Sources say the company plans a price-cut in the 1700cc diesel Uno (priced at Rs 4.18 lakh), with the launch of the diesel Indica (available at Rs 2.95 lakh). The company is under pressure to reduce the price of its diesel version as there is a big gap between the twos. The gap will be much more in the case of the diesel Uno against the Indica petrol version. Industry experts have said that the deluxe diesel Indica may pose a serious challenge to the deluxe Uno.

Though the company has not been aggressive in the pricing or advertising of the car, it is willing "to budget losses" for some time to capture a chunk of the market. This is in line with Fiat's long-term strategy for India.

It is understood that Ind Auto will also tinker with the price of the petrol Uno, priced at Rs 3.24 lakh, to bring it in line with the price of the Santro (Rs 2.99lakh) and Zen LX (Rs 2.95 lakh). The company will, however, keep Uno's positioning in mind while taking a decision on the price. Sources said that the Uno may be priced nearer Santro's.

At present, the company has around 50 dealerships along with 20 service points, which will increase to 70 each.

The company, which is a joint venture between Italy's Fiat Auto and Premier Automobiles, is also pushing the Uno as a niche product, closer to the three-box cars and larger than the Zen. This is the positioning between the Zen and the mid-size segments.

The company has also introduced a power steering in the diesel Uno to take on competition, and may consider adding certain features in the petrol car if the market demands.

As a result of its quick localisation, the company has been able to reduce the spare parts' prices by 50-70 per cent. For example, the headlights, which costed Rs 5,900, now costs Rs 2,200.

The diesel Uno has received a good response in Maharashtra and Delhi, and the company plans toexpand its dealers in the east.