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Old 15th February 2010, 17:52   #1
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Default Why Dzire has a huge waiting period?

Is it because people say so?
Is it because dealers say so??
Is it because company says so???

Isn't it possible that there is another twist in this tale?

Perturbed by the waiting period and booking amount, I tried to look at things from another perspective. I searched and researched Maruti's own website.

Here are my findings (I may be wrong but my instinct says I am not).


gundasamy said:
Jan 26, 2010 02:56 PM

Maruti is now an haughty company.
Now it is less maruti and more suzuki.
See why...

Source: http://www.marutisuzuki.com/facilities.a spx

Gurgaon plant 350000/y capacity 700000/yr produced
Manesar plant 100000/y current 300000/yr target (Swift, Astar, SX4, Dzire)

Source: http://www.marutisuzuki.com/Maruti-Suzuk i-Sales-in-sep-2008.aspx
Sales in 2009 till Sep09 (Q1%2bQ2%2bQ3)
Swift,SX4,Dzire---34789....Add astar and add for rest 3 months%2bexports....Max 55000

Its capaity is 1 lac, targetting 3 lac, selling 50 k....why is waiting period!!!!!
That too of 3-6 months. Pure business.
They get all the orders, all the production cost, earn interest.
How much???
Calculate for 3 months (usual waiting period) for Dzire only
Order=3000
Booking amount per order=50000
Rate of interest=2% (FD for 3 months @8%)
Profit=3000*50000*2/100=3000000 (30 lac)


Well! Now it is not Maruti, it is Suzuki.

Last edited by Technocrat : 16th February 2010 at 20:04. Reason: Removing FONT Tags. Please do NOT cut-copy-paste text from other word softwares!
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Old 15th February 2010, 19:44   #2
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To the best of my knowledge, this is because of engine production capacity constraint. Suzuki has obtained license from Fiat to manufacture diesel engine in India. The capacity is limited and success is unusual for a Maruti diesel product. Suzuki did not anticipate such demand and consequently, they are not able to produce diesel engine is required quantity. Hence the waiting period.

The same diesel unit goes in Swift hatch, Swift Dzire and Ritz. Except ritz, both the Swift siblings are in high demand. There is no way right now for Suzuki to increase the production of the diesel units.

Again this is to the best of my knowledge. If anybody has more concrete information, I would like to update myself.
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Old 15th February 2010, 20:04   #3
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Swift D'zire is the largest selling sedan (Leadership Position)
almost sells 2x times the next best selling sedan (Best Volumes)
more importantly it is very consistant in demand (Consistant / Predictable Demand)

Suzuki is the company with the largest capacities, largest sales and service network

all these things tell couple of things

1. D'zire must deliver best in class profits (as well as performance)

2. Engine Change is planned during the so called slack season (not peak season in India)

3. Increased Lead times will help firming up the margins as customers do not ask for discounts or freebees etc. immediate availability itself is the of value.

4. Maruti Suzuki will increase capacities, but slowly, gradually. (personally do not trust every thing printed/shared in news, i am talking about real capacities considerign sourcing, manufacturing, supply chain)

5. Due to global melt down last 2 years, global capacities have shrunk. Vendors need definitive orders to ensure supplies. lead times for critical components are increasing 14-16-18 weeks.

all these ensure that the lead times are high. if one needs the best selling sedan, be patient, be in queue...Maruti-Suzuki seems to be telling us.
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Old 15th February 2010, 20:07   #4
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Sorry for poor formatting and repetition in my post.

1. Again, Maruti website says:
"The `K' family engine plant has an installed annual capacity of 240,000 engines and was commissioned in 2008."

2. Petrol versions should not face this waiting period restriction.
3. What justifies huge booking amounts?

Situation demands more efforts so that Indian customer and his faith is not taken for a ride.
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Old 15th February 2010, 20:16   #5
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Quote:
Originally Posted by StarVegabond View Post
almost sells 2x times the next best selling sedan (Best Volumes)

Suzuki is the company with the largest capacities, largest sales and service network


Tata Indigo Manza sold just around 1000 units less than dezire in Jan(once you take away SX4 and Indigo CS sales from the total sedan figures) and is set to sell even more.
It will be rather unfair to ignore its success

Suzuki's production capacity makes no difference as they cannot make more diesel engines than what the deal between Fiat states
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Old 15th February 2010, 21:07   #6
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I beleive that to be a decade old marketing gimic. In India "higher waiting period" means the best seller and atleast thats what the mass mentality in India thinks.

