Maruti Suzukis offers discount on its Swift diesel

Tuesday 18 June 2013, 11:04 AM by

Maruti Suzuki India Limited, the country's largest passenger car maker, is now offering a discount on its flagship model, Swift diesel, which has been already doing good in numbers. Also, the auto maker is looking ahead to replace its two models, A Star and WagonR, with a new hatchback, which will take the standards of Maruti Suzuki India to new heights. Reportedly, this move has been taken by the auto maker owing to fall in its sales, which has likely forced the company to offer discount on its iconic Swift diesel.

Maruti Suzukis offers discount on its Swift diesel | CarTrade.com
Maruti Suzuki’s offers discount on its Swift diesel

Sources have revealed that the dealers of Maruti Suzuki are recording a fall in the demand for Swift because of the sluggish market conditions. On the same lines, a source, without revealing his identity, was quoted as saying, “The Honda Amaze and the Renault Duster are giving tough competition to the Swift portfolio. India is not a country of multiple car owners so someone wanting to change the car goes in for these SUVs which are priced near the Swift, plus or minus a lakh rupees.”

Reportedly, demand for this model has been also affected in Kerala and Gujarat, which are known as two of the strongest auto markets for Maruti Suzuki in India. Speaking on the same, two analysts Kotak Institutional Equities said “Some investors are concerned that a shift towards petrol from diesel will impact Maruti’s profitability. We believe this is unlikely as demand is likely to shift within Maruti’s fast selling models (Swift, DZire and Ritz) and unlikely to move to the WagonR and Alto segments. The difference in EBITDA/car between Swift diesel and petrol is about Rs. 12,000 in our view and a 1 per cent shift towards petrol from diesel volumes will have a minimal 0.3% impact on EPS.”

In simple words, the auto maker is anticipated lose a significant share from the market if the demand has been shifting from its own diesel models to petrol versions. This clearly states that the dealers of Maruti Suzuki India are doing a good job by offering discounts on the diesel Swift.

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