The Zen D will cost Rs 4.26 lakh (ex-showroom in Delhi) down from the previous level of Rs 4.63 lakh. It will still continue to be dearer than the Indica whose three diesel versions cost Rs 2.85 lakh, Rs 2.95 lakh and Rs 3.90 lakh. The diesel Uno will also be less expensive at around Rs 4 lakh in Delhi.

Hence, the million dollar question -- does Maruti really have an inkling of its priorities in the diesel segment? The company's biggest predicament is that it has a winner in the petrol Zen which is averaging 7,000 cars a month and is growing faster than the 800. This explains why it did not consider a price reduction for the model, while introducing a new version, the Zen LX, that could take on the Santro (basic).

The Zen D, according to experts, will loseout badly to the Indica and could have a hard battle on its hands, if Ind Auto also decides to slash prices of the Uno. Fiat has been known for being an aggressive player in the world car market and will go all out to ensure that the Uno does not lose out especially when it has just about managed to garner a share in the small segment.

The Zen D has been doing reasonably well in the south, especially Andhra Pradesh and Tamil Nadu, states which have a marked preference towards diesel. It has been rejected in the west by buyers, who have still opted for the Uno diesel largely because it is less expensive and qualitatively as good, if not better.

Maruti, in the opinion of observers, is using the Zen D as a case study to get its act together in the diesel segment during the next few years. The company has sourced the TUD5 engine from Automobiles Peugeot, which was fitted in the 309.

The engine is rated among the best in the world but that has been no incentive to the buyer who, even today, associatesPeugeot with the company that was the first to exit from India. The joke doing the rounds in auto circles is that this is another reason for the Zen D's poor show, as customers still believe that anything to do with Peugeot cannot be trusted!

Thus while Maruti readies the TUD5 for the Esteem and Gypsy, it could have a tough time with the Zen D. On paper, there is really no reason why the car should not do well. The truth is unlike the past, the customer now has various options and is now beginning to exercise them ruthlessly.