April this year saw the Alto lose its top slot to another Maruti model, the Swift. The difference was less than 2,000 units (19,484 Swifts to 17,842 Altos) but it was a clear signal of the market's growing preference for diesel cars. This is where the Swift scored despite being nearly twice as expensive as the Alto, whose lifeline is petrol.
Experts, however, insist that April was an aberration and that the Alto will quickly regain its premier position in the market.
However, with petrol prices now up by nearly Rs 8/litre, the preference for diesel will intensify, especially when its price differential
The Alto could be a cheaper car but the absence of a diesel option could only see it cede ground to other models like the Swift. Will this change the dynamics in the entry-level segment? The Alto has been ruling the roost for over seven years. It took over from the Maruti-800, which had an even longer reign at the top.
Within the automobile industry, the general consensus is that the Alto will soon start losing speed in the market. “It is still the ideal entry-level car but the steep price of petrol will deter potential buyers. The Suzuki Ritz and Swift, along with other diesel compacts in the market, will gradually start taking over,” an auto industry official told Business Line . Hyundai, likewise, could find the going tough for its recently launched Eon, which does not have a diesel option.
It is very likely that the Government will increase diesel prices too by up to Rs 5/litre in the coming days but the fuel will still end up being considerably cheaper than petrol. This will only tilt the balance further in favour of diesel cars.
The diesel edge
Apart from Maruti, other manufacturers, such as Toyota, General Motors, Ford, Volkswagen and Tata Motors, that have diesel compacts to offer, will end up being the gainers. “It is not as if the Alto will be relegated to the sidelines overnight but it will have an uphill task sustaining volumes of over 25,000 units each month,” the official added.
The Nano diesel, scheduled to debut towards the end of this fiscal, will have a distinct edge over the rest, given that it will be priced at around Rs 3 lakh. The people's car has been clocking sales of over 8,000 units and this figure could double with the entry of the diesel version. It now remains to be seen if the Nano will change the dynamics of the entry-level segment.