Maruti 800, the car that revolutionised the Indian automobile market more than two decades ago, is set to get a new lease of life.

Soon, Maruti Udyog Ltd [Get Quote] will launch the Bharat Stage-III version of the car at a price higher than that of the existing 800 models. MUL executives told Business Standard that production of the new version had commenced though the price was yet to be decided.

The Maruti Saga: Complete Coverage

This, sources in the company indicated, would be just the beginning of a new innings for the Maruti 800. After the launch, MUL is expected to take some new initiatives to help rekindle consumer interest in the car.

Maruti 800 sales have been falling continuously over the past one year. In November 2004, it lost the tag of India's largest selling car to Hyundai's Santro after a reign of over two decades at the top.

Automobile analysts believed the car would be phased out once MUL brought down the price of Alto close to that of the Maruti 800. While the top-end Maruti 800 is available for Rs 228,000 (ex-showroom, Delhi), the entry-level Alto costs Rs 233,000.

But MUL sources said the Maruti 800 was the only entry-level car in the country today, and the company did not want to give up this position.

As a result, it was trying to generate fresh excitement around the car. MUL executives also confirmed the Euro-III version of the Maruti 800 would not be repositioned for any special slot in the market.

Despite this perception, analysts said, other B2 segment cars like Alto, Zen and Santro were accounting for 60 per cent of the first-time buyers' market.