The world’s smallest and cheapest car, produced by Tata Motors (NYSE: TTM), went on sale in India last week.
The tiny vehicle, with a price tag of Rs 1 lakh ($1,985) is significantly cheaper than any other entry level vehicle in India and is expected to hugely increase drivership, congestion and fuel use in the developing nation.
However, the vehicle gets remarkable gas mileage, according to company figures that state 21.97 kilometers per liter (51.7 miles per gallon) city and 25.97 km/L (61.1 mpg) highway.
The vehicle was unveiled in January 2008, but delivery was delayed six months when the company was forced to abandon construction of a $338 million factory in West Bengal due to a land dispute. The factory was roughly 90% complete at the time.
Tata started over, building a new $453 million factory that is not yet complete.
And upgraded version of the vehicle is planned for release in Europe in 2011 at an expected cost of less than $5000. That model is expected to achieve 67 mpg fuel efficiency.
Tata previously announced plans to produce an electric version of the Nano in Norway in collaboration with with Toronto-based Electrovaya (EFL:TSX) and Norwegian company Miljø Grenland/Innovasjo.
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