The new model will be developed on the Alto platform and share its 800-cubic-centimeter gasoline engine, the executives said. Maruti, India's largest car maker by sales, declined to comment.
The introduction of the car would form a renewed push by Maruti to arrest declining sales of the Alto because of an overall slowdown in demand for gasoline-powered vehicles in India and as borrowing costs remain high. Though demand for diesel-run cars is rising faster—the fuel is about 40% less expensive than gasoline—the new car still could help Maruti boost sales because customers usually prefer new models over existing ones.
Lower demand for gasoline cars helped to drag down its total India sales by 11% to 1.01 million vehicles in the fiscal year ended March 31. Maruti sold 308,288 Altos, also down by 11%, according to industry data.
The new car also could allow Maruti to capitalize on demand around the Hindu festival of Diwali, which falls on Nov. 13 this year and is considered an auspicious time by many Hindus to make new purchases. Auto makers generally line up new models for introduction around Diwali when vehicle sales reach their highest levels.
Maruti also has another model with the Alto brand name—the 998cc Alto K10. The 800cc model makes up nearly two-thirds of the Alto line's monthly average sales of 25,000 vehicles. The company will continue to make the Alto K10, the executives said.
"Alto's [both 800cc and K10] production has declined to less than 1,100 a day from a peak of 1, 500," an executive at one of the part suppliers said. "Maruti is expected to give us a higher [part-supply] schedule for the new Alto as it expects sales to grow after the launch."
Another supplier said that even though Maruti is developing the new model on its existing platform, it will be "a completely new car."
The introduction of the car would form a renewed push by Maruti to arrest declining sales of the Alto because of an overall slowdown in demand for gasoline-powered vehicles in India and as borrowing costs remain high. Though demand for diesel-run cars is rising faster—the fuel is about 40% less expensive than gasoline—the new car still could help Maruti boost sales because customers usually prefer new models over existing ones.
Lower demand for gasoline cars helped to drag down its total India sales by 11% to 1.01 million vehicles in the fiscal year ended March 31. Maruti sold 308,288 Altos, also down by 11%, according to industry data.
The new car also could allow Maruti to capitalize on demand around the Hindu festival of Diwali, which falls on Nov. 13 this year and is considered an auspicious time by many Hindus to make new purchases. Auto makers generally line up new models for introduction around Diwali when vehicle sales reach their highest levels.
Maruti also has another model with the Alto brand name—the 998cc Alto K10. The 800cc model makes up nearly two-thirds of the Alto line's monthly average sales of 25,000 vehicles. The company will continue to make the Alto K10, the executives said.
"Alto's [both 800cc and K10] production has declined to less than 1,100 a day from a peak of 1, 500," an executive at one of the part suppliers said. "Maruti is expected to give us a higher [part-supply] schedule for the new Alto as it expects sales to grow after the launch."
Another supplier said that even though Maruti is developing the new model on its existing platform, it will be "a completely new car."