Maruti may be not developing a 1 lakh car to compete Tata’s Nano, but certainly Maruti is not keeping quite, ignoring the competition. Secretly the company is developing a striped down version of its best seller Alto, and plans to price it in the Rs. 2 – 2.5 lakh.
Maruti has already started sourcing parts for an engine for the new Alto—codenamed YP3—which will be a two-cylinder engine according to Financial Express which was confirmed by a vendor.
The car will be launched in the second half of 2011 and will target the Nano customers. Maruti with drew its best selling M800 from 13 cities due to emission norms. The company’s idea is to have a product at every price point.
Maruti earlier announced to invest around Rs. 6,000 crores to increase production and build new plants.