Maruti commences trial runs for new Swift Dzire

Maruti Suzuki India is gearing up to introduce a compact sedan of sub-four meter length based on the Maruti Swift Dzire model. According to an insider from the factory, the trial runs have begin; which means the upcoming car could be spotted well ahead of the official launch. Maruti India has come up with the decision to launch the compact sedan of 4.16 m length to benefit from the Government’s policy of levying low excise duty on the sedans based on the length of the car. The outgoing Maruti Swift Dzire attracts an excise duty of 22% as compared to the 10% excise duty on the compact model.The compact sedan codenamed as Swift 3.99 is currently being manufactured at the Manesar factory. The company envisages rolling out the new sedan by the 2012 Delhi Auto Expo.

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MSI has already invested a sum of Rs 500 crores in the development of the new sedan and hopes to export the compact sedan to the overseas markets such as Europe and Latin America, where consumers prefer a compact, fuel-efficient car. One of our close sources was lucky to locate 20 such cars parked that were meant to be exported to the overseas market. Few of these cars were meant for left-hand driving. While the Maruti Swift Dzire price is around Rs 4.94 lakhs, the sub-compact version of Maruti Swift Dzire is likely to be Rs 4.49 lakhs. Toyota Etios sedan sells for a price of under Rs 5 lakhs, which is a threat to Maruti Swift Dzire. With the introduction of the compact sedan from MSI, the auto major is taking a step towards warding off the rivals including Toyota Etios sedan and Tata Indigo in the segment.

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A budget proposed by ex-Finance Minister Mr. P. Chidambaram in 2006 offered special benefits to the small cars in a step to promote the small car production locally. A reduction in the excise duty to 16% on the cars under 4 meters length and displacement of under 1200 cc in case of a petrol engine and less than 1500 cc for a diesel engine was proposed. As Maruti Swift Dzire meets the criteria and hence the compact sedan is eligible for the low excise duty, there-by passing on the benefits to the consumers.

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