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Old 4th March 2013, 13:34   #1
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Default Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

There seems to be more offers on Ritzy D for month of March.This brings the total discount offered on Ritz to 50k. So, in current Bangalore OTR prices,

Swift VDI : Rs 7.66 L (no discount,of course)
Ritz VDI : Rs 6.57 L (Consumer offer - 25k, Exchange offer - 25 K)

Price difference is a staggering Rs 1.1 L.

And in spite of these discounts on Ritz, Swift sold around 5 times more than Ritz (~20k vs ~4k).

How can there be such a huge price difference between products which are mechanically the same, only differing in aesthetics and handling? Seems like Maruti is either incurring losses on Ritz, or keeping HUGE margins on Swift.

(Prices source : http://www.prathammotors.com/marutisuzuki_newritz.htm)
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Old 4th March 2013, 13:39   #2
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Default re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by Caffeinated View Post
How can there be such a huge price difference between products which are mechanically the same, only differing in aesthetics and handling? Seems like Maruti is either incurring losses on Ritz, or keeping HUGE margins on Swift.
You have yourself answered your question. Aesthetis and handling are the two things that differ in the 2 cars. The swift has a more upmarket image and is a premium hatch. The Ritz on the other hand loses out on the looks front and is not considered a premium hatch. In our market the image of the product is what decides its price and not the capability of the vehicle.
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Old 4th March 2013, 13:47   #3
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Default re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Two things which matter according to me and definitely make a big difference

1. The rear design. It still is quirky. People haven't accepted/digested this even now
2. Interiors of Swift feel and are, a class above. If Ritz had something similar or better to offer on the aesthetics part, it would be selling many many more numbers than it does now

Huge margins on Swift, yes! It is definitely overpriced for what it offers. That's nothing new isn't it?
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Old 4th March 2013, 14:24   #4
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Default re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

The way the market see it, Ritz is Small, Swift is Bigger. And the resale on the Swift in comparison to the Ritz will also be a deciding factor.

Last edited by GTO : 4th March 2013 at 14:36. Reason: Typo
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Old 4th March 2013, 14:27   #5
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Default re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by Caffeinated View Post
How can there be such a huge price difference between products which are mechanically the same, only differing in aesthetics and handling? Seems like Maruti is either incurring losses on Ritz, or keeping HUGE margins on Swift.
The Ritz is developed on the shortened older Swift platform (slightly shorter wheelbase than Swift) and the new Swift is based on a new platform. Except the engine and few other component sharing they are different - older Gen vs new Gen. This is the reason why there price difference is huge between the current Swift and the Ritz. The gap wasn't this wide between the old Swift and the Ritz.

Last edited by Sankar : 4th March 2013 at 14:35.
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Old 4th March 2013, 14:30   #6
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Default re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Interesting thread. Changed the subject line so that the debate is clearer...

My opinion is that Maruti have got it right and as long as consumers see value in paying for the Swift they are completely entitled to the higher margins it fetches. Despite sharing a platform, an engine and most parts the Swift is a completely different animal from the Ritz. I love my (old) Swift to death and would never even consider trading it for a Ritz.

In terms of looks, handling and image, the Swift is way ahead in my book. Although it must be said that the Ritz is a lovely car and people who buy it probably have a better assessment of value than myself!
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Old 4th March 2013, 14:31   #7
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Default re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

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Originally Posted by beejay View Post
The way the market see it, Ritz is Small, Swift is Bigger. And the resale on the Swift in comparison to the Swift will also be a deciding factor.
But in reality, Swift is small and Ritz is Bigger
Quirky rear is definitely holding many customers to take that last step. Also handling is definitely better in Swift.
Still, Swift is highly overpriced and Ritz is a great VFM buy.
I don't agree with the upmarket feel of Swift over Ritz. My personal opinion though!
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Old 4th March 2013, 14:38   #8
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Default Re: Rs 1.1 lakh premium for SwiftD over RitzD- is it justified?

Quote:
Originally Posted by MotoNanu View Post
But in reality, Swift is small and Ritz is Bigger
Quirky rear is definitely holding many customers to take that last step. Also handling is definitely better in Swift.
Still, Swift is highly overpriced and Ritz is a great VFM buy.
I don't agree with the upmarket feel of Swift over Ritz. My personal opinion though!
, the Ritz is more spacious than the Swift and IMHO scores more than the swift in the interiors too. Though the front of the Ritz is much more visually appealing than the Swift's, the rear dampens the whole spirit.
People tend to go with overall acceptability than being critizied for one major negative.
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Old 4th March 2013, 14:40   #9
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by MotoNanu View Post
But in reality, Swift is small and Ritz is Bigger
Quirky rear is definitely holding many customers to take that last step. Also handling is definitely better in Swift.
Still, Swift is highly overpriced and Ritz is a great VFM buy.
I don't agree with the upmarket feel of Swift over Ritz. My personal opinion though!
Maybe you are right. Yet, very few people would actually get into the exact specifics. As you said, the boot would be a deterrent too.
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Old 4th March 2013, 14:40   #10
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Is the 1.1 lakh price difference justified? No way! The Ritz is far more practical; it has taller seating & easier ingress / egress, superior frontal view, a larger boot, a better back seat and more powerful brakes (L & V variants).

