Maruti Swift is a passenger car manufactured by Maruti Udyog Limited in India. The car which continues to be one of Maruti’s top-selling models has a signature flat roof styled like the Mini Cooper. Other features that differentiate the Swift from its competitors are the floating roof design and the precision cut alloy wheels.
The car has a SmartPlay Infotainment System, Auto Gear system and a Start stop button along with automatic climate control. The car is available in both the petrol and the diesel version.Following the success of Swift, Maruti also released a compact version of the car and named it Swift Dezire.
Maruti Udyog Limited which is the market leader in the passenger cars segment in India and it sold a total of 1,63.071 units in the year 2017 out of which the highest sales was for the compact division which sold 72,804 units. This segment is expected to grow at a rate of 44.7 percent for the company.
Strengths in The SWOT analysis of Maruti Swift
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Swift:
- Consistent leadership: From the time it was launched Maruti Suzuki Swift has dominated the hatchback segment. The car was accepted by the customer almost immediately after it was launched in the year 2005 for its spacious interiors and performance.
- History of successful cars: From the start of its innings in India Maruti Has always been churning out successful hatchbacks. Right from Maruti 800 to Alto, the company has been at the top position in the hatchback segment.
- Association with Suzuki: Maruti drew the inspiration for the design of Swift from the motorcycle Suzuki Hayabusa. The car has the same engine as the superbike which was slightly re-engineered using the S concept.
- Brand Loyalty: Maruti is a family name in India and enjoys very high brand recall amongst the middle class in the country which is the biggest consumer segment here. The Swift has been rated as a very robust and high performing car with the result that the brand enjoys high loyalty amongst its customers.
- Driver’s car: Maruti often refers to its hatchback Swift as a driver’s car because of its agility and reliability. The car is also considered to be a value for money but primarily because of its mileage and fuel economy.
- Service: The popularity of Maruti cars is not just because of their feature but also because of the number of service centers it has in India. Thus one core strength of Swift is the ease of availability of service outlets in the country and also for the availability of spares.
Weaknesses in The SWOT analysis of Maruti Swift
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Maruti Swift are:
- Gear Issues: Maruti Swift has been facing a lot of issues in the gear shift. Customers are complaining about a rattling noise in the engine and when rolling up the power windows.
- Excessive dependence on Suzuki: Maruti has become what it is today by using the engineering capabilities of its erstwhile partner Suzuki and the company has always been excessively dependent on the partnership.
- Changing customer expectations: The expectations of the customer has been changing over the times and from the time the car was introduced in 2005 to today’s the market has changed drastically. Critics opine that the design of the car has not changed too much which is why competition caught up.
Opportunities in The SWOT analysis of Maruti Swift
Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:
- High market potential for rural India: Most vehicle companies have been primarily focusing on urban and semi-urban markets in India when the real market is in rural India.However, in rural India, the demand is for bigger vehicles and to exploit both markets the crossover came into existence which is one of the most successful categories in India. Swift can use its brand image to introduce vehicles into the compact segment.
- Changing customer preferences: Customers today prefer to spend for each feature as well as for services. The customer has moved from being price conscious to being quality conscious and they are no longer fussy about paying if the vehicle satisfies their expectations.
Threats in The SWOT analysis of Maruti Swift
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- Competition: The main competitors of Maruti Swift are Hyundai i 20, Maruti Alto, Maruti 800, Ford Figo and Chevrolet Beat.
- The surge in costs: The cost of raw materials are very high and the fuel costs are fluctuating. With the introduction of GST and demonetization in India, the financial challenges are growing for industries in India.