India's largest carmaker's premium retail channel expanded its portfolio with the addition of two new SUVs and an MPV last year to achieve the sales milestone.
01 Apr 2024 | 5774 Views | By Mayank Dhingra
India's largest carmaker - Maruti Suzuki India (MSIL's) - premium retail channel has clocked cumulative sales of over 561,000 units in FY24, with the company registering a 52 percent year-on-year growth (FY23: 369,000) for its retail arm that was kicked off in 2015.
With an intent of gravitating young, ...
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India's largest carmaker - Maruti Suzuki India (MSIL's) - premium retail channel has clocked cumulative sales of over 561,000 units in FY24, with the company registering a 52 percent year-on-year growth (FY23: 369,000) for its retail arm that was kicked off in 2015.
With an intent of gravitating young, aspirational and discerning customers, Nexa has focused on the ethos of offering a premium experience to its buyers through an expansive footprint of 490 outlets across the country. The growth in Nexa volumes in FY24 was contributed by the carmaker's top-selling Nexa model - Baleno - which was accompanied by three new models in FY24.
While MSIL introduced the Fronx crossover in April 2023, it launched the Jimny in June last year, followed by the flagship Invicto MPV in July 2023. The exercise expanded the Nexa portfolio to a total of seven models - Ignis, Baleno, Ciaz, Fronx, Grand Vitara, Jimny, and Invicto. The Baleno premium hatchback at sales of over 195,000 units in FY24 was the largest selling model for the carmaker from the Nexa channel.
The company says Nexa has been the fastest-growing brand for any automaker in the country and plays a crucial role in MSIL's retail strategy. MSIL also revealed that out of its current order book of 198,000 units, the Grand Vitara SUV accounts for 8,000 units with an average waiting time of 3-4 weeks.
The company revealed that its current order book stands at 198,000 units, with the Ertiga MPV commanding the highest waiting period of up to 4.5 months, and an order backlog of around 70,000 units. With SUVs growing their contribution in overall passenger vehicle sales to around 50 percent in FY24, Maruti Suzuki too registered a growth in its UV share in the last financial year.
MSIL’s market share in UVs increased from 11% in FY23 to 22 percent in FY24. SUVs comprise 38 percent of MSIL’s total sales in FY24, and “this is a healthy sign for us, and a resultant of the company's growing market share, which was pegged at nearly 42 percent in FY24,” said Shashank Srivastava, Executive Committee Member, MSIL.
“SUV share is critical for us to achieve our overall objective of 50 percent overall market share. At 22%, our market share is lower, and it is one area where we need to push up our game,” he pointed out.
However, the growth in sales of SUVs has led to a decline in the volumes of hatchbacks and small cars - both MSIL core territories - and acknowledging the decline in the sales of hatchbacks, Srivastava said that while the first-time buyers are cross-shopping between entry-level hatchbacks, entry-sedans, and entry-SUVs, the overlap in the prices of vehicles in these segments has also been a key factor for their de-growth.
However, showing his optimism for the revival of the hatchback segment, Srivastava explained that, “First-time buyers form around 45-46 percent of India's passenger vehicle market, and with India being a growing economy, there will be a strong requirement of personal mobility in the future.
“Therefore, if the affordability and income levels improve, we could likely see a revival of the hatchback segment as well,” he said.
The company also revealed that out of the Top 10 models retailed in FY24, six models were from MSIL, and out of the Top 15 models, the top 10 belonged to MSIL, with an average volume of around 100,000 units in FY24.