Now after years of waiting, Maruti Udyog Limited's (MUL) dominance of the small car market will finally be challenged. After years of being treated like unwanted pests, customers who could not afford anything more than a small car will be treated as royalty.

Because finally there is choice. Hyundai Santro is already here. Daewoo Matiz is expected to be launched in the second week of this month. And by November-end, Tata's Indica should also hit the roads. The country is awaiting three more small cars -- Ford's Fiesta, General Motors' Corsa and Fiat Palio -- by the end of the century.

What the new manufacturers are bringing in are the latest designs, contemporary multi-point fuel injection (MPFi) system, a host of safetyfeatures, customer-oriented after-sales service and very competitive prices.

Sixty per cent of Hyundai Motor India Limited's (HMIL) dealers, for instance, are young MBAs or engineers or both. The newcomers have also learnt from the mistakes of players in the mid-size segment. ``We have cut down the size of our dealerships and plan to increase capacity utilisation,'' says B V R Subbu, Director, Marketing and Sales, HMIL.

For Indica, Telco has tied up with Concorde Motors Limited, a joint venture between the Tatas and Jardine Company of UK, for its sales and after-sales to rectify its image in the passenger car segment. Ratan Tata had made a public commitment during the Auto Expo early this year that Tata's small car will be priced on a par with Maruti 800. Everyone is expecting him to stick to it.

But does that indicate a price war amongst the small car manufacturers?

Hyundai has already revealed the prices of the three versions of Santro -- Rs 2.99 lakh, Rs 3.49 lakh and Rs 3.69 lakh (ex-showroomprices, Delhi). Daewoo has kept its secret well guarded so far. But we mustn't forget that this is the same company that slashed the price of Cielo GLE (manual transmission) by Rs 1.3 lakh to up its sales.

Bhatt rules out a price war. ``The profit margins in the case of small cars are quite narrow.'' The problem, according to him, is not an additional Rs 20,000 or Rs 30,000. ``To the middle class, what matters is day to day running or maintenance of the vehicle. That's where we will witness a war,'' he adds.

Hyundai workshops, for instance, would pick up and deliver cars after servicing them, an official informed.

And that's healthy competition. Something similar to the existing competition in the two-wheeler segment.

The industry doesn't expect the scenario in the premium car segment to get repeated in this segment. ``The players in the small car segment have a radically different approach. They think Indian and are not transposing European learning into the Indian environment,'' says Subbu. And solong as there are poor public transport systems in our cities, the boom in the two-wheeler and small car segment will continue.

Which is why Maruti dealers don't feel threatened by competition. ``Why should we get affected by competition? The demand for small cars has always been quite huge,'' says S. P. Kanna, General Manager, Competent Motors, one of the leading MUL dealers in the Capital. He is of the view that first time buyers will always go for a known brand. But even Khanna admitted that all Maruti dealers will have to get more customer service oriented.

This is where Maruti could fall prey to diseconomies of scale. ``Though MUL is distinctly more service superior, they are likely to get complacent and slip from the same level they had created for themselves,'' says Subbu. For over 20 lakh Maruti vehicles that ply on the country's roads, the 1100-odd authorised workshops may find it hard to beat the standards that the new players are about to set.

After-sales service is just one aspect. ``Themarket leader has a lot of catching up to do in engine technology, design and safety features,'' says Subbu. In the field of engine technology, all new players are coming in with the MPFi technology whereas Maruti cars still run on carburetors that will fail to meet the 2001 emission norms.

The MPFi system is controlled by a computer driven electronic module that makes minor variations in the fuel system and improves engine response, besides performing other functions. The MPFi system is said to do away with problems like cold starts during winter.

On the flip side, the carburetor can be attended to by any roadside mechanic. Whereas the MPFi requires specialised hands. But the new cars rarely break down, at least not without giving adequate warning signals.

``The MPFi engine also does not require as many services. The car needs servicing around two to three times in a year,'' adds Subbu.

Hyundai is also undertaking workshops to educate informal private workshop mechanics about the new technology. Butthe market leader can easily switch to better technology. ``For its competitors, rather, it will be quite a challenge to change the mindset of the consumer who has ample faith in the MUL products,'' says Bhatt.

What could also play a role in changing equations are safety features and gizmos. The Matiz, for instance, has been subject to around 160 crash tests and had been driven around 1.8 million kilometres before its launch in South Korea early this year.

``We drove the Matiz in all environmental conditions -- in Sweden during winter and in Australian desert conditions in summer. It has also been subjected to difficult terrain and poor quality fuel of Brazil,'' H S Choi, Director, Small-Sub Compact Vehicles Division, Daewoo Motor Company, South Korea, said recently at a press meet.

So in the end, what we get is off-the-shelf delivery, competitive car finance options, better servicing, better technology...In fact, a thorough cultural makeover. And a much higher customer satisfaction level.

The realcar war begins now.