The design and development of the new Swift Dzire is being done completely in-house by Maruti as this model will only be sold in the Indian market. Since the new Swift platform is bigger than before, the challenge for Maruti engineers is to integrate a boot that fits under the four-metre length. There is a worry that shortening the Dzire’s length could compromise Maruti’s best-selling saloon because length is critical for the premium image of a saloon car. Also, boot space would be significantly reduced as well.
However, the flip side is cost savings of around Rs 40,000 (thanks to excise duty savings) and we expect a considerable amount of this benefit to be passed onto consumers. Looking at the response to the Etios, the Dzire’s first serious competitor, we expect the new Dzire to be very aggressively priced. The new Dzire is likely to be launched soon after the Swift hatchback in the second half of 2011.
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