Maruti Suzuki has temporarily stopped production of the SX4. Ever since the launch of the new Honda City, SX4 has been facing some very tough times in the market. The company has decided to revamp the model and a new one would come in about six-eight weeks. CNBC-TV18’s Sumantra Barooah reports
It is a temporary halt of production. The primary reason being that they want to get some kind of an upgrade for that model primarily being the engine, which is currently BS3, they want to upgrade it to BS4 complaint engine and also perhaps some tinker around with the design maybe interiors and exteriors.
This is because ever since the launch of the new Honda City, SX4 has been facing some very tough times in the market and the launch of the Fiat Linea added to its woes. So, SX4, from a volume of about 1,800 to upto 2,000 units, has fallen to less than 1,000 units per month about 700-800 odd. So, this is why, the company has taken a stance to revamp the model and the new one would come in about six-eight weeks. But when we contacted the company, they said that they don’t want to comment on future model strategy.
Will Maruti's financials be hit?
There could be some adverse impact. But we don’t expect it to be a significant impact primarily because the volumes if you compare it with Maruti’s strong hold in the compact segment, is very less. But the average ticket size of the SX4 is much higher than an Alto or Wagon R, which is why the profitability is also better than the compact cars. So, there could be some kind of an impact.
Source: moneycontrol
