Though the company has shortlisted Baleno and Wagon-R to be among the three new cars for the Indian market, itis still working towards finalising the third car, which is most likely to be a new small car, the sources added. It would be positioned between the existing 800 cc model and the Zen model.The Wagon-R would be positioned below the Esteem but above the Zen, while the Baleno would be an expensive luxury car that would take on the might of Ford Escort and Opel Astra In the upper end of the luxury segment.

Regarding the likelihood of existing vehicles being phased out with the introduction of new cars, the sources said, "The existing cars still command a good market and it is not possible for any car manufacturer to address their price segments. So, it does not make good business sense to discontinue these models. They will continue to be made with slight upgradations.'' MUL has already started working towards localising the components for the new vehicles. "Vendors are already working towards this end.''

Though the company is trying hard to keep the prices of the new models at an affordable level, Maruti isfinding it hard to meet the base price of Maruti 800. ''It is extremely tough meeting the Maruti 800 base-price. Even the small car would be priced over the 800,'' the sources added. The final price tags of all the four vehicles are being worked out.

Meanwhile, MUL has already appointed Denso corporation of Japan to provide the crucial fuel injection systems to be fitted into the existing vehicles post April 2000. This is in line with Maruti chairman Yoshio Saito's statement last year that no new models would be rolled out from the Maruti stables before 2000. MUL has already dropped plans to introduce a diesel version of its Gypsy.