Ford Motor Co has come up with a new small car for the Indian market. The new car, with codename Ford B517, is expected to get launched in March 2010.

Alan Roger Mulally, Ford's president and chief executive, is making a quick visit to India for unveiling the car under small car segment on Wednesday.

Mulally is regarded as the man, who got rid of Ford's marquee brands Jaguar, Land Rover and Auston Martin, which were under continuous loss just before the global meltdown that facilitate the company to rescue the slowdown.

According to Ford India, the new car would be manufactured at the Chennai plant and would come in both petrol and diesel variants.

The petrol version would have an engine capacity of 1.2 litre, whereas diesel version would come with 1.5 litre capacity. The company would use 85 percent local components for the production of the new car. The company is also negotiating with Tata Steel on steel prices.

Ford India has also made an investment of over $500 million to increase its current manufacturing capacity by one lakh cars and 2.5 lakh engines.

Currently, Ford India only deals in mid-sized cars and SUV segments.