Why budget cars are under threat | Deep Drive Podcast Ep.28 | Autocar India

[@autocarindia1]

Chapters - 0:00 - Introduction 1:40 - Living in the 800's shadow 5:38 - Alto's rise to the top 8:57 - Drop in sales 13:30 - Changing buyer preferences 16:00 - Lack of choice helped 18:50 - Today's Alto buyer 22:25 - Hatchbacks in an SUV era 27:08 - Why Maruti won't give up on the Alto 28:48 - Sticking to formula 30:20 - 800 set the ground for Alto's success 33:55 - The entry car of 2030

[@dip10]

Thanks to Gadkari and nirmala Tai 😍

[@AvinashHeral]

How? Explain please.

[@sarath324]

Taxed to death 😮

[@ashutoshnavelkar]

First generation alto K10 2012 model was the best designed alto ever ❤

[@bibinanithasamuel]

Always ❤

[@RahulJain-rv3bp]

3 lakh Rs worth of car is selling at Rs 6 lacs. Who will buy it?

[@guruprasad2122]

Considering inflation, it can't be sold at 3l.

[@arunkris7299]

At least it should be less than 5 lakhs

[@CuriousSeeker09]

Too tu bech de 3 lakh me. Joker 🤡

[@minimalist1911]

Exactly

[@suvansh29]

I hadn’t looked at cheap hatchback prices in last 5-8 years. I am Shocked at the prices listed on Maruti’s website. They are selling the Swift at base 6.5 Lakh?! Even the WagonR is 5 Lakh at base. The Tata Punch and Nissan Magnite are Crossovers at 6 lakhs. Maruti’s Cheap cars are dead. Their Brazza crossover is about 5 lakhs overpriced compared to its competitors.

[@sukritsharma1934]

The price has inflated a lot in last 4 years post covid. Alto is still the vehicle of choice in hill states like HP & UK etc. But people are buying used cars rather than new ones. That's mainly because of the cost. Top model is way overpriced for what it actually offers. Even the base model is overpriced by atleast 50k.

[@saiekrishna]

Unlike in the West, car prices in India have been rising sharply, while salaries for many people have remained the same since before COVID. Cars, once seen as aspirational, are now becoming more of a necessity, but with prices continuing to climb, demand is starting to decrease. I believe the car market will correct itself in terms of prices in the coming months.

[@Dont2004]

What people often overlook is that when people escape poverty, they'll also need a car, and it likely needs to be affordable, ideally priced under 5 lakhs. Just because the middle class is growing and wants more luxurious hatchbacks doesn't mean there isn't still a market for budget-friendly cars

[@dhinastark3610]

Simply put my friend, while 6 airbags and whole bunch of safety features are all good and stuff but its making the budget cars more and expensive to the point its no more sensible to buy. Plus these price increases are making the majority of middle class unable to buy an car.

[@mackisbrocklesnar]

no one 'needs' a car

[@Dont2004]

@@mackisbrocklesnar so there r no nuclear family with children?

[@vishnupillai300]

The price of automobiles have skyrocketed..The past 10 years the price of every vehicles have become almost double..A 100cc bike costed around 50000 to 55000 in 2014..Now its almost a lakh.The same happened to Alto..It was almost 3.5 lakhs..Now almost 7 lakhs.Increase in prices are mostly in the name of increased raw material costs..But if raw material cost decreasees companies never decrease the prices..

[@harmanwalia2598]

Bro everyone wants to earn more its human nature.....even most of price increase is due to the tax levied by government of India

[@NeethnavK]

First generation Alto K10 was one of the best designed Alto, with that long hood and rounded tail light design. Had a sporty characteristic in terms of design.

[@ducatimultistradav4850]

Just include these: 1. Day/Night IRVM 2. Fog lamps 3. Rear power windows 4. Steering adjustment Even our Ritz back in 2012 had all the features I have mentioned, except for IRVM. Also, it had much better metal sheet quality, as well as the interior quality. Charging such a hefty amount for an Also is just insane!

[@geetarthneo]

Current Alto is the worst value for money product in Indian market. Top model cost 6.2 lakh rupees in Guwahati, and it doesn't come with rear power windows, fog lights and electric side view mirror adjustment. Those are some basic needs in automotive market. And also, the 4 speakers that comes equipped in the top model is crap!

