MUL, it is learnt, may soon launch the diesel version of the Esteem,although company officials are tightlipped about it. "We are monitoring thesituation. We will launch the diesel version of the Esteem at the righttime," MUL managing director Jagdish Khattar said. Ford India will belaunching a 1,300cc version of the Ikon early next year, precisely tocompete with the Esteem, which the largest selling car in the mid-sizesegment. The Ikon is currently available in 1.6 litre petrol and 1.8 litrediesel versions. While the petrol version comes in two models, Ikon 1.6 CLXiand Ikon 1.6 ZXi, the diesel version has a single model, Ikon 1.8 ZXi.

"Customers will soon realise that the performance of the 1.3 litre Ikon willnot be able to match the Esteem," the MUL official added. The country'slargest car maker, it is learnt, is planning to upgrade the Esteem to giveit a more contemporary look. "We are continuously pumping in money toupgrade our models. While we have earmarked Rs 1,200 crore investment on ournew models, the company is also spending huge sums on improving all existingmodels," Khattar said.

MUL is launching the 1,060cc Wagon R later this week, which will be followedup with a small car, Alto, which is slated for a launch early next year. TheWagon R, currently the highest selling car in Japan, will be positioned totake on Hyundai's Santro. The Wagon R is expected to carry a price tag ofaround Rs 3.75 lakh for the base model.

The Alto may be introduced in engine capacities of 800cc and 1000cc. Companyofficials are, however, tightlipped about the Alto, which might eventuallyreplace the M800. Although the latest offering Baleno has been positioned atthe top end of the mid-size luxury segment to take on the likes ofMitsubishi Lancer and Opel Astra, Maruti Udyog's overall objective would beconcentrate on the entry-level segment (with prices below Rs 4 lakh) todrive up volumes in the coming years.