What is the smell like, is it due to fuel or oil etc.

If the car is in warranty, get it checked in the service center

As you said, the car is only a month old - so it is very much in warranty.  Just go to the dealer and tell him to make it problem free, and odourless.

By the way, the problems faced by your friend could also be if he is not conversant with driving, and the smell could be due to some oil etc. like Saroj said.

Hi !

Friend this may be also due to the crack in the fuel pipe. The crack may not create any leakages but certainly it will smell badly. especially when you turn the ac on.

Cheers !

Amit

The Wagon-R you are talking about is new, so I am presuming that your friend might have got the music system and speakers fitted, there is a wooden tray(in which speakers are fitted) on which a rough grey/black cloth is pasted. The chemical used to paste that cloth on speaker's tray on exposure to sunlight gives out smell and sometimes causes extreme irritation to eyes. There is no problem to this solution, it goes away with time. Fuel leakage smell is of different sort which can be easily recognized, so since you haven't mentioned it, the problem must be what i mentioned.

The clutch wire needs adjustment along with the gear lever, not a big job, get it done from authorized service centre and your car will be ok.