In a bid to grab a larger market share in the small car segment, Maruti is all set to launch a brand new Zen in the domestic market in the current financial year.

The new Zen, which will have a completely new design and style, has been developed in-house, sources said, indicating the car would be priced at a premium.

When contacted, Maruti officials declined to comment on the launch and price of the car.

The company is upbeat about the new product, created by its in-house research and development team, a vendor associated with the project told PTI in New Delhi.

According to sources, Maruti announced it plans about the new Zen to its national dealership network at a conference in Kuala Lumpur recently.

The makeover of the Zen comes almost a decade after it was launched in India, and is aimed at boosting sales in the face of fierce competition from small car models like Hyundai Santro, Tata Indica besides Maruti's WagonR and Alto.

"The new Zen is based on the latest European styling and design. Maruti has worked for over two years to revamp the existing model. The entire design and styling has been done by Maruti engineers here," the vendor added.

Maruti had earlier introduced a new engine in the Zen, while external changes were only cosmetic. It also brought out a 3-door special edition version.

But now, Maruti has gone for a major upgrade in looks and style of the car model.

Sources said dealers all over India have already placed large advance orders with the company.

Domestic sales of the Zen have crossed 550,000 units ever since its launch. Maruti is looking to enhance its growth and market share in the A2 segment (Zen type of small car) with the launch of the new model.

In the first seven months of 2003-04, Maruti sold 85,461 cars in the A2 segment, registering a growth of over 25 per cent over the corresponding period last year.