Alto K10 launch: Will Maruti Suzuki be able to woo entry-level car buyers?

India’s largest carmaker Maruti Suzuki will officially launch the much-awaited Alto K10 with an intention to woo first-time and entry-level car buyers, a segment that has witnessed one of the sharpest falls in last few years. According to the Society of Indian Automobile Manufacturers (SIAM), in FY19, the entry-level hatchback car segment formed 13.6 per cent of passenger vehicle (PV) sales and its share dropped to 7.8 per cent in FY22.

With the new variant of the Alto, the only car to have sold 40 lakh units in the country, Maruti is aiming to gain a stronghold in the segment worst hit by inflation. India witnessed a sharp rise in inflation after the Russia-Ukraine war, which led to a spike in crude oil prices in the international markets and increase in commodity prices.

“The entry-level car segment is likely to continue to witness pressure over the medium term as first-time buyers are skipping the micro/mini car segment and directly purchasing compact/super compact cars/UVs. Moreover, in the near term, the OEMs are likely to continue to focus on higher margin segments like the premium hatchbacks or compact UVs in the backdrop of the semiconductor shortage, which may constrain the segment’s volumes,” Rohan Kanwar Gupta, Vice President & Sector Head, Corporate Ratings, ICRA Limited said. Given the shifting consumer preferences towards safer and the relatively premium compact segment, ICRA believes that the mini segment is expected to continue to underperform compared to the overall industry growth over the medium term.

The company has remodelled the hatchback with new features and the car is based on the heartech platform of its elder sibling Celerio. Maruti had discontinued the previous Alto K10 in April 2020 due to the introduction of BS6 emission norms. Expected to be priced between Rs 4-6 lakh, the bookings for the hatchback have already started across the Arena dealerships in the country at a token amount of Rs 11,000.

The car will come with a touchscreen infotainment system that will be compatible with both Android Auto as well as Apple CarPlay in top variants along with safety features like dual front airbags, ABS with EBD, reverse parking sensors, and will rival Renault Kwid and S-Presso in the domestic market.

Also read: Maruti Suzuki all new Alto K10 to be launched shortly