Nano, the smallest and cheapest car unveiled at the Auto Expo on Thursday. Ratan Tatta, Chairman of Tata group called it as a people’s car. The “People’s Car” is the cheapest in the world at 100,000 rupees (£1,300) – the same price as the DVD player in a Lexus.

The aluminium shell contains a rear-mounted 33bhp two-cylinder petrol engine and weighs about half a tone. The standard version comes with the vital features: brakes, a four-gear manual transmission, seatbelts, locking, wind-down windows and a steering wheel. A small boot could store a duffel bag. It lacks a passenger-side mirror and has one windscreen wiper. The deluxe version will have air-conditioning while extras such as a radio and an airbag could be added.

The car will meet all current safety norms and all emission criteria. The pollution it will cause will be lower than 2 wheelers. Nano is smaller than a Maruti 800, but has 21 per cent more volume or space inside than the 800.The dealer price of the car will be Rs 1 lakh, plus value added tax VAT plus transport charges. The car's dashboard features just a speedometer, fuel gauge, and oil light. The car does not have reclining seats or radio. The shock absorbers are basic.

One of Nano's three versions, deluxe, will come with air conditioning while extras such as a radio and an airbag could be added , but will have no power steering. It will have front disk and rear drum brakes. The company claims mileage of 23 km per litre. The Nano, designed with a family in mind, has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Four doors with high seating position make ingress and egress easy. Yet with a length of 3.1 metres, width of 1.5 metres and height of 1.6 metres, with adequate ground clearance, it can effortlessly maneuver on busy roads in cities as well as in rural areas Its mono volume design, with wheels at the corners and the power train at the rear, enables it to uniquely combine both space and maneuverability, which will set a new benchmark among small cars.

When launched, the car will be available in three versions. All versions will offer a wide range of body colours and other accessories so that the car can be customized to an individual's preferences. Nano has a rear wheel drive, all aluminium, two cylinder, 624 cc, 33 bhp, multi point fuel injection petrol engine. This is the first time that a two cylinder gasoline engine is being used in a car with single balancer shaft. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency.

Tata plans to make 250,00 initially and expects to sell 1 million annually. The car will be sold first in India from the second half of this year. The Indian auto market is very hot, as growth lifts incomes and wealth in the country. It is expected to be made available in Latin America, South East Asia and Africa. It could find its way to Europe in a few years but enhancements to meet higher standards would raise the price considerably.

The car is the culmination of five years’ research and input from across the world, including Italy and Germany. But it was designed and made in India, defying expectations that a company best known for its elephantine lorries could manufacture a cutting-edge passenger product.

A team of 500 engineers worked on the car, to be produced at a plant in West Bengal. In an effort to allay fears that something so cheap could not be safe, Mr. Tata said that it had passed a full-frontal crash test in India and was designed to sustain further impact testing.

Tata cut costs by minimizing components, particularly steel, and taking advantage of India’s low production costs under European standards. Because of its size, it uses less sheet metal, has a smaller and lighter engine than other cars, smaller tube-less tyres and a no-frills interior.

Top speed: 65mph
Engine: rear-mounted 623cc, 33bhp multipoint fuel injection engine
Transmission: continuous variable transmission
Fuel consumption: 50mpg
Body: sheet metal with crumple zones
Extras: air conditioning and airbag optional. No radio, no power steering, one windscreen wiper