Telco, which made its debut in the mid-size car segment with the launch of the Indigo sedan on Wednesday, has decided to take on the competition with aggressive pricing. The Indigo is priced in the Rs 4.35 lakh-Rs 5.20 lakh range (ex-showroom) in Delhi and Rs 4.38 lakh-Rs 5.25 lakh in Mumbai. The fully indigenised sedan will go on sale nationally today (Thursday), through the company's 100-strong dealer network. Indigo has been positioned in the mid-size C segment, where it will compete with Ford Ikon, Hyundai Accent, Maruti Esteem and Opel Corsa among others.

The base petrol model, with manual steering and air-conditioning, is priced at Rs 4.35 lakh in Delhi and Rs 4.38 lakh in Mumbai, while the top-end petrol model is priced at Rs 4.95 lakh in Delhi and 
Rs 4.99 lakh in Mumbai. The base diesel version conies with power steering, heating and air-conditioning and is priced at Rs 4.80 lakh in Delhi and Rs 4.84 lakh in Mumbai, while the top-end diesel model is priced at Rs 5.20 lakh in Delhi and Rs 5.25 lakh in Mumbai.

The Indigo is priced far below the existing range of C segment cars. Suzuki's Esteem LX E2 (petrol version) is priced at Rs 4.79 lakh in Delhi and Rs 5.2 lakh in Mumbai. The top-end Esteem VX has a price tag of Rs 5.44 lakh in Delhi and Rs 6.01 lakh in Mumbai while the diesel version is at Rs 5.39 lakh in Delhi and Rs 5.51 lakh in Mumbai. Fiat's base Siena petrol model is available at Rs 4.85 lakh in Delhi and Rs 4.90 in Mumbai.

The sedan, which has been developed on Telco's existing Indica platform, will be available in three models of petrol and two models of diesel, in six colours. Telco expects to sell between 1,000 and 1,200 units of the vehicle every month. The Indigo petrol version will have an 85 bhp engine, while the diesel version, will have a turbo-charged engine. An entirely new powertrain, a three-link independent suspension and large 14-inch wheels are some of the unique features of the Indigo.

Industry experts believe that the diesel variant of the Indigo will prove to be another winner for Telco. "Diesel versions will notch up better sales for Telco as there is no serious competitor in the segment except the Ikon and Esteem. However, Telco has to realise that there is more competition in the segment and they are pitted against global majors. Consumers in this segment expect quality products," says auto expert Hormazd Sorabjee.

Aggressive pricing alone will not click with the discerning customers of this segment. "Consumers now look at fuel efficiency and handling. High noise and vibration levels are not acceptable even in the diesel variants. Indigo is not likely to create a flutter like Indica as consumers will wait and watch to check the performance of the car," said auto analyst Kalpesh Parekh. Telco is confident that Indigo will be able to expand the C class segment, which presently sells 70,000 cars per year, to at least 85,000 cars.

Highlighting the strength of the Indigo, Mr V. Sumantran said that the car had been subjected to more than 200,000 km of extensive and rigorous tests in different weather conditions at MIRA, UK-one of the world's most reputed vehicle testing facilities.