World's cheapest car goes on show

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 or $2,500 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 price will be slightly more than the 100,000 once tax and other costs are taken into consideration. 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.