Tata Zica based compact sedan (Sway) to debut at 2016 Delhi Auto ExpoAlso Read - IPL 2022: Ravi Shastri, Graeme Smith Share Their Thoughts On RCB Vs RR

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The sub-compact sedan could be priced close to INR 4 lakh, making it the cheapest compact sedan in the country. The aggressive pricing could create an all-new segment in the Indian automotive market. Based on the modified XO platform that also underpins the Zica hatch, the compact sedan will share styling and interior components with the hatch sibling. Also Read - PM Modi to Inaugurate India’s Biggest Drone Festival at Pragati Maidan on May 27

The sub-compact sedan will be offered with two engine options- 1.2-litre naturally aspirated petrol and an all-new 1.05-litre diesel engine. While the former is capable of producing 83.8bhp of power and 114Nm of torque, the oil burner is good for 69bhp of power and 140Nm of torque. Transmission options are likely to include a five-speed manual and an AMT (Automated Manual Transmission) unit.

To be positioned under the Tata Zest, the sub-compact car is likely to be named Tata Sway; however, nothing concrete on the name has been revealed. It will come as a replacement for the ageing Tata Indigo eCS. There will be no direct competition for the small sedan, but it could impact the sales of the entry level variants of the Maruti Swift Dzire, Hyundai Xcent and Honda Amaze.