In a desperate attempt to revive sales, the country's largest carmaker, Maruti Suzuki, slashed prices of selected variants of its best-selling Alto K10 and S-Presso models with effect from September 2, 2024, while battling an unabated slide in entry-level cars.
Image Source - Business Standard
Price Cuts Are Large
The Alto K10 VXI Petrol variant gets a massive price cut of Rs 6,500. This particular trim was quoted at Rs 5.06 lakh while the updated price stands at Rs 5.00 lakh. Furthermore, S-Presso LXI Petrol has also got an attractive pricing of Rs 2,000. The company has quoted the price lower from Rs 5.015 lakh to Rs 4.995 lakh.
Response to Declining Sales
Falling sales have forced Maruti Suzuki to declare a price reduction for its entry-level cars. In the past few months, the company has experienced a slump in demand for small cars, including both hatchbacks and sedans. In that regard, many factors might be responsible for this decline: economic uncertainty, high fuel prices, and switching consumer preferences.
Image Source - NDTVProfit
Aim to Attract More Customers
By shaving off the prices, Maruti Suzuki expects to give these models an allure factor for price-conscious buyers. It targets a more diverse range of customers, be they first-time car buyers or people looking for a cheaper but fuel-efficient vehicle.
Improvement of product focus
Besides the reductions in prices, Maruti Suzuki has been engaged in introducing new features and upgrades to its models. The Company is incurring research and development expenses with the view of maintaining its vehicles competitive as well as upgrading them to meet the changing consumer expectations. Some of the changes relate to improvements in safety features, technological upgrades, and cosmetic changes.
Impact on Market Shares
This will give much-needed impetus to the sales of Alto K10 and S-Presso. Brothers Altos have been one of the most popular first-buyer choices on offer, which comes inexpensively and frugally. Now, with the price cuts, Maruti Suzuki is expecting to gain a better lead in this entry-level segment and derive more market share.
Inputs by Agencies
Image Source: Multiple Agencies
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