At the end though, it's all about image & branding. That's precisely the reason you see the Swift outselling the Ritz by 5:1. The Ritz' rear is way too ugly, while the Swift is too darn good looking. As Beejay rightly pointed out, the Swift enjoys superior resale too.

Remember how the old WagonR outsold the mechanically identical Estilo, month after month? The market is a funny place.

Last edited by GTO : 4th March 2013 at 14:41.
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Old 4th March 2013, 14:52   #11
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by GTO View Post
Is the 1.1 lakh price difference justified? No way! The Ritz is far more practical; it has taller seating & easier ingress / egress, superior frontal view, a larger boot, a better back seat and more powerful brakes (L & V variants).

At the end though, it's all about image & branding. That's precisely the reason you see the Swift outselling the Ritz by 5:1. The Ritz' rear is way too ugly, while the Swift is too darn good looking. As Beejay rightly pointed out, the Swift enjoys superior resale too.

Remember how the old WagonR outsold the mechanically identical Estilo, month after month? The market is a funny place.
Hi GTO, please explain the brakes being powerful in L &V variants? Could not understand why specifically these variants and how they differ from Z? I have driven only the V and they are spot on, not driven a Z.

Last edited by MotoNanu : 4th March 2013 at 14:55. Reason: goofed up typing with some other text :)
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Old 4th March 2013, 15:02   #12
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by Caffeinated View Post
There seems to be more offers on Ritzy D for month of March.This brings the total discount offered on Ritz to 50k. So, in current Bangalore OTR prices,

Swift VDI : Rs 7.66 L (no discount,of course)
Ritz VDI : Rs 6.57 L (Consumer offer - 25k, Exchange offer - 25 K)

Price difference is a staggering Rs 1.1 L.

And in spite of these discounts on Ritz, Swift sold around 5 times more than Ritz (~20k vs ~4k).

How can there be such a huge price difference between products which are mechanically the same, only differing in aesthetics and handling? Seems like Maruti is either incurring losses on Ritz, or keeping HUGE margins on Swift.

(Prices source : http://www.prathammotors.com/marutisuzuki_newritz.htm)
Is it justified - No. Can MSIL charge you that kinda of premium? Absolutely! And they can make a killing with it too. Like everyone is saying, you can be pricier if you are desirable.
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Old 4th March 2013, 15:07   #13
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by Caffeinated View Post
How can there be such a huge price difference between products which are mechanically the same, only differing in aesthetics and handling?
I think you missed the feature list aspect. Just because both variants are termed VDi doesn't mean the feature list is identical. If the feature list is different, the difference cannot be termed purely as premium for one model over the other.

Since we are comparing the V variants, there is a difference in the feature list too, when it comes to the new Swift vs Ritz. I haven't done a feature by feature comparison recently but I think the V variant of old Swift and Ritz were more or less on par. When the new Swift was launched, the V variant got some additional features like the electric ORVMs with turn indicators, MID, tilt steering and so on.

That said, I do agree that the feature list difference can in no way command a premium of 1.1L but that's how the economics is. When supply is more than demand, it is buyer's heaven. When it is the other way round, its seller's paradise. Same thing holds good for all top selling models including Duster.

Last edited by zenren : 4th March 2013 at 15:33.
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Old 4th March 2013, 15:13   #14
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

The "quirky" rear, as mentioned by everyone, actually does not look that bad in the new VDI, courtesy a default spoiler which gels nicely and sort of completes the looks, whereas earlier the roof-line ending looked too abrupt.

And are rear-looks that big an offender? Surely, the Dzire rear also looks bad (though not that much), but it still managed to rake up 18K units in sales last month.

Completely agree with the "Sporty" image part though. I have seen both college-goers and adults swear that Swift is twice as powerful as Ritz.
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Old 4th March 2013, 15:20   #15
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Default Re: Rs 1.1 lakh premium for Swift D over Ritz D - Is it justified?

Quote:
Originally Posted by MotoNanu View Post
Hi GTO, please explain the brakes being powerful in L &V variants? Could not understand why specifically these variants and how they differ from Z? I have driven only the V and they are spot on, not driven a Z.
The Ritz Z brakes are also powerful but what GTO mentioned was the Ritz L and V variants have better brakes than the Swift L and V. Only Swift Z has good brakes.
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