India unveils world's cheapest car

The Nano measures 3.1 metres in length and is powered by a 30bhp 632cc two-cylinder engine driving the rear wheels

Click here for more pictures of the Tata Nano

An Indian carmaker has revealed the cheapest new car in the world – the Tata Nano which costs £1,250.

Tata Motors of India released the four-seat city car at the 9th Auto Expo in New Delhi, said to open up new car ownership to millions across the Indian sub-continent.

Company chairman Ratan Tata, who is also the only bidder left for the Jaguar and Land Rover brands, finally took the covers off the car dubbed the ‘lakh-car’ – a lakh is 100,000 rupees.

The Nano measures 3.1 metres in length, is powered by a 30bhp 632cc two-cylinder engine driving the rear wheels and weighs in at around 600kg, thanks to a body made from sheet metal and plastic.

In order to save costs, the Tata Nano will not come with air conditioning, power steering or electric windows, and features drum brakes.

Mr Tata said: “I observed families riding on two-wheelers – the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby.

“It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.”

Critics have claimed the new Nano has sacrificed quality and safety standards to meet the budget price, but Mr Tata refuted the claims by stating the Nano had exceeded all regulatory requirements.

And countering claims the new Tata Nano will increase pollution levels, a company spokesperson said: “In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The high fuel efficiency also ensures that the car has low carbon dioxide emissions.”

Tata is the only bidder left for Jaguar and Land Rover, and is expected to complete the sale soon.

Asked on how he could reconcile producing the world’s cheapest car alongside a luxury brand such as Jaguar, Mr Tata said: “Toyota created Lexus, Nissan has Infiniti. No one is saying how can BMW handle the Mini? But they’ve made a huge success of it. So why is it impossible?

“It’s amusing and ironic because nearly everyone said it could not be done. Some have been derogatory, some dismissive, yet all are entering this area themselves. It vindicates what we set out to do.”

The Tata Nano will be rolled out across India and could be exported to the UK once production has settled. Higher spec versions are due to follow, including a diesel variant.

Click here for more pictures of the Tata Nano