"We have decided to enter the small car business here but have not finalised the model, time of the launch or the pricing. Any decision would be taken only after the completion of the feasibility report," Ford India managing director Phil Spender told reporters here.

He said there were several options about the appropriate model for India including development of a totally new small car for Indian roads as was the case with its mid-size car Ikon, launched here yesterday.

Stating that Indian car market was very price-sensitive, Spender said the company was also looking at the cost factor of the new small car so that it could position the new model competitively.

The proposed car would be placed in the `Zen' segment and the company was not looking at a model in the category of Maruti-800, he said. It might take a minimum of 18months and a maximum of 30 months to launch the small car in the country, he added.

Spender said there were several small car models in the Ford stable and the company could select some models for launch in India. On the joint study agreement between Ford and Fiat to jointly produce car engines in India, Spender said the report was expected by the year end.

Joint production of engines would be beneficial for both companies as they have substantial presence here, he said.