Men walk inside a Tata Motors showroom on the outskirts of Agartala, capital of India's northeastern state of Tripura on 7 November 2012Reuters

It is no secret that Tata's is readying a new entry level car for the Indian market, which would be positioned in between the company's soon-to-be-launched Bolt hatchback and the world's least expensive car Nano.

Now to add to that, the latest news swirling around the internet is that the new entry level car of Tata, which is called Kite (codenamed XO), will replace Tata's Indica.

Tata Kite, which is already on public roads for testing, was caught on the camera numerous times and now the folks at Autocar India, reveals that the car will show doors to Indica, which has been part of our road for almost two decades now.

Expected to make its India entry next year, Tata Kite will ride on the Indica platform and will rival Maruti Celerio, Honda Brio and Hyundai Grand i10.

The engine line-up of Kite will include the company's new 1.05-litre three-cylinder common-rail diesel motor, which can churn out a power of 64.1bhp and 14.27kgm of torque and all-new 1.2-litre petrol engine.

Apparently, Tata is also planning LPG and CNG version of Kite, along with an AMT model.

The report also adds that the Kite takes design cues from the company's Bolt and Zest model and interestingly the car also borrows some from the Tata Nexon Compact SUV. Inside the cabin too, the car is expected to flash new styling and going by the report Kite is likely to get a roomy cabin like Indica.

Tata, which recently launched Zest, is expected to launch its Bolt hatchback in 2015. Tata Bolt will come in petrol and diesel engine options.

While the petrol variant of the car will pack 1.2-litre Revotron turbocharged engine, which is tuned to generate 84bhp at 5,000rpm and a torque of 140nm of 1,750-3,500rpm, the diesel Bolt will get 1.3-litre Quadrajet diesel motor that can generate 73bhp and peak torque of 190nm. Both the engines will come coupled to a five-speed manual transmission.