[@nishant4262]

People pay for reliability, sales value

[@MARKCRASTO]

Fck that's messed up. I just bought a used 2020 Tata Tiago XZA automatic..(top end). It was in great quality and cost me only 3.5L. It has automatic transmission, great digital infotainment system, android auto, reverse parking camera, amazing AC, power rear view mirrors, 4 star NCAP rating with 2 airbags, best sound system in the segment. After driving this car for 1 month now, i can't even imagine spending 6 Lakh for a new "Alto" 😮😮

[@praveenkr7047]

It's not all about Alto that isn't selling. It's about the atrocious pricing for an entry level car. Alto MT onroad is around 6.20L+ and AMT is 7.10L+. Having paid so much the consumer does not get value, not even a simple power window! Designs of Alto,Spresso and Celerio are really bad compared to it's previous generations. Bring the damn Alto LXI for around 4L onroad, then see the sales jump off!

[@satyasiddhamishra4950]

I believe that with the discountinuation of the Alto 800 the sales of Alto has seen a sharp decline as Alto 800 was incredible value for money vehicle.

[@madhavigupta5697]

I am buying a new wagon r. But I went to the showroom to buy an Alto. The difference was about 60k. So for me atleast it made more sense to go for wagon r

[@inpursuitofhappiness366]

Market is driven by consumers purchasing decisions If people are more thoughtful and spend only on value offerings, manufacturers will look to offer more value rather than simply bump up the prices for a bigger profit margin Alto is almost 7L now. Triber third variant used to be at that price. And this ain't about thinking budget. Its about thinking value. Why donate money to something that doesn't deserve it? People should start thinking this way and the whole market will favour the consumers more rather than the sellers

[@melwynphilips856]

I think the SUV craze and the emphasis on passenger safety, thanks to TATA, killed the small car atleast in the more aspirational and aware metro and tier two cities.

[@autocarindia1]

Prefer to hear the Autocar India Deep Drive Podcast? Listen on: Spotify: spoti.fi/44re4Z5 Apple Podcast: apple.co/4dm563o Amazon Music: amzn.to/4blq94k

[@raviv5109]

Few Customer's are not willing to pay more but they want car but there is no choice. The second hand car argument was spot on. I bought used ertiga in budget of tata tiago.

[@purikapil2972]

It was introduced as a 🚗 for everyone's pocket especially middle class family Today the High Pricing is the main factor for its downfall it's no longer a affordable car.

[@MrXperx]

Autocar is my childhood. I used to buy the magazines on train journeys and go through the shiny cars (that I couldn't even dream to afford). Heartening to see it is still going strong.

[@sanjeevatri980]

One car family want saftey for highway and space for 5 and luggage but cities r getting crowded so alto amt makes sense . Punch is new alto sweet package but its reliability😂😂

[@Raj-nh3fc]

What killed Alto? Knowing the Indian society and how it functions, I would say that "the wife killed Alto". A simple comment from our wives like " no we can not have that because the family next door who are not as affluent as we are have just bought one" or " how will we go on a long trip with my brother's family in that small car" or "it looks so small in our garage" or "where will I put my hand bag" or " oh my God I almost suffocated in our friend's Alto on that trip" etc definitely killed the poor Alto.😂

[@anandagoswami7373]

It's a shame that the days of sensible small affordable cars in India seem to be numbered. But then again that is the way of it. My first Maruti 800 after my Ambi was like going up in an elevator instead of the stairs. The Alto was great and the best of all was the Alto K10 in 2012. Today I have a Spresso and it is a very nice car. I dont think I would have preferred a Brezza, even if I could afford one from savings. But then years down the line, who knows what the market will have on sale. Another factor is the 28% gst and cess. This tax should not be levied on small cars. Consider the effect on demand when gst is reduced from 28% to 5%;on small cars. Currently one pays more than a lakh tax on the cheapest car in the country. That is killing the goose that lays golden eggs, when the family penetration of cars is only 7.5%. Wisdom comes late and sometimes never.

