Maruti Suzuki invests in building sales and marketing infrastructure

Maruti Suzuki recently launched their premium dealership network, Nexa, in India. With this initiative, it has become the first Indian carmaker to invest directly in building sales and marketing infrastructure.

The current norm in the Indian market is that dealers lease out their area to manufacturers. Maruti Suzuki has, for the first time, changed this trend and will create outlets and lease them out to dealers. Backed by funding of Rs 8,000 crore, the carmaker aims to build a real-estate bank by purchasing land in different towns and cities across in India.

Furthermore, the company will work on a multi-format model, under which the outlets that are owned by dealers will continue in parallel to the ones owned by the company. However, the Nexa outlets will cater to only the premium segment of cars from the automaker's portfolio.

RS Kalsi, executive director, marketing and sales, Maruti Suzuki, said, "We have already started some Maruti dealerships at premium locations across major metros and we are also planning to buy land across India to assist our dealers to start new outlets."

Maruti Suzuki is continuously expanding their already strong dealer network. They plan to hit their target of attaining the two million vehicles sold milestone by 2020.

Source: ET