It has been reported that India's top commercial vehicle maker Tata Motors is working on another small car just as its 'Nano'.

This time it will be bigger than 'Nano' and will have a price of around 3 lakh. The sales of small car have picked up gradually and have encouraged Tata to develop yet another small car on a completely new platform. The codename of the new compact small car has been Dolphin.

As per sources the company has decided to position the car in between Nano and Indica Vista price wise. It has been expected to be having a power of 800 cc with 1 liter engine. Experts believe that the company has reacted late to eye on the compact car segment which constitutes around 50% of the total small car market in India.

Now this will not be an easy task for the company to entre in the market where so many competitors already exist before. However, the Tata Spokesperson has denied to provide any information on such car now and said that the company has not provided any guidance on such car.