Maruti Suzuki Limited has decided to replace it's one of the best selling car Maruti 800 and Alto from Indian streets with a more trendy, economical, powerful and a more contemporary models. The company is planning to introduce these new models in next two years. The Maruti 800 has already been phased out from the top metro cities due to stricter emission norms. The company has taken the decision to replace these models after a series of complains from customers. The company is confident that these new models will meet the requirements of customers.
The decision of the company can be influenced by the stiff competition in domestic markets. Maruti 800 and Alto are facing serious competition from Tata Nano, Chevrolet Spark and the new Hyundai Eon. The company is mindful about the needs of the customers and is developing new strategies in order to combat the stiff competition from existing players in market. The company has joined hands with Fiat to acquire diesel engine so that more fuel efficient engines could be developed. Though the new model will be available for sale in India, the company is also planning to export it to non EU regions namely Latin America, Northern America and Asia. This replacement exercise will cost the company Rs.550 crore.