Tata Nano launched

BBC reports: [edited]

Tata Motors has unveiled the world's cheapest motor car at India's biggest car show in the capital, Delhi. The vehicle, called the Tata Nano, will sell for 100,000 rupees (£1,277) and enable those in developing countries to move to four wheels.

The four-door five-seater car, which goes on sale later this year, has a 33bhp, 624cc, engine at the rear. It has no air conditioning, no electric windows and no power steering, but two deluxe models will be on offer.

Tata will initially make about 250,000 Nanos and expects eventual annual demand of one million cars. The Nano release comes as India's domestic car market is predicted to soar in the coming years on the back of the country's fast-growing economy and increased consumer wealth.

Indian car sales are predicted to more than quadruple to $145bn by 2016. Company chairman Ratan Tata said the launch of the Nano was a landmark in the history of transportation. He said the car was "a safe, affordable and all-weather transport - a people's car, designed to meet all safety standards and emissions laws and accessible to all".

Environmental critics have said that the car will lead to mounting air and pollution problems on India's already clogged roads.
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