Maruti Suzuki to phase out A Star and launch new YRA premium hatchback?
This decision was taken due to declining sales of both these models amidst rising competition in this segment in India, reports ET. Both, Estillo and A Star were once the rage among the Maruti Suzuki portfolio. Increased competition in this segment of the auto industry has resulted in falling sales of both Estilo and A Star which slipped way below expectations in the current fiscal.
Models such as the WagonR, Swift and DZire were more in demand, which has resulted in the company taking this decision to phase out both the models. Production has been scaled down considerably and during the month of September, the company produced just 3 Estilos and 7170 A Stars, out of which 6500 were exported. The phase out will be gradual.
While falling sales were cited as the main reason for phasing out the A Star, there is another reason for the same. Nissan has culled the Pixo, which is a rebadged A Star that Maruti Suzuki supplies to Nissan Europe. Exports to Europe had dwindled and this coupled with low domestic sales has made the company take this drastic decision.
In keeping up with the growing competition, Maruti Suzuki is working on launching a range of new cars, with new powerful and efficient engines. They have already started testing YL1 sedan and YL7 hatchback, which have also been spied on a number of occasions. YL1 sedan will replace the existing SX4, another of their not-so-good performers, while the YL7 is an entry level hatch, expected to compete with the likes of Hyundai i10. Apart from this, a premium hatchback will also be launched, codenamed YRA, reports Financial Express. Maruti YRA will compete with the likes of Hyundai i20, Volkswagen Polo, upcoming Honda Jazz and Skoda Fabia.