Maruti to halt Esteem, replace it with Swift

Car market leader Maruti Suzuki India (MSIL) will draw the curtains on one of its most successful models on Indian roads, the Maruti Esteem, with production for the car coming to a halt after the company resumes operations at its Manesar plant on January 2.

Informed sources told PTI that the company would stop production of the Esteem once it resumes operations at its Manesar plant after a week-long maintenance shut down.

However, the model will be replaced by the sedan variant of the popular Swift.

"The company has taken a decision to stop the production of mid-size sedan Esteem. The car would be replaced by a sedan variant of Maruti's popular hatchback Swift," sources said.

Maruti Suzuki is likely to roll out the new Swift sedan on Indian roads by March 2008. The 1.3 litre petrol-engine powered Esteem has been on Indian roads since 1994 and the company sold over 1,000 units of the car in November.

The company would initially launch a petrol variant of the Swift sedan sporting a 1.3 litre engine and is likely to introduce a diesel version later in the year.

"Maruti is already constrained with supply of diesel engines as demand for the Swift diesel, the only diesel-powered car in its stable, outstrips supply and launching a diesel Swift sedan would not make sense at this time," sources added.

The company has a manufacturing capacity of one lakh engines per annum at its Manesar plant, which is being increased to three lakh engines.

MSIL's first-ever sedan on Indian roads was the Maruti 1000 which was given a higher engine and rechristened as the Maruti Esteem in 1994.

The company was in the process of gradually cutting down Esteem production from the beginning of this fiscal, but has built up an inventory to meet the demand for the model, going forward.

Esteem production was cut from an estimated 1,533 units in April, to just 497 units in November. The production for the model was, however, increased to 1,903 units in August to build up an inventory.

The company is offering a discount of up to Rs 57,500 on the Esteem.

The discount includes finance cash-back and exchange bonus.