Tata to launch a new small car by 2012

Tata Motors, India's largest car maker (as per revenue) is now planning to launch a new small car at a completely new platform. The company is working on an all new compact small car codenamed as Dolphin, which will target customers who can spend out little more. According to some news reports the all new car will be positioned between the Tata Nano and Indica Vista and will possibly be priced around Rs 3 lakh.

It is expected that the model will be developed at an all new platform and will possibly be powered by an 800 cc to 1 litre engine. After the launch this new model will compete with some popular cars in India including Maruti Alto, Maruti Wagon R and Hyundai Santro Xing. The new small car will hit the Indian roads by year 2012. According to market watchers, having a presence in the compact car is absolutely critical for Tata Motors as it is one segment where it is absent. The segment constitutes close to 50 percent of the total small car market.

As many of major cars around the world are working hard to acquire a significant market share in small car segment in the country by launching their latest small cars in India, the segment has become very competitive. Tata's popular cars in India includes Tata Nano, Tata Indica, Tata Indigo CS, Tata Sumo Grande and Tata Safari.