Country’s second and third best selling cars, Maruti Suzuki Swift and Swift DZire sales have registered decline. This has been attributed to decline in car sales in recent months, and due to the launch of newer and aggressively priced competitors like Honda Amaze and Ford EcoSport. It is now revealed that Maruti has stopped the production of both these cars at their plant in Gurgaon.
Low demand bites and competition rising has forced Maruti Suzuki India to modify production activities at its Gurgaon plant. With effect from mid June-2013, production operations of two of the top-selling cars Maruti Swift and DZire will be shifted out of Gurgaon and into the company plant at Manesar. But, Maruti Suzuki maintains that the halting in production had nothing to do either with competition or decline in sales.
Sales figures of the Swift premium hatchback and DZire sedan have been experiencing a steady decline over the past few months. Lower demand and rising inventories at the Gurgaon plant had also led to the company shut down operations a number of times in the past few months which has prompted the company to take this decision.
The rising competition from very competitively priced new rival models is eating into the demand of the Maruti cars. The primary rivals of the Maruti cars recently are Amaze from Honda, EcoSport from Ford and the Chevrolet Sail from GM that has caused a steady dip in demand for the two Maruti Suzuki favorites. Swift demand dropped from a high of over 20,000 units in the month of May-2012 to just 14,353 units in May-2013 while demand for DZire slipped to 12,548 units in June-2013 from 19,446 units in April-2013.
Also see – Ford EcoSport’s aggressive price could affect the upcoming Maruti’s XA Alpha
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