Friday, March 6, 2009

Buy 2 Nanos or 1 Alto?

Is it nightmare days at Maruti Suzuki? 800 can’t be coaxed to do Euro 4, and that leaves only Alto to withstand the upcoming Nano deluge. The problem? Now you can buy two Nanos at one Alto’s price! So, Alto Standard is going to climb down from its 2.3 lakh price position. Maruti is pinning its hopes on Alto’s 800 cc (Nano is just 624) and bigger size. Tata also can’t service the acute demand for small cars – its paltry supply of 5000 units for 2009 doesn’t stand a chance with Alto’s annual sales of 2 lakh units. But even after Nano’s mother plant in Gujarat becomes operational in 2010, Tata’s biggest problem will be Tata itself – its brand image, customer satisfaction, and dealer support. And once the economy looks up, and Toyota, Honda, & GM come out with their own sub-5-lakh compacts, the market will turn unpredictable for both Maruti & Tata.

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