Id been a bike owner for over 4 years, and in the winter of 2002, decided to go for a car. My budget was about 3.5 lacs, and the options were - the Santro, the Zen and the (then recently launched) Alto. Well, I decided to go for the Alto LX, and till date have had no regrets about the decision I made!
Pros
Ideally suited for Indian roads, the Alto gives new meaning to the word maneuverability! It is very comfortable to drive, has great pickup and of course neat looks. It has a powerful (but I think a bit hyped!) AC, leverages the vast Maruti network of service stations across India and has good mileage (I get about 15 kms a litre on Bangalore roads w/o the AC on).
Cons
It has an 800 CC engine, and 4-5 (well to do!) people can sometimes give the engine a bit of a strain. The AC is powerful, no doubt, yet compromises on the pick-up and the power of the engine. Resale value not as high as the Zen or the 800, but with more Altos on Indian roads today, the situation seems to be improving.
My recommendation
If its your first car, go for it! Some very easy and lucrative car financing options are available through Maruti finance.