The Nano comes with a rear-mounted 624cc 33hp engine.

The basic Nano is minus electric windows, air conditioning or power steering. No need to look for an iPod docking station! The four-door Nano seats 5 small adults. Reports are that two luxury models will have some options.

Mr. Tata said they made the Nano because he wanted “a safe, affordable and all-weather transport, a people's car, designed to meet all safety standards and emissions laws and accessible to all.” He also said it was “a car that most people said could not be manufactured at that price."

Mr. Tata promised this "people's car" five years ago. He said the media misquoted him over a promise to produce the vehicle for $2,500. Yet once the purported promise became public he honored it.

The cars market is intended for Indians driving motorcycles, allowing them to trade up for four wheels. Permitting millions of working class Indian's to own a car.

At this time India has a vehicle density of just seven cars per thousand people, compared with 477 in the U.S. and some green advocates predict problems with elevated CO2 emissions and environmentalists believe, with a price tag half that of India's existing economical car, will pressure their crumpling roadways.

Tata Motors is taking the car business very seriously.

Tata will be manufacturing the Air Car developed by ex-Formula One engineer Guy Negre. An agreement has been signed between Tata Motors and MDI.

Tata will be supporting further development and refinement of the technology, and its application and licensing for India.

MDI is a private company located near Nice in Southern France where Mr. Guy Negre and Mr. Cyril, together with a technical team, have developed this new engine technology with the purpose of economizing energy at competitive costs.

MDI claims it has a series of engines and vehicles. MDI says the cars can reach a speed of 68 mph, with a range exceeding 125 miles or 8 hours of travel.

The source of power for the car is compressed air stored in tanks. The expansion of this air pushes the pistons and creates movement.