Tata unveils the Nano, world's cheapest car

By Rina Chandran

NEW DELHI (Reuters) - Tata Motors Ltd unveiled the world's cheapest car on Thursday, bringing car ownership closer to millions of consumers in emerging markets.

The 4-seater Nano, with an engine around 625cc, will have a dealer price of 100,000 rupees ($2,500) -- about half the cost of the cheapest car on today's market, a 25-year old model from rival Maruti Suzuki.

The Nano will go on sale later this year, the company said.

"Let me assure you and our critics the car we have designed will meet all safety norms and all foreign environmental criteria," Chairman Ratan Tata said as he proudly unveiled what had been dubbed the "People's Car" at the Auto Expo in New Delhi.

The compact but curvy Nano stands in sharp contrast to the luxury Jaguar and Land Rover brands that Tata is negotiating to acquire from Ford Motor Co.

Hundreds of people crowded into the pavilion to see the long-awaited launch, standing on chairs to get the best view as Tata introduced and then drove the car onto the stage in a media circus more worthy of a pop concert or an Oscar ceremony.

Tata planned the car years ago as a safer and affordable alternative for the millions who often ferry families of four, plus baggage, on motorbikes and scooters.

"It's a dream come true," Ashok Singh, a constable with the Delhi Police, said at the show. "I look forward to buying that car. My wife will be really happy."