"The prototypes of the car are being tested. Although no decision has been taken yet, we may not display the mid-size car during the auto show. We will, however, have some exciting offerings for car lovers," company sources said.

Telco, the sources added, will definitely launch the mid-size car in early 2001. "The car will be positioned at the premium end of the mid-size segment. With a two-litre Safari engine and premium features, the car will be placed much above the likes of Mitsubishi Lancer and Opel Astra," they said.

The mid-size offering, which will be another first from the House of Tatas after the super-mini Indica, has been indigenously developed. The Italian design firm IdeA, which played a key role in the development of the Indica, will not be directly involved in thestyling and design of the mid-size car.

The Telco top brass is now busy preparing for the launch of the diesel Euro II version of the Indica, which is slated for the first quarter of the next calendar year. Next in line will be the launch of the petrol version with a multi-point fuel injection system. "With a 75 horsepower engine, the petrol version of the Indica will be much superior than its competitors in the segment," company officials said.

On the multi-utility vehicle segment, Telco is gearing up to roll out "quite a few" variants of the Sumo. The Sumo Ambulance will be in the market shortly, and other variants will follow in the next six months.

"The launch of the stripped-down version of the Sumo has done a lot of good for the company as our market share has increased dramatically. We are now looking at niche markets in the MUV segment," the officials added.

Telco has said that its market share in MUVs has increased sharply from 18 per cent in August to 29 per cent in September this year. Thebasic version of the Sumo was launched during the month to take on Mahindra & Mahindra's utility vehicles like Commander and Marshal in the rural segment.

"The rural market is growing at a brisk pace and we are looking at ways to further strengthen our network there. The success of the stripped-down version of the Sumo proves that our rural strategy has worked," company officials said.

M&M is the market leader in UV segment with a market share of 58 per cent followed by Telco which is a distant second with less than 30 per cent. In recent times, the Tata company had been fast loosing ground in the UV segment, largely because both of its vehicles in the UV segment - Sumo and Safari - gravitated towards a high price niche, wherein the company lost focus on the equally important volumes game in the economy segment.