We were always wondering where the new Baleno would fit in. If you see the pre-launch discussions, there was scepticism as we expected it to be priced higher. Then, Maruti pulled off a coup by pricing it closer than expected to the Swift. The Baleno’s positioning became clear right then. If you like the Swift, but want something bigger, the Baleno is for you. While the Swift is still a competent hatchback selling over 17, 000 units each month, those looking for more cabin space, better quality and a more upmarket feel were forced to look outside of a Maruti showroom.
With the introduction of the Baleno, Maruti has given its customers an option to upgrade to a product from its own stable. Because Nexa dealerships need to cover their investment, the company has decided to sell it through that premium dealership network. That’s in conflict with brand Nexa’s positioning as the Baleno isn’t a’truly premium’ car. The smaller Nexa network will also limit the reach of the car across India. We find it to be a flawed strategy.