Maruti Udyog Ltd (MUL) will launch two variants of its new model, 'Alto', in its small car range with price tags of Rs 2 to 3.5 lakh on Wednesday in a bid to phase out its existing Zen and Maruti 800 in a gradual manner, company dealers said.
The two Alto models would be fitted with 800 cc and 1000 cc Euro-II norms compliant petrol engines and would be ready for delivery soon after the launch, they said.
When contacted, Maruti managing director Jagdish Khattar declined to give any detail about the models. Other senior company officials were also tight-lipped.
Dealers said the 800 cc Alto would be in the price range of the company's entry level model Maruti 800 which is available in the market between Rs 2.12-2.16 lakh (ex-showroom price in Delhi).
The company would replace the existing model in a phased manner as two models in the same price range would compete with each other, they added.
On the other hand, the 1000 cc new model would be positioned in the Zen segment, currently priced between Rs 3.40-4.97 lakh, dealers said.
The company has already produced over 3,500 units of Alto car at its Gurgaon factory, company sources said adding MUL would be ready for national delivery at the time of launch.
Maruti will introduce only one variant of each model for the time being but come out with more variants keeping in view their demand, they said. The new model would be different than the 'Alto' variant being exported by the company to several countries.
In fact, the domestic model 'Zen' which is produced only in India and at none of the worldwide plants of Suzuki Motor (equal partner in MUL), is being sold as 'Alto' in the global market by Maruti while Suzuki Motor markets its small car as 'Alto' in the Japanese market.
MUL is launching the same model in India after making several changes according to the local road and safety conditions, sources said. The localisation level of both the new models are likely to be over 70 per cent, sources said adding the company would increase the indigenisation level soon to bring down their manufacturing cost.
MUL recorded a 17.5 per cent dip in car sales at 31,203 units in August this year against 37,840 vehicles in the same month last year. Its market share also slipped to 58.6 per cent in review month from 65 per cent August last year.
During April-August 2000-01 company's car sales declined by 19.5 per cent to 1.32 lakh vehicles compared to 1.64 lakh vehicles in the same period of the previous fiscal.
