Datsun has stated that its first vehicle under the new branding will be a hatchback smaller than the Micra - but it will be based on the larger hatchback. Considering that the new Micra itself was engineered to be light and frugal both in the manufacturing process and in fuel consumption in the real world, it will be quite a task for Nissan to make a Datsun that is inexpensive but doesn't feel like it.
The Datsun, codenamed 'K2' for now (like the highest peak in the country) will go into production in the latter half of next year, and will go on sale according to the company by Dec 2013 or Jan 2014. A diesel version is planned as well, although a new diesel engine will have to be looked into - so far all the Nissan diesels have been powered by the 1.5-litre DCi mill, which will certainly not fit under the small hood of the Datsun.
The other major players in the segment are Maruti and Hyundai - both of whom have extremely strong brand value. It remains to be seen how Nissan, who itself hasn't got a firm brand image in the market, manages to woo the buyer with a, excuse the pun, brand new brand for the market.