The country's largest car manufacturer, Maruti Suzuki India Limited (MSIL) stated that the launch date of their new 800 cc car, which is to replace Alto and legendary Maruti 800, has been delayed. Earlier, the car was scheduled to be introduced during the festive season; however the recent violence that struck the company's Manesar plant ruined it all.
Managing Director, MSIL, Shinzo Nakanishi, said, “Yes, we have to reschedule the launch of the 800 cc car because of the violence at Manesar plant.” However, he added that in case the car maker bounces back from the impact really soon then the launch will take place according to the planned schedule.
Earlier, the company stated that the new model, which was to launch somewhere during Diwali, would be on a pricier side as compared to its elder sibling, Alto; however, for the additional cost it will deliver better mileage to the buyers. Since the mishap at the Manesar plant has resulted in a lock-down of the same, the auto maker has planned to commence the production at its Gurgaon plant as soon as possible in July or August 2012. To reduce the cost incurred in development of the new car, it is quite obvious that the replacement car will come with an upgraded powertrain and platform used in Alto, instead of being built from scratch.
MSIL has already shelved its best-selling epic model, Maruti 800 in several cities across the country, mainly because it does not comply with the Bharat Stage IV norms prevalent in those cities. However, the model is still up for sale in other regions, still Maruti Suzuki decision to launch a new 800 cc car rules out any possible upgrades for the Maruti 800. This will open an exit door for the model once the BS IV norms are applied pan India.
On the other hand, Alto has been the record selling model for the car maker in India. However, recently it witnessed a dip in it sales from 30,000 units to 20,000 units, including the sales of Alto K10 as well. The factors that participated in this downfall are the hiked interest rates and the ever-increasing petrol prices. As a result, these models have been piling up the inventories at the company’s dealership. Maruti Suzuki was forced to shut-down the production during the May 2012 to prevent the piling-up of the petrol cars like Alto, M800, A-Star, Estilo and Omni.
The recent mishap may further hamper its stand as the company has already been facing labour unrest at the same plant ever since the strikes that took place in 2011.
