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Old 18th January 2012, 10:27   #31
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

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Originally Posted by MutantX View Post
21k on petrol variant when the petrol prices are peaking is something I cannot digest. This will take the OTR to 5.4L with 20k discounts. I got my new SWIFT Vxi for 5.5L OTR 2 months back. Suddenly the new swift at the launch price looks VFM compared to the present scenario.
Lol. I got the same deal, VXI at 5.7 OTR in Bangalore. Now it really looks to be VFM pricing, and of course I get the benefit of the sweet K12 engine. Glad I did not succumb to the mass hysteria about petrol prices and did a thorough analysis of my usage before finally settling for the Petrol.
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Old 18th January 2012, 10:30   #32
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

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Originally Posted by abhi413 View Post
How I see it, Maruti is just cashing in on the popularity of the swift diesel. They have much more backlogs than they can manage anyway, and the waiting period remains consistently high, too.

For the record, a major chunk of cost in car manufacture comes from steel, and actually steel prices settled with car majors w.e.f. October 2011 have actually gone down!

I don't know how much the weakened rupee is affecting Maruti - they have the maximum localization of all parts/components!

So honestly I doubt if the prices stand increased on account of "input costs". Just cannot buy this argument.
Wonder if there is a way to ask for justification for the price hikes. Like you have mentioned, the price of steel has gone down. Isnt it possible for someone invoke the Right to Information act on this?
In the end of course, maruti can turn around and say this is what we think the product is worth, but it just seems wrong. Thats all.
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Old 18th January 2012, 11:15   #33
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

At this rate, I think I can sell my Swift VDI for the price I bought it. Does an increase in dollar rate affect a Japanese manufacturer? If yes, how?

Last Sunday at the Maruti Service station, there was a prospective Swift customer looking for ownership reviews from current Swift owners. He walked upto me and asked me about my experience with the car. I told him it was a brilliant product barring the brakes. The sales advisor was quick to correct me but I held my ground and told that guy to go for a ZDI instead of a VDI. He was quick to say, he'd buy a Polo for the "brand image". And he doesn't feel the ZDI is worth money and wait. I disagree though.
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Old 18th January 2012, 11:33   #34
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

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Originally Posted by CrAzY dRiVeR View Post
After i booked the car, prices have gone up by 27,000! This is atrocious and not a fair pricing strategy from Maruti!

If only we had better competition to teach Maruti a lesson!


Not until we get some real competition to the Swift. As of now, Maruti is really enjoying near-monopoly in the segment. I agree there are good products, but the product + brand equation puts swift in huge advantage.

There are people who think that few of the Maruti car models are overpriced, therefore going with other options available.

There have been several examples in the forum also, where members have mentioned that the waiting periods and price of Swift (diesel) is too much and they ended up buying other cars. These owners are happy and enjoying their cars more than the Maruti Swift owners.

In my opinion also, the Swift (Diesel) was already overpriced and now they have again increased the price second time in 3 months.

Why people prefer Maruti cars? Primarily because of their resale value and their service network. If we are going to keep a car for more than 5 years then resale doesn't matter much. Now a days, other cars have far better build quality than Maruti. They have also improved their network but not at par with Maruti. Better build means lesser number of trips to service stations. So why not enjoy driving other brand cars with better build quality, drive-ability and more features in the same price?


Cheers!
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Old 18th January 2012, 11:35   #35
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

In 3.5-4 years of time the price difference between petrol and diesel version of Swift has grown up from 75-80Ks to whopping 1.3 lakhs.

Surely it is the time to invest wisely.
Petrol prices maybe gone up but so is the diesel car prices. Running/month should be given a relook.
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Old 18th January 2012, 11:43   #36
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

Keeping economical theories in mind, a product is not overpriced if it is able to sell without affecting the annual numbers, provided there are competing products in market.
We also need to consider the demand-supply gap which adds up to the prices.
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Old 18th January 2012, 11:57   #37
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

Maruti is indeed trying to milk customers because it knows that Swift is one crazy hot hatch. I am glad that I got a Ritz VXI for 4.5L OTR 3 months ago, sounds like a wise decision that I did not wait for 2012.

Also, suddenly Suzuki an inferior brand to likes of Honda and Fiat suddenly look way way overpriced. When I mentioned same to my friend who just got himself an infinty, he chuckled and said... wow Suzuki has some eggs to hike its prices, though it is inferior to brands like Honda, get a Honda Fit(Jazz) if you need.

