India's largest automaker Maruti Suzuki is looking to set up small-format and mobile showrooms for its premium dealership chain, Nexa. The move is considered as an attempt to remove the overall investment burden and improve the profitability for the dealers.
"The new small-format dealerships will improve the reach of Maruti's premium products in small towns and rural areas," Livemint quoted sources aware of the development as saying.
"We have been continuously getting requests from customers seeking the Nexa experience in the cities where we were not present. To serve these customers, we plan to establish smaller Nexa showrooms. These will have a 2-car display facility and will offer the same Nexa experience offered by our current Nexa outlets across the country. These showrooms will help us come closer to customers seeking the Nexa experience and enhance customer convenience," the report quoted a spokesperson of Maruti Suzuki as saying, in response to an email.
The spokesperson added that Nexa is the most successful premium retail network in the country and has established itself as the country's fastest-growing retail channel in less than 4 years. He went on to say that the retail network contributes to more than 20% of Maruti Suzuki's total sales.
Nexa is present in more than 200 cities and has over 360 outlets. Maruti, reportedly, aims to expand its reach to small towns, cities through premium dealerships, given the decline in sales in urban centres due to the emergence of ride-hailing services such as Ola and Uber.
(Edited by: Nehal Solanki)