Suzuki Alto News

Japan is on a roll. Not since the heyday of the ’80s and early ‘90s has its car industry been so confident and progressive, taking wild chances when – in the past – things would have been played way too safe.

Australians used to be spoiled for choice.

Australia is regarded as one of the world’s most sophisticated and mature vehicle markets. We’re right up there with the richest.

Flares have never gone out of fashion in Japan and the annual Tokyo Auto Salon shows why.

The small-car segment has plenty of options - the players are frugal yet safe and well-appointed. Here are the best buys under $16K.

The new family of engines will give 15 Toyota and Daihatsu models an efficiency gain of up to 30%, including Toyota's new Yaris due in 2015.The Yaris will be battling for top spot in light car sales with the upcoming Mazda 2 and Ford Fiesta, which will have similar efficiency gains from its skyactiv and EcoBoost technology respectively. The new engines could also help the rumoured upcoming Toyota Rush become the one of the most efficient SUVs in Australia.The 1.3-litre and 1.0-litre power plants have been co-developed with Toyota's small car brand, Daihatsu. Both units take advantage of an Atkinson cycle, which increases the compression ratio and reduces waste heat to operate more efficiently. However, the Atkinson cycle produces less power than ordinary engines, which has limited its use mainly to Hybrid cars until now.But Toyota has packed both engines with technology to help retain maximum power while optimising economy. A range of new developments will help the engines breathe better, achieving optimal efficiency. For example, the 1.3-litre will have a cooled exhaust gas recirculation (EGR) system, a redesigned intake port and electronically controlled variable valve timing (VVT-iE).Both engines are designed to be compatible with stop-start technology, which cuts out the engine in traffic to save fuel. This system is currently limited in small cars to premium offerings, such as the Mini Cooper or the Volvo C30. However, Toyota and Daihatsu could be utilising this feature in the most basic entry level cars.Both engines will commence production in coming weeks, but we may only get the larger 1.3-litre engine in Australia initially. However the efficiency gains in the 1.0-litre engine could increase the incentive for Toyota to offer a cheap entry level car sourced from Daihatsu, to rival the Suzuki Alto, Nissan Micra and Mitsubishi Mirage. 

Don't expect new-car prices to suddenly drop by 5 per cent now that a Free Trade Agreement has been signed with Japan -- where 35 per cent of all new cars sold in Australia come from -- but you might get some extra equipment.In fact, if the value of the Australian dollar takes a dive and/or the Japanese government decides to stop under-valuing the Japanese Yen (to boost exports), the prices of Japanese cars could actually go up.The exchange rate between the Australian dollar and the Japanese Yen has moved by 60 per cent over the past 10 years (far greater than the 5 per cent difference we're supposed to be getting excited about), and at the moment all the odds are in our favour. Aside from the fact that no-one pays full price for new cars these days, the RRPs of popular Japanese cars are already at 20-year lows.The Toyota Corolla and Nissan Pulsar start at $19,990, the same price they were two decades ago despite being bigger, safer, more efficient and loaded with extra equipment. Furthermore, it's important to note that the 5 per cent tariff cut comes from the price of the car out of the factory gate.So, using a $19,990 car as an example, and taking an educated guess at the wholesale price of the car when it is unloaded off a ship, the 5 per cent cut will come off the "landed" price, say, $15,000. And 5 per cent of $15,000 is just $750.Then add 10 per cent GST, the wholesale margin, the dealer margin and transport costs and you end up somewhere near $20,000 as the retail price of the car, before on-road costs are added. So where's your $750 discount, we hear you ask? Well, we already have a convenient example of where it will likely go: extra equipment at no extra charge.The Toyota Corolla hatch is currently made in Japan and costs $19,990. The Toyota Corolla sedan is currently made in Thailand (with which Australia already has a Free Trade Agreement, so it does not get hit with a 5 per cent tariff) and it is dearer than the hatch: $20,700.That's because the sedan has a rear-view camera and rear parking sensors as standard and the hatch does not. Toyota chose to fit worthwhile safety features rather than trim the price.Now that a Free Trade deal has been signed with Japan, don't be surprised to see Toyota make the same changes to the Japanese-made hatch, adding extra equipment rather than cut the price. Providing, of course, the currency doesn't tank.Then there is the issue that some Japanese cars aren't actually made in Japan. Did you know the Suzuki Alto, at $11,990 one of the cheapest cars on sale in Australia, has a Japanese badge but is made in India?The same goes for the $12,990 Nissan Micra (which used to be made in Thailand and Indonesia and now comes via India). So don't expect a 5 per cent discount on those cars.And most of the Japanese branded-utes (the third-biggest vehicle category in Australia) such as the Toyota HiLux and Nissan Navara, come from Thailand so already benefit from a Free Trade Agreement.There may be more wriggle room on the prices of dearer cars sourced from Japan, but car makers are careful to not destroy the resale value. They go to great lengths to keep prices constant, often riding the currency wave themselves so people don't lose as much money on their cars and hopefully come back to buy another one, sooner. If prices were to tumble as the Government would like us to believe, then guess what? Your car is suddenly worth less at trade-in time.For example, how would you feel if you paid $40,000 for a Japanese car and then, two months later, your neighbour paid $38,000 for an identical model? You've just ripped up an extra $2000 on the resale value of your car, and your neighbour is $2000 in front because $38,000 will become the price the car is judged against. There is no doubt the Free Trade Agreement is ultimately a good deal, but this is a case of be careful what you wish for.This reporter is on Twitter: @JoshuaDowling 

