Alto repositioned with price cut

Chennai: Car market leader Maruti Udyog has cut the prices of the Alto LX and the LXi by Rs 23, 000 to reposition the models to create a new category between A1 (Maruti 800) and A2 segments. With the price cut, the Alto will address a large segment of entry compact car buyers.

"Our strategy is that the new prices, together with cheap and convenient car finance options, will make the Alto a very attractive option for the large number of first-time car buyers as well as customers who wish to upgrade from a Maruti 800," says a company spokesperson.

Research shows that entry-level customers in India increasingly prefer cars with an air-conditioner and power steering. The Alto now offers these features at very attractive price points.

The demand for the Alto has been growing rapidly for the past several months. Volume sales have grown by 50 per cent in the domestic market in April-August 2003. The Alto LX (including the LXi) was the fastest-growing car brand in the premium small car segment last year, growing by 43 per cent during 2002-03.

In the export market, the Alto 1.1 has sold nearly 40,000 units in Europe since its launch 18 months ago.

Maruti has now been able to make the Alto more competitive owing to the sharp growth in volumes and a focused programme of cost management, a collaborative effort between Maruti engineers, suppliers, and Maruti's parent company, Suzuki Motor Corporation.