Maruti dealers offering huge discounts on Zen

The Zen diesel is currently priced at Rs 426,052 (ex-showroom) in Delhi. However, its other vehicles, particularly Maruti 800, are still attracting a premium of around Rs 7,000-8,000.

Prior to this, the dealers had offered an over Rs 35,000 rebate on the esteem models. Industry watchers said this latest move by the MUL dealers is in keeping with the trend in the market. “There are no buyers for the car and inventories are piling up. Thedealers had no other option but to trim the price tag to remain in the market.”

MUL dealers would now start feeling the heat with even Daewoo Motors India Limited having stripped down its small car Matiz and dropped prices by over Rs one lakh.

After the price cuts for the 800, Omni and Zen, the Zen-D continues to languish with monthly sales believed to be under the 200 mark. One major reason for this poor showing is the Tata Indica whose top end diesel version has an ex-showroom price of Rs 3.90 lakhs in Mumbai (the basic and semi-deluxe versions cost Rs 2.95 lakhs and Rs 3 lakhs each). Now, compare that with the Zen-D’s price tag and it is obvious why the car will not find any takers.

The other competitor is the Fiat Uno and manufacturer, Ind Auto, was quick to join the war and price its standard model at Rs 2.78 lakhs, making it the cheapest diesel car in India. The new prices of the Uno are so cleverly done that it is keenly positioned vis-a-vis the Indica which, in turn, means that the Zen-D hasjust outpriced itself in the market.

The good news for Maruti is that the petrol Zen continues to do well and does not face any immediate threat from the Santro, Matiz or even the Indica. Dealers say the car has its own distinctive features which will enable it to hold its own in the market place in the years to come.

Automobiles Peugeot has arranged to supply 10,000 TUD5 engines both in calendar 1998 and 1999 to Maruti. With the Zen D’s debacle, it is quite clear that the stocks will now have to be prioritised for the Gypsy. In the view of observers, this makes sense as the vehicle has lost out in the multi-utility segment largely due to the fact that it uses petrol, a more expensive fuel.