Code-named PA, the car is a five-passenger petrol engine vehicle, which will reportedly be priced between Santro and Getz. The car will be first launched in India, followed by exports to the rest of the world.

Saxena said "we are closely positioning ourselves in the compact car segment, which is the largest segment in the passenger car market". The new compact would be rolled out from the company''s second plant at Chennai, which enhances HMIL''s capacity to 600,000 units per annum by end 2007.

The company had invested $1.3 billion in the plant.

HMIL plans to expand its dealer network to 250 by the end of the year, and opened its 196th dealership in the country at Kochi.

According to Saxena, Hyundai sold around 10,000 cars in the state last year. In the current year, over 8,000 cars have been sold so far, and he anticipates the final tally to be in the range of 12,000 units by year-end.