Launched after a slew of successful hatchbacks under 3 lakhs, the Hyundai Eon will enter the markets before the festive season next month for a price of Rs 2.5 lakhs. It is expected that Eon will provide tough competition to Maruti Suzki’s best selling Alto.

Although an entry level car it will have enough amount of space with a large boot. With probably an 814 cc engine it promises to deliver a mileage of at least 20 km per litre. Based on the previous Santro it will use components from both the i10 and Santro.

Also competing against the Alto will be the Volkswagen ‘Up!’ to be launched next year and a new car by Ford based on the successful Figo. Tata Motors plans to launch a car sized between the high selling Nano and Indica. Although the hike in interest rates and petrol prices has reduced auto sales, small cars are still retaining a good market.