Tata’s daring in the low cost car has invited trouble from the Indian car giant Maruti, who is delving into marketing strategy with its pinnacle brands – Alto and 800. From next April, Maruti may enter into this low priced segment with a sharpened two edged weapon of price factor – to reduce the cost of Alto to close to that of Maruti 800. So far 800 has provided Maruti the feeding of its entire market – particularly the entry level – To meet the demands of the customers’ preference Maruti is on the verge of upgrading Alto with the advanced K-series engine, dignified design and stylistic features- all @ Rs3 lakhs probably. Maruti is to feel contented with a minimum of 60000 – 70000 units per year.
Maruti believes that the cut in the price of Alto would fetch high volumes superceding 800. For this new low cost version of Alto, Maruti has already launched its “one gram one component” policy by which the entire car will be reduced in its weight too. This would make Alto nearer to either Maruti 800 or still closer to Nano.
The customers would have to choose between – 800 and Alto – rather than other low cost cars. The strange thing about Alto is, even at its current price, an approximate 20000 units are sold a month. This has, on the other hand, reflected the fall in the sales of pet model 800. As a consequence, Maruti is to feed the 800 with BS IV norms. With this strategy Maruti has earmarked 12 cities in the country including Mumbai, Delhi and nine other, wherein 800 would not run its show from April 2010. Choose between the best while you read between the lines.