India’s numero uno (volume terms) automobile manufacturer, Maruti Udyog Ltd. (MUL) has created a stir with the launch of its eagerly awaited compact car, Suzuki Swift. The launch coincides with the attempt to re-position itself, the Maruti Suzuki brand and perhaps even the country’s small car segment. Swift has been positioned at the premium A2 segment between Zen and Esteem and the closest competitors will be Hyundai Getz, Ford Fusion, Fiat Palio and Opel Fail.
Amidst much speculation on its pricing, MUL sprung a big surprise by offering Suzuki Swift’s base version at Rs 387,000 (ex-showroom, Delhi) and the top-end version at Rs 485,000 (ex-showroom, Delhi). The ploy to price the Swift lower than its nearest competitor Hyundai Getz (priced approximately at Rs 465,000) is expected to result in a shake-up (and a price war) in that particular segment.
During the launch function, Jagdish Khattar, Managing Director, MUL, said that the “introductory price” of the Swift would be in operation for a “reasonable period” of time. He did not ascertain the exact time frame. The deliveries of cars will start from June 6. Swift has already received bookings in the range of 7,000 to 8,000 in the past few weeks. The in-house investment for the car has been Rs 246 crore. Khattar said that 86 per cent of the car is indigenous and this is what has enabled the company to introduce the car at a highly competitive price.
A talented team of Indian engineers from Maruti has been part of the ‘Swift’ design team at the Hamamatsu (Shizuoka, Japan) head office for two years. Very soon, they will be working on a 100 per cent global Indian car.
The dynamic European styling and a 1.3 litre engine of the Swift is available in three variants targeting the new global Indian. The three variants include: Lxi, Vxi (Rs 405,000; ex-showroom Delhi) and the top end Zxi.
The base model has front and rear fog lamps, wide tread 165/80 R14 steel wheel tyres and flared arches for better stability combined with side impact beams. The LXi will have power steering and airconditioning, but manual controls for doors and locking. The VXi has front and rear electric windows, central locking for four doors, front and rear fog lamps and key-not-removed warning buzzer.
The top-of-the-line ZXi has dual front airbags, ABS with EBD and 14-inch alloys and more-than-normal bells and whistles, rear window wiper and demister besides keyless entry.
Swift, which will be manufactured only in four countries around the world (Japan, China, Hungary and India) has a strong India-connection. For the first time, 21 Indian engineers have worked with Suzuki engineers on the design and development of this global model.
K. Saito, Director-Marketing & Sales, adds, “Swift represents a new philosophy at Suzuki Motor Corporation and is targeted at a new kind of Indian customer, who while valuing the traditional attributes of fuel efficiency, performance and reliability, also desires contemporary looks in a vehicle.” Comparing the Swift launch to that of Maruti 800 (two decades back), Khattar expects the sales figures for various Maruti vehicles to cross 600,000 in this fiscal year.
While claiming that an expected diesel version will be out by the end of the next calendar year, Khattar added that India might not be an export hub for Swift but the car will definitely be exported to the neighbouring countries.
The marketing plan for Maruti Swift is already in place.
To read the entire story, grab your copy of Impact Advertising and Weekly magazine issue dated May 30-June 5, 2005
