NEW DELHI: Tata Group unveiled its dream People's Car, the world's cheapest at Rs one lakh, that put India firmly on the global automotive map and simultaneously silenced critics and rivals for good.Introducing the car named 'Nano' to the world at the Auto Expo, Group Chairman Ratan Tata said the petrol driven vehicle boasts of a fuel economy of over 20 km a litre.

The car, which comes with a 623cc engine, meets Bharat Stage-III emission norms and has passed frontal crash test, he said while allaying safety and environmental concerns. The 3.1-metre long and 1.5-metre wide car will be 80 per cent of Maruti Suzuki's M800 in length, but 21 per cent more spacious.Rivals like Suzuki had questioned the project, saying at that price it was impossible to come out with a complete product.

The car has also prompted other global companies such as Renault-Nissan and Ford Motor to announce similar ventures."Since we started the project four years back, there has been a steep increase in input cost, but a promise is a promise," said Tata, a qualified architect, who conceived the car that seeks to put two-wheeler riders on four wheels.

"The vision was to give the people of India a car which is not produced anywhere else in the world," Tata said.The base or the standard version will be priced at Rs one lakh (ex-showroom), but would attract VAT and transportation cost. The model, which would be commercially available in the second half of this year, will also have two deluxe variants.Nano will be rolled out from Tata Motor's plant at Singur in West Bengal, where work is in full swing after floods and protests by land owners last year.

The plant will have a capacity of 250,000 units and is expandable to 350,000 units. Commenting on reasons for choosing the name 'Nano', Tata said the car was about high technology and small size. He credited the development of Nano to Tata Motors' engineers, and said it was the capability and commitment to innovate that realised the dream project.

In fact, Tata Motors has applied for 34 patents for aggregate features, such as the two cylinder gasoline with single balancer shaft. Asked if the company was looking to export the car as well, Tata said: "The first two-three years our focus will be India and see the Indian market appropriately addressed." He, however did not rule out overseas launch of the car and markets in Africa, Latin America and South-East Asia were possible targets.

On whether Tata Motors would set up manufacturing units in those markets or would Nano be exported from India, he said: "It will depend on various factors such as tariffs and other constraints that we face at that moment." Tata also said Tata Motors could leverage on its partnership with Fiat for marketing the product where the Italian partner had strong presence. -PTIAsked if such a low-cost car will be profitable, Tata said: "Please be assured that the introduction of the car and its variant will be a profitable proposition."

Hinting that the Rs one lakh tag may not be forever, Tata said: "I have never said the price would not rise and the industry is facing cost escalation in many areas." Making a special mention of the support of West Bengal government, Tata said it had helped enormously in the project. "The state government has been supportive throughout and has been a government which one would like to stand with during difficult times," Tata said.