Maruti Suzuki, India’s undisputed leader in affordable mobility, is facing an unexpected challenge in 2025: declining sales of two of its most iconic small cars—the Alto and S-Presso. These budget-friendly hatchbacks once ruled urban and rural roads alike, but in recent months, their sales have taken a noticeable dip.
So, what’s driving this downward trend for the country’s once best-selling models? Is it changing consumer behavior, rising competition, or Maruti’s own evolving strategy? In this blog, we break down the key factors contributing to the sales slump of the Maruti Suzuki Alto and S-Presso.
1. Shift in Consumer Preference Toward SUVs and Crossovers
Over the past few years, there’s been a seismic shift in Indian car buyers’ preferences. Where hatchbacks once dominated entry-level purchases, today’s customers—even first-time buyers—are leaning towards SUVs and compact crossovers.
Cars like the Tata Punch, Hyundai Exter, and Renault Kiger are seen as more stylish, safer, and offering better road presence. Even in the ₹6–₹8 lakh range, buyers are now considering micro-SUVs over basic hatchbacks.
This segment shift is hitting cars like the Alto K10 and S-Presso, both of which feel dated in styling, design, and cabin features when compared to new-age rivals.
2. Outdated Design and Limited Feature Set
Today’s budget-conscious buyers are still value-driven—but that doesn’t mean they’re willing to compromise on features. The Alto K10 and S-Presso, though recently refreshed, still lack several modern-day essentials like:
- Touchscreen infotainment in base variants
- Rear parking camera
- LED DRLs or projector headlamps
- Advanced connected car tech
- Proper cabin insulation and premium interiors
As newer competitors enter the market with better tech and bolder designs, Maruti’s minimalist approach—especially in the S-Presso’s quirky styling—may no longer appeal to aspirational buyers.
3. Safety Concerns and Crash Test Ratings
One of the biggest criticisms Maruti has faced in recent years is regarding vehicle safety. The S-Presso, in particular, received poor crash test ratings from Global NCAP, with just 1 star for adult safety in earlier tests. Although some improvements have been made, the perception damage lingers.
With rising awareness around crash test ratings and safety norms, especially among urban and semi-urban buyers, cars like the Alto and S-Presso are seen as less safe alternatives when compared to Tata Punch (5-star rated) or even Hyundai’s new entry-level options.
4. Rising Competition in the Budget Segment
The entry-level market, once dominated by Maruti alone, now features multiple strong contenders:
- Tata Tiago: Stylish, well-built, and with a better safety rating
- Renault Kwid: Continues to attract buyers with its SUV-inspired styling
- Datsun Redi-GO (now discontinued, but still active in used markets)
- Hyundai Exter: Positioned slightly higher but draws in first-time buyers with style and features
This growing list of alternatives is slowly eating into Maruti’s budget car market share, particularly for the Alto and S-Presso.
5. Focus Shift by Maruti Towards Higher Segments and SUVs
Maruti Suzuki itself is evolving its strategy. With the launch of cars like the Grand Vitara, Fronx, Jimny, and updated Brezza, the company is clearly shifting attention toward the compact and mid-size SUV space—where the margins are better.
Even the WagonR, Celerio, and Fronx are receiving stronger marketing support and variant diversification compared to Alto and S-Presso.
This strategy shift may be intentional: letting go of low-margin models like the Alto and S-Presso to focus on premium, higher-ticket products.
6. Electrification and Future-Readiness Gaps
With the push for electric mobility gaining momentum in India, budget cars are also being evaluated for future viability. While Tata and Hyundai are already aligning small cars with future EV offerings (Tata Tiago EV, for instance), Maruti has not yet announced electric variants of the Alto or S-Presso.
This lack of a forward-looking roadmap in the small car space could be making these models look less attractive to young, tech-aware customers who want future-ready vehicles.
7. Increasing Cost of Ownership
Over the past few years, the cost of small cars has gone up significantly—due to stricter emission norms, safety regulation costs, and overall inflation. Today, a fully-loaded Alto or S-Presso can cost upwards of ₹6–₹7 lakh (on-road), which was unimaginable even 3–4 years ago.
At this price point, buyers are tempted to stretch a bit more and opt for a better-designed, feature-rich compact SUV or a used premium car.
The value proposition, once the strongest selling point for Alto and S-Presso, is now under pressure.
8. Lack of Diesel and Strong CNG Alternatives
The discontinuation of diesel engines in the small car segment has hurt mileage-conscious rural and commercial buyers. While Maruti offers CNG variants in both Alto and S-Presso, the increasing price of CNG fuel and limited availability in certain areas is discouraging some potential customers.
Additionally, newer CNG rivals from Tata and Hyundai offer better refinement, power, and cabin feel, making them more attractive than Maruti’s minimalistic setups.
Can Maruti Turn Things Around?
Yes—but it would require a bold approach.
Here are a few possibilities Maruti could explore to revive interest in Alto and S-Presso:
- Launch new-gen models with fresh designs and better interiors
- Add EV versions to the lineup targeting affordable electrification
- Introduce better safety features and 4-star rated architecture
- Bring back strong marketing and rural engagement campaigns
- Consider subscription models or fleet-focused packages
If Maruti can combine affordability with technology and safety, it can win back its lost base in the small car segment.
Conclusion: End of the Road or a Strategic Pause?
The decline in Alto and S-Presso sales may look alarming on paper, but it reflects a larger market evolution. Indian buyers are no longer satisfied with “just a car.” They want comfort, style, features, and safety—even in their first vehicle.
Maruti Suzuki, known for its adaptability, might be strategically recalibrating its small car lineup to meet the changing market landscape. Whether the Alto and S-Presso are due for a bold new generation or a quiet phase-out, only time will tell.
But one thing is clear—the entry-level car segment in India has changed forever.
