Tata World’s Cheapest Car $2,500

By: Bill Waters
07/07/2010 12:53 PM ET

World’s cheapest car goes for $2,500 brand new. It’s called the Tata Nano, known as the cheapest car in the world, was specifically designed for India. It’s India’s version of a compact car and is the world’s cheapest vehicle.

Tata has claimed that it will sell an EV version in Europe in a couple of years and U.S. sales may follow. The company admits that the Nano would require a bigger engine and stouter crash protection if it’s ever to be sold here. It seats four people, has four doors, and can generate about 33 hp.

The Nano makes just 65 lb-ft of torque at 3000, which is why there’s a specification called “gradability” on the company’s website referring to the little car’s ability to climb hills (30 percent max, apparently). Notably, the engine is at least fuel-injected, and it offers 52/62 mpg (city/hwy). However, safety could become an issue because it doesn’t have an airbag, every pillar is tin-can thin, and there’s zero excess space for crush zone.

The car weighs 1,323 pounds and has a four-wheel independent suspension. The interior is spartan, but in comparison to what the Nano is meant to replace, it’s luxurious. Keep in mind that in India’s congested city centers, you’re lucky to drive faster than 25 miles per hour and arrive at your destination with both kneecaps intact. Aside from being very small, it’s probably made for shorter distances, but it’s only $2,500 to get one of these new cars.

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