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Maruti Vitara Brezza production to be ramped up further

 
Maruti Vitara Brezza Review

Waiting period for the crossover in some cities exceed 9 months.

Brokerage firm Goldman Sachs predicts that Maruti Vitara Brezza production is up for a steep ramp up as the company is looking to maximize its margins by pushing the sales of newer models. The firm also says that Maruti Suzuki has reduced the production of Swift and Dzire twins in favour of the Baleno to reduce discount pressure.

Similarly, the new in-demand Vitara Brezza crossover would be favoured over legacy models in the coming months to improve the margin. Since these products are new, they command a premium and are offered without discounts. So, though the Swift twins are in demand, focusing production capacity on the more premium new models would help Maruti maximize its profit margin for the same total sales volume.

Maruti Vitara Brezza Review

Maruti Vitara Brezza, being an in-demand new product, can be sold without any discount.

Given that the waiting period for the Brezza has extended to several months in most top cities, Maruti has to go for a production ramp up at the earliest to preserve the customer interest in the product. Since its existing facilities at Manesar and Gurgaon are running nearly at full capacity, Brezza’s ramp would have to come at a cost of an existing model’s production.

Maruti Vitara Brezza Review

The crossover is being made at Maruti’s Gurgaon plant.

Maruti is waiting for the Suzuki-owned Gujarat plant to come on stream so that it can put its production constraints behind and focus on maximizing sales volumes.

Photos

Via – Moneycontrol.com

 

About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

Email - nithyanandh@rushlane.com