Managing director Jagdish Khattar said at a press conference that the car had been launched for customers who wanted to upgrade from the Esteem model.

"The market persuaded us to enter this segment as customers wanted to upgrade from Esteems but wanted to remain within the Maruti family," he said.

The Esteem is positioned as an entry model into the mid-size segment with Baleno at the premium upper end.

"The introduction of Baleno will allow Maruti to cover the entire spectrum of the domestic automobile market, from entry level Maruti 800 and Omni, right up to the super luxury Baleno, at the top end," he said.

Baleno was the first of many models lined up to augment the product portfolio, Khattar said. "Maruti Suzuki will devote the opening year of the new millennium to Indian consumers by bringing in a number of models across the spectrum, evenwhere there are existing models."

Maruti spokesperson said the company expected to sell about 800-1,000 Balenos per month in the remaining part of the current fiscal. During the next financial year, the company expected to sell about 10,000 Balenos, he said.

The Baleno is available in a single model in five colours - Milky White, Riveria Red, Exotique Green, Altantic Blue and Pearl Silver. The car is available off-the-shelf across the country.

The company is expected to introduce more variants of the car in future, but Khattar was not forthcoming on details. He, however, ruled out introduction of a diesel variant of the car.

The Baleno is housed in a rigid monocoque frame, combining safety features such as reinforced side pillar. The car is fitted with a 1,600cc, 16 valve Smart-i all aluminum engine. It comes with multi-point fuel injection as standard fitment to provide superior fuel-management system.The car also incorporates independent McPherson Strut suspension on all four wheels to providesuperior road grip and handling.

According to Maruti chief general manager, marketing and sales, Rohtash Mal, the engine has a very flat torque curve and delivers a peak torque of 132 Nm at a low 3,000 rotations per minute. This would translate into a fewer gear changes, smoother drive and high pick-up.

Baleno has been fitted with 13 advanced noise reduction technologies which insulates the cabin, dampen out road noise and other noise vibrations to provide a quiet drive.

Other standard features of the car include glare-free console, electronically adjustable outside rear view mirrors, speed-sensitive power steering, remote-controlled 160 watt PMPO Kenwood CD compatible stereo system and three-way adjustment for driver seat.

Maruti enjoys about 35 per cent market share in the luxury car segment with Esteem. "With the Esteem and the Baleno operating in tandem, we expect Maruti's volumes in the luxury segment to further increase and consolidate the company's leadership in the segment," Khattar said.