[longhorn]

Originally Posted by iconic

If swift can be priced 25K - 30K below the current price, why is Ritz priced on par with swift which already has the K12 engine in it?

Currently Swift (P) is priced at a premium of 17k to the Ritz except for the Zxi model which sports a much higher premium to to higher specs available on the Swift Zxi when compared to the Ritz Zxi. If the Swift gets a 1.2 L engine, it will lead to a 12% savings in excise duty. Other things being equal, this works out to a price drop of around 45K. If we provide a 10k hike on this for the K12M motor, it still works out to a price drop in the region of 35k. Since the Swift is a 5 year old model, the depreciation on the dyes are higher and hence they can afford to price it below the Ritz and still earn better margins than they do on the Ritz. Since the Ritz is a new product, they cannot afford to price it much lesser that it is currently, unless we see a drastic increase in sales.

Originally Posted by iconic

Is Ritz a better car than swift

Well it all depends on you requirement. For a typical family man, the Ritz makes more sense in terms of practicality than a swift. The Swift appeals more to the young generation.

[pradkumar]

I wish they would bring the Swift 1.2 CVT to India.

2008 Suzuki Swift: Minor Upgrades - Carscoop

Pradeep

[.anshuman]

It is very good news for the consumer but as GTO pointed out the product overlap may pose problems for Maruti in long term, Any customer in market for looking for a small car will be even more confused.

Cheaper Swift with k series engine is good news for those on a tight budget but still want a better car.

[ph03n!x]

I wonder what will be the fate of Ritz Petrol now - it is priced pretty close to Swift with 1.3 petrol. After the price drop, Swift with the same engine is going to be a few 10k's cheaper!

[raghavanrv]

Price reduction on Swift is very necessary. The Swift is doing good mainly because of its diesel variant, considering is a relatively older model and with the amount hatchbacks launches this year and the next, there is only one way the swift petrol price can go, that is down.
In general price reductions are very welcome for us customers. This will definitely put pressure on all manufactures to rethink their pricing. Guess 2010 is going to be a great time for Indian customers.

[xingamazon]

I somehow feel the price reduction is a feverent romour that is spreading once someone saw the Eeco pricing. I am sure if the same topic was started before the Auto expo people would have laughed at it.

Come on, wiht the Auto inputs price ever increasing, reducing the prices is never going to be a workable strategy. And given the fact that being a market leader I can guess Maruti would not be doing it.

Dont forget Suzuki sees the Indian market as its cash cow, its not going to mess with the revenue streams of India.

[samsan02]

Originally Posted by xingamazon

I somehow feel the price reduction is a feverent romour that is spreading once someone saw the Eeco pricing. I am sure if the same topic was started before the Auto expo people would have laughed at it.

Come on, wiht the Auto inputs price ever increasing, reducing the prices is never going to be a workable strategy. And given the fact that being a market leader I can guess Maruti would not be doing it.

Dont forget Suzuki sees the Indian market as its cash cow, its not going to mess with the revenue streams of India.

Rumour or not, Well ! only time will tell. But looks like you are bang on your justification, read this guys

Maruti Suzuki to raise price of all car models

before dreaming of price slashes by Maruti when every other car Manufacturer is hiking prices due to margin pressures.

[allwheeldrive]

Since maruti is going to release new variants of Alto, Wagon R and Swift, engine options could be

Swift - 1.2 Litre K-series (K12M)
Wagon R - 1.2 Litre G -Series from Eeco
Alto - 900 cc G-Series engine derived by removing one cylinder from the EEco engine

If Maruti can add 1 cylinder to the F8D Maruti 800 engine and make F10D for Wagon R, I am sure they can knock off one cylinder from Eeco engine and plonk it on to Alto.

That way they can keep the cost's lower. Also they can have differentiation among thier product range so that it is not just the K-Series (K10B and K12M) under the bonnet of all their cars.

Alto and Wagon R that are selling well now will continue to sell with the older G series engines and they can push Astar and Estilo as having the modern fuel efficient K series engines.

[abhi413]

+1 to xingamazon & samsan02. This scoop on price drop looks like just another rumour. It could also well be a prelude to the customary reduction of prices by all car manufacturers after the union budget announcement in Feb end, saying they'll "pass on the benefit to the customers". In fact, since prices will be increased now, any marginal drop after the budget is announced will ensure that prices don't actually go down. It's that simple.

[ashutoshb]

- New models to come in March.
- Swift and Wagon R will have the 1.2 K series engine.
- Alto will have the 1 litre K-series.
- Wagon R and Alto will have some design changes.

- There will also be a stripped down Alto in 2011 to compete with the
Nano. To Be Priced Between Rs 1.4 to 2 Lakh.

[longhorn]

I don't think they will strip down the Swift. Even at the current price, they are struggling to meet demand albeit in diesel form. The price reduction on the Swift, IMO would come courtesy the tax benefits on the K12M motor.

Originally Posted by ashutoshb

- New models to come in March.
- Swift and Wagon R will have the 1.2 K series engine.

I doubt the WagonR will get the K12M motor. It should be getting either the K10B(AStar engine) or the G12(Eeco engine).

[arnabchak]

Are any design changes in the Swift 1.2 likely?

Surely and IMHO, I would agree with longhorn about the pricing front.

Swift demand is far greater than the supply.
So why kill a higher price product when the demand is still there?

[ph03n!x]

The Ritz petrol is selling like hot cakes because of the motor. In Chennai, the Swift ZXi with the 1.3 motor is Rs. 5,13,244 ex-showroom, and the Ritz ZXi with the 1.2 motor is 4,78,020 ex-showroom.

I bet that if the Swift's prices were to drop close to the Ritz's (because of lower taxes, thanks to the 1.2 mill), then Swift petrol sales will shoot up, and Ritz will come down - after all, those who buy the Ritz buy in spite of the weird look (I know, its subjective - but popular opinion is that "it looks like it's rear-ended from the factory!"), and the Swift on the other hand is a scorcher for its looks (in spite of whatever drawbacks).

Those who think there is a price rise if the offering are thinking correct. The prices of the models I have listed in the first post will come down, AND there will be a price rise across the board - for all the models (these ones included...)

DISCLAIMER - all of these are my opinion / understanding - I could be way off the mark!

[Sandegov]

Originally Posted by arnabchak

Are any design changes in the Swift 1.2 likely?

Swift demand is far greater than the supply.
So why kill a higher price product when the demand is still there?

I see Maruti making a few cosmetic changes,not much.

On the second point -
refering back to the ET article - "This is in line with company CEO S Nakanishi’s view that 2010 will be the toughest year for Maruti. “We have to gain volumes to protect our market share with global car makers entering the compact car segment, Mr Nakanishi had said earlier. "

[ashutoshb]

Originally Posted by longhorn

I don't think they will strip down the Swift. Even at the current price, they are struggling to meet demand albeit in diesel form. The price reduction on the Swift, IMO would come courtesy the tax benefits on the K12M motor.

The Swift is not being stipped down. It is only the Alto.