old 24th July 2020, 12:33   #10
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Default Re: Nexa: 11 lakh customers up!

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Originally Posted by aargee View Post
The service level, attitude of service personnel (though except once at Popular Nexa, Chennai who ripped off).
What happened here? Porur Nexa I felt was way better than the one at Kilkattalai. Maybe leave feedback in the relevant thread?
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Old 24th July 2020, 17:22   #11
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Default Re: Nexa: 11 lakh customers up!

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What happened here? Porur Nexa I felt was way better than the one at Kilkattalai. Maybe leave feedback in the relevant thread?
First time, I think in beginning 2019, not sure; they replaced the front brake pads although it still had some juice (which they admitted later.

Second time was in May 2020, we went up there, the security disinfected my car & we waited until 9:30 for no one to show up despite the security kept insisting me to keep waiting. We drove off to Khivraj later. From June, they kept calling me; first time I told them I don't need anymore. Second day they called me again & then I blurted out on both the bad experiences & told them not to call me again as they've lost a customer for good.

Usually I'm the first person leaving at Khivraj around 8:45 Am when everyone is ready for working. So 9:30 is waayyyy too late for me.

BTW, I went to Porur Nexa, just because you had recommended; otherwise it was a big NO after my first bitter experience.
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Old 24th July 2020, 18:10   #12
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Default Re: Nexa: 11 lakh customers up!

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Originally Posted by aargee View Post
BTW, I went to Porur Nexa, just because you had recommended; otherwise it was a big NO after my first bitter experience.
I hang my head in shame.
BTW my brake pads too were near end of life and they said it will last another 5-6k KMS more and never asked me to change.

I'm usually the first customer when I get my car serviced and I was attended to at 8 in the morning promptly. I had let them know that I'd be coming in at 8 the previous day. Anyways let me see if I can send this feedback to the people there. Not that I'm asking you to go back after you have had multiple unsatisfactory experiences but maybe relevant people should know about it.

Last edited by ike : 24th July 2020 at 18:12.
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