Latest Car News in India

Maruti Swift and Dzire out of production phase to continue

The lockout at Maruti’s Manesar plant is getting worse for the car maker as well as the vendors associated with it. Where the production of Maruti Swift hatchback and Maruti Swift Dzire sedan are held up, it has also given room for other competitors to creep in the segments and enjoy the outage. Meanwhile, Maruti has said that it has no plans to reopen the riot struck plant unless it assures safety of its employees. Also reports have come in that even if the car maker starts production, it will be under heavy police protection. In the meantime, the no supply for Swift and Dzire has created a crisis and dealers are getting innumerable queries about the restart of production.

Furthermore, the lack of supply has triggered demand for other Swift and Dzire rivals in India. Where Hyundai i20, Ford Figo and Toyota Etios Liva demand has suddenly risen in the hatchback segment, there is a sudden increase in the response for Mahindra Verito, Hyundai Verna and Tata Indigo eCS cars in the country. The recent launch of the Mahindra Verito is seen as perfect launch timing when the Dzire is out of production. Besides, recent reports of the sales suggest an increase in preference for Hyundai Verna and Mahindra Verito besides Toyota Etios sedan as the best alternatives to the Swift Dzire.

Meanwhile, the Maruti share witnesses a jump by 2.5 percent yesterday after there was a rumor that Maruti could reopen the plant but there was no such announcement by the car maker. In addition to this, the lock down is supposed to affect Maruti car sales performance this year and it will adversely impact the performance of the car maker this Diwali. Also it will impact the overall image of the car maker as well and could adversely affect public sentiment.