Deepak Patel/Business Standard

Maruti Suzuki India (MSIL) on Monday, September 2, 2024, reduced the prices of certain variants of two mini cars, Alto K10 and S-Presso, by up to Rs 6,500 amid a significant drop in their sales during the last several months.

In August, MSIL sold a total 10,648 units of the two mini cars, recording a drop of 12.8 per cent year-on-year (Y-o-Y). 

'The company announced a reduction in prices of select variants of Alto Kl0 and S-Presso with effect from today, September 2. Price of S-Presso LXI Petrol has been reduced by Rs 2,000 and price of Alto K10 VXI petrol has been reduced by Rs 6,500,' MSIL stated in a notice to BSE.

S-Presso LXI petrol was till date priced at Rs 5.015 lakh and Alto K10 VXI Petrol was priced at Rs 5.06 lakh. Now, with price reduction in effect, their prices have reduced to Rs 4.995 lakh.

The demand for small cars in the Indian market has been decreasing for the last several months. MSIL is the leading player in the small car segment.

In 2023-2024, MSIL was able to sell just 51,424 units of Alto K10 and S-Presso, recording a drop of 17.3 per cent Y-o-Y.

On August 27, during MSILs annual general meeting, its Chairman R C Bhargava stated that the demand for small cars -- hatchbacks and sedans -- is likely to revive by March 2026.

'We do expect the demand to revive. I think the nation has a need for small cars and we are waiting. Maybe by the end of 2025-26, we should have this segment coming back...' Bhargava said. 'We firmly believe that low cost and small cars are necessary in our economic and social conditions. A temporary setback in demand is not going to change our strategy.'

MSIL's overall wholesales have also dropped in July as well as August. The wholesales of MSIL in August stood at 143,075 units, which was a drop of 8.4 per cent Y-o-Y. This was due to the company dispatching fewer vehicles to dealers as the latter already hold a high number of unsold inventory.