Named the People's Car, this small automobile will sell for about $2,500, which is less than half the cost of its closest competitor. The People's Car has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc, multi point fuel injection petrol engine. The Nano is said to be capable of almost 60 miles per gallon of gas and will create little more pollution than a motorbike.

What is amazing is that the engineers were able to beat the competition in price by such a wide margin. I assume that automakers everywhere are watching progress in the project, while some manufacturers are actively vying for an early spot in the low-cost car market. I wonder if this will ever make it over here like the Yugo. What would the result be if one of the US automakers introduced such a car? How about calling it the Gnat?

Labels: Effiency, money saving tip, Tata