This would, however, still leave the Maruti 800's perch relatively unscathed as it will still be the cheapest in the segment - at an likely Rs 2.58 lakh (all prices are ex-showroom, Delhi), the M800 Deluxe will still be far cheaper than the Matiz' comparable air-conditioned SD model which costs Rs 2.86 lakh. The new M800 DX will alsocost a good Rs 50,000 less than Santro's bare-basic Standard model which costs Rs 3.06 lakh.

Maruti's crumple zone, or where it's likely to get hit first, of course, will be its entire Zen series. If prices of the Zen are also hiked by a minimum of Rs 20,000 to make the car Euro-II compliant, it will become more expensive than the Santro or the Matiz. At an expected Rs 3.18 lakh for the Zen LX, it will be a good Rs 12,000 more expensive than the basic Santro which has the same engine capacity but gives ten per cent more power output (bHp in jargon). Similarly, at an expected Rs 3.84 lakh, the Zen Classic will cost more than the Santro Deluxe option which has both power steering and power windows and costs Rs 3.75 lakh.

And while current indications suggest that the Uno may not pose too much competition to the Zen on the price front at least - more so when it hikes prices after it is made Euro-II compliant - the Indica will continue to remain a threat.

Maruti is also planning to introduce two models -Alto and Wagon R - in the small car segment next year, and this is expected to alter things further. The Alto would be available in two engine capacities - 800cc and 1000cc. While the Wagon R will be powered with a 1000cc engine and would be positioned against Hyundai Santro.