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The launch of new Tata Nano is giving companies on focusing more and giving sleepless nights even to the market leading Maruti Suzuki.

The Maruti might cut down with its price on the current Alto car to compete the upcoming launch from Tata, the people’s car Tata Nano in India on 23rd March 2009.

As per the industry sources are to be believed, the Alto will soon receive a makeover to keep its market share intact after the Nano becomes available in large numbers. However, any alterations in the Alto - technologically and price-wise, will be made only after the initial response to the Nano has been properly gauged. Maruti has a long time to do that, with Tata Motors’ new plant at Sanand still not ready to function. The Sanand facility is expected to become operational not before 2010. The first few batches of the Nano will come from Tata’s Pantnagar plant in Uttarakhand which can produce only a few thousand units a month.

The base variant of the Maruti Alto is currently priced at Rs.2.3 Lakh. While it may never match the Nano’s price, the Alto can still be ‘optimised’ to cost lower than it does and give decent competition to the Nano. Early reports had talked about the Maruti 800 being redesigned and re-specced to challenge the Nano, but that no longer seems feasible because it will be too expensive to upgrade the 800 to meet the Euro 4 emission norms.

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