Maruti Suzuki reportedly plans to expand its dealership network exponentially over the course of the next several years and the target is to have as many as 6,800 outlets across the expanse of India by fiscal 2030. Nikkei Asia, Japan's largest financial newspaper, reported on Wednesday that Suzuki Motor is increasing its reach through sales agency contracts with local companies. The country's largest carmaker already has the most extensive network of sales and service centres with around 3,900 outlets at present.

It is reported that with the start of fiscal 2025, Maruti Suzuki will increase its pace of adding new outlets from around 200 each year to 500 per year. The primary focus will also be on regional cities where it expects rising income levels to auger well for car sales.

Maruti Suzuki dominates the Indian car market with a long list of products. And while the growing preference among buyers towards larger vehicles - especially SUVs, has prompted the company to reduce its dependence on smaller car models, there has also been a concentrated effort to tap into smaller towns and rural areas with the more premium and larger offerings.

In recent times, Maruti Suzuki has been facing increased competition from rivals that have strengthened their respective SUV portfolio. Hyundai offers the likes of Creta, Venue and Alcazar while Mahindra has an SUV-only portfolio. Tata Motors has also driven out various SUV models like Nexon, Safari, Harrier and the latest is the Curvv. Most of these models are offered across a variety of powertrain options. In a counter of sorts, Maruti Suzuki has launched models like Grand Vitara and Fronx while driving out the updated Brezza which remains a powerplayer in the sub-compact SUV space.

Why is Maruti Suzuki expanding dealership network?

The battle is well and truly on in the Indian passenger vehicle (PV) space. While Maruti Suzuki  still has a solid say - the company had a 40.9 per cent market share by end of April this year, there is no room for lethargy. None especially because of the ever-changing dynamics of the car market and the advent of electric vehicles (EVs).

Maruti Suzuki has no EV in India at present but all of that will change. The company plans six EVs in the country by 2031 and the first will be the eVX that is expected to shed cover in the first quarter of 2025. It will be sold under the Nexa retail chain. More models may require more outlets.

Now Nexa has always been the more premium of the two retail chains under Maruti Suzuki umbrella, the other being Arena. And just last month, the company revealed plans of taking Nexa beyond metropolitan hubs of the country by launching Nexa Studio. These would be two-car showrooms located in Tier II and Tier III cities and towns.

And there is reasoning for all of this which merits expansion in dealership network.

Company officials say 30 per cent of overall Maruti Suzuki sales come from models offered under Nexa chain. These are more premium offerings like Jimny, Grand Vitara, Fronx and Invicto as well as the likes of XL6, Baleno and Ciaz. And within Nexa sales, around 35 per cent of sales already come from smaller cities and towns. A network expansion then could help bolster numbers further by taking these models - and Nexa service centers - to closer reach of potential customers in smaller towns and cities.

Arena, however, already has a vast presence but may also look at increased numbers in the time to come. Recently, Maruti Suzuki inaugurated its 3,000th Arena sales outlet in the country. Models offered under this retail chain include Alto K10, WagonR, Swift, Brezza and Ertiga, among others.

Read Also: Tata Nexon iCNG vs Maruti Suzuki Brezza CNG: Which CNG SUV is best for you

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