New-car prices will hit new lows between now and the end of the month as Japanese brands push to reach their sales targets before the end of the Japanese financial year, which is March 31.March is typically the second-biggest month of the year for new-car sales behind June, the end of the Australian financial year. The good news for car buyers is that the heavy discounting from the Japanese companies also brings down prices across the industry as rivals try to compete.The profit margins on some cars are so slim that dealers claim they only make money on window tinting -- and finance if arranged through the dealership. Last year, the Toyota Corolla and Nissan Pulsar had their prices wound back by 20 years to $19,990, and others followed.The Japanese Government has for the past 12 months artificially devalued the Yen to boost exports and keep their car factories running at full capacity. Car companies and dealers refused to comment on-the-record about the "D-word" -- discount -- but a search across the industry found some sharp deals on popular cars.The cheapest models from Japanese brands are the Suzuki Alto ($11,990 drive-away) and the Mitsubishi Mirage ($12,990 drive-away), both about $3000 off their full recommended retail prices. Despite their bargain prices both five-door hatchbacks come with the latest safety features, including six airbags and stability control.Meanwhile Suzuki has the cheapest small car below $20,000 with a built-in navigation system: the special edition Swift Navigator is $16,990 drive-away, about $3500 off.Nissan's website says its Pulsar small car is $22,315 drive-away but we found several dealers prepared to sell one for $18,990 drive-away, more than $3000 off. "We'll sell you a car but there's nothing in it for us," said one Nissan dealer who did not want to be named. "That's a white car with manual transmission and standard-issue number plates." Automatic transmission typically adds $2000, metallic paint adds up to $550 on some brands and, in NSW, premium number plates cost about $60 more than standard-issue plates.The only people not celebrating the sharp new-car prices are the dealers. "It's not uncommon to not make a dollar on the car," said a Mitsubishi dealer. "We hope to make it back on accessories, finance or when the customer comes back to get the car serviced."Car dealers typically get a commission of about $1200 on the finance on a $20,000 car -- if the finance is arranged through the dealership. "That's more than the profit on the car," said another dealer. Buyers might also get lucky if the dealer is a few cars short of their monthly sales target."Sometimes you'll rip up a car (sell it below cost) in the last one or two days of the month, just to get over the line," said one multi-franchise dealer principal with more than 20 years' experience in the trade. "That sale could mean the difference between getting a big bonus from the factory, or nothing."The biggest discounts are on the dearest cars. The Nissan 370Z sports-car is now $59,990 drive-away, it was $72,000 plus on-road costs the same time last year, a saving of about $15,000. The Nissan Leaf electric car is now $39,990 drive-away, compared to $51,500 plus on-road costs when it was launched two years ago, a saving of about $14,000 off the full RRP. The Mitsubishi Pajero GLX-R 4WD wagon is now $54,990 drive-away -- it is normally $60,000 drive-away -- but dealers we spoke to said there was at least a further "$1000 to $2000 wriggle room" left in this deal.For those looking for a family sedan the locally-made Toyota Camry can be bought at a discounted price of $29,990 drive-away with Toyota's 1 per cent finance, about $3000 off the full RRP -- and more than $3000 off the repayments at market interest rates. This deal is unique because, customarily, low interest rate offers apply only to the full RRP of the car, which is how the car companies fund the deal.In most cases it is cheaper to arrange your own finance and haggle hard on the price of the car. But Toyota has bucked this trend by offering a low interest rate as well as a drive-away price on the Camry to keep the struggling Toyota factory at Altona running.Meanwhile the Mazda CX-9 Luxury SUV normally sells for $52,980 plus on-roads, but it is now $51,990 drive-away, a saving of about $5000 off the full RRP. But as with the Mitsubishi Pajero deal, Mazda dealers say there is still a further $1000 to $2000 to negotiate off the luxury version of the Mazda CX-9 if buyers sign on the dotted line by the end of the month.This reporter is on Twitter: @JoshuaDowling 

