Toyota's pricing strategy for rebadged Maruti Baleno & Vitara Brezza unmasked

Toyota’s pricing strategy for rebadged Maruti Baleno & Vitara Brezza revealed

Toyota Kirloskar Motors Limited’s deputy managing director N. Raja has just revealed the pricing strategy his company is likely to take for the badge engineered Maruti Suzuki Baleno and Vitara Brezza. Both cars with restyling and Toyota badging will be launched in India next year. The big revelation by Mr. Raja is that both cars with the Toyota badging will be priced similar to the prices at which Maruti sells the Baleno and Brezza in India.

Here is what he said,

Though it’s too early to speak in a concrete manner, I feel that we need to match Maruti on the pricing front when we will start selling the Brezza and Baleno under our branding. That is the aspiration and the wish. Creating a differentiation in the products will certainly be challenging. Also, getting the pricing at par with Maruti will be another critical area. We will be carrying our clinics and studies to get customer feedback.

The Maruti Suzuki Baleno is India’s best selling premium hatchback, and the car consistently sells 15,000+ units every month, raking in big profits for Maruti. The company also exports the car. By offering the Baleno to Toyota, Maruti will further boost volumes of the car, and this is expected to increase profits of the company.

Currently, the Baleno sold in India gets 3 engine options – 2 in petrol and 1 in diesel. There are manual and automatic gearbox options on the petrol variants, and only a manual gearbox with the diesel. It remains to be seen if Toyota offers all three engine options on the badge-engineered Baleno.

The Vitara Brezza is India’s best selling, sub-4 meter compact SUV, and over 10,000 copies of it are sold each month. It’s powered by a solitary turbocharged diesel engine while the gearbox is a 5-speed manual unit. Toyota is likely to retain this combination on the badge engineered model.

Via ETAuto