Maruti Suzuki shelves plan to launch 660cc hatchbacks

Published On Dec 06, 2011 12:28 PM By Vidyadhar for Maruti Alto 2000-2012

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It’s the pricing that makes it difficult for Maruti Suzuki to launch the Kei cars in India. The Suzuki MR Wagon and Suzuki Palette might make it to the 2012 Auto Expo to seek the consumer response on the cars. It is the consumers who will have to shell out their money to purchase the cars. The question here is, are the consumers willing to pay the money it mounts up to for a car with 660 c engine. These cars will have the lowest capacity engine from Suzuki Motors but will not be one of the lowest priced cars from Maruti Suzuki India.This has the auto major hooked up on mulling about the launch.

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The higher input costs makes it impossible to launch the two cars competing against the cheapest car in India Tata Nano. However, this had been the initial plans of the auto major. Moreover, being the Japanese car models, the Indian consumers will not be benefited from the lower tax that will only add to the high price tag. So, probably Maruti India will have to re-think of its strategy as Tata Nano is not the right competitor except for may be where the 660 cc engine is concerned. Agreed that the Tata Nano’s 624 cc engine puts it in the direct line of competition with the Kei cars donning 660 cc engine.

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But, thats where the similarities end. While Tata Nano is a ultra-compact car with a seating capacity for four, the Kei cars are huge in built. The cars are massive in built with dimensions more than that of Maruti Alto. It’s the same with price as well. As it is there is a wide gap of Rs 1.43 lakhs between the Maruti Alto price and the Tata Nano price. Now, the Kei cars are expected to sit a notch higher than Maruti Alto probably with a price tag of Rs 3 lakhs. These factors strip off the Maruti India’s plans to launch a Tata Nano killer in the segment.