What Maruti Suzuki India, the leader in the Indian auto industry is doing towards maintaining its turf in this upmarket? The answer lies in changing the distribution strategy to reach out to various customers. The industry experts are witnessing varied changes in Maruti to sustain its stake in this highly competitive market. It is being learnt that Maruti Suzuki has purchased properties in various metros and developing showrooms to attract the cash-rich buyers. The change is huge to maintain its abating market share.
As per the sources, Maruti Suzuki India has brought land in the elite locations of Mumbai and Delhi. In Mumbai, the location it has purchased is at Lokhanwala which is a new hub for all shopoholics.
Maruti Suzuki India plans to purchase 12 more new properties in the metros and develop fancy showrooms to hand over it to the dealers. The company wishes to shed away its traditional model image and wear the all new upmarket brand image.
Mayank Pareek, Managing Executive Officer (Marketing), Maruti Suzuki India said that the company wishes to start a retail format which will help them to reach out to the customers on the high retail prices. The company has purchased various properties by spending almost Rs 50-60 crore in Mumbai. He added that it is not in the range of the local dealers so the company has managed to get the right locations. However issues such as sales and services will be dealt by the dealers.
Maruti Suzuki will also exhibit its lifestyle products like sports products, baggage, apparels, car miniatures and various other stuff produced by the company. Rajeev Sawhney, the owner of the new showroom in Delhi said that the company is working towards giving its customers an all new experience.
The upmarket alterations around the distribution channel can be credited to the new image the company is forming as a result to its upcoming premium class sedan. Maruti Kizashi. The sedan will be launched on 2nd February, 2011 with an expected price of Rs 16 to 18 lakh and will be exported from japan as a CBU. Maruti Kizashi will pitch against the cars such as Toyota Corolla, Skoda Laura and Honda Civic. Maruti is also expected to enter the multi utility segment by introducing MUV Maruti RIII probably in this year. The MUV segment in India currently holds a market share of 18 per cent. Mr Pareek also said that the company with the new premium class model is catering to a new target buyers who hold varied perception.
Moreover, the rest of the 890 showrooms will sport the look of the new premium showrooms, the company will come with. Well it seems Maruti Suzuki India has pulled its socks up to sustain the current position of being a market leader and also breaking the ice by entering the newer premium segment.