According to Maruti Udyog managing director Jagdish Khattar, introduction of the Baleno at the top end of the mid-size segment will allow the company to cover the entire spectrum, with Maruti 800 and Omni at the entry level and Baleno at the top end.

"It will also enable existing Zen and Esteem owners to upgrade within the Maruti family itself," he added.

With the launch of the Baleno model in the top end premium mid-size segment, the number of models from the Maruti stable would go up to seven. Baleno comes with a 1.6 litre, 16 valve engine, which delivers a output of 98 bhp.Though the company was non-commital on price, it said that the final price would be announced at the time of the launch and reflect "the superior product offering," a company release said.

The release adds that the Baleno has been engineered to deliver optimum performance across all parameters to make it stand out on the critical parameters of performance, comfort and design. "The Baleno would be backed by Maruti's traditional strengths that stem from being a part of India's largest automobile manufacturer," the company said. The company's Esteem model with a price tag of Rs 4.14 lakh (ex-factory) will continue to be the entry level offering for the mid-size segment. The Esteem model presently enjoys around 35 per cent market share in the mid-size segment, the company claims. "With the Esteem and the Baleno operating in tandem, one at the entry level of the luxury segment and the other at the upper end, Maruti expects to strengthen its dominance of the luxury car segment," the company said.