Maruti Suzuki India will not pass on the lower excise duty benefit to Maruti Swift customers and the all new Maruti Swift’s petrol variant will attract 8% or nearly Rs 40,000 excise duty benefit for the 1.2L petrol engine. Although Maruti Suzuki India launched the model in January, it has retained the price of Rs. 4 lakh for the 1.3l model.

Car models with a base length, less than 4 m and 1.2L petrol and diesel engines that are smaller than 1.5l attract 8% excise duty benefit. All other bigger models attract 20% excise duty. Maruti Suzuki passes benefits like these to their customers but this time, it has decided to offset input costs rise. The company spokesman said “For Swift, there is a cost increase owing to the new petrol engine. Add to it, the increase in commodity prices.”

Industry experts say that Maruti India has kept the cost steady as it expects strong competition in the premium compact segment. Therefore, when there are new launches like Ford Figo, Nissan Micra, Volkswagen Polo, Toyota Etios, etc. it is likely to lower the prices of its most popular model to maintain steady sales and take the competition head on.