General Motors plans to build a second minicar for the Indian market within two years.
GM Asia Pacific president Nick Reilly said on Monday: "We believe there is space."
GM introduced the Chevrolet Spark in India in April 2007 in its first major attempt to enter the segment.
Hatchbacks less than four metres long with engine capacities from 800 to 1600cc make up about 75 percent of the more than one million cars sold in India each year.
However, he said GM had no plans to make a low-cost car to compete with the Tata Nano. - Sapa-AP