There can be multiple factors for Nexon / Punch trailing Brezza / Fronx in Q3, 2024, something that needs to be investigated
With the combo of Nexon and Punch, both rated 5-star by Global NCAP and Bharat NCAP, Tata Motors has dominated the sub-4m SUV segment for some time now. However, things changed in Q3, 2024, with Brezza / Fronx taking a lead over Nexon / Punch. Whether this represents a long-term shift in consumer preferences needs to be ascertained.
Safety is important, but..
Maruti sub-4m SUV sales in Q3 were at 89,994 units. Whereas Tata Sub-4m SUVs registered sales of 83,136 units. That’s a lead of 6,858 units. Even if Jimny sales numbers (3,620) for Q3, 2024 are not counted, Brezza / Fronx still have a lead of 3,238 units over Nexon / Punch. One of the reasons for Brezza / Fronx taking the lead over Nexon / Punch could be the higher demand for Maruti cars during the festive season.
Maruti Suzuki has the largest network of dealers and service centres in the country. Most car brands register higher sales growth during the festive season. But a larger sales network can result in proportionately higher sales. Sales data reveals that Maruti sub-4m SUV sales in Q3, 2024 was the highest in the last four quarters. In comparison, Tata sub-4m SUV sales in Q3, 2024 were the lowest in the last four quarters.
Impact of Curvv EV, Windsor EV
As reported in August, Tata dealers had stated that many potential Nexon EV customers were thinking about upgrading to the Curvv EV. It is to be noted that all sales figures of Nexon and Punch include both ICE and EV sales. If we look at compact SUV sales, Tata Curvv / EV has already acquired close to 10% market share in September. With sales of 4,763 units, it has taken a comfortable lead over rivals. The list includes Honda Elevate, Skoda Kushaq and Volkswagen Taigun.
Availability of Curvv EV could explain the drop in sales of Nexon. MG Motor has also introduced a rival to Nexon EV in the form of Windsor EV. With its unique Battery as a Service (BaaS) ownership program and extensive range of features, MG Windsor EV has received a good market response. Bookings for MG Windsor EV crossed 15,000 units in just 24 hours. Such factors may explain why Nexon sales in September 2024 at 11,470 units was among the lowest during the last 12 months.
Strong sales numbers registered by Mahindra XUV3XO could be another factor for Nexon’s slowing sales. With segment-first features such as panoramic sunroof, XUV3XO sales have almost doubled in comparison to its predecessor, the XUV300.
Afters-sales experience
Tata Motors is among the brands that seem to be facing a higher number of negative feedback from customers. In the 2024 Customer Experience Index (CEI) study conducted by Federation of Automobile Dealers Association (FADA) in association with Frost & Sullivan, Tata Motors was ranked 9th in after-sales experience index (ASEI). Maruti Suzuki was placed higher at 7th spot. This could be another factor that could explain the relatively weak sales performance of Nexon in recent months.
As is evident, multiple factors seem to be involved in Nexon / Punch losing to Brezza / Fronx in Q3, 2024. Rising popularity of Fronx could be another key factor. But since it’s just a single quarter, it is too early to come at a definitive conclusion.
