The world's cheapest motor car has been unveiled at a leading car show in India.

Car maker Tata Motors said the car, called the Tata Nano, will sell for just 100,000 rupees or $2,500.

The price tag will bring car ownership into the reach of millions of people across India and the rest of the globe.

Tata Nano, a diminutive, compact four-door vehicle, has a rear-wheel drive, all-aluminium, two-cylinder, 623 cc, 33bhp, multi-point fuel injection petrol engine.

It is expected that the car, which has been dubbed the "People's Car", will go on sale in India later this year.

According to Tata Motors, the vehicle will be the least polluting car in India and has met all the necessary safety standards.

Ratan Tata, Tata Motors: "We are happy to present the 'People's Car' to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility."

Tata Nano, which weighs about half a tonne, can average about 50 miles to the gallon, or 20 kilometres to the litre.

Speaking at the unveiling ceremony at the 9th Auto Expo in New Delhi, Tata Motors chairman Ratan Tata said: "I observed families riding on two-wheelers - the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby.

"It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.

"Tata Motors' engineers and designers gave their all for about four years to realise this goal.

"Today, we indeed have a 'People's Car' which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions.

"We are happy to present the 'People's Car' to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility."

Tata Nano has a length of 3.1 metres, a width of 1.5 metres and a height of 1.6 metres.

The car has no air conditioning, no central locking and no electric windows, while features such as radios and sun visors are available at an additional cost.

Mumbai-based Tata Motors is India's largest car maker, with revenues of $7.2bn in fiscal 2007.

The article Tata announces world's cheapest car originally appeared on 999 Today