In a strategic move to counter declining sales, Maruti Suzuki India has announced price reductions for select variants of its popular Alto K10 and S-Presso models. This price adjustment, effective from September 2, 2024, aims to reinvigorate interest in the mini car segment, which has been experiencing a downturn.

Key Price Reductions

Maruti Suzuki’s recent price cuts are specifically targeted at two of its compact models:

S-Presso LXI Petrol Variant: Price reduced by ₹2,000.

Alto K10 VXI Petrol Variant: Price reduced by ₹6,500.

This decision was officially communicated to the National Stock Exchange of India Limited and BSE Limited by Sanjeev Grover, the Executive Officer and Company Secretary of Maruti Suzuki India Limited.

Context of Price Reductions

The price reductions come at a time when Maruti Suzuki is facing significant challenges in the mini car and compact car segments. Sales figures for August 2024 reveal a noticeable decline:

Mini Car Sales: Including models like the Alto and S-Presso, sales dropped to 10,648 units from 12,209 units in August 2023.

Compact Car Sales: Featuring popular models such as the Baleno, Celerio, Dzire, Ignis, and Swift, the segment witnessed a sharp 20% decline, with 58,051 units sold compared to 72,451 units a year ago.

These figures contribute to an overall 4% year-on-year decline in total sales for Maruti Suzuki in August 2024, with the company selling 181,782 units compared to 189,082 units in the same period last year. The domestic passenger vehicle segment saw an 8% drop, with sales decreasing from 156,114 units in August 2023 to 143,075 units last month.

Segment-Wise Sales Performance

The sales performance across different segments reflects a mixed outcome for Maruti Suzuki:

Mini Car Segment: The Alto and S-Presso saw a decline to 10,648 units from 12,209 units in August last year.

Compact Car Segment: A significant 20% drop, with 58,051 units sold compared to 72,451 units a year ago.

Utility Vehicle Segment: In contrast, this segment, which includes models like the Grand Vitara, Brezza, Ertiga, Invicto, Fronx, and XL6, saw a 7% increase in sales, rising to 62,684 units from 58,746 units last year.

Eeco Van: Sales remained stable at 10,985 units.

Super Carry Light Commercial Vehicle: Experienced a slight dip, with 2,495 units sold compared to 2,564 units in the previous year.

Conclusion

Maruti Suzuki’s price reduction for the Alto K10 and S-Presso variants appears to be a calculated effort to stimulate sales in the mini car segment, which has been underperforming in recent months. While the overall market scenario remains challenging, particularly in the compact and mini car segments, the company’s utility vehicle segment continues to show resilience, with sales on the rise. It remains to be seen whether these price adjustments will have the desired impact on boosting sales and reversing the current downward trend in Maruti Suzuki’s overall sales performance.