New Delhi, Aug. 9 : The launch of the diesel version of the Maruti Esteem-the first diesel vehicle in the C segment -is expected to spark off a slew of diesel launches in the mid-size sedan category. After the carmakers slugged it out in the compact segment with diesel versions of the Tata Indica, Maruti Zen and Palio, it is the time for low-end mid-size sedans to provide a diesel engine option. The diesel variants have never been big hits in the country except perhaps the Indica. There were several reasons for this: the cars were costlier, they had a low resale value, and most felt that they went better with expensive cars like the Mercedes-Benz, or the upscale models like Ford Mondeo, Fiat Weekend ELX, Mitsubishi Lancer Dxi, Honda Accord VTiL and GM Astra 1.7. This is the first time that the duel of diesel versions will hit the segment for cars that sport price tags of around Rs 5 lakh. Yesterday, the Tatas announced the name of their new mid-size sedan -the Indigo -but gave no indication about the price tag or when it would hit the roads. The Indigo will have a 62-bhp turbo-diesel engine. Maruti today returned fire with the launch of the Esteem diesel, which will be powered by Peugeot's TUD5 1527 cc, 57hp diesel engine. One market analyst said, 'The diesel versions are economical but only in the long run. Very few models have the smooth, noiseless operation that is associated with a sedan. It will raise the prices of the model immediately to attain it. It is best with the models where money is not a factor, or in a segment where a little noise will not be noticed. But diesel engines in the low end-sedan category has yet to prove that is attractive.' Honda sources confirmed that the company is looking into diesel options in the 1.3 litre City category. General Motors sources also said, 'With diesel options becoming more popular, we will also look into the diesel variants in Corsa and Swing. Astra 1.7 has a diesel engine, but we did not consider diesel engines in 1.4 litre cars previously.' Hyundai has already announced a possibility of providing a diesel engine option in the five-door Accent that it plans to launch in September. The engine will be sourced from Mercedes Benz.