[@asfanahmed2812]

I think they have over priced the Alto and it's primarily done to push people towards the celerio wagonr ignis swift and other models in the line up at a similar price range

[@rohiteugenemurray7879]

Wonderful explanation. But the simplest of solution is reduce the price to the 3.5 max 4 lakh bracket. No other way. I have money to buy an SUV, but still i am not as i very price conscious and size too as city rides are very difficult. The used market too is not feasible as the price is just a little less than a new car of the same segment. Its always about the price. The sales are low now adays and will continue to drop if the price is not looked into esp for the middle and lower middle class. FYI - I have made peace with trying to show off, and i still use the old maruti 800 and am very happy with it. It gets the job done with less expense.

[@rsrp2002]

I am becoming a fanatic of these Saturday episodes. Come Saturday and at 11:00 my hand automatically goes for the show to tune on. They are very interesting, analytical, with an objective of giving the right presentations about the industry, its brands, cars and give a critical analysis and makes knowledge buyers a hands-on exposure to make them take a validated decision in their purchase. For the companies, it is an eye-opener to their efficiency in management. Congratulations !

[@amarjittalukdar1967]

Post 2014, economics has made the rich, even more richer. The Alto car buyer of 2014, is now buying the Rs 12 lakh car. But the motorcycle buyer of 2014, is still on the motorcycle. As this category has not come up in life.

[@shailesh3007]

Personal experience At that budget Alto is way much better product than its rivals

[@abhijitkundu1879]

Sorabjee Sir the buyers and the existing consumers have become quite claustrophobpic too rather than daring to take a risk of changing the entire she’ll of the category 🌹❤️

[@abhijitkundu1879]

Ravi Sir the entire structure of Alto 800 till the K10 series has changed the entire peripherals and the perception of the new buyers and buyers those who wanted to shift from petrol to EV has diverted their tastes and preferences commemorate and respect to the design also to some extent has been diversified 🌹❤️

[@pratikbagal3549]

New Alto has horrible styling. Looks like a toy and very unsubstantial. Original Alto while being compact looked cute & desirable. Better styling would have led to higher sales.

[@SAsquirtle]

exactly, in my opinion this is the biggest reason. every other car has evolved in design but alto has gone backwards

[@vijayrangarajanramakrishna318]

God Bless Indian city's infrastructure with world's largest population 😳🙄

[@mandarvthakur]

Mr. Ravi Bhatia - what a great conversation. I really enjoyed his thoughts and would love to hear him on various other automotive topics

[@georgythomas8451]

The biggest mistake they did was scrapping the 800cc engine which driver up its price - Making it too expensive for an entry level car for lower middle class and too small/not big enough for middle class.

[@jaybratab]

It is not the budget cars under threat, it is the budget car buyers under threat. Indian middle class is being ruined economically.

[@DebashishDasrocks]

Alto is great city car and second car aswell...its tension free in terms of maintenance great suspension mileage and good engine....the price i believe can be 50k less probably considering inflation in mind but at sametime its has good resale value...i like the car

[@AyubKhan-md4km]

The 800 when it was introduced, had a sharp look. The Alto remains Gwakish till date and not aspirational when it comes to looks. Also a discussion needs to be held on taxation on cars and their unreal price in India compared to other markets

[@atharvavelhankar]

Do you think that other makers abandoning this segment leaves Alto in similar space as Nano where being the cheapest car to buy in the market is the reason people don't want to buy it?

[@ZainabLife2021]

Maruti is loosing the market because its too lazy to update its model against its competitor. Headlights, bumper and grills are cosmetic things but key things for the looks. Alto can still gain the market..its strength is its small size which makes it easiest in maneuver as most of the places in Indian roads are congested and we have to manage in narrow lanes only. Maruti takes it for granted where this is making sales number like Ertiga, wagon r, etc. I shouldn't forget to mention the boaring Eeco. It should also focus on updating Ciaz as still Indians wish to have a sedan also.

[@yourtechbuddy7880]

People should practically think alto top end is 6 lacs onroad tell me any other car with that much amount in top emd spec, now most of the manufacturers are not offering any car in that price

[@amaljoe367]

Car loans killed small cars

[@billubadshah897]

Great Podcast Thanks Again ❤ A Small Request Please Take Some Question for 5 Minutes

[@gopalacharya662]

Very informative podcast in a series of fascinating and insightful podcasts on the auto industry our Pyara Bharat. Would love a segment on the S-Presso, which is a highly capable, underrated, and budget friendly for the adventure minded.

