New Delhi: With many carmakers planning new products for the crowded, yet ever-popular A2 small car segment, Fiat India said on Friday that it plans a new compact car in the Rs 3-4 lakh range, which will probably have a one-litre engine.

Expected to compete with cars such as Hyundai Santro, Maruti Suzuki A-Star and Chevrolet Spark, the new car will be launched by 2012 and may later have an option of both petrol and diesel engines.

Mr Rajeev Kapoor, President and CEO, Fiat India Automobiles Ltd (FIAL), told Business Line, “We’re looking to launch a new small car developed by the Indian R&D team by 2012, which will be positioned below the Punto. It’s still being finalised, but will probably have a one-litre engine and will compete with cars like the Santro in the Rs 3-4 lakh range. We’re considering both diesel and petrol options.”

Italian automaker Fiat’s plans to actively enter the lower end of the A2 segment, follows similar announcements by several other carmakers. Hyundai is said to be considering a small car positioned even below the Santro, while both Honda and Toyota plan to launch new small cars by next year.

Company officials also said that the company is considering bringing the Bravo premium hatchback as a CBU, since the exchange rates of the euro versus the rupee are more in favour now.

Grande Punto

Fiat India has also launched the “sporty” 90 hp Grande Punto, thereby expanding its range in the premium hatchback segment to 10 variants.

Priced at Rs 6.79 lakh (in Delhi), the top-end Punto variant features airbags, ABS, automatic climate control, besides an accessory pack with options which includes rear spoiler, chrome exhaust tip, body decals, leather seat covers and aluminium pedals. It will be available in five colours.

Roudra Bhattacharya

The Hindu Business Line (Web & Print Edition)