Maruti Swift Dzire Manufacturing Cost Less Than Maruti Swift

Car manufacturers generally decide the price of a car on the basis of input cost spent on the manufacturing of the car

. However, this is not true for all the cars, here we are going to discuss one such case which involves two cars from one manufacturer. It is about Maruti Suzuki India and its two cars, Maruti Swift Dzire and Maruti Swift hatchback. Maruti Swift is less than four meters therefore it attracts the scanty excise duty levied on the cars under four meters, however the new Maruti Swift Dzire notchback launched earlier in the month of February is also under four meters of length therefore it also attracts the low excise duty.

Both Swift hatchback and Swift Dzire are produced in large numbers as these two are the bestselling cars in their respective segment, Maruti Swift Dzire notchback is getting around 17,000 bookings on monthly basis and Swift hatch too is getting good number of bookings every month. Maruti Swift Dzire notchback has almost same set of equipments as present in Maruti Swift hatchback the only difference between the two cars apart from the boot is beige coloured interiors and different alloy wheels. These things do not increase the cost of a car.

Because of three important reasons manufacturing a Maruti Swift Dzire notchback is cheaper than Maruti Swift premium hatchback. First reason is that Swift requires a sturdier rear glass as it has to resist a lot of weight due to closing of the boot. Second reason is that Swift requires pistons to open the boot while Maruti Swift Dzire notchback comes with hinges. The third reason is that Swift is equipped with a rear wiper and washer, while the Swift Dzire does not have rear wiper. Even though Maruti Suzuki India might be saving a lot of money in manufacturing Maruti Swift Dzire but the company has priced the base variant of Swift Dzire , LXi Rs 55,000 more than the base variant of Maruti Swift hatchback (LXi). Maruti Swift Dzire price starts at Rs 4.88 lakh while Maruti Swift price begins at Rs 4.44 lakhs (ex-showroom Delhi). The difference between the high end versions of both the models is Rs 66,000.

If we look at the pricing from the business perspective one would say that Maruti Suzuki India has done the right thing by pricing it higher than Swift because logically Swift is a hatchback and Dzire is a notchback therefore Dzire had to be pricier than the Swift hatchback. However, the point here is that pricing is not an issue but what is bothering here is the level of equipment in both the cars. Maruti Suzuki India is spending less amount of money on manufacturing Maruti Swift Dzire notchback therefore it can offer more features on Maruti Swift Dzire. However, the Japanese car maker has opted to price Maruti Swift Dzire competitively to lure customers to the showrooms and help fuel sales of Maruti Suzuki India.

by: siddharth

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