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Old 5th May 2021, 20:47   #31
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Default Re: The curious case of the Maruti Alto and its pricing!

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Originally Posted by Emvi View Post

Maruti launched Alto way back in 2000 in the price range of 2.7 to 2.9 lakh rupees. And now, 21 years later Alto range still starts from 2.99 lakh rupees. Astonishing! Let's not forget, today even the base model is equipped with driver side airbag, ABS and reverse parking sensors. And yes, for once let's not get into the discussion/argument regarding how safe/unsafe the car is. Over the period, Alto has undergone minor and major facelifts, changes to the platforms/body panels, feature additions and a lot more. One thing that hasn't changed much is the pricing!
I had a 2005 Alto Lx and once I sat in an Alto from around 2012 or later. The difference in build quality was shocking. The bonnet of the newer Altos easily flexes by applying hand pressure which didn't happen in my old Alto. In fact I would say the body panels of the old Alto are much more thick and robust than even my 2017 Ciaz. The interiors of the newer cars are also made of cheap and flexible plastic while in the older cars it was much thicker and higher quality.

I remember I once took the car to Maruti service center and the service advisor commented how good the build quality my old Alto was and how the new ones are more like disposable items.

Also the newer Altos have various small features deleted like headlight levelling switch, child locks, etc., adjustable front headrests, rear seat headrests etc.

Maruti has been able to maintain the price because they have done huge cost cutting in the vehicle and it is not comparable to the initial Alto launched in quality.
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Old 5th May 2021, 22:42   #32
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Default Re: The curious case of the Maruti Alto and its pricing!

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Originally Posted by Foxbat View Post
I had a 2005 Alto Lx and once I sat in an Alto from around 2012 or later. The difference in build quality was shocking. The bonnet of the newer Altos easily flexes by applying hand pressure which didn't happen in my old Alto. In fact I would say the body panels of the old Alto are much more thick and robust than even my 2017 Ciaz. The interiors of the newer cars are also made of cheap and flexible plastic while in the older cars it was much thicker and higher quality.
I am not sure about the body panels, but I completely agree that the quality of materials used was definitely far better in the earlier models as far as dashboard and door pads/panels are concerned. Even the quality of seat fabric seems inferior in a present day Alto.
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Old 8th May 2021, 13:18   #33
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Default Re: The curious case of the Maruti Alto and its pricing!

For low cost cars such as Alto, The margins are less but sales numbers are big which translates into good profits. Second earning is from sales of spare parts during servicing. A large number of dealers earn more from servicing than Ex-showroom sales of new cars. Proportionately, Suzuki also earns from sales of spares. This keeps the clock ticking.
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