The two are expected to hit the roads by the festive season this year. These two vehicles are part of the 10 new vehicles that the company plans to launch this fiscal.

Company sources say the Indigo station wagon will be offered in both petrol and diesel versions and are at present being test-driven across various terrains. The vehicle will compete with existing models like the Sienna Weekender, the Opel Swing and the station wagon version of Maruti's Baleno.

Telco is positioning the station wagon mostly at the export markets and hopes that this fiscal the car will help it double passenger car exports to 5,000 units. The station wagon will be launched in the second half of the year.

Telco has big plans for its MUVs, too. It is planning a major upgrade of the power train of both the Safari and the Sumo. The company plans to tap the export markets mainly with the new version of the Tata Safari, which is to be fitted with a high-end petrol engine to deliver additional power required for MUVs.

The Safari has also been fitted with additional features like antilock braking system and airbags to tap the overseas market. Developed at the Telco Engineering Research Centre, the petrol engine Safari is likely to come equipped with a 2.5-litre engine and is expected to roll out with new styling, colours and a price tag of between Rs 7.5 and Rs 8.5 lakh.

Apart from this, the company is planning to launch a premium version of its Indica, called the Indica Sport, which will be fitted with the more powerful Indigo engine to deliver the punch expected from a sports car. Company officials say that big volumes are not expected from the Indica Sport and the car will cater to a niche segment.

Telco will start selling the Indica, branded as the Rover in the UK, during the second half of the present fiscal. It is targeting exports of 1.5 lakh units of the Indica over five years. The passenger car business has positively contributed to the turnaround of Telco, which reported a profit of Rs 300 crore for 2002-03.

The company sold 10,915 passenger cars in May 2003 of which the Indica accounted for 6,772 units while the Indigo accounted for 1,983 units. The company sold 2,160 MUVs.