At 5.8L OTR, Jazz base version is far better suited to a urban commuter than spending close to 8.2L OTR for Swift ZDI. I am sure 2.5L saved can offset the petrol cost for next 5 years.
I am sure my next car is going to be Honda if Suzuki keeps on milking us for its monopoly.

Cu,
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Old 18th January 2012, 12:07   #38
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

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Originally Posted by Irish View Post
There are people who think that few of the Maruti car models are overpriced, therefore going with other options available.
Yes. But my point is that - these options are somewhat insignificant at the moment, to teach Maruti a lesson (Remember, in the end - Sales ONLY matter to all these companies).

Why didnt Maruti dare to make the same increase in SX4 as in Swift? Because they know it wont sell at higher prices (When competition is the likes of Honda City, Hyundai Verna, VW Vento, Skoda Rapid etc). However, the competition in the premium hatchback segment hasn't put the pressure on Maruti yet.

I just dont understand why VW is taking so long to launch that 1.5 TDi! With Maruti's labour issues, and resultant price hikes- VW could have really given a second life to Polo sales.

Hyundai could have done the same had they addressed the ac + steering rattles + handling in i20. Swift ZDi prices are going to match i20 Asta prices soon, making the Hyundai look VFM. Bit more advertising and playing the value card could (along with a facelift) have made them sure-shot winners. (I know i20 sells in big numbers, but it could have used this situation to sell in number comparable to Swift!)

I'm not mentioning other competitors since I believe the above two cars are the ones which have the potential to steal some real sales from the Swift. As of now, the demand for Swift is so much more than the supply and hence they can afford to price it anyway they want!

Last edited by CrAzY dRiVeR : 18th January 2012 at 12:09.
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Old 18th January 2012, 13:15   #39
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

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Originally Posted by stormsearcher View Post
Wonder if there is a way to ask for justification for the price hikes. Like you have mentioned, the price of steel has gone down. Isnt it possible for someone invoke the Right to Information act on this?
In the end of course, maruti can turn around and say this is what we think the product is worth, but it just seems wrong. Thats all.
RTI act can be invoked only where pubic money is involved. A private firm has full rights to maintain secrecy regarding their costs and overheads. However, all listed companies like Maruti will publish their Annual report and share relevant details with shareholders.

But you are right, it just seems wrong, that's all.

But have you thought about the other way round? Whenever, say, a Honda drops the price of the Jazz or the City overnight, will the existing owner not feel cheated? Even if the future buyers feel happy about it?

So basically this is a business decision, for whatever reasons known to Maruti & GM alone!
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Old 18th January 2012, 15:20   #40
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

As I posted in the Dzire thread, this is basically Maruti trying to please its shareholders, and boost bottomline profits. Maruti's taken a hammering last year due to all the labour trouble and unfortunately, it's the customers who will have to pay for it.

Maruti knows that even if it loses 5 - 10% of Swift customers - those who have booked the car - it still gains. However, it can have an adverse effect on the brand. The Swift ZDi touching 8 lakh rupees is outrageous for a car that's competent, but not really beaming with premium quality. It could change the brand's strength that stands for VFM.

Short term gain, long term damage. Thumbs down to the price increase.
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Old 18th January 2012, 16:31   #41
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

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Originally Posted by Turbokick View Post
Now Swift VDi is priced at par with i20 CRDi magna. (At my place)
It should be so at most of the places then. All the more reasons for people to buy an i20 !

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Originally Posted by ghodlur View Post
This price hike comes absolutely at a wrong time when Maruti hasnt yet recovered from the losses of the last year.
Wrong time? It's the right time for Maruti to hike it's prices. That's how they plan to cover all those losses they had last year! From the pricing strategy, it's very clear too. The most selling models have the biggest hikes [Swift & Ritz] and duds have the min [SX4].

Quote:
Originally Posted by guyfrmblr View Post
I got my 6 Speed i20 CRDi Sportz for the same price and suddenly it looks like a VFM. The price is further reduced by around 11K for the 5 Speed version and may be cheaper than the ZDi now.
Wish we had more conversions like this!

Quote:
Originally Posted by mayankjha1806 View Post
The recession thread is active again and i hear that World bank is indicating tough times ahead with Europe in turmoil. Now the raise in car prices is completely weird at this point in time. Sales will be even lower and then companies would need to resort to discounts or finding newer means to cut costs, or pressurize government in cutting excise duty.