[@shreyanssingh5535]

Which is better to buy in 2024 for daily usage for 8-9 years, Altok10 or spresso plz suggest

[@karthee2459]

Alto EV will be a gamechanger

[@theperipateticaccrescent7685]

a new decade of design & technology is approaching - the entry level needs to change to accommodate that...

[@bubulmallick846]

Will Muruti Suzuki S Prresso be Next Entry Level Micro Suv ( Better Interior )

[@ravisr3401]

When my son wanted to get a new car in 2015, my choice was the Alto K10, but none of my family including himself would have an Alto in the portico and he got a new Grand i10 Automatic that still does duty with us and is reliable but not that fuel efficient. You should have also mentioned how the numbers of Swift, Baleno and Wagon R is dropping precipitously, it's a matter of time that the home grown companies will knock Maruti of it's tall pedestal to claim it for themselves: despite their sales, service, refinement & reliability shortcomings. I think the "regulation and taxation" greed of the Government will make cars "less" affordable as days go by...GOI is in the mood to 'ape' the West to the hilt and EV's are being promoted despite almost no charging infrastructure and increased charge times that can add to your journey times.

[@shivvashishthabhargava4600]

The truth is that the Indian customer has finally woken up. Lakhs of fatalities on the road for decades have FINALLY hit the nail on the head AND CUSTOMERS want no more issues or safety concerns. Safety first and safer roads. Drive safe everyone!

[@alileevil]

The cost is not an issue because people are buying bikes that cost 1.5 lakh. The Indian customer is very status-centric. And now with higher earnings, people have the money to splurge on an expensive vehicle. Most people who buy cars worth 20+ lakh hardly end up using them because they just cost a lot to run. I am glad Suzuki is still offering vehicles for the sensible buyer.

[@lobo._.pradeep]

A little-discussed aspect of the market trend toward SUVs and micro SUVs has to do with today's excessively bright and unregulated headlights, which flood tiny cars' drivers' eyes. This is especially true of automobiles with large bodies.

[@pradiptaran6250]

Even today, Alto is a fantastic car. Maruti needs to invest in certain frills like DRL, LED HL, Rear window wiper, Day/Night IRVM etc. with slight design enhancement and there will be no car to bet Alto for another 10 years.

[@gagancj4030]

11:36 if the waiting period for CNG is more than Petrol and few showrooms are not taking bookings, so obviously customers will choose the former and that should not be the reason for the decline in Alto sales.

[@PRO2358]

Always nice to hear you hormazd 👍

[@RandomSync7]

Alto 1.1 is still a gem!

[@runningfellow]

What a informative session. ❤

[@Star-ds4sd]

Engine Use in Different Muruti Small Model Can Help it To Sustance ?

[@VishnuVck]

Last graph the only newcomer is Baleno that is appreciated 👍🏻

[@ronniedleo3907]

Would have liked a touch on swift.. should swift be brought down to 1 litre?

[@freeworld1947]

Why we are ignoring: 1) cash discount of 60k 2) govt taxes (GST, RTO, insurance)have increased 3) engine now 1L 4) current sales no 8k plus which is greater than many car manufacturers overall sales 5) target customer have changed 6) There will be slump in automobile in next one year Yes I agree they should add some features like fog lamps, rear power window

[@shankarbalan3813]

I think now is a great time for one of the far sighted manufacturers to come in with a small front wheel driven fuel efficient hybrid vehicle. And keep it at a just about accessible price like 3.99 lac on the road all India. If this happens, then a lot of regular people can achieve their aspirations of owning a small safe family transporter.

[@imviiku]

India's number is 33 per 1000 people, which is still extremely Low but IDK, we still have no more space

[@chandermotwani3493]

Brilliant Content & Analysis 🤘🏻💯🚗👌🏼

[@aadityaacharya4]

Alto is love !! seriously considering one after my tiago ev is giving lot of issues 😒😒

[@sajidquadri3046]

The IWC Big Pilot Crown worn your wrist is more expensive than the Alto K10 being talked about.

[@seael2008]

Entry level 6-7L car - Punch base variants are topping the charts. The signal is clear. People still want a hatchback, but with an SUV styling and with 5 star safety. S-presso won't do. Maruti needs a Punch competitor.

