British Company Confirms World's Cheapest Car

It appears that Tata Nano's nickname of "the world's cheapest car" will be lost very soon as a British company is currently studying the possibility to build a $2,200 model. According to inautonews.com, the resulting vehicle will be a 340 cc two seat petrol version that will be priced $487 less than the Nano, which is currently offered for $2,687.

Obviously, there are a lot of things to be clarified before starting production but the British company, EcoCa, said that an Indian company is very likely to join the project and contribute to its development.

“We have identified India as a lucrative market to achieve our price target of $2,200 which will also help us earn healthy profit margins,” Karman M. Naghdi, MD of EcoCa Ltd, said in a statement.

At this time, there's no information on the Indian company to join forces with EcoCa but sources are indicating that Mahindra & Mahindra are the ones likely to be part of the project. However, the Indian manufacturer refuses to comment on the reports, so more information are expected in the near future.

“We keep getting such proposals for technology and product development which we routinely evaluate,” an M&M official said.

Details are still in the early stage, but rumors are claiming that the car will be inspired by Volkswagen's Beetle and will employ an automatic transmission. Furthermore, a convertible roof is also possible in order to achieve a total weight of 330 kilos. Fuel consumption rating will go around 3.7 l/100km (63.5 mpg) while maximum speed will be around 70 km/h.