Tata Motors is planning to stretch the success of the Indigo into the C-segment, with a longer and roomier variant.
The Indigo Stretch, as company insiders call it, will be longer than the standard three-box Indigo sedan and offer more frills.
The increased space will be used for fitting gadgets like wireless Internet access and a DVD player or TV to introduce an element of luxury for the mid-sized car buyer.
However, Tata Motors would decide on producing the car only after extended road testing and consumer clinics, senior Telco executives said.
"We are not ready for commercial launch yet," a senior Tata Motors executive told Business Standard.
Analysts said though the Indigo had been enjoying a good run, its interiors were smaller than those of other C-segment cars.
The move could also be an attempt to push a higher-end version of the Indigo at price points left vacant after Tata Motors decided against launching the Magna in the C-plus category.
The car would continue to use the Indica platform, and necessary modifications would be done at the design stage so that most of the Indigo panels were retained, Tata Motors executives said.
The concept car has been developed by adding girth to the existing B-pillar of the Indigo. The additional space created does not affect the doors or other critical panels. However, the floor plan of the car and the roof will require fresh panels.
Tata Motors is also developing a more powerful, 70 PS, turbo-charged diesel engine. Industry observers said it was a good candidate to power the stretch Indigo since the car would weigh more.
Being a front-wheel drive car, no transmission tunnel runs through the length of the Indigo, unlike most stretch cars around the world, which makes it feasible.