The Nano, dubbed by Tata as ‘the people’s car’ will be priced at £1,300. The car will be sold in India first but will head to South America, South-East Asia and Africa.
It’s possible the Nano could reach Europe but the £1,300 starting price would be likely to rise in order to meet European safety standards.
Ratan Tata, chairman of the Tata Group, 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.”
The Nano is built to meet Indian safety standards and is powered by a rear-wheel drive, all-aluminium, two-cylinder, 623cc, 31bhp petrol engine capable of 65mph.
A deluxe model is planned which will feature air-conditioning and more luxurious interiors. These will cost more and Tata hints that profit will only come from the more expensive variants.