Maruti Suzuki will not introduce a small car that was expected to rival the Tata Nano.

Chairman RC Bhargava said the cost of putting the car into production, its retail price and the cost of the small capacity engine were all barriers to success so Maruti was no longer thinking of launching a car along the lines of the Tata Nano.

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Unlike in India, these [mini]vehicles get tax incentives in Japan and so vehicles like the Palette and MR Wagon will be exhibited at the 2012 Delhi show in January only as concepts.

Bhargava added: “We want to ask customers what they would ideally want to pay for these cars. Normally, the Indian market works on the principle that the smaller the engine, the smaller the price. These cars are not like the Nano but are much more sophisticated with a technology level much higher than that, featuring aluminium engines.”

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