Top car manufacturer Maruti Suzuki will roll out another compact car named Maruti Cervo, in India by the second quarter of the existing year (2010).

Cervo, which sports 54bhp and 660cc engine, will give a strong competition to small cars.

Priced between Rs 1.5 lac to Rs 2.5 lac, Cervo will be a replacement to the company's best-selling models including 'Alto' and 'Wagon R'.

At this cost, Cervo is surely a tough competitor to Tata's cheapest car 'Nano'.

Cervo, a five door car, features 4 speed auto gearbox, a K6A DOHC engine with VVT and Bluetooth capability. Internal looks of the car give the impression of Maruti's Swift and are quite comfy.

Moreover, the car has sufficient headway, leg room and boot space.

The car has already been launched in the Japanese market.

Maruti, which is 54.2% owned by Suzuki, will turn its forthcoming research & development plant at Rohtak into a independent establishment by the next two years to coincide with the launching of its first 'Made-in-India' small car.

At 2:23 pm, the shares of the company declined 0.8% to trade at Rs 1371 on the BSE. The share price has seen a 52-week high of Rs 1740 and a low of Rs 577.50 on BSE.

Current EPS & P/E ratio of the stock stood at 72.14 & 19.01 respectively.