I was at a MSIL Dealership in Chennai for a personal work and I had to wait for a few extra minutes to meet a MSIL official. I wanted to spend time checking the MSIL cars parked in the dealer's stockyard and I happened to meet the sales person in-charge and checked with him casually on the OTR cost and delivery schedules. He took out a colourfully printed card with list of cars and the waiting period from MSIL and told me it will take a good 3 months. (It looked something like the colourful pocket calendars)

I wanted to see how much serious he was about the waiting period and told him that I got the cash ready for purchase and I am looking at something delivered within a week, that too a black colour VDi which was highly in demand. He said its going to be extremely difficult to deliver anything before 3 months. Left the place dropping my number to him and also told him that I have an immediate delivery offer from Fiat for the GP E+.

From the 2nd day, I got calls to inform that there is a Black Swift DDIS VDi readily available. Cut them off telling them I had bought a GP!

I dint feel there was some crunch for a genuine waiting period!
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Old 15th February 2010, 21:17   #7
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i had the same question in mind almost an year ago.the weird part is the waiting period increases 50% with everytime you rethink of teh purchase
i was told 3 months on my first visit,6 months and 9 months on my consequent visits and TDs and finally just when i finalised i ended up hearing that it might take a year!! how great could that be!!
anyways i ended up buying the ford instead and no regrets watsoever
i feel the manufacturers also prioritize dealers and seem my dealer wasn't anywhere close to first on their list..
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Old 15th February 2010, 21:20   #8
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My story is similar to anachronix. Booked a vdi, did not get delivery on time after waiting for almost 2 months, bought a Punto.

I find it strange - it's been quite sometime that the swift/dzire diesel have been launched and yet for a company that is supposedly so customer centric - the inordinately long waiting periods continue.
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Old 15th February 2010, 21:38   #9
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Yes! its more of hype rather than true capacity constraints. I had my self bought my Swift vdi white color in January last year in 2 days!!, when the going waiting was about 2-3 months minimum, I did not pay any premium as I asked a friend , who was working at the dealership to get me the car.

When I asked the same friend for Dzire, 3 months back, he said something could be worked out to avoid the waiting!
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Old 15th February 2010, 21:48   #10
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It happened by chance with the Swift. Maruti Suzuki loved the outcome of what happened and made it a strategy. There is nothing else to it. The money they make through following this strategy negates the loss of customers to other brands. In India Maruti is King. He decides what the market needs. Period.
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Old 15th February 2010, 21:53   #11
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Maruti's Sales people are an arrogant lot. I had almost zeroed in on Dezire few months after it launched. I asked for the test drive, instead of sales person coming along with the car, he just sent a driver who didn't know anything about the car, the pricing, delivery etc. Even other dealers didn't respond well to the test drive requests. I decided not to buy the car due this and few other reasons.
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Old 15th February 2010, 22:12   #12
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Quote:
Originally Posted by StarVegabond View Post
Swift D'zire is the largest selling sedan (Leadership Position)
almost sells 2x times the next best selling sedan (Best Volumes)
more importantly it is very consistant in demand (Consistant / Predictable Demand)

Suzuki is the company with the largest capacities, largest sales and service network

all these things tell couple of things

1. D'zire must deliver best in class profits (as well as performance)

2. Engine Change is planned during the so called slack season (not peak season in India)

3. Increased Lead times will help firming up the margins as customers do not ask for discounts or freebees etc. immediate availability itself is the of value.

4. Maruti Suzuki will increase capacities, but slowly, gradually. (personally do not trust every thing printed/shared in news, i am talking about real capacities considerign sourcing, manufacturing, supply chain)

5. Due to global melt down last 2 years, global capacities have shrunk. Vendors need definitive orders to ensure supplies. lead times for critical components are increasing 14-16-18 weeks.

all these ensure that the lead times are high. if one needs the best selling sedan, be patient, be in queue...Maruti-Suzuki seems to be telling us.
1. If Dzire has consistent and predictable demand, then point 5 is invalidated.
2. Point 4 is self contradictory. If we must not believe what is asserted in print (performance and capacity), why should we believe what is not (logic for waiting period).
3. Point 5 is also ambiguous. Global meldown has equally reduced demand
and supply. People will not ruch to purchase Dzire when they are being fired.

If there is more demand than production, then waiting period must keep on increasing (backlog). Is it so?
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Old 16th February 2010, 00:24   #13
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First of all it is not Maruti it is 99% suzuki now .Maruti is just the name.
Waiting period is only a fool making system to impress on people how popular the car is !
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Old 16th February 2010, 00:51   #14
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I believe MS also exports a lot of cars from India and they must be earning better margins on those models. Hence, the capacity constraint in India and the long waiting period
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Old 16th February 2010, 08:59   #15
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My friend's story is very similar. They say huge waiting time for the car. But my friend got it in another city within 3 days.

Weird, its all market build is what it seems to me.
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