Mumbai: While Toyota, Honda and General Motor India have been talking about about launching a small car in India for some time, an unlikely contender for the small car space is Hindustan Motors which has been keeping an extremely low profile on the new launches front.

According to recent media reports Hindustan Motors plans to launch the `Mitsubishi iCar'' in India by the end of 2007. It would introduce the new model through the SKD (semi-knocked down) route whereby the new vehicle will be assembled at the company''s plants in India. HM manufactures the Mitsubishi brand of cars (Lancer) since 1998 under a tie-up with Mitsubishi Motor Corporation, Japan.

Mitsubishi''s iCar is a 600cc, 12-valve, 3-cylinder car with a 4-speed auto gearbox and is currently available only in Japan, though the company plans to introduce it in the UK and US after carrying out feasibility studies. The iCar probably looks closest to the Daewoo Matiz though it is even smaller.

It has a rear-mounted three-cylinder turbocharged engine hidden under the boot floor and a standard-fit, four-speed auto gearbox that drives the rear wheels. It has room enough to seat four though its exteriors are deceptively small. Its engine''s location under the boot makes for good cabin space - with plenty of leg and headroom in the front.

However despite its small 600cc engine, the turbocharged, intercooled three-cylinder engine produces a respectable 63bhp. Said to be a trifle noisy on hard driving, it is zippy enough on city roads. It takes 11.2 seconds to go from 0-100kmph. Despite its adequate horse power it is positioned as a city car in Japan.

On the upside it has a good suspension to provide good ride quality and on the downside it has lacklustre handling and low grip.

On the fuel front the iCar gives about 40-miles per gallon which translates roughly 15 to 17km per litre. It costs around $11,000 in Japan which converts into rough Rs5 lakh. The tiny iCar is said to have taken Japan by storm, and sold out each unit produced within three months of going on sale.

With no engine at the front the steering is light but precise and its compact dimensions mean that it is easily manoeuvreable and ideal for the narrow city roads in India. It also has user friendly features like lots of storage space in front, including neatly hidden cup holders and a decent-sized booth.

With its engine size the iCar car is positioned in the Indian A2 segment, comprising the Alto, and Maruti 800, though the technology and interiors in the car are similar to that of a mid-size sedan. It would be available in the UK at £8,999 (Rs7.81 lakh) a steep price by any means for the Indian market. However, through indigenisation, the price may be further brought down in India.

HM could choose to manufacture the engine at its Pithampur, (Indore) facility and expand its existing manufacturing facility at Tiruvallur to assemble the iCar. Currently the facility has an annual production capacity of 25,000 units. The Pithampur facility currently manufactures engines for General Motors India and Ford India, besides its own set of Isuzu engines.