Popular taxi models such as the Tata Indigo, Mahindra Verito and Hyundai Accent may face a strong challenger soon. Maruti Suzuki plans to drop prices for the Swift Dzire and re-position it for the “commercial car” market.

“The old version will sell in the commercial segment, we feel there is a need there. Of course, others can buy it too,” said Mr Mayank Pareek, Managing Executive Officer, Marketing and Sales at Maruti.

The ‘taxi model' will follow the launch of the new generation Dzire by mid-February aimed at private buyers. The current Dzire model will not be discontinued, but stripped off certain features. The focus is likely to be on a single diesel variant. “We are likely to focus on the diesel model for commercial users. Higher specification versions don't make sense for such users as they want lower acquisition costs,” Mr Shashank Srivastava, Chief General Manager for Marketing, Maruti, said.

New Dzire

Though the new shorter, sub-four metre, version of the sedan falls under a lower excise tax bracket than before (10 per cent from 22 per cent), Maruti may not price the new Dzire much lower than the outgoing model.

“We have spent around Rs 230 crore on development of the car and our margins are squeezed both by the rupee depreciation and yen appreciation. We're confident that customers will understand that the new Dzire promises higher value,” Mr Srivastava said.

Re-designed based on the new Swift, the Dzire will now feature an Automatic transmission variant (only in petrol). While the diesel/petrol engines and interiors match the new Swift and the wheelbase is 40 mm longer, the boot is now reduced by 80 litres to 320 litres from the previous model. Fuel efficiency though is higher at 19.1 kmpl (petrol) and 23.4 kmpl (diesel).

The Dzire is the leader in the entry sedan segment with a 23 per cent market share. In the first quarter of 2011-12, it sold 60,000 units.

>roudra.b@thehindu.co.in

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