The model will take on the likes of Maruti Suzuki's Swift, Hyundai i20 and Honda Brio, which are priced between Rs 3.99 lakh and Rs 7.76 lakh (ex-showroom Delhi).

The petrol versions of the Punto Evo are priced between Rs 4.55 lakh and Rs 6.65 lakh, while the diesel variants would retail between Rs 5.27 lakh and Rs 7.19 lakh.

Fiat Group Automobiles India President and Managing Director Nagesh Basavanhalli said the company will continue to expand its presence in the Indian market.

"We are now strengthening our product portfolio in India with cars that are designed and engineered keeping Indian conditions and need in mind," he said.

The company is on a comeback trail after failed joint dealership venture with Tata Motors.

Basavanhalli said the company currently has 116 out lets in 93 cities across 23 states in India.

The company will launch the compact SUV Avventura which was showcased at the Auto Expo in February, within 60 days, he said.

Fiat, which is present in the country through a wholly- owned subsidiary, is adding new models in its portfolio this year to rev-up its sales.

It had set a target of a product line up of five vehicles by December this year and nine by 2016 in its Indian line up.

Besides the Avventura, luxury hatchback Abarth 500 will be launched later this year. The Italian-American auto major Fiat Chrysler had announced plans to launch 12 models in India in the next five years and will start producing models from the Jeep brand in the country by 2015.

After the debut of the Abarth brand in India this year, Jeep brands will follow next year, with nine models to be locally assembled and the remaining three to be imported.

In 2015, the group will introduce the much-awaited Wrangler and Grand Cherokee models from the Jeep brand and Abarth Punto. The Grand Cherokee and Abarth Punto will be locally produced, while Wrangler will be imported.