The car would be locally designed and would be built on the platform of its parent Japanese company Suzuki's popular model Baleno, sources said but declined to divulge further details.

The company officials have already gone on record that two new models from the Maruti stable would hit the Indian roads by the next year but were however, tightlipped about plans of launching the particular model.

Meanwhile, small-car segment continued its forward march in July with Maruti Udyog, Hyundai Motors and Daewoo Motors scoring impressive gains.

Market leader Maruti Udyog's Zen model led the charge selling 7,907 units. Zen accounted for over 22 per cent of Maruti's total sales in July.

Hyundai Motors sold 4,949 units of Santro model, compared to 4,634 units in June, a rise of 6.7 per cent. Daewoo Motors recorded sale of nearly 2,400 units of Matiz cars during July. Matiz accounted for over 85 per cent of total sales of Daewoo which sold 2,801 units in July.

The jump in demand for Zen is significant in view of the fact that the model is Euro-I compliant, while both Hyundai's Santro and Daewoo's Matiz are Euro-II compliant.

Meanwhile, country's largest car manufacturer, Maruti Udyog Ltd on Monday announced a 16 per cent jump in sales in July 1999 with sale of 35,528 units as against 30,603 units sold in the corresponding period last year, recording in the process the highest ever monthly sales in the company's 15 year history.

Maruti 800cc continued to be the most popular car in the Maruti stable, accounting for 52 per cent of total sales in July. The company sold 18,445 units in July, a jump of 10 per cent over the same month last year.With sales of 7,548 units in July, Omni sales went up by 46 per cent compared to same period last year. In the mid-size segment, Esteem recorded sales of 1,596 units in July. Maruti did not give out the sale figures for the Gypsy model.

Company officials said the spurt in sales reflects the impact of the price cuts that the company effected in December 1998. Maruti Udyog chief general manager (marketing & sales), attributed the sales performance in July 1999 to the company's efforts to expand the market by offering customers greater value and choice across a range of products.Maruti's Zen has seen a 16 per cent jump in demand over the corresponding period last year.