Tata launches the Nano - the world´s cheapest car

Indian car-maker Tata, who are set to snap up Jaguar and Land Rover in the near future, have launched the ´one-Lakh´ car - billed as the world´s cheapest motor car - at the New Delhi Auto Expo.

The 33bhp 0.6-litre car - officially called the Tata Nano - will cost 100,000 rupees (£1,300, $2,500) and has been designed to make four-wheel automotive transport available to those in developing countries.

Initially only petrol models are available, but a diesel option will be added at a later date. The Nano´s twin-cylinder engine drives the rear wheels through a four-speed manual gearbox.

Standard Tata Nano models do not have air conditioning or power steering, while airbags are not included. There is no passenger-side mirror, and only one windscreen wiper. Wheels are pushed as far into the car´s corners as possible, to maximise interior space.

The Indian carmaker used plastics and adhesives on the ´People´s car´ in place of welding to cut costs.

Despite criticism from environmental campaigners, who argue that more cars on India´s urban roads would be disastrous for congestion, safety and emissions, the car returns over 50mpg and meets Indian emissions standards.

Though Indian emissions targets are not strict by Western standards, Tata claims claims that the Nano will be able to meet Euro-IV emissions regulations.

Company chairman Raman Tata famously devised the ´People´s car´ when seeing a whole family travelling on a motorbike. Tata, who trained as an architect - designed the car himself.

Developing markets

Total passenger vehicle sales in India last year came to just 1.4m vehicles, but the domestic market is expected to explode over the next decade. Ford, Renault, Fiat, Nissan, Renault, Volvo, Volkswagen, Suzuki, Hyundai and Volvo have recently announced their intention to develop factories on the sub-continent. Suzuki is working with Indian company Maruti to build its new supermini - the Concept A-Star - while General Motors has built a design studio in the country to design interiors for new GM cars.

Tata´s likely takeover of Jaguar and Land Rover as Ford looks to divest itself of the luxury marques, combined with the publicity surrounding the Nano, looks set to launch India onto the global automotive map.

India last year launched a national “automotive mission plan” to bolster manufacturing and make the country more attractive to outside investment. The plan outlines annual sales of £73bn and the creation of 25m jobs in India by 2016.

Bajaj Auto has announced plans for its own small car, while Mahindra & Mahindra - another contender to snap up Jag and Land Rover - was recently in talks with Renault over a $1bn joint venture.

What £1,250 will buy you in the UK

• Leather seats on the 2007 Ford Mondeo

• Satnav system on current Audi A6

• CD70 stereo/satnav system on Vauxhall Zafira

• Cruise control on Citroen C2

• Renting Ferrari 355 Spyder for one weekend

• 1994 Volkswagen Passat with 122K on the clock.

Tata Nano stats:

• Alumimium two-cylinder 624cc engine

• Vertically aligned, rear mounted parallel twin

• Power: 33bhp@5500rpm

• Torque: 35lb-ft@2500rpm (48Nm)

• 0-70khp: 14 seconds

• Max Speed: Approximately 63mph (100kph)

• Fuel Economy combined: 60mpg

• Boot capacity: 150 litres

• Length: 3100mm

• Width: 1500mm

• Height: 1600mm

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