|The largest car maker in India, Maruti Suzuki India Limited (MSIL) is planning to launch its new sedan under the popular brand Swift. Launch of this car is expected in February 2012 and thereafter, Swift will be available in three body styles from there on. Currently, the car is referred to as ‘Swift 3.99' and is claimed to be cheapest sedan offered by the company.
MSIL expects to maximise its profit with the launch of this new four metre sedan by sticking to the excise duty plan of Central Government. After the launch of Swift 3.99, all the models of Swift might be sold together, expanding the company's portfolio. The new car will be placed lower in terms of price, at least by Rs. 50,000 and will probably fill the room between Swift hatchback and existing DZire.
An Industry Expert said, “The DZire sales are still strong enough to not pull it out of the market. Adding a third body style in the Swift range will mean incremental volumes without much higher investments, especially when auto sales are slowing and companies are looking to delay capacity expansion.”
Launch of Swift 3.99 will be paralleled to the production at Manesar's second manufacturing unit which faced labour issues sometime back. With the start of 2012, the capacity at Manesar's new assembly line will be increased to 900 units from 200 units each day, taking the overall daily production to 2100 units.
Abdul Majeed, Partner and Leader of the Automotive Practice for PWC India, said, “You have different customers in every segment, so more products would mean more customers. Companies are optimising their portfolio by trying to take advantage of the excise rules – sub four metre versions result in 4-5 per cent cost savings”.
The diesel option of Maruti's Swift hatchback and Dzire is accounted for 80 per cent demand, as they are among the popular models of MSIL. The company aims to repeat the same with the launch of its new sedan Swift 3.99.