India's leading automaker, Maruti Suzuki Limited has said that it is planning to launch its new fuel efficient, Alto 800 model in the country before the festival time of Diwali.

Maruti Suzuki Alto 800 will be prices higher than the existing Alto model and will hit the market later in the financial year. The new model will come with an upgraded engine to deliver greater fuel efficacy. It will be based on a revamped Alto platform aimed at reducing the cost of the vehicle development.

The company is expected to begin a large scale production of the vehicle around July or August at its Gurgaon manufacturing plant. Company officials have not divulged any details about the model, but it is believed that the new model is undergoing various test sessions at various developmental stages.

Meanwhil, the company's sales fell 5 per cent to 98,884 units in May compared to the same month in the previous year. The company's domestic sales fell 4.3 per cent to 89,478 units and its passenger vehicle sales fell 5.9 per cent to 72,309 units.

Maruti is the market leader in the entry-level mini segment and offers vehicles at various pricing range. The fall in sales shows a falling consumer confidence and a slowdown in demand in the industry, which was been affected due to high price of fuel and high cost of financing vehicles for the consumers.