Maruti Udhyog who is under pressure after heavy hype of Tata nano and its dropping market ing small segment cars will be launching a small car named "A-Star" (Funny name?) with a new engine model. Maruti Alto will also be equipped with this new engine.

As per Maruti spokesperson, they are planning to launch another similar small car "Splash" in the next year.

Though Maruti (with 54% shares owned by suzuki) has repeatedly denied in getting involved with any kind of price war but its fairly obvious that India with 90% market for small cars dominated by maruti 800, maruti can't afford to lose its grip. Maruti Suzuki has seen a drop of 9.2% in sales from last year including dip in sales in Alto and Zen.

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