Maruti May Slash Zen Prices

Maruti Udyog is planning to reduce Zen prices as part of a marketing strategy to combat new rivals. The plan is aimed at taking on Korean majors Daewoo and Hyundai, besides Telco, which are expected to launch their small cars this year. It will also help MUL tide over the problem of not having a new model in the 800-1000cc segment.

With an ex-showroom price of Rs 2.09 lakh in Delhi, the Maruti 800 costs Rs 1.36 lakh less than the Zen, which is priced at Rs 3.45 lakh in Delhi. Sources said with talks between the government and SMC on introducing new small car models still inconclusive, MUL needs agg-ressive marketing to take on the competition.

Daewoo, which will launch its 800cc dArts variant in India by September, is expected to price it against the Maruti 800. Hyundais 1000cc Santro, which is targeting the Zen, will cost around Rs 2.80 lakh (standard model), nearly Rs 70,000 less than the current Zen price. Telcos 1400 cc small car is expected to be priced at around Rs 2.50 lakh. Cutting costs could be easier for MUL, which is highly indigenised and has the volumes to attain economies of scale.