Tuesday, August 4, 2015

Will new Swift DZire price attract low-end sedan buyers?

So, does Maruti Suzuki’s bid to roll out the all-new Swift DZire, a truncated version of the old model that comes not only with a slew of new features but also a lower price, indicate that it wants to attract low-end sedan buyers?

It shows that even during a slowdown, the most popular cars can hit a bump. In fact, continuous strike at Maruti’s Manesar plant in Haryana during the last few months also played a part for this move.

The new Swift DZire.
During the stir, Maruti could not meet delivery schedules prompting players such as Ford, GM, Toyota and others to offer high-quality products at competitive prices (and they even offered diesel variants).

Swift DZire is the leader in its category with over 40 per cent market share in the entry-level sedan segment. It sells almost 10,000 cars a month.

This stir eroded Maruti’s market share and in order to get it back, the country’s highest car seller is offering cheaper variants of the Swift DZire.

While the petrol variants of the new Swift DZire are priced from Rs 4.79 lakh to Rs 6.54 lakh, the diesel versions come for Rs 5.80 lakh-Rs 7.09 lakh.

The new DZire will be available in seven variants and a segment first four-speed petrol automatic version will be a part of the offer.

The facade of the new Swift DZire now comes with a unique bumper and grille, powerful fog lamps and character lines on the bonnet.

Other modifications on the exterior are the ORVM-mounted turn signal indicators, vertical lamps, motion-theme alloy wheels and a wrap-around cabin wind screen, among others. The rear wears a sportier look with an antenna, integrated spoiler and trapezoidal tail lamps.

The new Swift DZire, however, has more width, is higher and comes with a larger wheel, besides being fuel-efficient by almost 10 per cent in petrol (19.1 km to a litre) and almost the same in diesel (23.4 km to a litre) compared to the earlier versions.

The petrol version of the DZire comes with a new 1.2 litre K-12M VVT engine that offers 87 PS power while the 1.3-litre DDiS diesel engine is propelled by 75 PS power.

“We and our vendors have invested over Rs 230 crore for this model change of the Swift DZire, This is over and above the Rs 550 crore invested towards the new Swift launched a few months earlier,” Maruti Suzuki managing director and CEO Shinzo Nakanishi said.

Mayank Pareek, managing executive officer (marketing and sales), Maruti Suzuki, said, “The new model is cheaper by Rs 25,000-Rs 30,000 when compared to the previous version. We have also rolled out an automatic transmission in the mid-variant (petrol) as there is demand for it, particularly by women.”

With the new Swift DZire, Maruti has made an effort to create a new category between the high-end hatchback and the low-end sedan.

So, will Maruti Suzuki be able to draw low-end sedan buyers with its move of launching a cheaper Swift DZire?

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