MUMBAI, SEPT 27: The country's largest auto maker, Maruti Udyog Ltd (MUL), is embarking on its biggest gamble yet by launching a new small car model, the Alto, in a nationwide marketing blitz on Thursday. The company, which is fighting competition with its back to the wall, is expecting the Alto to help regain its lost market share and glory. The Alto, which will be available in two variants, has been positioned to take on both Hyundai Santro and Daewoo Matiz which were eating into its monopoly since the last two years. The Alto, chosen from Suzuki's small car stable, would be available with a tag of Rs 2.25 lakh to 3.5 lakh and it would be fitted with both 800 cc and 1000 cc Euro-II norms compliant petrol engines. ``It's a make or break situation for Maruti. they have been slipping for a long time. Sadly, both equity partners, the government and Suzuki, had delayed its plans and gave Koreans companies a foot in the door,'' says an auto analyst in Mumbai. The Alto would be the company's biggest hope to fight the growing market shares of its competitors at a time when Maruti has recorded a substantial drop of 19.5 per cent in sales during April and August this year to 1.32 lakh vehicles as compared to 1.64 lakh vehicles sold in the same period of previous year. To make matters worse, its market share also slipped to 58.6 per cent in August from 65 per cent August last year. ``We are positioning the Alto in such a way that it would be attractive to all segments,'' a Maruti official said. Interestingly, the company is toying with the idea of replacing its ageing `bread and butter' model Maruti 800 with Alto, though company officials did not comment on this. ``We are looking at all options. the idea is to offer customers best value for money,'' Maruti officials said amidst hectic activity to launch the Alto all over the country on Thursday. ``They should have replaced Maruti 800 at least five years back with new models. that the company was still selling Maruti 800 till date shows that they had become overconfident and complacent,'' said an auto analyst with a leading FII. ``The company was completely taken aback when the Supreme Court enforced Euro 2 pollution norms in India. the Alto should have come before that order,'' he adds. This would be the third launch by Maruti this year as it launched Maruti Baleno in the premium segment, Baleno Altura for the lifestyle segment and Wagon R in the upper end of the small car segment. While Baleno, costing over Rs 7.5 lakh and Alutra at Rs 8.15 lakh have been targeted to take on Honda VTEC and Hyundai Accent which are slowly but steadily making in roads into Maruti's territory. Wagon R was a delayed response to Santro and Matiz. When Maruti entered the Indian roads, the two other car producers, Premier Auto and Hindustan Motors, were producing antiques from their dilapidated plants for Indian customers. The company stormed the market with Maruti 800, and even created a new segment with Esteem. But with time due to both internal factors (like militant unions) and external (feuding promoters), MUL also developed the same symptoms which resulted in the death of its predecessors.
