Indian auto giant Mahindra is known for its utility vehicles in the country and has almost no experience in the small car segment. The only car the company boasts in its range is the Verito sedan, which is actually a revamped version of its Renault Logan which was brought from the company’s then partner.

The Verito is known as the cheapest mass production vehicle in the Mahindra range, The Thar and the REVAi are relatively cheaper but are not mass market models. And of the company is looking for a higher share in the market then it has to enter a segment which is below the Verito where the volumes are much higher.

So now the company is planning to launch a smaller car which will be based on the Verito in the Indian market. On an average a small car in the Indian market means that it has an engine displacement of 1.2 litre petrol or 1.5 litre diesel with a length of less than four meters.

Mahindra is now testing the Verito compact sedan and is expected to be launched by the end of this year. But about hatchback, it might not launch it any time soon as it requires heavy modifications and also needs a lot of time and cost for development.