Maruti Suzuki India (MSI) has reportedly discontinued its entry-level model, Alto 800. The automaker has halted the production of one of its highest-selling hatchbacks, India Today reported.
As per the report, the investment to upgrade the Alto 800 to comply with the BS6 Phase 2 norms would not have been "financially viable".
In a report by India Today, Maruti Suzuki India's Senior Executive Officer for Marketing and Sales, Shashank Srivastava said, "What we have observed is that the entry-level hatchback segment, where it (the Alto 800) operates, has been coming down over the years". He added that the volumes declined because the cost of acquisition of vehicles in this segment went up substantially.
Further, increase in road tax, material cost, and other forms of taxation are the reasons for the acquisition cost of vehicles rising.
Besides, the cost of acquisition has increased, and the income level of customers in this segment has not increased proportionately, Srivastava added.
Therefore, the affordability factory for purchases of vehicles in this segment has come down and that is the reason this segment has dropped in terms of overall volumes, Maruti's senior executive officer added.
Another factor halting Alto 800's production is the rise in demand for Alto K10.
"... it was decided that we should discontinue the Alto 800 and, in any case, the Alto K10 will be our main model henceforth in this segment," Srivastava told the channel.
With this decision, Alto K10 will now serve as Maruti's entry-level model, priced between ₹3.99 lakh and ₹5.94 lakh (ex-showroom, Delhi).
Maruti Suzuki's website noted that Alto 800 is priced between ₹3.54 lakh and ₹5.13 lakh (ex-showroom in Delhi).
The Alto 800 employs a 796cc petrol engine, which displaces 48PS of maximum power and 69Nm of peak torque. The hatchback was launched in India in 2000. Maruti sold 1,800,000 units of the car till 2010. After that, Alto K10 was launched in the Indian market. From 2010 to date, Maruti has sold 1,700,000 units of the Alto 800 and 950,000 units of the Alto K10.
Catch all the Auto News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.