Maruti Suzuki India has discontinued the Alto 800, its entry-level model, as reported by India Today. The production of the hatchback has been stopped and the automaker is selling a few remaining units in stock now. In the year 2016, the entry-level hatchback segment was approximately 15% of the total market size. The volumes were around 4,50,000 units. In the year 2023, it came down to 7% which is around 2,50,000 units.
According to a report in India Today, making investments to upgrade the Alto 800 to comply with the BS6 Phase 2 norms, which will come into effect from April 1, will not be “financially viable” due to low volumes in the entry-level hatchback segment. With Alto 800 being discontinued, the Alto K10 will now serve as Maruti Suzuki’s entry-level model with a price range of Rs 3.99 lakh to Rs 5.94 lakh (ex-showroom, New Delhi).
Launched in India in 2000, the Alto 800 had a 796cc petrol engine, which displaces 48PS of maximum power and 69Nm of peak torque. It also has a CNG option. Till 2010, the automaker had sold 1,800,000 units of the hatchback car. The Alto K10 entered the market in 2010. According to India Today, From 2010 till date, the carmaker sold 1,700,000 units of the Alto 800 and 950,000 units of the Alto K10. Overall, the volumes of the Alto brand are around 4,450,000 units.
Maruti Suzuki India’s Senior Executive Officer for Marketing and Sales, Shashank Srivastava told India Today that the company has stopped the production of the Alto 800.
“What we have observed is that the entry-level hatchback segment, where it (the Alto 800) operates, has been coming down over the years,” Srivastava said, as quoted by India Today. He added that the volumes declined because the cost of acquisition of vehicles in this segment went up substantially.
There are several reasons responsible for the increase in the acquisition cost of vehicles. Some reasons include: Increase in material cost, a rise in road tax, registration tax, and other forms of taxation and regulatory changes. While the cost of acquisition of vehicles in this segment saw an increase, the income level of consumers in this segment has not increased proportionately, Srivastava noted.
“In other words, the affordability factor for the purchase of vehicles in this segment has come down and that is the reason why this segment has dropped in terms of overall volumes and also as a percentage of the overall market,” he said, as quoted by India Today.
He further said, “The price sensitivity of this segment is extremely high. So, when the affordability factor came down, it impacted the demand in this segment much more than any other segment. Also, the consumers have tilted towards the Alto K10 and, as a result, the volumes of the Alto 800 going forward are expected to be relatively smaller and, therefore, we think it will not be financially viable to make investments for changes in the Alto 800 to meet the BS6 Phase 2 norms,” as quoted by India Today.
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