Maruti Suzuki is working on two brand new entry-level cars, one of which will be a new 800cc model while the other will be powered by a 1.0L petrol engine. These could be replacements for the ageing Alto 800 and the Celerio.
When it comes to entry-level cars in India, no one does it better than Maruti Suzuki. They have dominated the segment for decades now and will likely remain at the top spot for a long time to come. Other manufacturers have largely overlooked the under Rs 5 lakh car segment as more stringent emission norms and crash test regulations in recent years have made it increasingly challenging in terms of competitiveness in this price sensitive segment. But that’s exactly what Maruti Suzuki has been enjoying and a new report suggests that the company is working on two brand new cars that will be priced under Rs 5 lakh.
With an expansion of the brand’s entry-level portfolio, Maruti Suzuki will be strengthening their hold on this segment even more. The report further suggests that among these two cars in the pipeline, one will be a brand new 800cc model while the other one will be powered by a 1.0L petrol engine. We would like to point out that Maruti Suzuki currently sells the Alto with an 800cc engine and they also have the Celerio which is powered by a 1.0L three-cylinder petrol engine. Both these cars are due an update since a long time.
Does that mean that these two upcoming cars could be a replacement for the ageing Alto and the Celerio? Maruti Suzuki’s Managing director Kenichi Ayukawa had confirmed that the company is indeed working on a new 800cc model among a host of other models but did not delve deep into the details about this upcoming car. Meanwhile, Maruti Suzuki has been enjoying great success with the third-gen WagonR that was introduced in early 2019 and with the launch of the Espresso, the brand has opened up a whole new segment for themselves.
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Mr Ayukawa also acknowledged the fact that the new entry-level cars will be developed complying with the latest crash test and emission norms while also keeping the costs low. He also admitted that such regulation spike the cost of the car by at least 10%. Most other car manufacturers – other than Renault and Datsun – have mostly given up on the entry-level segment. Although the overall contribution of the entry-level car segment in the market has been going down gradually, the sub Rs 5 lakh segment is expected to to draw in almost five lakh unit sales per annum over the next two or three years and Maruti Suzuki wants to make most of it.
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Codenamed the YNC, Maruti Suzuki is expected to debut the first of these two new products towards the end of this year itself. Presumably a hatchback, the YNC is expected to be a replacement for the Celerio and will be powered by a 1.0L petrol engine from the WagonR. As for the new 800cc model, it has been codenamed as the Y0M and it is only expected to debut much later towards the festive season of 2021. The decision on the Alto 800cc, whether it will continue to be on sale alongside the new car or not will also be taken at about the same time period.