Don't these guys check some trends, as to what's happening in the economy and take steps accordingly?
Whatever the world is going thru, Maruti has more than a lakh pending orders for Swift & Dzire. Even if one lakh customers from this list take deliveries, imagine the "extra" profit that Mauti makes with the hike [21,000 * 1,00,000] !! And that's the min. amount / profit they get. Let's also consider that the prices are hiked for Ritz & new Dzire also will have a new price tag / more profits when priced at the current levels.

Quote:
Originally Posted by stormsearcher View Post
Wonder if there is a way to ask for justification for the price hikes. Like you have mentioned, the price of steel has gone down. Isnt it possible for someone invoke the Right to Information act on this?
It's time that customers have rights to get a break up of the price increase & the profits. I know it's a wish list but still...

Quote:
Originally Posted by moralfibre View Post
He was quick to say, he'd buy a Polo for the "brand image". And he doesn't feel the ZDI is worth money and wait. I disagree though.
For most people, brands matter for the bucks they shell out. Enthusiasts like us who get into technical details like 3 pots & refinement will disagree, but we form the minority in the car buying society! For the true MASSes, Swift ZDi is a poor equation for that money!

Quote:
Originally Posted by CrAzY dRiVeR View Post
...With Maruti's labour issues, and resultant price hikes- VW could have really given a second life to Polo sales. Hyundai could have done the same had they addressed the ac + steering rattles + handling in i20. ...I'm not mentioning other competitors since I believe the above two cars are the ones which have the potential to steal some real sales from the Swift.
Could not be put better!! I am so wonderstruck that rest of the players are happy with their low sales compared to the Swift & Dzire and are happy watching Maruti earn money!! I should say it's the attitude of the competitors than has widened the gap in sales and it's actually the competition that's crowning "Maruti as the market leader" than customers! My all time example will be Etios & Liva pricing by Toyota for that kind of a car!! Atrocious to say the least !

Quote:
Originally Posted by abhi413 View Post
...So basically this is a business decision, for whatever reasons known to Maruti & GM alone!
Have to agree. If we were in the sales team of Maruti, we also would have taken the same decisions. It's only as customers we are fuming!

Last edited by swiftnfurious : 18th January 2012 at 16:34.
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Old 18th January 2012, 17:00   #42
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

Perfect time for hyundai to launch i20 refresh and market it well.
I personally believe i10 CRDi can make some indents in Swift's sales if priced well. Ofcourse the engine has to be as competent as well.
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Old 18th January 2012, 21:08   #43
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

Isn't the 1.4 mill on the i20 competent enough already? Or, are there some issues with it except for the high maintenance costs?

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Originally Posted by Turbokick View Post
Perfect time for hyundai to launch i20 refresh and market it well.
I personally believe i10 CRDi can make some indents in Swift's sales if priced well. Ofcourse the engine has to be as competent as well.
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Old 18th January 2012, 22:06   #44
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Originally Posted by blackfire_9 View Post
Isn't the 1.4 mill on the i20 competent enough already? Or, are there some issues with it except for the high maintenance costs?
I meant the i10 CRDi if ever it comes.
It might get the scaled down/3 cylinder version of 1.4 CRDi engine.

In my books 1.4 CRDi in i20 is better than 1.3 Multijet
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Old 19th January 2012, 06:31   #45
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Default Re: Maruti Suzuki & GM increases Car Prices - Effective 16th Jan 2012

Oh!! Well this was bound to happen, I just went to the dealer here in New Delhi and the Zdi that I had booked is dearer by 17K. And to think of it I was going to make all the payment today. Well I still did, I had to have a car and my enthusiastic nerves still can't find anything better than a Swift, or maybe I am biased.

Did it pinch, did it hurt [the price hike]? Yes it sure did, however the reasons are better known to Maruti and at the end of the day they are running a business and have to make profits. Me as a buyer, who is already willing to pay, had no choice but to put in the extra 17K on the table.

Shall we teach Maruti a lesson? It is food for thought, but I am not willing to explore the market again, and then, what if I come back to the Swift again[which I did after having explored the market in the 1st place] and see the new budget and the new hike, funny, it sure is.

Last edited by iFuel : 19th January 2012 at 06:32.
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