The initial buzz that the Tata Nano had been surrounded with when initially launched has toned down a lot, but there is no question about it being the cheapest car probably worldwide. The twin cylinder 624cc petrol engine has been faring well in Indian markets but the diesel motor has been in the anvil for quite some time now.

Bosch Diesel Systems has been collaborating with Tata Motors for developing a twin cylinder 800cc diesel engine in the last two years and finally based on sources for Bosch, it looks like the diesel Nano is set for launch this year. Thus, the diesel segment will get its most affordable car and it is also expected to be economical to operate. Critical to this vehicles’ success would be its pricing, but Tata has always been known to deliver on this aspect.