New Delhi, August 24, 2007: Maruti Udyog Ltd, largest car maker of the Country, is all set for the launch of a mid-size sedan built around its new global car platform, the Swift. The new car, to be launched during January-February next year, will give MUL renewed presence in the budget segment of the domestic sedan market.
As per company sources, MUL would launch Swift sedan with its new-generation 1.3-litre multi-jet diesel engine and in a 1.3-litre petrol variant, priced at around Rs. 5.50 Lakh. The Swift sedan is expected to replace the segment once ruled by Maruti's relaible Esteem. The long-standing Esteem sedan has been witnessing flagging sales in the past few years. The model sold little more than 6,000 units in April-July, down from 7,011 units in the year-ago period. The model is currently available for about Rs. 4.5 Lakh, depending on the features included, but suffers from what analysts call model fatigue. The car, however, continues to win critical acclaim, including last year’s JD Power best entry-sedan award.
Maruti already has two diesel variants of premium hatchback Swift and a petrol offering on the same platform since its launch late last year. The launch of the Swift sedan will strengthen the company’s presence in the sedan market, where it currently has another of Suzuki’s global new car initiatives, the SX4, which replaced its premium sedan Baleno. MUL is also increasing its production capacity at its Manesar plant in Haryana. The Manesar plant is estimated to produce more than 250,000 cars by the end of next fiscal year. The Swift has sold 141,893 units through July, with a waiting period of two weeks to two months for the car, depending on the model and features.
Sales of Indian car makers grew 22% to 10.7 lakh units in the year ended March, up from 8.82 lakh units. With the likes of Volkswagen AG, General Motors Corp., Nissan Motor Co. and Toyota Motor Co. stepping up their interest in India, MUL has been in an overdrive, launching five models and variants in just the past year and promising at least one additional model every year. The launch of the Swift and SX4, its first sedan in six years, was the first of its new initiatives.
MUL will invest an estimated $2 billion in expanding capacity and launching new products. It is also changing its name to Maruti Suzuki India Ltd, which will allow it to better leverage the Japanese car maker’s brand.