[@venkatesanramakrishnan2726]

Front wheel only cars are definitely not SUV. It should have the go anywhere capability (I mean a good off roading capability). Rest are all UV's only.

[@TaeNre]

not SUVs but Crossovers , even some pickup trucks are FWDs

[@hemensarma1]

Saying goodbye to the good old 796cc mpfi 3 pot engine was inevitable because of stringent norms. But what's more important to look at is the decreasing monetary and aspirational value of the alto. Look at it now, wrong proportions, toy like look, no place for 3rd person in the back seat, high owning cost.. It has stopped appealing to the first time buyers of the entry level segment: a. It can't be a comfortable taxi, b. Better availability of options for the secondary car buyers, c. No aspirational value for the 3 tier first car owners. Even Maruti dealerships doesn't want to sell it and wants customers to upgrade to a celerio or a wagon r or the espresso.

[@mastroes]

Maruti suzuki is purposely killing the alto n celerio by giving them cheap looks.. good design even if basic isnt tough.. these are like puposely down played

[@apachev90]

just look at 2 wheeler prices - the way they have jumped in last few years... one will get the perspective of why small cars' prices are also rising. plus there is lot of regulations like airbags , bs6s2, very high taxes and cess, in more cases people are not able to buy new 1st / entry level cars as they have become very expensive. They are turning toward used cars or delaying tthe entire thing by 5-6 yrs to go for a better car. But if alto lxi/ vxi range was available around 4.6/ 4.9 on road, it would have been super hit.While a section of the consumers have grown to be more lifestyle oriented, we are not looking at the new bunch of customers for whom car was the least considered purchase 10 yrs back, but now they are aspiring fortheir own car too - Alto can easily be their answer

[@MrDeepakvasudev]

I want the Alto to have sharper design a more powerful engine, EV option and features like rear wiper, defogger, better interiors, LED lights etc. I would definitely book one.

[@nahihai]

7-8L for an entry-level car in India is just absurd. We’re not a ‘car nation’. A 25-year-old starting their first job today can’t afford a car like they could 25 years ago. Plus, driving in metros is a nightmare, and in tier 2 cities, it’s pure chaos with no traffic rules. Not everyone gets a job that requires travel, and most can’t afford road trips. If entry-level cars hit 7-8L, people will just stop buying them. OLA, Uber, and public transport (which really works only in cities like Delhi and Mumbai) zindabaad. It’s not just about cost-it’s about practicality* * practicality in cars doesn't mean sunroof and wireless charger.

[@gypsydanger3765]

HERO SPLENDOR is still the highest selling bike in India!😮 HOW?

[@vishnupillai300]

In rural India splendor is the default choice especially in the hindi belt areas..Also even in my state of kerala which is uniformly urabnised Splendor is still holding up thanks to the fuel efficiency and the increase in number of delivery boys..

[@Raj-nh3fc]

The time line of the "first level entry in to motoring" is different for different countries. In USA it was probably the 50s and in Europe probably the 60s, and in India probably the 90s. Since Nepal, Shrilanka, Pakistan, Bangladesh are about 20 years behind, they have just entered that age and the parts of Africa are not there yet. So what is now considered low level non aspirational car like Alto would still be a hit in these countries among the masses. Parts of Africa would happily accept the Tata Nano if available for its simplicity and functionality.

[@hellslayer9638]

Aaj bhi 2024 alto k10 is still a very good value car , you are still getting a good reliable car , today royal Enfield costs almost as much as alto k10 .

[@vadret_ar_bra_idag]

Give it a day and night IRVM, even as an option, and see the sales soar again. Lack of a day and night IRVM is a big handicap.

[@TheZenith790]

???????

[@mackisbrocklesnar]

absolutely no one cares about it amongst potential Alto buyers.

[@broccoliliverwort4932]

😂😂😂😂🤣🤣

[@bhabatoshnayak2916]

Wo miljata hai 250 rs mein bahar

[@sosimplysandeep]

The only reason is the car companies not manufacturing better small cars. Indian roads are cluttered with SUV's whereas we should focus on introducing more smaller cars

[@Ganesh013]

One of the reason Maruti increase it's price with time ( it's natural) without adding any meaningful feature. With price band >5lack naturally people will look for better option adding few lakhs with easy loan options.

