Indian auto market can expect a new car sandwiched between Nano and Indica. The new car has been code named as X4. It is not a Tata policy to talk about their future projects but sources report that Indian car market can expect a new car in the price band of Rs 2.5 to Rs 3 lakh.

It is also not sure whether Fiat, who forms an alliance with Tata in India, will have any contribution in the new project or not. Tata Indica had been developed as X1, Phoenix Sprint had been termed as X2 and Nano had been project X3. Now, another small car project X4 is expected to be on floor in the Tata development unit.

The new project is expected to mature in next three years. In the meanwhile, Tata shall have its Nano doing rounds on the city roads of India. It is expected that by the time the new project is completed, Tata Nano could be doing 600,000 units annually. Moreover, Tata is also planning a multi-purpose vehicle (MPV) for the Indian market that may be a variation of its X1 model.