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The previous Santro was priced in the range of Rs 3.09- 4.15 lakh when it was discontinued in 2014.
The all-new Santro will compete with the likes of WagonR, Celerio and Tiago.
WagonR Limited Edition comes with various added features including reverse parking sensors.
Tata Motors posted a 7 per cent increase in domestic passenger vehicle sales at 18,429 units last month as compared to 17,286 units in September 2017.
The transporters' strike in July had affected companies such as Ford and Mahindra & Mahindra.