New Maruti Dzire to be cheaper, shorter

Maruti Suzuki India (MSI) is planning to shorten the boot of the Maruti Swift Dzire sedan to tuck the car under 4 meters in length and benefit from excise duty sops.

We already know that the current excise duty of cars with lengths of above 4 meters is 22% and below 4 meters is 10%. Hence, when Maruti Swift Dzire compact sedan is launched, the price would be reduced by Rs. 40,000 approximately.

The only drawback of Swift Dzire compact sedan will be a slightly reduced boot space which is currently, 464 litres for LXi, Vxi, LDi & VDi variants and 440 litres for ZXi, ZDi variants. The much-expected 2011 Swift model could see its launch in April/May 2011. Maruti will launch the shortened Dzire after the Swift’s launch. Related: Toyota Etios test drive

The Etios Effect

The Toyota Etios sedan’s price range (Rs. 4.96 lakh – Rs. 6.86 lakh) and the more than 18,000 bookings that Toyota has received within weeks of its launch must have caused a significant shock among established players such as Maruti Suzuki and Tata Motors. And the logical step for Maruti is to sell the Dzire at an aggressive price without the company losing profit margin is to make it a true ‘small car’ as per government regulations (small car should be less than 4 meters).

The Toyota Etios is the Japanese carmaker’s effort to build an India-specific vehicle. And at first, glance, it seems to have done well. It has garnered a lot of enthusiasm amongst buyers and it is the first Toyota to be available for the budget-conscious buyer. The Toyota badge is an alluring one and many might be swayed by pure brand value.

The Dzire is an important car for Maruti Suzuki. It was built on the foundations of the Swift hatchback’s success and is now, after the Baleno’s retirement, Maruti’s only car in the small sedan segment. After the Etios’ initial runaway popularity, Maruti will be in desperate need to either update the Dzire or make it cheaper so as to compete with the new Toyota. The Dzire is the segment leader and Maruti would love dearly for the the car to hold on to its position.

Related: Etios vs Dzire.

Manza CS & Logan CS possible

Earlier, we reported the possible launch of the Tata Indigo Manza CS and Mahindra Renault Logan CS soon, and now, Maruti is planning for a Dzire compact. If all the three cars are launched, the Tata Indigo CS, (the first car which had its boot chopped off to measure under 4 meters) will be facing serious competition.