[PaddleShifter]

Contrary to what is being said, I feel that entry level car market is price sensitive and a small increase in budget counts.

Maruti is also the market leader is low cost of ownership which can not be matched by a Tiago owner.

The reason for downfall of the entry level segment could be attributible to poor designs at present:

Example: Alto from 2003 was a proportionate car, so was Wagon-R and Celerio. Today, these three cars are disproportionate in their design. Alto feel too narrow, Wagon-R is a bit bloated at the rear but more than that, its price is now too high.

[DRPSREDDY]

A buyer of a car in this entry level segment is generally a newbie youngster who has just begun his career or who has just got a promotion from a smaller salary. Also a senior citizen who just got himself a car just to do short distances within the city. Most of them would want to have a car that is fuel efficient and bullet proof in reliability and doesn't want to risk frequenting with the service centre. Above all this segment buyers don't want to get a poor resale value. That is why they don't take a 'risk' and settle for the best selling car in the market. Hence they don't buy anything other than a Maruti as it is perceived as a car that doesn't break down and spares are cheaper and available everywhere.

Hyundai Eon, that was a gas guzzler but good reliability and spares were a little expensive than a Maruti. Also i10 was a decent seller but not at the Maruti level. Tata Nano was fuel efficient but under powered and unreliable. That same perception has hit Tiago and Tigor. All others like Datsun, Nissan, Renault, et al, were expensive to maintain.

That is why Maruti sells in the hatchback segment and due to the above factors and no one can beat them in this game unless the segment dries up on sales. Now with rising salaries and affordability, people have started looking higher and elsewhere. That has opened up the market for features. People also played safe in choosing standard colours, but now are increasingly experimenting with exotic colours. Now design and technology rule and people are willing to stretch to the next segment for better features and 'Kithna deta hai' has taken a back seat.

[Mitadru]

I feel that entry level cars are losing popularity because of their price. Back in 2008, a Hyundai Santro one segment up from Alto, costed my father some 3 lacs. It was a mid variant. Now a base variant alto without Ac or power steering costs 5.xx lacs. All they have extra over the Santro are two airbags and rear parking sensors , which again are there because government mandated it. So one can easily stretch a bit more and buy base models of Tiago or WagonR, which will have more features. Last but not the least, this increasing trend of buying SUV, most of which are lifted up hatchbacks, are also significantly decreasing the market share of every other segment.

[steadfast]

We first need to understand where is this drip coming from.
1.) If it is from metros then one can attribute many other factors such as parking woes, better public transport, traffic chaos.
2.) if it is from non urban centres then look if any other segment has picked up disproportionately
Other reasons as well ….

[Raghu M]

I think like someone pointed out, it's the social stigma that is also one factor (maybe small but definitely can't ignore) that is pushing some people away from the entry level cars. Gone are those days where car was seen as a luxury. So, buying an Alto, Celerio or Nano actually maybe giving a cheap product outlook these days. A Fiat premier commanded a lot of respect in those days but now, people have to mention that they buy only top end trims of car models to state their social standing. It's how the society has shaped up and it comes right from our childhood. The biggest culprit here is Sharma ji ka beta!! Look at him, and look at you!