Keeping to their commitment to offer the world’s cheapest car, Tata Motors Head Honcho Ratan Tata drove the Tata Nano onto the stage and announced that despite rising commodity prices and lower profit margins, the company will keep to its earlier promise of offering this car at Rs. 1 lakh. Tata Nano was launched in 2009 as the world’s cheapest car and despite facing flak over certain issues of engine fire and parts replacements, the company is still confident that the car will be profitable for the company.

Tata refuted claims of the Nano being highly pollutant and said that Nano has been designed to meet all safety requirements and emission regulations. The new Nano will have 33 hp and a two cylinder gas engine at the rear. The base model will be minus luxury trimmings and will be devoid of air-conditioning, power windows, and power steering. Tata also refuted pollution concerns saying that Nano was designed to meet all standard emission laws and are also seeking to bring out Nano diesel variant in the not so distant future.