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

Auto aficionados in India have heard plenty of information about Tata's upcoming hatchback codenamed Kite, and now the latest is that the company is also working on a new sedan based on the same Kite platform.

CarToq has managed to catch the first glimpse of Tata Motors's new Kite compact sedan, which was seen undergoing testing near the company's Pimpri factory. Dressed in heavy camouflage, the new Tata sedan seems to have adopted an interesting styling and design. There is not much to talk about the design and features of the car, as this is the first spy shot of the car and most likely the test mule seen is also in its early stages of development.

The Kite sedan, which is believed to be a sub-four meter model, is likely to come in both petrol and diesel engine options in the country. Rumours have also hit the web that the company could also introduce an AMT variant for its upcoming compact sedan. As for the engines, the petrol model of the Tata Kite sedan is expected to get power from the 1.2l Revotron engine and the diesel is likely to be powered by 1.05 liter-3 cylinder turbo diesel, which does the duty in Tata Manza Hybrid.

Expected to see the light of day in the New Year, the Tata Kite will probably replace the Indigo CS. Though it is too early to guess the price of the new sedan, word is that the company will price it in the affordable brackets as Tata is hoping to change the game in the domestic market with its new offerings. The early rumours suggest that Tata Kite sedan will get a price tag lower than new Zest.

As reported earlier, Tata is also in the work of its new hatchback Kite. Caught on camera on numerous occasions, Tata Kite will be powered by 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. In India, Tata Kite will rival cars like Maruti Celerio and Hyundai Grand i10 and is expected to get a price tag around ₹4 lakh.