A Swift Return

June 12th, 2010

Of the companies we are going to visit in India, the one I am most excited to see is Maruti Suzuki. The reason for this (besides being an automotive enthusiast) is that I will get an opportunity to see a car that is making its triumphant return back into the United States; the Suzuki Swift. The Swift began life in 1983 as a rebadged Suzuki Cutlass for some markets, including ours in North America. It was a remarkably fuel efficient vehicle, with decent pick-up speed due its light weight. However, it struggled in the U.S. market due to a lack of interest in subcompact cars and poor interior quality. This led to the Swift leaving our market in 2001.

Since its departure, both the U.S. automotive market and the Swift have changed greatly. The market for subcompacts has expanded significantly, with five of the six largest automotive companies in America offering subcompacts. The Honda Fit and Mini Cooper have also shown that people in our market are also willing to pay significantly more for subcompacts with the luxury features of larger vehicles. This marketplace bodes well for the Suzuki Swift, which has become a vastly different vehicle than its forbearer. The cheap interior and boring styling that marred the old vehicle has been replaced by a clean, well finished interior and decidedly sporty exterior. In addition to these esthetic improvements, the Swift has also received a Euro-tuned suspension and a host of more powerful, fuel efficient engines.

These improvements have been noticed by the markets the Swift is currently in. The Swift is Maruti Suzuki’s second most popular car in India and is the fifth most sold car in the country. The vehicle was so successful that Maruti Suzuki saw a 64% rise in Q1 profits in the first quarter the Swift was sold. This is in-spite of the fact that it is one of the more expensive cars in its class and not within the most popular class of vehicles in India, the minis (the next size smaller than subcompacts).

Due to its enormous popularity in the markets it is currently in, Suzuki plans on reintroducing the Swift to the U.S. market as replacement for the lackluster Reno. With the significant improvements it has received, will the Swifts return to our market be successful?

- Matthew Perez

Entry Filed under: 2010 Student Blogs, India, Misc.

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