Maruti Suzuki started its India innings with the Maruti 800 almost three decades ago. Now, the iconic brand is set to drive into history.

A replacement for the model is expected before December this year –— but, under a totally new brand.

Likely to be priced in the Rs 2.5-3.5 lakh range, this will feature the same F8D engine used in the base Alto but in a new updated avatar in order to compete with the new generation engines offered by competitors.

“A replacement for the 800cc model makes sense as it hasn't been selling very aggressively at about 2,000 units a month. This will be a totally new small car, though based on an existing platform,” a company official told Business Line .

He added that the existing two Alto models will remain since they have strong volumes (around 20,000 units/month).The market leader will focus on fuel efficiency and low maintenance as the primary drivers — the main purchase considerations in the compact segment. However, the design will be sharp and reflect Maruti's new styling language, another source said.

At present, the 800cc segment is contested by Hyundai's new Eon and Maruti's own Alto. Tata Motors is also reportedly working on an 800cc Nano, while others such as Nissan-Renault are also eyeing the segment.

“With petrol prices on the rise and urban spaces getting crowded, the fuel-efficient compact car category is expected to show strong growth in the future. However, the next step is developing smaller diesel engines for the segment,” an industry expert said.

The Maruti 800 had stopped selling in the top 13 cities in India from September 2010, as it could not meet the Bharat Stage IV emissions norms, which were made mandatory in these cities from that date. The compact car has seen several updates since launch in 1983 and was based on the Suzuki Alto, a brand which itself was later introduced in India.

> roudra.b@thehindu.co.in

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