Hot on the heels of its global debut in New Delhi this week, Suzuki will show its new Celerio sub-light hatch at the Geneva motor show next month.Described as a new global A-segment model, the new Celerio – which will likely be rebadged Alto for Australia – will replace the existing generation which is produced in two distinct versions between Japan and several other markets including the Indian-built Australian Alto.Thanks to a leaked brochure, we can confirm that the Indian-spec model will retain the current 50kW/90Nm 1.0-litre three cylinder engine, but has grown 100mm in length, 90mm in height, with 65mm added to the wheelbase.Seating capacity has expanded to five for the Indian-spec model, but it is unclear at that stage whether Australian models will also grow from the current four-seat layout.The brochure also noted a cargo capacity of 235-litres, which is more than double the current model’s 110-litre rating.Suzuki claims the model boasts “an outstandingly roomy interior for an A-segment car as well as class-leading low CO2 emissions.”This suggests an improvement from the current model’s combined fuel consumption figures of 4.7L/100km in five-speed manual and 5.3L/100km with the four-speed automatic.Australian spec and availability are yet to be confirmed, but based on the timing of its New Delhi and Geneva appearances, we can figure on a local debut towards the end of the year. 

The leaked images are from a brochure for the Maruti Celerio, the replacement for the Maruti A-Star nameplate the Alto wears in the Indian market.The car is being unveiled tomorrow at the Indian Auto Expo in New Delhi, but the brochure has been leaked online by Autoportal, showing the exterior and also specification for the new car.The five-door hatchback gets fresher looks, and has grown in some directions: the 1600mm width is the same but the 3600mm length is up 100mm, the 1560mm height is up 90mm and the 2425 wheelbase is 65mm longer.The brochure describes the newcomer as a five-seater, but with the width not having increased, it's likely Australian cars will continue as four-seaters. However luggage capacity looks to have increased from the current 110 litres to 235 litres.But not much has changed under the skin. The new car is powered by the Alto's carryover a 1.0-litre three-cylinder engine,  developing 50kW and 90Nm with the options of either a five-speed manual and an automatic transmission.This will be the fourth generation of the Alto to arrive in Australia, and while local cars often add more than the spec lists of the Indian versions, the brochure shows features include wing mirrors with turn indicators (not currently on our Alto).This reporter is on Twitter: @KarlaPincott