Alto, Eon & Nano Fight Past Diesel Car Mela

Published: Wednesday, March 21, 2012, 12:06 [IST]

Low Cost Petrol cars such as the Maruti Suzuki Alto, Tata Nano and the Hyundai Eon have performed very well amidst all the hype around diesel cars. The Indian car buyer continues to prefer these small cars that are cheaper to buy and maintain. Increasing bank interest rates has also made people prefer the cheaper petrol cars than the more expensive diesel cars.

Small cars such as the Maruti Suzuki Alto continue to have a dominant presence in the market. The Alto remains India's best selling despite competition from the Hyundai Eon and Tata Nano. All these three car put together have accounted for more than 50,000 sales for the first time in several months.

Cars priced below Rs.3.5 lakhs bore the brunt of the damage when car sales dropped to alarming levels last year. But there has been a consistent increase in their sales in the first two months of this year. Although the pre-budget rush to buy cars can be one reason for their improved performance, the possibility of lower interest rates is also acting as a helping hand.

These small cars deliver better mileage than larger cars. Their running costs is also lower than diesel cars. Many people who preferred big cars have switched to cars such as the Eon, Alto and Nano liking their low maintenance costs.

Carmakers such as Maruti Suzuki and Hyundai motors have welcomes the growth of the entry level car segment. But they also say the premium hatchback segment which includes cars such as the Swift, i20 and Ritz has grown faster due to the availability of diesel engines. There is little doubt that diesel cars continue to be attractive, but one cannot ignore the resurgence of the low cost car.

Article Published On: Wednesday, March 21, 2012, 12:06 [IST]

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