Maruti Suzuki India has halted the production of its entry-level model, the Alto 800, and will only offer a few remaining units that are in stock for sale.

Information

The entry-level model of Maruti Suzuki India, the Alto 800, has been discontinued. Although the company has ceased production of the popular hatchback, it will continue to sell a limited number of units that are still in stock.

Maruti Suzuki India has opted to discontinue its entry-level model, the Alto 800, citing low volumes in the segment. The decision not to upgrade the car to comply with the BS6 Phase 2 norms, which came into effect on April 1, was deemed financially unviable.

The entry-level hatchback segment, which accounted for roughly 15% of the market and 450,000 units in FY16, has declined significantly to less than 7% and an estimated 250,000 units in FY23.

Who has Replaced Alto-800?

The Alto 800, which was priced between Rs 3.54 lakh and Rs 5.13 lakh (ex-showroom, New Delhi) on Maruti's official website, has been replaced by the Alto K10 as the carmaker's entry-level model. The latter is priced between Rs 3.99 lakh and Rs 5.94 lakh (ex-showroom, New Delhi).

Car Specifications  

The Alto 800 is powered by a 796cc petrol engine capable of producing 48PS of maximum power and 69Nm of peak torque. Additionally, it also comes with a CNG option, with its power and torque figures dropping to 41PS and 60Nm, respectively, in CNG mode. The car is only available with a 5-speed manual transmission.

Sales of Maruti Suzuki's Alto Brand

Launched in India in 2000, Maruti Suzuki sold a total of 1,800,000 units of the Alto 800 by 2010. The Alto K10 was introduced in 2010, with the carmaker selling 1,700,000 units of the Alto 800 and 950,000 units of the Alto K10 between 2010 and the present day. Overall, the volumes of the Alto brand have reached approximately 4,450,000 units.

Maruti Suzuki Official’s Statement

Maruti Suzuki India's Senior Executive Officer for Marketing and Sales, Shashank Srivastava, confirmed to India Today that the company has ceased 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, adding that the volumes declined because the cost of acquisition of vehicles in this segment went up substantially.”

Rising material costs, road tax, registration tax, and other forms of taxation, along with the addition of more features and regulatory changes are some of the reasons for the increasing acquisition costs of vehicles.

‘Affordability Factor Hinders Entry-Level Segment Growth’

However, as Maruti Suzuki India's Senior Executive Officer for Marketing and Sales, Shashank Srivastava, pointed out, the income level of consumers in this segment has not increased in proportion to the rising acquisition costs of vehicles.

"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 added.