The Santro has just been launched and the successor to the Accent makes its debut towards the end of 1999. The large car being planned will follow subsequently some time after 2000. The company has also indicated that it will not confine production to cars alone, but will also consider other vehicles.

"The light commercial-vehicle (LCV) segment looks promising and HMI is keen on being an active participant here," officials said. It is important, according to them, to have more than one product option as this would pay rich dividends in the long run. It would also ensure that HMI can always fall back on an alternative in the event of a particular model not living up to expectations.

Other foreign auto-makers are following asimilar pattern and the list includes Daewoo Motor India, which is considering buses and LCVs, apart from its cars, and Volvo, which has also planned buses in addition to its heavy commercial vehicles. Even Mercedes Benz India has recently indicated that it is planning to introduce a 15-seater minibus in its stable.

As experts say, it makes sense having a reasonably large product range especially after the recent experience in the mid-size segment. The biggest names in the world car industry have not managed to create much of an impact here and after a promising start are still lagging behind the Maruti Esteem.

HMI has not planned a diesel version of the Santro yet, though officials say this has not been ruled out. They reiterated that this would again depend on the findings of a research study being undertaken to check out consumer requirements. Hyundai Corporation in Korea is also working on its own diesel technology and the chances of a suitable engine being fitted in the Santro are "quitebright."

The successor to the Accent will, however, have a diesel option and there are plans to fit it with the classy TUD5 engine from Automobiles Peugeot. The same engine was part of the Peugeot 309 GLD and has now been fitted in the Maruti Zen to be followed by the Gypsy and Esteem.

The Santro is, however, top priority for HMI and dealers say the initial reaction from customers has been "overwhelming." The car will be a keen competitor on the price front to the Uno and Zen apart from the fact that it could also wean away some Maruti 800 consumers.

The Santro could still face some competition from the 796cc Daewoo Matiz, which will make its entry shortly, and the 1400cc Tata Indica. HMI officials, however, maintain that the Santro will hold its own as it has a lot of inherent advantages. HMI also plans to export the car to Nepal, Bangladesh and the Middle East, but this will begin only in 2000.