Toyota Glanza – Budget price hatchback in Indian market

Toyota Glanza: The Toyota Glanza proves to be one of the most interesting case in today’s day of automotive marketing strategy in India. First Born as a result of the Toyota-Suzuki global partnership and launched in 2019, this premium hatchback is more ...

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Toyota Glanza: The Toyota Glanza proves to be one of the most interesting case in today’s day of automotive marketing strategy in India.

First Born as a result of the Toyota-Suzuki global partnership and launched in 2019, this premium hatchback is more or less the well proven Maruti Suzuki Baleno in a new outfit with slight cosmetic changes.

But with some shrewd placement, warranty impetus, and purposeful harnessing of Toyota’s almost obscene levels of brand equity, the Glanza is proving to be more than just a rubber stamp job: it’s a university lecture on how the perception of value can rise above that of metallurgical disparity.

Genesis and strategic context

Toyota Glanza

The Glanza is the result of a global partnership between automobile behemoths Toyota and Suzuki that was made public in 2017.

The deal was a case of give and take: Toyota wanted to tap into affordable small car knowledge for emerging markets, while Suzuki was after Toyota’s hybrid expertise as well as help securing a foothold in the premium space.

With its dominant 40%+ market share in India and recognition of Toyota’s premium positioning, the country proved to be an ideal testing ground for this close cooperation strategy.

It was a wise decision to base Toyota’s first cross-badged product on the Baleno. Baleno was already successful in Maruti’s premium NEXA channel and had a premium hatchback credentials and was not directly rival to Toyota’s current cars in the market.

Design Philosophy: As little as possible.

The Glanza, aesthetically, is virtually identical to the Baleno. The difference comes from differences in the front grille treatment, badge treatment and slight trim differences.

This circumspect approach was a departure from the kind of heavy-handed badge-engineering that would see a far more thorough visual reinterpretation.

But in this case, the low differentiation was a calculated risk based on maintaining cost efficiency and the well-established ‘good looks’ of the former, and finding out whether the Indian consumer was willing to buy into Toyota without an overwhelming difference in the physical product.

This philosophy extends to the cabin, which shares almost identical dashboard architecture, infotainment systems and materials.

Switchgear, seat designs—all the interior kit comes directly from Toyota without being tarted up beyond their Suzuki identifiers being replaced by Toyota emblems—a rare confluence of interests in rebadging projects where they usually try to create a marque-specific cockpit feel.

Mechanical and Driving. .. Structure

Mechanically, the Glanza was initially (upon launch) offered with two 1.2-litre petrol engines (same as the Baleno) – a regular K12B engine generating 83PS and a mild-hybrid K12C DualJet motor with a 90PS power output and better fuel economy.

After the 2022 facelift, the range was reorganized around the improved K12N DualJet engine including the idle start-stop system.

It will be available with a 5-speed manual or a CVT, which makes the mechanical package identical to its Suzuki sibling. The best in class performance of this power train ensures the efficiency and smoothness commensurate with the premium hatchback category.

The driving experience also retains the Baleno’s nicely judged balance of comfort and competence: light, easy steering for city streets, predictable handling and suspension set-up that favours suppleness over sporting pretensions, which sounds about right for the kind of people – and we’ll come to that in the showroom section in a moment – Suzuki expects to be looking at a Baleno.

Differention Through Ownership Experience

Near identical styling, equipment and mechanicals aside, Toyota added real driver differentiation over the ownership period.

The USP that was stared in the face was through the warranty package 3 years/100000 kms warranty on a standard, as against Maruti’s 2 years/40000 kms.

This warranty advantage offered great value to our customers seeking ownership security in the premium hatchback segment.”

A world over- there would be buyer’s who would associate with Toyota’s image of sturdy and long lasting (we’re talking psychologically buying in;)) vehicle (all this despite the fact that the vehicle in its completion is born out of the factory of Maruti Suzuki).

The ownership proposition was further differentiated by the service experience. Toyota’s dealership network here usually caters to fewer buyers compared with Maruti’s high-volume network and may provide a better shopping experience.

Status-conscious buyers upgrading from something like a mainsteam hatchback liked the premium image of Toyota service centres, their rigorously ordered processes and international standards.

Performance and Consumer Response in the Marketplace

This is a GCC version of the Glanza that was offered as an entry level model for Toyota a little more expensive than a similar Baleno.

This pricing recognized the practicality of the deal, and then created the value for the Toyota ad the better warranty as the upcharge.

Initial market skepticism for the badging strategy was succeeded by some degree of sales success over time. The Glanza normally delivers 1,500-2,500 units every month —

enough to move the needle for Toyota in India, but not enough to challenge the Baleno that sells more than 10,000 units month-on-month.

This is a testimony to a defined set of customer willing to shell out the extra money for Toyota brand values, despite knowing well the Suzuki history of the vehicle – a remarkable view inside the brand mindset in the growing Indian automotive space.

Evolution and Prospect foresight

The 2022 model update made the Glanza fit more into the Toyota’s global design philosophy with a refreshed front fascia featuring a bigger grille and distinct LED headlamps signature.

This change indicates that as the alliance ‘matures’, Toyota will increasingly distinguish cross-badged products from each other.

The success riding on the Glanza’s success paved the way for more such cross-badging with the Urban Cruiser — based on the Vitara Brezza — and subsequently the Urban Cruiser Hyryder — which borrowed heavily from Toyota including hybrids.

A partnership moving from basic rebadging, toward cooperation at a deeper level which will likely include sharing technology, and finally, possibly, co-developed models featuring more individual brand identities.

Mahindra Scorpio N:

The Glanza has become a lot more than just a badge-engineering exercise for marketing purposes, as far as the Toyota Glanza is considered.

It’s an intriguing experiment in brand equity, strategic partnership management and the changes in manufacturing partnerships in a rapidly consolidating auto industry.

And for its customers, it provides real value in the form of additional warranty and Toyota’s service backing. What it offers industry watchers however, is a glimpse at how two heritage brands can pool their expertise and come together as business partners, without losing some of their identity –

something that’s increasingly important in an era of soaring development costs and technical challenges.

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