Mul Move May Roughen Roads For Mint

Maruti Suzukis plan to slash the price of its Zen model is seen by industry sources as a tactical move to erode the price advantage that Tata auto major Telco had been banking on for its small car, code-named the Mint.

Telcos Mint had planned to go to town on its USP of a higher engine capacity of 1400cc and spacious interiors to woo buyers. However, by proposing to slash Zen prices, Maruti hopes to regain some advantage.

Marutis product is time tested, it is a good car, with a strong engine and at the new reduced prices should be a sure first choice, sources said.

 

Mint, on the contrary, will have to establish itself. Also, the car is still a good ten months away, time enough for Maruti to drive home the advantage.

Maruti proposed move may also serve to take the wind off the sails for majors like Daewoo and GM who have been planning to launch small cars. The other factor would be the diesel model. If Zen can match Telcos price for the diesel model, when it launches the diesel model, then Telco will really have to do some hard thinking, the sources said.

While Telco chairman Ratan N Tata was out of the country and could not be reached for his comments on Marutis proposed move, others in the company refused to comment on the subject. If and when the Zen prices are slashed, it will be interesting to see how the company positions its 800cc model and whether a cut in the latters prices is on the cards as well.