Maruti’s AGS Alto K10 could cannibalise Celerio AGS sales

In what could come as a dampener to the recently launched Maruti Celerio Auto Gear Shift (AGS) hatchback, Maruti Suzuki India’s latest kid on the block – the next-gen Alto K10 VXi (AGS) variant – could end up cannibalising sales of the similar technology Celerio.

A salesman at the Rana Motors’ dealership of the carmaker told Autocar Professional that with the most affordable AGS option in the market today being fitted in the entry level Alto K10, some prospective buyers have begun gravitating towards it due to its lower price tag in comparison to the Celerio AGS.

What further tilts the scales in its favour is that both car models sport the same technology and the same 1-litre petrol engine. Being positioned in two different car segments – A and B – is not proving to be a major deterrent for some. So does that mean that the AGS variant of Alto K10 could shave off some of the Celerio sales?

“It is possible,” admits Mitul Shah, automotive analyst at brokerage firm Karvy Stock Broking. He says that there is no drastic difference between the Celerio and the Alto K10 other than the size and shape. The new Alto K10 though slightly inferior in comparison, carries a price difference of almost Rs 50,000 on the AGS fitment that will attract buyers. He estimates that a 20-30 percent cannibalisation of the Celerio AGS is on the cards but overall there will be an incremental increase in AGS volumes for the carmaker. He expects that between a 4-6 month timeframe, the AGS option in the Alto K10 could chip in 40-50 percent of total sales while in the Celerio it could be down to 25-30 percent.

At present, the AGS Celerio is clocking 40 percent of its total sales while Maruti Suzuki has projected that the AGS will contribute 20 percent of the sales in the new Alto.

Also both cars have a similar waiting period for the AGS variants with the Alto K10 having a waiting of 16-18 weeks and the Celerio has of 14-16 weeks.