[@marcusaureliusanonymous]

Anyone who loves simplicity,reliability, can go anywhere with no fuss and very easy to maintain, things many modern big cars lacks .... Who will buy .... Wait for economic cycle to start going downward... Many will go Alto/ hackback way... If this can happen in west and it will happen in India.

[@KRKKBHASKAR]

On a different note, Just wanted to highlight how reliable the M800 was as compared to the Fiats and Ambassadors of the 80s. Taking brand new cars for welding, filling the radiator every day, recurring electric failures were part and parcel of life in the 80s. Today even Tata cars are a thousand times more reliable than a Fiat or an Ambassador. Fiat would be technically Premier but it was always referred to as Fiat.

[@atsonaga5520]

Alto is way overpriced now, first time buyers are opting for Hyundai exter n Nissan magnite instead of maruti suzuki alto now

[@avi1435]

Maybe the future is to get micro cars for entry level or 2 / 3 seater cars and get urban two wheeler / three wheeler users to move to these smaller cars.

[@msknew93]

I think the taxation in India inflated all commodities and when it comes to automobile, for the current taxation it’s not so easy for both buyers and manufacturers to get it going which makes the budget cars like alto to get the hefty tags thus making it not so much value for money.

[@vachan7069]

A wider , lengthier , Hatch with Bifuel Battery Series Hybrid CVT /Torqe covertor Auto T/M Urban/Short distance commute car could be the New Alto Or New 800 for the next 2 Decades in India at a price of 7-7.5 Lakh On Road

[@dipayanmukherjee3907]

Maruti Suzuki Alto 800 is the best car with F8D3 Engine which currently I have perhaps from the last batch of her production cycle. The car is better in terms of looks and overall design than the K10. Maruti would have continued it with a 800CC K series OBD2 engine....or upgrade the engine with 1 ltr keeping the overall design same.

[@cjisgr8]

Alto is a good budget, friendly car but it should strictly be priced around 4 lakh as a base and 5 lakh at max for the top model

[@cvb5744]

Tata Punch is not SUV, its a hatchback. Be true

[@billubadshah897]

Why Maruti 800 Got a Price Cut After Lanch of Alto ( a Expensive Car ) by the Same Co.

[@philipposekurian]

The kwid was the silent assassin for the alto.. It showed the Indians that thw entry hatchback neednt be boring. Though people dont buy it much cos people want a maruti. And this shifted focus to the wagon R more. The alto ended up being non aspirational.

[@IHE87]

Wagon R is the benchmark top selling entry hatchback of middle class.

[@indrajitdeb7123]

I do not think alto will evaporate from car market. Even today the most sold 2nd car is still alto and alto is still best for Indian narrow street city drive. Moreover it is best car for office journey even though it is not anymore a good family car.

[@ashmercury9937]

Eeco is another maruti car which needs to be discussed in detail

[@shankarbalan3813]

If as Mr Ravi says the cheapest car in India in 2030 is going to cost 7 lacs, then it is a good idea if we hang on to our lovely legacy cars now. At least those of us who value our “senior” automobiles. Because we will not see the likes of those again for sure.

[@gambet0007]

Now budget car base model costs almost 5 Lacs. That's not a good budget for middle class people unless they go for heavy loans, which is not worth it anymore.

[@pratiquewtf]

India moved from Hatchback to SUVs, next will be sports sedan. Faster smaller sedans, like Supra. 2 seater sedans.

[@abhijith_mb]

I'll tell you how to make alto appealing... Get rid of that engine, and include a single cylinder motorbike engine from suzuki motorcycles, convert into Atkinson cycle, include a 2.5kWh battery pack, a 60kW motor. This would reduce the cost by a lot, use that money to improve the safety of the vehicle. That's it, you have a hot high. performance, high efficiency hatch.

[@genichiroashina6372]

Wtf, are you kidding

[@Ccc47373]

Among people who used to buy alto now half of them are with no car and other half buys wagonr

[@meetadi4u]

India needs quality public infrastructure and we can’t go the American route of providing cars for all . Hope car does not penetrate post top 20 percentile and even for them we need to reduce their usage and increase public transport

[@sanjeevatri980]

With new fuels n bs norms secondhand car is becomes risky business

[@maglev469]

Its best to buy a second hand rather waste it on overpriced cars