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How rival models are trying to gain from Swift's pain
Maruti Suzuki's best-seller Swift, which sells over 15,000 cars every month, usually has a long waiting list. That increased further after the month-long lockout at the car's main production centre at Manesar.
Despite a weak overall demand, the order backlog for the Swift is 70,000-80,000 units. Though Maruti reopened the Manesar plant on Tuesday, it will operate at just one-tenth capacity or 150 cars a day, as against its peak capacity of 1,500-1,700 cars per day.
That's a tailor-made opportunity for rivals such as Renault, Ford and Nissan who have stepped on the gas on customer offers.
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How rival models are trying to gain from Swift's pain
The Renault Pulse, Nissan Micra and the Ford Figo sell in the same segment as the Swift. All the three companies have upped the ante against the Swift in recent advertisements comparing specifications and features on a like-to-like basis.
"Incomparable performance and features that get India's Pulse racing", read an advertisement from Renault India in a newspaper on Sunday. The back page of the same newspaper was dominated by an advertisement of the Nissan Micra with catchy lines like "70 per cent more headroom than the Swift."
Further, benefits of at least Rs 20,000, free insurance, accessories and exchange bonuses are being promised to attract customers. These offers are not available on the Swift.
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How rival models are trying to gain from Swift's pain
Renault claims its Pulse comes with alloy wheels, airbag and auto climate control -- features that are absent on the Swift.
"Companies are trying their best to grab the prospective customer base of the Swift. "Since the Swift customer is required to wait for long, rival companies are offering ready delivery of their competing products to pull in the crowds", says an executive from a Delhi-based car maker.
Domestic sales of Pulse, Figo and the Micra have been under pressure since the start of the year. Sales of Ford Figo have fallen 11 per cent at 20,061 units, during April-July as compared to 22,592 units sold in the same period a year ago.
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How rival models are trying to gain from Swift's pain
Similarly, Micra's sales have also taken a knock of 31 per cent to 4,094 units during the same period as against 5,913 units in the same period last year.
Renault's Pulse sells an average of only 423 units a month. Both companies are trying to gain a foothold in the market dominated by Maruti, Hyundai and Tata Motors.
A Maruti Suzuki dealer says there has been some cancellation of bookings for the Swift during the last few days. But most customers have stayed put because the model itself is all-new and there is no new competition from anyone.
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How rival models are trying to gain from Swift's pain
The domestic car segment has not grown as robustly this year as it has in the last few years.
As per data supplied by SIAM, the passenger car segment in the April-July period grew by 5.55 per cent to 634,298 units as compared to 600,925 units sold in the same period last year.
While Maruti Suzuki is trying to clear the order backlog for the Swift by raising production at the Manesar facility quickly, the ramp-up will happen only in a phased manner. The lock-out has resulted in a loss of production of up to Rs 1,375 crore (Rs 13.75 billion).
