Tata Motors` new Indica platform (codenamed X1), which is under development will target the top-end of the B-segment to take on rivals like the Swift and Getz while the current product, in a tweaked avatar, will attack Maruti`s best-seller Alto, reports Economic Times.

Tata Motors is going ahead on both the Rs 1 lakh car project (code-named X3) as well as the new Indica platform, sources said.

The under-development X1 platform may incorporate both design and powertrain expertise from partner Fiat. The Tata-Fiat joint venture will not only crank out the Italian company`s 1.3 litre diesel engine but also a range of next-generation petrol taglined, the `Fire` range. The latter includes a 1.2 litre, 8 valve, 75 horsepower petrol engine and a 1.4 litre, 16 valve, 95 horsepower petrol powertrain.

In line with its future strategy for the Indica, the company`s latest launch, the 1.2 litre Indica V2 Xeta, has been rolled out with an introductory mark-down offer of Rs 25,000. The Indica`s earlier 1.4 litre version will now exist only as a top-end variant. The new 1.2 litre range is available in 4 models - GV, GVE, GVS and GVG, sources said.

The strategy will help Tata Motors attack both the M800 and the Alto territory with aggressive price advantages. Already in its current avatar the Indica V2 Xeta base model GV BS-III is available for Rs 2.52 lakh, sources added.

With another Rs 25,000 knocked off, its tag is Rs 2.27 lakh ex-Delhi a shade less than the Rs 2.32 lakh that the base non-AC variant of the Alto commands.