Maruti to set up smaller Nexa showrooms

According to a media report, Maruti Suzuki is planning to set up smaller Nexa showrooms and mobile outlets with an aim to reach customers in small towns and rural areas.

Reports suggest that the new showrooms will have a 2-car display but it will offer the same customer experience as any other Nexa dealership. Also, the investment required to set up these showrooms is expected to be lower than a conventional Nexa outlet.

At present, Nexa dealerships are restricted to top cities. There are over 360 outlets in more than 200 cities and they contribute to more than 20% of Maruti Suzuki's total sales. However, falling sales have prompted the company to focus on smaller towns and cities. The cost of setting up a dealership in tier-I cities has increased due to high real estate prices, while operational costs have also gone up. 

Maruti is also building new showrooms at its own costs and leasing them out to dealers to minimize capital costs of its dealers.

Source: LiveMint