World's Cheapest Car Unveiled, Costs $2,500

Nano will also have a 30-litre fuel tank and four-speed manual gearshift. The car will come with air conditioning, but will have no power steering.

The car comes with front disk and rear drum brakes. The company claims mileage of 20 kmpl in city and 26 kmpl on highway.

The base model of Nano is expected to cost Rs 1 Lakh excluding levies.
”Since, promise is a promise the standard dealer version will cost Rs 1 lakh,” said Tata Sons Chairman Ratan Tata.

He also said that that the car is eight per cent smaller bumper to bumper, than the Maruti 800 but at the same time 21 per cent larger in its interiors and can sit up to four people.

It's official folks, here comes the world's cheapest car - The Tata Nano. The car was unveiled today at India's largest automotive show and has received much attention. The car is powered by a 2-cylinder, 33 horsepower motor, and has a top speed right around 60 MPH. It has four doors, seats five, has seatbelts but no radio, air conditioning, or airbags, and is basically a deathtrap. However, in a country where "two-wheeled scooters...are often crammed with entire families", it's definitely a step up in the safety department. And for $2,500 it's hard to beat. However I would recommend they change the name if they plan on selling it over here, because where I'm from Tata Nano is slang for a really, really small breast.
A couple more pictures and a video of the car after the jump.