Breaking News: Maruti Suzuki Halts Production of Alto 800, Prioritizes Alto K10

Maruti Suzuki Alto 800

Maruti Suzuki, India’s largest carmaker, has halted the production of its entry-level model, the Alto 800, citing low volumes in the entry-level hatchback segment. While a few units remaining in stock will be sold, the Alto 800 will no longer be in production. In this article, we’ll delve into the reasons behind the discontinuation of the Alto 800 and the implications for Maruti Suzuki.

Declining Volumes in the Entry-level Hatchback Segment

In the fiscal year 2016, the segment of entry-level hatchback cars represented approximately 15% of the market, with sales amounting to around 450,000 units. However, in FY23, it has shrunk to less than 7%, with expected volumes of roughly 250,000 units. Maruti Suzuki has attributed the decline to the rising cost of acquisition of vehicles in this segment, due to an increase in material costs, road tax, registration tax, and other forms of taxation. Additionally, the affordability factor for the purchase of vehicles in this segment has decreased as the income level of consumers in this segment has not increased proportionately.

Discontinuation of Alto 800

As volumes of the Alto brand declined, Maruti Suzuki found that making investments to upgrade the Alto 800 to comply with the BS6 Phase 2 norms, which became effective from April 1, would not be financially viable. Shashank Srivastava, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, noted that the affordability factor for this segment is extremely high, and when it came down, it impacted demand much more than any other segment. As a result, Maruti Suzuki decided to discontinue the Alto 800 and focus on the Alto K10 as its main model in this segment.

Alto K10 Takes Center Stage

Maruti Suzuki’s entry-level model is now the Alto K10, as the Alto 800 is being phased out. The price range of the Alto K10 is slightly higher than that of the Alto 800, priced between Rs 3.99 lakh to Rs 5.94 lakh (ex-showroom, New Delhi). The car is equipped with a 1.0-liter petrol engine, which can generate a maximum power of 68PS and a peak torque of 90Nm. The Alto K10 also has a CNG option, but with lower power and torque figures of 59PS and 78Nm, respectively, in the CNG mode. The car only comes with a 5-speed manual transmission.

Conclusion

Maruti Suzuki’s decision to discontinue the Alto 800 and focus on the Alto K10 is a result of the declining volumes in the entry-level hatchback segment. With the rising cost of acquisition and decreasing affordability factor, Maruti Suzuki’s move to streamline its offerings in this segment is a prudent one. While the Alto 800 has had an impressive run since its launch in 2000, it’s time for the Alto K10 to take center stage.

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