Updating review as new cars have joined the competition (and after years of driving several cars):
ALTO Lxi is a very basic car with good acceleration (not best)
A/C is powerful but drains usable engine power by atleast 30%
Ride quality is "good" with factory tyres. any upgrade to wider tyres will deteroriate ride plushness.
Light on pocket - maintenance wise.
FE varies between 13 to 16 kmpl in city and approx 20 on highways for 800cc.
Door panels rattle after 2-3 months of abuse on bad roads.
Ground clearance is not a problem (shorter wheelbase)
Not inspiring dashboard/no modern feel/budget plastics.
Excellent maneuverability.
Bucket seats (and slightly lowered seating) provides better ergonomics and thigh support to back, hip and thighs.
Bad rear seat space. But we indians are good at stuffing 4 average fellows at time of need.
Decent boot space in segment.
Very good resale value.
Bad driving makes the car also bad. (Handle with care for long service and usable life in car)
Early ball bearing wearing issues.
Misses the detent pin gear shift.
Very good braking in its segment.
Don’t go for LX, Lxi is much better with power steering.
Alternates: Spark or EON
Santro/i10 etc are much feature/technology loaded and do not compare (different segment).
This car (my first car) had done 17, 000 kms (15 months) when I sold it back to Maruti True Value for 2.7 lakhs in excellent condition to upgrade to other luxurious car. The person who purchased it second hand from True Value paid 2.9 lakhs.... (20K commission by True-value, my goodness)... I sometimes regret of selling it, I could always retained it as my second car and I only wish if the new owner can return this first love of mine.
The bottom line is when you zero-in for ALTO, you are not going wrong. you have selected the right car with decent engine performance, great life. However you must compromise on A/C and rear seat.. Anyways, its not a luxury car.