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Zen in a new avatar soon
Tuesday, March 07, 2006

Maruti's compact car Zen will soon be seen in a new avatar. The company has decided to stop production of the current model of the Zen, and will be replacing it with a completely new model under the same brand, sources said adding that the new model would be introduced in a few months time.

Apart from making way for the new model, the reason for the Zen being phased out could also be attributed to its falling sales. Sources point out that the 12-year old Zen has had a declining run since the launch of the Swift. Maruti had sold about 65,000 units of the Zen in fiscal 2004-05. The monthly sales of the Zen are currently estimated at less than 4000 units per month.

The sales of the Swift, Alto and WagonR have outpaced the Zen with the pricing overlap between the Zen and the more popular WagonR.

Further, the Zen has already had two upgrades in its exterior, the last being in 2003, hence another revamp in looks was ruled out, paving the way for a new model. Despite Zen's declining run, overall Maruti's compact car sales - including the Zen, WagonR, Swift and Alto - are growing at a double digit figure.

Analysts also add that Maruti has, in the past, indicated that it would be looking to bring down the number of its production platforms to reduce costs and the current move could also be seen in similar light.

Business Line (Online Edition) - 3/7/2006
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