The Making of NEXA

Code : MM0072

Year :

Industry : Automobile Industry

Region : India

Teaching Note:Available

Structured Assignment :Not Available

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BACKGROUND NOTE: Maruti started its journey in India in 1981, as Maruti Udyog Ltd. under the provision of Indian Companies Act 1956. The government of India selected Suzuki Motor Corporation of Japan as the joint venture partner for the company, and the agreement was signed between the above two companies in 1982. It started producing cars in 1983.The company was formed as a public sector undertaking, with Suzuki as a minor partner, to make a people's car for middle class India. Suzuki Motor Corporation of Japan increased its stake in the company to 50% in 1992 and later in the year 2002 to 54.2%. The company changed its name from Maruti Udyog Ltd to Maurti Suzuki India Ltd (Maruti) in 2007...

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INDIAN AUTOMOBILE INDUSTRY The beginning of the automobile industry in India dated back to 1898 when the first car rolled out on the streets of Mumbai (then Bombay)..

MARUTI SUZUKI’S ENTRY INTO THE PREMIUM SEGMENT Maruti tested waters in the premium segment with Grand Vitara, Boleno, and Kizashi which were sold through the pre-existing Maruti car showrooms but was not successful. The brand was built so powerfully around the themes like “the most affordable car”/ “the common man’s car” that the brand image itself became a hindrance in its upward movement towards the premium segment (See Exhibit 4).The premium brand like Honda entered the mid and small segments which were dominated by Maruti cars but Maruti itself was not able to enter the premium segment...

THE ROAD AHEAD Maruti made an effort to shed its common man's car image by launching NEXA which had black and white sophisticated theme in its showrooms...


Exhibit 1: Car models launched by Maruti - Yearwise
Exhibit 2:Year wise Passenger Vehicles Production
Exhibit 3:Classification of Cars based the length of the vehicle (Passenger car segment)
Exhibit 4:Maruti Brand Built Powerfully Around the Themes Like “The Common Man’s Car”
Exhibit 5:Nexa Showroom
Exhibit 6:Regular Maruti Suzuki Showroom
Exhibit 7:Relationship Managers Individually Catering to the Customers with the Latest Technology
Exhibit 8:The Picture of Enhanced Customer Experience in the new NEXA Showrooms

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