Prerna,
M800 was a bit too old in the market compared to cars of other car companies. Maruti decided to retire it and replace the entry level slot with the next best hot selling item i.e Alto. Also this helped Maruti trim its offerings and concentrate more on the Alto. The Alto with the K-series engine only helps in increasing sales as people get more bang for buck or VFM as they call it.
Do you think it costs Maruti more to produce and Alto as compared to an M800. Obviously not. Its all about branding and positioning itself in the market.
Similar to M800, Hyundai decided to retire the Getz. It was not because the Getz was not gathering any numbers, but because it wanted to concentrate on i10 and Santro as compared to the Getz.
HTH. Open for comments 
Others drive to live.
I Live-2-Drive!
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