Hyundai Motor India is believed to be working on a new compact car codenamed 'BA' to be positioned between the i10 and i20 hatchbacks and featuring the Fluidic design theme.
The new car was initially rumored to be a replacement for the i10 but sources close to the development have indicated that it will slot between the i10 and i20. The car will be powered by a 1.2 litre petrol engine as well as a new 1.1 litre diesel engine that will be manufactured at the company's Chennai plant, where the company is investing $300 million and hopes to offer diesel options across segments. Testing for the car is likely to begin in two-three months, with production slated to commence from October onwards. Company officials did not comment on the development. The MD/CEO said recently that the company had strong potential to develop new products and improve its market share but the launch schedule was as yet undecided. He also said that he felt that the low difference between petrol and diesel engines made it a challenge to suitably position a compact diesel vehicle. The new small-car could pose a stiff challenge to incumbent manufacturers, especially the market leader Maruti Suzuki with its Swift and Ritz models. This should help Hyundai further increase its overall market share in the passenger vehicle segment in India.
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