The Hindu Business Line : Maruti not to raise prices for now; launches Swift DZire

New Delhi, March 26 Despite the rising steel prices, Maruti Suzuki may not be able to revise its prices considering the present sluggishness in the automobile market, the company said on Wednesday.

“Why only steel? The prices of other raw materials are also increasing. Margins are definitely under pressure. But market sentiment is so bad…. How can you increase the prices? We will see till when we can absorb the increasing costs,” said Mr Mayank Pareek Executive Officer, Marketing and Sales, at the launch of its entry level sedan Swift DZire.

The company did not give any exact forecast on the growth of the passenger car industry for the fiscal 2008-09. “We are yet to calculate the growth for the next fiscal. But usually the excise duty cut benefits are reflected in sales only after five-six months,” added Mr Pareek.

Maruti which had launched its premium sedan SX4 last year, on Wednesday launched its entry level sedan to capture a dominate share in the segment.

“Many of our customers are not able to get an entry level sedan. The year 2007-08 will be the best year as Maruti will become a leader in the A3 segment ,” said Mr Shinzo Nakanishi, Managing Director, Maruti Suzuki at the launch of DZire. The A3 segment, that consists of premium brands, is estimated to be growing at a pace of 14-15 per cent, but the company estimates that the growth in the entry level sedan has remained stagnant.

Based on the Swift platform, Maruti has priced this entry level sedan from Rs 4.49 lakh onwards to Rs 5.90 lakh in the petrol variant and Rs 5.39 lakh to Rs 6.70 lakh in the diesel variant. The company said that the above prices are entry level and that it would revise them later. The DZire would compete with Tata Motor’s Indigo CS recently launched at Rs 3.66 lakh up to Rs 4.34 lakh and Mahindra- Renaults’ Logan in the range of Rs 3.89 lakh to Rs 5.02 lakh.

The DZire offers features like integrated stereo, steering mounted audio controls, automatic climate control and power windows. It also has dual Airbags, ABS with EDB, collapsible steering column and an i-CATS anti-theft facility.

Maruti will produce DZire from its Manesar plant which also produces Swift. The company said that to meet the increasing demand for its diesel cars, the company would increase its capacity to 1.7 lakh units from one lakh units by the end of the month. Maruti would raise capacity at Manesar to 3 lakh units by 2010. The company also said that it had no plans to export DZire.

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