Strong Baleno demand prompts Maruti Suzuki to step up production capacity

Strong demand for its premium hatchback Baleno is prompting Maruti Suzuki to increase production capacity, with the company reporting average monthly sales of about 16,500 units over the past five months and a back order for the model.

Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India Ltd., said the automaker was working on capacity expansion and expected production of Baleno and other brands to increase further over the next two to four months.

According to him, the premium hatchback segment has been growing at around 17%, while Baleno sales have grown by 28%. However, he said the recent Baleno refresh was part of a long-term strategy to strengthen the brand rather than a response to any pressure on sales.

Partho Banerjee said, “It’s not like there is some pressure on sales; that’s not why we are doing this upgrade. We are doing it to give a much better experience to our customers.’’

Vendors were working about 6.5 days a week to support production, while retaining half a day for equipment maintenance, he said adding, “Just producing vehicles was not the focus for us, but our focus in on quality.’’

The automaker has sold 1.9 million units of Beleno since its launch in 2015, making it one of Maruti Suzuki’s key products in the premium hatchback segment. Mr. Banerjee attributed the model’s sustained popularity to its styling (glam), brand strength, pricing and the balance between features and variant choices. “Every third premium hatchback sold in India is a Baleno,” he claimed.

Onam season sale

Maruti Suzuki expects demand to remain strong during the upcoming festive season. However, production would initially have to be balanced between the Baleno and Fronx as both models were manufactured on the same line, Mr. Banerjee added.

Highlighting its performance in Kerala, he said Maruti Suzuki’s overall Vahan market share had touched 60% during the Onam period. While the company reported an 81% increase in sales during Onam, it cautioned that the growth figure needed to be viewed in the context of last year’s sales being affected by customer uncertainty ahead of the GST rate announcement. The company said the increase in market share was a more significant indicator of its performance in the State.