"Considering the safety issues and norms and input costs from our point, making a Rs 1 lakh car is impossible," Hyundai Motor India managing (HMIL) director and CEO H S Lheem told PTI.

Asked if HMIL was considering an entry-level match to tap the potential of low-cost car market in India and if it had the technology for it, he said the company was well equipped.

"We have the technology for small car...already there is an 800 cc engine in Korea. We can develop technology for a 650 cc engine," Lheem said, however, adding HMIL was not in a hurry to enter the segment.

"There are no immediate plans to enter into the 800cc or 650 cc segment. This time around, we will give it a go by but in future, we may look at it," Lheem said.

On when Indian customers could have such a car from Hyundai, Lheem said: "Probably in five years' time."

On what could be a feasible price range for the company to be a serious competitor in the small car market, he said: "USD 3000 (nearly Rs 120,000) could be a minimum range."

Currently, Hyundai's lowest priced car is the non-air conditioned base model of its flagship model Santro which comes at Rs 2.7 lakh (ex-showroom Delhi).

While Tata's Rs 1 lakh car - to be launched next year - has drawn attention across the world, rivals like Suzuki had in the past questioned the feasibility of such a low-cost vehicle.

Yet, the initiative from Tata Motors [Get Quote] sparked off interest in the segment with French auto giant Renault saying that it would develop a small car for the Indian market to be priced at a range of $3000.

The French car-maker has been in talks with two-wheeler major Bajaj Auto [Get Quote] for a possible partnership for the project.