Cheapest Car In The World

Tata Motors, the company that is currently in talks to buy Jaguar, has unveiled the world's cheapest car.

Called the Tata Nano, it was developed with the intention of being sold for one lakh, or 100,000 rupees ($2,500 or about £1,250) - and it looks like Tata has achieved that goal.

The four-door five-seater Nano could revolutionise transport in developing countries, bearing a slight resemblance to the popular Matiz it could, and initial production will see 250,000 cars being built this year, although the company expects demand to increase to at least a million cars. It is powered by a 33bhp, 624cc rear-mounted engine, which Tata says will be green and economical, giving it around 50mpg and a top speed in the region of 75mph. But to keep the cost down, the Nano will not get air conditioning, electric windows or power steering. Tata expects the car to be bought by families who could normally not have afforded a car.

However, critics of the low-cost motor say that the uptake of millions more motors in India will lead to rising air and noise pollution and clog the roads even further. Other people believe that in order to achieve the price, Tata will have had to sacrifice quality and safety standards. But Ratan Tata, the company chairman, said the Nano would meet the necessary safety standards as well as be the least-polluting car on Indian roads. While it will sell for 100,000 rupees in dealerships, once taxes and other road charges have been applied the Nano will cost slightly more.