Engineered on a new platform, the new model is expected to be available in both petrol and diesel engine options.
While the company did not comment on the date of launch of Zica, sources said it is expected to hit the market in the early part of 2016.
Zica will add to Tata Motors' new model line up -- Zest and Bolt -- in its passenger cars portfolio besides the previous generation cars Indica Vista and the Indigo along with the new Nano.
Previously, the company had announced that it would launch two new models every year till 2020 to ramp up its product portfolio in the Indian market.
Tata Motors had fallen behind the likes of Honda, Toyota and Mahindra & Mahindra in the Indian passenger vehicles market from being the third largest player at one point of time as its products, including the Nano, failed to deliver.
It is banking on new products to revive its fortunes.
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