Tata Motors and Maruti Suzuki are set to get a new competitor in the entry-level car segment. Nissan Motor India which recently unveiled the Sunny is working on a car which will be positioned below Micra.

The car is expected to be priced between Rs2-Rs.4 lakh. The Micra starts at a price of Rs. 4.88 lakh (on-road, Mumbai).

Kiminobu Tokuyama, MD & CEO, Nissan Motor India said “We are studying the opportunity and the product concept (of the small car)”. Tokuyama gave no indication of the timeline for the car’s launch but it is expected to take 2 to 3 years more before it hits the market.

Nissan had earlier planned on partnering with Ashok Leyland for the entry level car project, but the plan has been abandoned. However, Nissan will roll out a multi-purpose vehicle (MPV) from its joint venture with ALL in 2012. This vehicle will compete with the Toyota Innova.