Renault Kwid effect; Next generation of Maruti Suzuki Alto in the making

Maruti Suzuki Alto has been the best selling passenger vehicle ever since its launch in 2000. Even after the arrival of many new comers in the segment, the supremacy of Alto has never questioned.

However, with the launch of Renault Kwid, the sales trend is not in favour of the Maruti Suzuki workhorse. Alto is still the best seller, yet, its sales saw a decline every month this year compared to the sales last year. At the same time, Kwid launched in October last year, has been increasing its sales every month, and currently averages around 9,000 per month. Hence, it is evident that Kwid is eating into the sales of the Alto.

Kenichi Ayukawa, MD & CEO of Maruti Suzuki has admitted the change in the scenario and accepted the need to upgrade Alto. "Maruti's strong sales and service network is the major reason behind retaining trust of customers on Alto. We are planning a new-generation (version) of Alto," he told the Times of India.

Understanding the heat from Kwid, Maruti Suzuki in May launched the face-lifted version of the Alto 800. Apart from the mild changes in the face, the new Alto 800 came with new interior layout, higher fuel efficiency and new colour options. The fuel efficiency of Alto 800 has jumped up to 24.7kmpl from 22.74kmpl in the new avatar. It is noteworthy that Renault Kwid offers 25.17kmpl fuel efficiency. However, it looks like Maruti Suzuki will have to thoroughly rework the Alto range to hold its numero uno position.

A previous report also suggests that the next generation Alto in the pipeline for 2018 will feature crossover design. Crossover design basically means combining best aspects of two segments of cars in one. Renault successfully carried out the strategy with the Kwid which is a hatchback that comes with raised ground clearance in the line of an SUV. This is a never-tried-before combination in the segment and the USP has worked well with the SUV-loving Indian customers.